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9 March 2023
3 Mexican Nationals Charged in Federal Criminal Complaint Alleging They Possessed 1 Million Fentanyl Pills in Their CarRead the Press Release
LOS ANGELES – Three Mexican men arrested in El Monte on Wednesday for allegedly possessing 1 million fentanyl pills have been charged in a criminal complaint with violating federal drug laws, the Justice Department announced today.
The complaint filed today charges the following defendants – each of whom is from Sinaloa, Mexico – with one count of possession with intent to distribute controlled substances:
- Florencio Camacho Allan, 28;
- Gerardo Gaixola-Patino, 29; and
- Alex Valdez Oroz, 25.
The defendants are expected to make their initial appearances this afternoon in United States District Court in downtown Los Angeles.
According to an affidavit filed with the complaint, the defendants met with two buyers at a restaurant in El Segundo on Tuesday to discuss a 10,000-fentanyl-pill sample sale which would be followed by a deal for 1 million fentanyl pills. During the meeting, Allan and Gaixola met with the buyers while Oroz remained in the car, a white Volkswagen Jetta, the affidavit states.
After the meeting, Allan and Gaixola went to the parking lot where they allegedly sold 10,000 fentanyl pills to the buyers for $7,500. The defendants then left the restaurant under the surveillance of law enforcement.
Later that day, Allan allegedly confirmed with one of the buyers that they were interested in doing the 1 million pill deal later that day and showed one buyer the pills, which appeared to be in the Jetta’s trunk, via a WhatsApp video call.
Upon receiving information about the pills’ location, law enforcement conducted a traffic stop on the Jetta, which was stationed in a lot at an El Monte hotel, searched the car, and allegedly found approximately 1 million fentanyl pills in the car’s body and trunk. Law enforcement then arrested the three defendants on Wednesday morning.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, each defendant would face a statutory maximum sentence of life in federal prison.
The Drug Enforcement Administration is investigating this matter as part of the High Intensity Drug Trafficking Area (HIDTA) program with Homeland Security Investigations, the Hawthorne Police Department, the Fullerton Police Department, the El Monte Police Department, and the California National Guard providing assistance.
Assistant United States Attorneys Lyndsi C. Allsop of the Violent and Organized Crime Section and K. Afia Bondero of the General Crimes Section are prosecuting this case.
26-Year-Old Fraudster Sentenced to 14 Years in Prison Following Boasts About Criminal ConductRead the Press Release
A young man who turned to fraud to fund the lavish lifestyle he craved was sentenced today to 14 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
J. Nicholas Bryant, 26, of Slaton, Texas, pleaded guilty to wire fraud in November 2022. He was sentenced today by U.S. District Judge James Wesley Hendrix, who handed down a sentence five years longer than the guideline range based on the defendant’s cavalier attitude and the egregious nature of the scheme.
Mr. Bryant engaged in various wire fraud schemes to defraud at least 56 unsuspecting individuals and small businesses during an 18-month crime spree that spanned multiple states.
The fruits of his crimes brought him luxury goods and services – including private jet rides, private yacht excursions, and extravagant meals complete with champagne and steak.
In many instances, Mr. Bryant manipulated online payment platforms like QuickBooks and Veem to make it appear that payments were forthcoming. Knowing that the software would generate payment confirmations immediately but would take several days to notify victims of cancelled payments, Mr. Bryant satisfied vendors and business owners that payments were forthcoming when due, he admitted in plea papers. The payments never funded.
In all, he defrauded and attempted to defraud victims of more than $3.5 million, and successfully racked up nearly $1.2 million in actual losses to the victims, prosecutors said at Thursday’s sentencing hearing.
In one fraud scheme, Mr. Bryant convinced small businesses to front money and equipment to reopen an oil well. In the process, he exploited the trust of former colleagues, friends, and acquaintances who worked in the West Texas oil and gas industry, where business is often conducted with a handshake, the government said. In several others, he defrauded small business owners who were eager for business during the COVID-19 pandemic.
Mr. Bryant did so for pretention, ostentation, and Instagram moments, the government noted at sentencing. The government also observed that rather than expressing remorse for targeting companies that were struggling to survive in the midst of a pandemic that had gutted their business models, Mr. Bryant reveled in his notoriety, bragging about his crimes to media outlets and to his friends.
Judge Hendrix determined that Mr. Bryant had failed to accept responsibility for his crimes and revoked the credit he was set to receive based on acceptance of responsibility. Judge Hendrix also ordered Mr. Bryant to pay $1,185,691.38 in restitution to his victims.
The U.S. Secret Service’s Lubbock Resident Office, the Texas Department of Public Safety’s Criminal Investigations Division, the Lubbock Police Department, the Brazos County Sheriff’s Office, the Brownwood Police Department, Texas Parks & Wildlife of Coleman County, the Lafayette Parish Sheriff’s Office in Louisiana, and the Cody Police Department in Wyoming conducted the investigation. Assistant U.S. Attorney Ann Howey prosecuted the case with the help of Assistant U.S. Attorney Beverly Chapman.
8 March 2023
Woman Sentenced for $5.8 Million COVID-19 Loan Fraud ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A Stockbridge, Georgia, woman was sentenced today to 51 months in prison for conspiring with others to submit millions of dollars in fraudulent disaster-related loan applications in connection with the COVID-19 pandemic.
According to court documents, Nikki Mitchum, 45, participated in a conspiracy to obtain disaster-related loan benefits in the form of Small Business Administration (SBA) sponsored Economic Injury Disaster loans (EIDL) and Paycheck Protection Program (PPP) loans. These programs, initiated and expanded under the Cares Act, are designed to provide support for small businesses for expenses related to the COVID-19 pandemic. Nikki Mitchum and her co-conspirators, including Malik Mitchum, 27, and Jenna Mitchum, 27, of Hampton, submitted fraudulent claims for government benefits in the name of businesses that they falsely represented were struggling during the COVID-19 pandemic.
Between March 2020 and May 2021, approximately 13 fraudulent applications for pandemic-related loan benefits were submitted using Nikki Mitchum’s information that contained false statements and misrepresentations about their income, employment, and claimed business entities. Nikki Mitchum is further linked to four other fraudulent loan applications by the IP address used to submit the applications. Finally, Nikki Mitchum is connected with 17 fraudulent loan applications submitted by other co-conspirators who paid kickbacks in an approximate amount of $204,000 to the companies owned and operated by Nikki Mitchum.
Malik and Jenna Mitchum previously pleaded guilty and were linked to more than $5.5 million in intended loss and caused approximately $1.4 million in actual loss to the United States and participating financial institutions. Malik Mitchum was sentenced to 51 months in prison and Jenna Mitchum was sentenced to 48 months in prison for their respective roles in the conspiracy. Nikki Mitchum has agreed to pay approximately $1.8 million in restitution to the United States for actual losses from her role in the conspiracy and is linked with intended fraud loss of more than $5.8 million.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
This case was investigated by the Newport News Financial Crimes Task Force, a partnership between local, state and federal law enforcement to combat financial crimes on the Virginia Peninsula.
Assistant U.S. Attorney D. Mack Coleman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-85 and 4:22-cr-47.
Wolf Point man suspected in convenience store robbery, carjackings in Billings and Cascade County arraigned on chargesRead the Press Release
GREAT FALLS — A Wolf Point man suspected in a convenience store robbery in Billings and armed carjackings in Billings and Cascade County appeared for arraignment on March 7 on multiple charges, U.S. Attorney Jesse Laslovich said today.
Santana Cruz Ledeau, 26, pleaded not guilty to an indictment filed on March 2 charging him with robbery affecting commerce, two counts of carjacking, attempted carjacking and two counts of using, carrying and brandishing a firearm in furtherance of a crime of violence. If convicted of the most serious crime, Ledeau faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the robbery charge and a mandatory minimum seven years to life in prison, consecutive to any other sentence, a $250,000 fine and three years of release on the firearm charge.
U.S. Magistrate Judge John T. Johnston presided. Ledeau was detained pending further proceedings.
The indictment alleges that on June 11, 2022, Ledeau robbed On the Run, a gas station convenience store in Billings, and threatened an employee, identified as John Doe #1. The indictment further alleges that on Sept. 30, 2022 near Billings, Ledeau brandished a firearm while carjacking a vehicle from a victim identified as Jane Doe. In addition, Ledeau is accused of using a firearm while carjacking a vehicle from a victim identified as John Doe #3 on Oct. 17, 2022 near Cascade, in Cascade County, and attempting to carjack a vehicle from a victim identified as John Doe #2 near Ulm, in Cascade County, also on Oct. 17, 2022.
An indictment is merely an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Assistant U.S. Attorneys Jessica A. Betley and Jeffrey K. Starnes are prosecuting the case, which was investigated by the Great Falls Police Department, Cascade County Sheriff’s Office, Cascade County Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Yellowstone County Sheriff’s Office, Yellowstone County Attorney’s Office, Billings Police Department, Musselshell County Sheriff’s Office and Montana Highway Patrol.
PACER case reference. 23-23.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl
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Virginia Beach Naval Nurse Sentenced for Attempted Coercion of a MinorRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 10 years in prison for attempting to coerce and entice a 14-year-old minor to have sex with him.
According to court documents, Curtis Wade Spencer, 44, was on active duty in the Navy Nurse Corps. On or about July 27, 2022, Spencer contacted who he believed to be a 14-year-old minor online and began to have sexually explicit conversations with the minor. Spencer also sent videos and photographs of his genitals to the purported minor. On August 17, 2022, Spencer left his workplace at the Langley Air Force Base Hospital and traveled to a prearranged meeting spot expecting to meet the minor for sex. Instead, Spencer was arrested as the 14-year-old minor he hoped to meet was an undercover agent.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Mack Hickman, Special Agent in Charge of the of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney.
Special Assistant U.S. Attorney Victoria Liu prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-117.
Utah Pedestrian Struck by Vehicle during Alleged Drug Trafficker’s Attempt to Flee from PoliceRead the Press Release
Salt Lake City, Utah – A federal grand jury in Utah returned an indictment today charging a foreign national with possession of methamphetamine, heroin, and fentanyl with intent to distribute.
According to the complaint, on March 1, 2023, detectives with the Salt Lake Area Metro Gang Unit (MGU) witnessed Marcos Adrian Garcia Lugo, 21, speeding in the area of 3100 South Bangerter Highway in Salt Lake County, Utah. Detectives attempted to stop the vehicle with lights and sirens, but the driver fled, and detectives terminated their pursuit. Moments later, an MGU detective who is also an ATF task force officer observed Lugo make a sharp turn at 3600 West and 3150 South, where he slammed into another car that struck a pedestrian. The detective watched Lugo exit the driver’s seat and take off on foot away from the crash. Along Lugo’s flight path, detectives found a softball-sized amount of field-tested-positive methamphetamine and a stolen Smith and Wesson Shield 9mm firearm. Lugo was later arrested at a residence north of the crash. In Lugo’s vehicle, detectives also found 3.5 pounds of field-tested-positive methamphetamine, a half-pound of heroin, approximately 3,000 fentanyl pills, and $2,557.00 in cash.
Lugo is charged with possession of methamphetamine with intent to distribute; possession of heroin with intent to distribute, possession of fentanyl with intent to distribute, and alien in possession of a firearm. The defendant is scheduled for his arraignment hearing March 9, 2023, at 9:15 a.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in Salt Lake City, Utah.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
The case is being investigated jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Drug Enforcement Administration (DEA) and the Salt Lake Area Metro Gang Unit.
Assistant U.S. Attorney, Stephen L. Nelson, for the District of Utah is prosecuting the case.
Learn more about the danger of illicit fentanyl at https://www.dea.gov/fentanylawareness or www.dea.gov/onepill.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Settles with United Alloys and Steel Corporation for the Release of Mercury in the Village of Rye BrookRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Lisa F. Garcia, the Regional Administrator for the U.S. Environmental Protection Agency (“EPA”), Region 2, announced today that the United States has filed a civil lawsuit against UNITED ALLOYS AND STEEL CORPORATION (“Defendant”) and has simultaneously filed a consent decree settling the lawsuit. In the complaint, brought pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) – commonly known as the Superfund statute – the United States alleged that the Defendant arranged for the disposal or treatment of mercury by Port Refinery, Inc. (“Port Refinery”), a mercury refining business in the Village of Rye Brook, New York, which led to releases of mercury into the environment. The consent decree provides for a payment of $260,000 by the Defendant for costs incurred by EPA in conducting clean-up activities at the Port Refinery site (the “Site”).
U.S. Attorney Damian Williams said: “United Alloys and Steel Corporation played a part in causing contamination in a residential community by delivering 17,253 pounds of scrap mercury for re-smelting purposes to Port Refinery, and it is paying a share of the costs that EPA had to incur to clean up this site. The parties responsible for this environmental contamination are now being held accountable.”
EPA Regional Administrator Lisa F. Garcia said: “This company sent scrap mercury to the site operator, which handled mercury in a way that resulted in it being released into the environment and contaminating homes. Even relatively small amounts of mercury can cause serious health problems. EPA has addressed mercury vapors in people’s homes at the site, and now we are holding this company accountable for its part in putting people at risk.”
As alleged in the complaint filed today in White Plains federal District Court:
The Defendant arranged for Port Refinery’s treatment or disposal of scrap mercury at the Site. Port Refinery’s treatment and processing of mercury sent by the Defendant and other parties led to extensive releases of mercury into the environment, necessitating two separate clean-up actions by EPA. In connection with the second clean-up, EPA incurred costs at the Site for investigative and removal activities, including, among other things, excavating and disposing of more than 9,300 tons of mercury-contaminated soil from the Site.
In the consent decree filed today, the Defendant admits and accepts responsibility for the following:
- EPA has determined that from the 1970s through the early 1990s, Port Refinery engaged in, among other things, the business of mercury reclaiming, refining, and processing;
- Port Refinery operated in the Village of Rye Brook out of a two-story garage bordered by private residences on its south, east, and west sides;
- EPA has determined that Port Refinery took virtually no environmental precautions or safety measures during its mercury refinement process;
- EPA has determined that Port Refinery released a significant amount of mercury into the environment, contaminating the Site;
- EPA has determined that mercury from the Defendants’ mercury-containing products was comingled at the Site and contributed to the mercury released into the environment; and
- United Alloys and Steel Corporation delivered 17,253 pounds of scrap mercury for re-smelting purposes to Port Refinery during its period of operations.
* * *
Pursuant to the consent decree, the Defendant will pay a total of $260,000 in costs incurred by EPA. The payment amount was based on the Defendant’s documented inability to pay its full share of the costs incurred.
This lawsuit is the United States’ eighth lawsuit against responsible parties to recover clean-up costs for the second clean-up at the Site. With this settlement, the United States has recovered a total of $3,079,392 from responsible parties.
The consent decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval to provide public notice and to afford members of the public the opportunity to comment on the consent decree.
Mr. Williams thanked the assigned EPA Region 2 Assistant Regional Counsel for his critical work on this matter.
This case is being handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorney Anthony J. Sun is in charge of the case.
United States Obtains Warrant for Seizure of Airplane Owned by Russian Oil Company Valued at over $25 MillionRead the Press Release
The United States of America obtained a warrant to seize a Boeing 737-7JU aircraft owned by PJSC Rosneft Oil Company (Rosneft), a Russian integrated energy company headquartered in Moscow, Russia headed by Igor Ivanovich Sechin. The United States District Court for the Eastern District of New York authorized the seizure, finding probable cause that the Boeing aircraft was subject to seizure based on violations of the Export Control Reform Act (ECRA) and the recent sanctions issued against Russia.
Breon Peace, United States Attorney for the Eastern District of New York, Task Force KleptoCapture Director Andrew C. Adams, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan Carson, Special Agent-in-Charge, US Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office (BIS), announced the unsealing of the seizure warrant.
“Today’s enforcement action demonstrates there is a price to pay for Russian companies and oligarchs that flagrantly evade sanctions that the United States has imposed in response to the unjustified war against the people of the Ukraine,” stated United States Attorney Peace. “This Office, together with our law enforcement partners, will relentlessly pursue the proceeds of unlawful conduct, be it on land, in the air, or at sea.”
Mr. Peace thanked the Justice Department’s National Security Division, Office of International Affairs, and the U.S. Treasury Department’s Office of Foreign Assets Control for their assistance in the investigation.
“By violating Commerce Department export controls, Rosneft has converted its jet into contraband. Today’s unsealing provides a roadmap to those in the private sector and to our foreign partners who are committed to upholding the rule of law – and to stifling the Russian state’s efforts to wage an illegal war – who will refuse to provide refuge and support to the operators of this aircraft as the United States pursues its seizure and forfeiture in aid of Ukraine,” said Task Force KleptoCapture Director Adams.
“Our enforcement action today makes clear that the U.S. Government will not tolerate Russian companies and oligarchs evading BIS export controls in order to support Russia’s war effort,” stated BIS Special Agent-in-Charge Carson. “BIS’s Office of Export Enforcement, working with our Kleptocapture partners, will continue to aggressively investigate export violations and bring violators to justice.”
According to the seizure warrant and affidavit unsealed today:
In response to Russia’s invasion of Ukraine, in February 2022, the U.S. Department of Commerce’s Bureau of Industry and Security issued sanctions against Russia. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception for aircraft owned or controlled, or under charter or lease, by Russia and/or Russian nationals. In this case, these sanctions bar a plane that was built or manufactured in the United States from entering Russia without a valid license.
Since February 2022, when the Russia sanctions went into effect, the plane has left and reentered Russia at least seven times, in violation of federal law. The Boeing jet, which was manufactured in the United States, was last in the United States in March 2014, and is currently believed to be in, or traveling to or from, Russia.
Rosneft—which is headed by sanctioned oligarch Igor Ivanovich Sechin—owns the Boeing aircraft. The Boeing was flown from a foreign country to Russia in violation of the ECRA and regulations issued thereunder, including the Russia sanctions. The Boeing (pictured below) is believed to be valued at over $25 million.
The government’s case is being investigated by the Eastern District of New York’s International Narcotics and Money Laundering Section and the Criminal Division’s Money Laundering and Asset Recovery Section. Assistant United States Attorneys Francisco J. Navarro, Tara B. McGrath and Madeline M. O’Connor are investigating the case in partnership with Trial Attorney Barbara Levy.
The seizure action is being coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and run out of the Office of the Deputy Attorney General, the task force will continue to leverage all the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
E.D.N.Y. Docket No. 23-MJ-174
United States Obtains Warrant for Seizure of Airplane Owned by Russian Oil Company Valued at More Than $25 MillionRead the Press Release
The United States today announced the unsealing of a warrant for the seizure of a Boeing 737-7JU aircraft owned by PJSC Rosneft Oil Company (Rosneft), a Russian integrated energy company headquartered in Moscow, Russia, headed by Igor Ivanovich Sechin. The U.S. District Court for the Eastern District of New York authorized the seizure, finding probable cause that the Boeing aircraft was subject to seizure based on violations of the Export Control Reform Act (ECRA) and the recent sanctions issued against Russia.
According to court documents, in response to Russia’s invasion of Ukraine, in February 2022, the U.S. Department of Commerce’s Bureau of Industry and Security issued sanctions against Russia. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception for aircraft owned or controlled, or under charter or lease, by Russia and/or Russian nationals. In this case, these sanctions bar a plane that was built or manufactured in the United States from entering Russia without a valid license.
Specifically, since February 2022, when the export controls that bar the United States-built plane’s re-entry to Russia went into effect, the plane has left and reentered Russia at least seven times, in violation of federal law. The Boeing jet, which was manufactured in the United States, was last in the United States in March 2014, and is currently believed to be in, or traveling to or from, Russia.
Rosneft – which is headed by Igor Ivanovich Sechin – owns the Boeing aircraft. The Boeing was flown from a foreign country to Russia in violation of the ECRA and regulations issued thereunder, including the Russia sanctions. The Boeing (pictured below) is believed to be worth approximately $25 million.
The United States today announced the unsealing of a warrant for the seizure of a Boeing 737-7JU aircraft owned by PJSC Rosneft Oil Company (Rosneft), a Russian integrated energy company headquartered in Moscow, Russia, headed by Igor Ivanovich Sechin. The U.S. District Court for the Eastern District of New York authorized the seizure, finding probable cause that the Boeing aircraft was subject to seizure based on violations of the Export Control Reform Act (ECRA) and the recent sanctions issued against Russia.
According to court documents, in response to Russia’s invasion of Ukraine, in February 2022, the U.S. Department of Commerce’s Bureau of Industry and Security issued sanctions against Russia. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception for aircraft owned or controlled, or under charter or lease, by Russia and/or Russian nationals.
The FBI and Department of Commerce are investigating the seizure matter. The Justice Department’s Office of International Affairs provided valuable assistance.
The government’s case is being investigated by the Eastern District of New York’s International Narcotics and Money Laundering Section and the Criminal Division’s Money Laundering and Asset Recovery Section. Assistant U.S. Attorney Francisco J. Navarro, Tara B. McGrath and Madeline M. O’Connor, and Trial Attorney Barbara Levy are leading the seizure matter.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
The burden to prove forfeitability in a forfeiture proceeding is upon the government.
Union County Man Convicted of Multiple Armed Robberies and Firearms OffensesRead the Press Release
NEWARK, N.J. – A Union County man was convicted today for participating in a multi-state armed robbery spree that spanned several months, U.S. Attorney Philip R. Sellinger announced.
Vincent Chan-Guillen, 32, was convicted of conspiracy to commit Hobbs Act robbery, conspiracy to use and carry a firearm during a Hobbs Act robbery, three counts of Hobbs Act robbery, one count of attempted Hobbs Act robbery, three counts of brandishing a firearm during a Hobbs Act robbery, and unlawful possession of a firearm by a convicted felon. Chan-Guillen was convicted following a one-week trial before U.S. District Judge Stanley R. Chesler in Newark federal court.
According to court documents and evidence presented at trial:
Chan-Guillen committed nine armed robberies between August 2018 and November 2018, five of which occurred in New York, and four of which occurred in New Jersey. During each robbery, Chan-Guillen brandished a firearm, which he pointed at store employees and customers. The New Jersey robberies victimized liquor stores in Elizabeth, Woodbridge Township, Bloomfield, and Linden.
Chan-Guillen faces a maximum potential penalty of 20 years on each count of Hobbs Act robbery and attempted Hobbs Act robbery; a maximum potential penalty of life in prison and a mandatory minimum penalty of seven years in prison on each count of brandishing a firearm during a Hobbs Act robbery, each of which must run consecutively to any other prison term. Each count also carries a potential $250,000 fine.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s conviction. He also credited the Elizabeth, Rahway, Woodbridge, Bloomfield, Linden, Kenilworth, Union, and Lyndhurst police departments; the New Jersey State Police; the Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division; and the New York Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Desiree Grace, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney John F. Mezzanotte of the Office’s Organized Crime/Gangs Unit in Newark.
U.S. Coast Guard officer convicted of operating illegal firearms businessRead the Press Release
BROWNSVILLE, Texas – A chief petty officer has been convicted of running a firearms sales business without a license, announced U.S. Attorney Alamdar S. Hamdani.
Matthew Keith Staton was not a licensed dealer of firearms. However, he admitted he sold five Palmetto State Armory “Build the Wall” .308 caliber rifles to Luis Enrique Vallejo. Vallejo, 41, San Benito, was a former law enforcement officer who was federally convicted for his role in attempting to export the same firearms into Mexico with the serial numbers removed.
At the time of the incident, Staton was a member of the U.S. Coast Guard and is currently an E7 chief petty officer.
U.S. District Judge Olvera accepted the plea and has set sentencing for May 31. At that time, Staton faces up to five years in federal prison and a possible $250,000 maximum fine.
Vallejo has already been sentenced to 13 months in federal prison for his crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of Homeland Security Investigations and the U.S. Coast Guard. Assistant U.S. Attorney David A. Lindenmuth is prosecuting the case.
U.S. Attorney Sellinger to Hold Second Town HallRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger and members of his staff will meet with residents in Jersey City later this month at the second in a series of planned town hall meetings.
The town hall will be held on March 21, 2023, from 6:00 p.m. to 7:30 p.m. at Temple Beth-El, 2419 John F. Kennedy Blvd., Jersey City, NJ, 07304. U.S. Attorney Sellinger will discuss the work of his office in a variety of areas, including hate crimes, civil rights, protecting the community from violence and the opioid crisis, and protecting the environment.
This is a community event and is open to the public.
U.S. Attorney Adair Boroughs Joins DOJ Delegation to Commemorate “Bloody Sunday” and Passage of Voting Rights Act of 1965Read the Press Release
COLUMBIA, SOUTH CAROLINA - Adair Boroughs, U.S. Attorney for the District of South Carolina, joined more than two dozen other U.S. Attorneys from across the country as a delegation to commemorate the 58th Anniversary of “Bloody Sunday,” the March over Selma’s Edmund Pettus Bridge, and the passage of the Voting Rights Act of 1965. Boroughs has served as a member of the Attorney General Advisory Committee’s (AGAC) Civil Rights Subcommittee since taking office in July 2022.
“It was an honor to join colleagues from across the United States on this trip to Montgomery and Selma, home to some of the most important moments in the Civil Rights Movement,” said U.S. Attorney Boroughs. “The Department of Justice was founded after the Civil War to ensure protection of civil rights, and the protection of civil rights remains one of the most basic and important parts of our mission. This mission is even more critical in states like South Carolina, where we lack a state hate crimes statute. My office is committed to using every power we have to protect civil rights across South Carolina.”
From March 4-7, 2023, U.S. Attorneys from across the country met with community and civil rights leaders while exploring some of the significant and educational civil rights institutions in Alabama. U.S. Attorney for the Western District of Washington, Nick Brown, hosted the delegation’s visit.
In addition to the March 5th Selma March, the U.S. Attorneys met with Assistant Attorney General Kristen Clarke of DOJ’s Civil Rights Division, as part of the subcommittee work supporting the AGAC.
Other meetings and visits during the trip focused on both historic civil rights conflicts and issues that are still alive today.
- The group met with distinguished jurist Myron Thompson, the first Black Assistant Attorney General for Alabama and the second Black Federal Judge in the state. As the former Chief Judge in the Middle District of Alabama, Judge Thompson was instrumental in preserving the Montgomery bus station where the Freedom Riders were attacked in 1961 and the establishment of the Freedom Rides Museum. Judge Thompson is a recipient of the Thurgood Marshall award for his “personal contributions and extraordinary commitment to the advancement of civil rights.”
- The group also met with Bryan Stevenson, Founder and Executive Director of the Equal Justice Initiative, a nonprofit organization that provides legal representation to people who have been wrongly convicted, unfairly sentenced, or abused in state jails and prisons.
- The attorneys also visited The Johnson Institute in the Montgomery federal courthouse where many key civil rights cases were decided. The Johnson Institute demonstrates through its programming the importance of the U.S. Constitution and the independent judiciary.
- The U.S. Attorneys visited The Legacy Museum, which provides a comprehensive history on the legacy of slavery. Lynching, codified racial segregation, and the emergence of over-incarceration in the 20th century are examined in depth and brought to life through film, images, and first-person narratives at the museum.
- At the Memorial for Peace and Justice, the group had an opportunity to reflect on America’s History of racial injustice. Set on a six-acre site, the memorial uses sculpture, art, and design to contextualize racial terror. The site includes a memorial square with 800 six-foot monuments to symbolize thousands of racial terror lynching victims in the United States.
The U.S. Attorneys from the following districts attended the Selma and Montgomery events: Massachusetts, Connecticut, New Jersey, South Carolina, Colorado, Nevada, Idaho, South Dakota, Kansas, Western and Middle Districts of Louisiana, Eastern District of Wisconsin, Eastern and Western Districts of Michigan, Middle District of Florida, Northern and Eastern Districts of California, Eastern and Middle Districts of Pennsylvania, Western District of Virginia, Western District of North Carolina, Southern District of Ohio, Western District of New York, and Southern District of West Virginia.
The Attorney General’s Advisory Committee was established nearly 50 years ago by Attorney General Elliott Richardson. The Committee’s purpose is to give United States Attorneys a voice in Department policies and to advise the Attorney General of the United States.
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Texas Woman Sentenced for Fraud and Money Laundering Conspiracies Targeting Federally Funded Meal Programs for Underprivileged YouthRead the Press Release
PITTSBURGH, PA – A resident of Dallas, Texas, was sentenced yesterday in federal court for her role in defrauding federally funded meal programs, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Arthur J. Schwab sentenced Tanisha Jackson, 50, of Dallas, Texas, to 36 months’ incarceration following her guilty plea to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Judge Schwab also ordered Jackson to pay restitution to the U.S. Department of Agriculture in the amount of $1,500,000 and to forfeit more than $427,000.
During Jackson’s plea hearing on May 18, 2022, she admitted, among other things, that she and co-conspirators Charles Simpson and Paige Jackson—Jackson’s daughter—operated HOIN, Inc. (HOIN), a Texas-based non-profit organization. Jackson caused HOIN (a/k/a Helping Others In Need) to enroll as a “sponsor” in two programs funded by the United States Department of Agriculture (USDA) for the purpose of providing meals to underprivileged youth—the Child and Adult Care Feeding Program (CACFP) and the Summer Food Service Program (SFSP) (collectively, “the feeding programs”). CACFP funded after-school meal service during the school year, while SFSP operated in the summer months. In Pennsylvania, the Pennsylvania Department of Education (PADOE) administered the USDA-funded feeding programs. Jackson also acknowledged that she previously had been excluded from participating in the same feeding programs in Texas and Arkansas.
As part of the conspiracy, Jackson admitted that she caused the submission of false enrollment documentation to PADOE on behalf of HOIN in connection with its participation in CACFP and SFSP between 2015 and 2019. Among other misrepresentations, HOIN’s applications to PADOE used aliases for Jackson and Simpson to obscure their involvement and falsely certified that none of the entity’s principals had been excluded from the feeding programs. Jackson further admitted causing HOIN to submit reimbursement claims for hundreds of thousands of meals that were never served to eligible children by either inflating the number of meals that, in fact, were served, or by seeking reimbursements for meals purportedly served on days on which the identified feeding site was not operating at all. To conceal their fraudulent conduct and justify HOIN’s claimed meal service, Jackson and Simpson submitted fabricated documents to PADOE in connection with periodic program reviews. On certain occasions, Jackson would impersonate her daughter Paige Jackson in interactions with PADOE.
Likewise, Paige Jackson used a fictitious name in dealings with PADOE. In total, PADOE issued reimbursement payments to HOIN in excess of approximately $4 million between 2015 and 2019.
In connection with the money laundering conspiracy, Jackson admitted that she and Simpson engaged in numerous financial transactions involving the proceeds of the fraud. Specifically, Jackson and Simpson spent hundreds of thousands of dollars in HOIN reimbursements on shopping sprees at high-end apparel stores, personal air travel and lodging, and the acquisition of at least nine luxury vehicles, including a Bentley, two Land Rovers, two Maseratis, two Mercedes, a Hummer, and a Porsche. Jackson and Simpson also withdrew cash from HOIN bank accounts in excess of $10,000 on more than a dozen occasions.
Simpson and Paige Jackson separately pleaded guilty for their roles in the conspiracy and were sentenced to 30 months’ imprisonment and three years’ probation, respectively. When announcing Jackson’s sentence, Judge Schwab rejected her claim that she was less culpable than Simpson, noting that Jackson had brought her own daughter, Paige Jackson, into the conspiracy.
Assistant United States Attorneys Eric G. Olshan and Nicole Vasquez Schmitt prosecuted this case on behalf of the government.
The United States Department of Agriculture – Office of Inspector General, Internal Revenue Service – Criminal Investigation, and Federal Bureau of Investigation conducted the investigation of the defendants in this case.
Suburban Houston man convicted for falsifying aircraft inspectionRead the Press Release
HOUSTON – A 52-year-old Pearland resident has pleaded guilty to making false statements in an aircraft maintenance log, announced U.S. Attorney Alamdar S. Hamdani.
Ronald P. Franklin admitted that on or about Oct. 9, 2020, he knowingly and willfully falsified an aircraft’s annual inspection records. Franklin had fraudulently represented himself as an Inspection Authorization (IA) holder and falsely certified he performed an annual inspection on an aircraft and determined it was in airworthy condition. The aircraft subsequently experienced an in-flight power loss leading to a crash.
The Federal Aviation Administration (FAA) regulates domestic aircraft and air travel. They require most U.S.-registered general aviation aircraft to undergo annual inspections to ensure they are airworthy which an FAA-certified mechanic must perform.
Following an annual inspection, FAA regulations require an IA holder to make an entry in the aircraft’s log book certifying the inspection was properly completed and the furnished information is true and correct. IA holders must certify each annual inspection they perform using their unique FAA certificate number.
Franklin was not an IA holder and did not perform the inspection as he falsely claimed.
U.S. District Judge Keith P. Ellison accepted the plea and has set sentencing for May 24. At that time, Franklin faces up to five years in federal prison as well as a possible $250,000 maximum fine.
Franklin was permitted to remain on bond pending that hearing.
The Department of Transportation – Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Christian Latham and Jay Hileman are prosecuting the case.
Southfield Resident Sentenced to 7 Years for Role in Illegally Distributing over 90,000 Opioid Doses at A Medical ClinicRead the Press Release
DETROIT – A Southfield, Michigan man was sentenced today to seven years in federal prison for his role in distributing over 90,000 doses of Oxycontin, Percocet, and other opioids out of an area medical clinic, 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, Special Agent in Charge Orville Greene, Drug Enforcement Administration, Detroit Division, and Special Agent in Charge Mario Pinto of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Chicago Regional Office.
Lavar Carter, 45, was sentenced by United States District Judge Bernard A. Friedman. Carter initially became involved in the scheme as a patient recruiter where he used family members and people he encountered at soup kitchens to obtain information that was used to fill medically unnecessary opioid prescriptions. Carter eventually became employed at New Vision Rehab Center where he provided physicians with lists of patient names and identification that he knew were used to issue and fill medically unnecessary prescriptions. Carter and others exchanged the prescriptions for cash. Carter participated in the conspiracy between May 2019 and June 2020.
According to court records, Carter’s conduct was made even worse because, while released on bond in this case, he was surveilled by law enforcement agents working at another pain clinic to assist in the illegal distribution of more opioids.
U.S. Attorney Ison stated, “The devastation created by the opioid crisis harms our entire country. My office will zealously pursue medical providers, clinic staff, and others who inflict harm upon our community through illicit distribution of these powerful drugs.”
“The illegal distribution of opioids continues to have devastating effects on our community,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The sentencing of Lavar Carter highlights how a partnership between the FBI, DEA, and HHS leads to the successful prosecution of individuals who seek to profit off the addiction of others.”
“Profiting from the suffering of vulnerable populations will not be tolerated. Mr. Carter’s scheme of illegally funneling prescription pills into communities and fueling overdose deaths in exchange for profits has come to an end. I want to thank our law enforcement partners who worked collectively on this investigation,” stated Special Agent in Charge Orville Greene, Drug Enforcement Administration, Detroit Division.
“Facilitating the unlawful administration of prescription opioids, and other controlled substances, places beneficiaries of our federal health care programs at risk,” said Mario M. Pinto, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General. “We will continue to work with our law enforcement partners to pursue those who defraud our federal health care programs and engage in other unlawful conduct that can bring harm on our nation’s beneficiaries.”
This case was prosecuted by Assistant United States Attorneys Regina R. McCullough and Philip A. Ross as part of the district’s efforts to address the nation’s opioid crisis. The Eastern District of Michigan is one of twelve districts included in the Attorney General’s Opioid Fraud Abuse and Detection initiative. The case was investigated by special agents of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the U.S. Department of Health and Human Services, Office of Inspector General.
Social Security Administration Employee Pleads Guilty to Fraud and Money LaunderingRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announced Justin Skiff, age 36, of Castle Pines, pleaded guilty today to wire fraud, social security fraud and money laundering.
According to the plea agreement, beginning around August 2019 and continuing through September 2021, Skiff used his position as a claims specialist with the Social Security Administration (SSA), to fraudulently obtain money from the SSA. Skiff used his knowledge and access to establish Social Security Numbers for ten fictitious children. He then established fictitious records of entitlements for surviving child benefits which he connected to the record of a real deceased individual whose children would receive benefits. These benefits were deposited into a bank account accessible to Skiff through debit cards he directed to be mailed to a P.O. Box to which he had access. Skiff withdrew money and made purchases from this account from October 2019 through September 2021 for a total amount of $324,201.44.
Judge Daniel D. Domenico presided over the change of plea hearing on March 8, 2023. Skiff will be sentenced on June 6, 2023. Wire fraud carries a penalty of up to 20 years in prison and a fine of $250,000. Social Security fraud carries a penalty of up to 5 years in prison and a fine of $250,000. Money laundering carries a penalty of up to 20 years in prison and a fine of $500,000 or twice the value of the property involved in the transaction. Skiff must also forfeit any property derived from proceeds traceable to the scheme.
This case was investigated by Internal Revenue Service Criminal Investigation (IRS-CI) and the Social Security Administration Office of Inspector General. This case is being prosecuted by special Assistant U.S. Attorney Sonia J. Dave.
CASE NUMBER: 22-cr-00360
Snow Hill Man Sentenced to Prison for Role in COVID-19 Fraud SchemeRead the Press Release
NEW BERN, N.C. – A Snow Hill man was sentenced today to 31 months in prison and ordered to pay restitution for laundering fraudulently obtained Economic Injury Disaster Loan (“EIDL”) benefits. On November 8, 2022, Dexter Duncan pled guilty.
“This defendant used stolen identities to create fictitious businesses so he could divert taxpayer money intended to support small businesses challenged by the COVID-19 pandemic to himself,” said U.S. Attorney Easley. “My office will continue to make the investigation and prosecution of COVID-19 fraud a top priority.”
According to court documents and other information presented in court, Duncan, 24, conspired with others to apply for EIDL funds on behalf of fictitious companies and using stolen identities. Several of the EIDL applications were approved, and $180,988 in loan proceeds was disbursed to bank accounts owned and/or controlled by Duncan, who was not employed at the time but was known live a lavish lifestyle.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Internal Revenue Service, Criminal Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Harnett County Sheriff’s Office investigated the case and Special Assistant U.S. Attorney Lisa K. Labresh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-00196-FL.
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Sarasota Drug Dealer Pleads Guilty to Possessing Firearms and Distribution Quantities of MethamphetamineRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Clinton Justesen (48, Sebring) has pleaded guilty to possessing a firearm as a convicted felon and possessing methamphetamine with the intent to distribute it. Justesen faces a maximum penalty of 15 years in federal prison for the firearm offense and up to 20 years’ imprisonment for the drug offense. A sentencing date has not yet been set.
According to the plea agreement, on September 9, 2022, deputies from the Sarasota Sheriff’s Office stopped a truck driven by Justesen near the intersection of Williamsburg Street and North Lockwood Ridge Road in Sarasota. Justesen was towing a motorcycle which had been reported stolen on August 23, 2022. A search of Justesen’s truck and the trailer carrying the motorcycle yielded multiple firearms, hundreds of rounds of ammunition of different calibers, approximately 12.6 grams of methamphetamine, a vacuum sealer, a digital scale, assorted pills and tablets of various colors, and approximately $12,000.
The firearms found in Justesen’s truck included a HS Produkt XD9 9mm pistol, a Smith & Wesson M&P 9 Shield 9mm pistol, and an Anderson Manufacturing AM-15 .223/5.56mm caliber rifle with an installed vertical foregrip.
At the time, Justesen had multiple prior felony convictions including vehicular homicide, leaving the scene of a crash with death, armed robbery, and felon in possession of a firearm. As a previously convicted felon, Justesen is prohibited from possessing firearms or ammunition under federal law. Justesen admitted to selling narcotics, possessing the firearms, and that he needed the firearms for his protection during his drug dealing activities.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sarasota County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney David W.A. Chee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Ridgeland Man Sentenced to Two Years in Prison for Making Threats Against CDC Director Rochelle WalenskyRead the Press Release
Jackson, Miss. – A Ridgeland man was sentenced to two years in prison for making threats in interstate commerce, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents and statements made in court, in July 2021, Robert Wiser Bates, 39, placed phone calls to the Centers for Disease Control and Prevention (CDC) in Atlanta, Georgia, and left voicemails for CDC Director Rochelle Walensky that were threatening in nature. Through the investigation it was determined that Bates made similar threats towards Dr. Anthony Fauci, Director of the National Institutes of Allergy and Infectious Disease at the National Institutes of Health. The root of his anger was due to the COVID-19 vaccination program.
Robert was indicted by a federal grand jury and he pled guilty on December 19, 2022.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Kimberly T. Purdie prosecuted the case.
Richland Man with Extensive Criminal History Sentenced to 12 Years in Prison After Shooting A Person and Conspiring to Distribute Fentanyl-Laced Pills in Tri-CitiesRead the Press Release
Richland, Washington – On March 8, 2023, Senior United States District Judge Edward F. Shea sentenced Jonathan Scott Ard, 30, of Richland, Washington, to 12 years in in federal prison after his guilty plea to federal fentanyl and gun charges. Ard will also serve 5 years of federal supervision after he is released from custody. During the sentencing hearing, Judge Shea noted
Ard’s long criminal record, which began when he was 14 years old and includes a significant history of crimes of violence. Judge Shea also expressed concern about the fact that Ard was under the supervision of the Washington Department of Corrections when he engaged in his current misconduct.According to information disclosed during court proceedings, the investigation began in
December 2020 when Ard was in his car smoking a fentanyl-laced pill and in possession of distribution quantities of fentanyl and a loaded firearm. Another person approached Ard’s car, and Ard – acting in what a different court concluded was self-defense – got out of his car and shot the person in the leg. Ard then retrieved drug-related items from the car and went into his house; he neither alerted authorities nor sought emergency aid for the person he had just shot.
To the contrary, he soon came back outside to retrieve more items from his car, and simply walked past his victim, who was laying on the ground after being shot by Ard. Ard then barricaded himself inside from law enforcement before eventually surrendering. When law enforcement officers searched Ard’s home, they recovered approximately 500 fentanyl-laced pills and the gun Ard had used in the shooting.Ard went into custody on state charges but continued to conspire with other people to distribute fentanyl from inside the jail. He was released from state custody and was arrested again after fleeing from law enforcement at a motel in Richland in March 2021. When he was arrested the second time, Ard had a loaded gun with him, along with another approximately 400 fentanyl-laced pills, a distribution quantity of heroin, and drug paraphernalia. Law enforcement officers searched Ard’s cellular telephone and recovered additional drug-related evidence and numerous pictures and social media posts by Ard idealizing his criminal lifestyle.
Fentanyl is the new face of the opioid epidemic and the leading cause of overdose deaths across the country. According to DEA, in 2021 there was enough lethal fentanyl seized to kill every single American in the United States. Based on DEA lab confirmations, 6 in every 10 fentanyl laced pills contain a lethal dose. In Benton and Franklin Counties, the rate of overdose deaths increased to a high of 23 people per 100,000 in a year in 2020, or about 70 deaths in 2020, an increase in a year of more than 100%. Department of Health records from Spokane County show over an 186% increase in fentanyl-related overdoses between 2020 and 2021 and a 1233% increase in fentanyl-related overdoses in the four-year period between 2017 and 2021.
Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, commended the joint efforts of law enforcement: “Drug distribution and gun violence are a scourge in the Tri-Cities and elsewhere. It is particularly disheartening that an offender with an extensive criminal history – who had already shot another person while in possession of distribution quantities of fentanyl – was released pending trial, only to continue possessing loaded firearms and additional fentanyl for distribution.”U.S. Attorney Waldref continued: “I commend the collaborative efforts of the Richland Police
Department, DEA, FBI, and LEAD Task Force, who work together seamlessly to keep Eastern
Washington safe and strong. The people in this community are also incredibly fortunate to be represented in federal court by Assistant United States Attorney Stephanie Van Marter, who spearheads federal drug prosecutions in the Tri-Cities and elsewhere.”“By leveraging our law enforcement partnerships, we were able to remove Mr. Ard from the community where he has repeatedly distributed deadly fentanyl-laced pills and presented significant danger to the community through his violent actions,” said Jacob D. Galvan, Acting
Special Agent in Charge, DEA Seattle Field Division.“Even incarceration did not deter Mr. Ard from conspiring to distribute fentanyl and continue a lifestyle of lawlessness,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Additionally, he’s an offender who has proven his willingness to use violence. For the safety of our community, I hope significant time in federal prison will prevent him from conducting other criminal activities and send a message about the commitment of the law enforcement community to fight violence. This case highlights the work of the FBI and our partners with the US Attorney’s Office, DEA, and Richland Police Department to stop the spread of fentanyl.”
This case was investigated by the Richland Police Department, the Drug Enforcement
Administration, the Federal Bureau of Investigation, and the Law Enforcement Against Drugs
Task Force in the Tri-Cities. This case was prosecuted by Assistant United States Attorney
Stephanie Van Marter.4:21-CR-6008-EFS
Previously Convicted Felon Pleads Guilty to Unlawful Possession of Firearms and AmmunitionRead the Press Release
BOSTON – A Dorchester man pleaded guilty yesterday to unlawfully possessing firearms and ammunition as a previously convicted felon.
Kevin Blackmore, 45, pleaded guilty to one count of being a felon in possession of firearms and ammunition. U.S. District Court Judge Denise J. Casper schedule sentencing for June 29, 2023. Blackmore was charged in October 2022.
On June 19, 2022, local law enforcement was dispatched to a hotel in Sharon in response to a call for a possible disturbance involving two vehicles. At the scene, the female occupant of one vehicle requested police assistance in collecting personal items from Blackmore, who was driving the second vehicle. When officers assisted Blackmore in searching the vehicle for those items, they recovered a black Smith and Wesson .45 caliber semi-automatic firearm, a Taurus .9mm semi-automatic firearm, 67 rounds of .9mm ammunition and 80 rounds of .45 caliber ammunition. Due to prior felony convictions stemming from 2006 through 2020, Blackmore is prohibited from possessing firearms and ammunition.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by Sharon Police Department and the Norfolk County District Attorney’s Office. Assistant U.S. Attorney Luke A. Goldworm of Rollins’ Major Crimes Unit is prosecuting the case.
President of Beaver Falls Mineral Processing Company Pleads Guilty to Filing False Income Tax ReturnRead the Press Release
PITTSBURGH – The president of a Pittsburgh-area mineral company pleaded guilty yesterday in federal court to a charge of filing a false income tax return, Acting United States Attorney Troy Rivetti announced today.
Paul J. Austin pleaded guilty to one count before United States District Judge Arthur Schwab.
In connection with the guilty plea, the Court was advised that from 2012 through 2017, the defendant was the President of J.P. Austin Associates, Inc., a mineral processing company in Beaver Falls, Pennsylvania. For calendar years 2012 through 2017, the defendant and his spouse, who served as the company’s Treasurer, jointly filed annual Form 1040 federal income tax returns with the Internal Revenue Service (IRS).
The defendant admitted in Court that during the relevant time period, payments were made from company accounts for college expenses, which were falsely categorized as business expenses using fictitious vendor names. The return preparer for Mr. Austin and his spouse was not informed about these college expense payments, and the payments were not included as taxable income on Form 1040 returns that were ultimately filed with the IRS. Thus, the defendant willfully made and subscribed Form 1040 returns for calendar years 2012 through 2017 that materially underreported his taxable income. In connection with his guilty plea, the defendant agreed to pay restitution to the IRS in the amount of $159,982.00, plus interest.
Judge Schwab scheduled sentencing for July 19, 2023. The law provides for a maximum sentence of three years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government.
The Internal Revenue Service – Criminal Investigation conducted the investigation leading to the Information in this case.
Postal Worker Sentenced for Mail TheftRead the Press Release
BOSTON – A former U.S. Postal Service employee was sentenced today in Worcester for stealing packages in Gardner.
Roberta Feliz, 33, of Fitchburg, was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to three years of probation, with the first six months to be served in home confinement. In April 2022, Feliz pleaded guilty to one count of theft of mail by an employee of the U.S. Postal Service.
Feliz was employed as Lead Sales and Services Associate with the Gardner Post Office. Between February and July 2020, Feliz stole over $90,000 in cash deposits that were mailed from a Tractor Supply Company to its bank. Feliz, who was scheduled to work on each day that a cash package was mailed, was observed on surveillance camera removing envelopes from the postal service floor into the employee locker area or the women’s restroom. In August 2020, Feliz was approached by law enforcement after she took a control package containing cash from the postal floor into an office, removed money from the envelope and hid it in an unused desk. Feliz admitted to stealing packages from the Tractor Supply Company and stated that she used the money to pay off debt and sent some to family overseas.
United States Attorney Rachael S. Rollins and Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office, made the announcement today. Assistant U.S. Attorney Kristen Noto of Rollins’ Worcester Branch Office prosecuted the case.
Philadelphia Woman Sentenced to 100 Months in Prison for Operating Fraudulent Debt Relief SchemeRead the Press Release
A Philadelphia woman was sentenced today to 100 months in prison for conspiring to defraud the IRS and assisting others in filing false income tax returns.
On July 16, 2021, Yolonda Thompson, also known as Qhama Al, and a co-conspirator, Albert Upshur, also known as Kelinde Jaha, were found guilty at a bench trial of conspiring to defraud the IRS and assisting in the preparation of false tax returns. According to court documents and evidence presented at trial, between 2009 and 2015, Thompson and Upshur attempted to obtain millions of dollars for themselves and other participants in a fraudulent debt relief scheme they referred to as the Debt Payoff Process. As part of the scheme, Thompson and Upshur formed the Yolonda Denise Thompson Living Trust (the “Thompson Trust”). Participants in the Debt Payoff Process were told that if they paid money to Upshur and filed tax returns and other documents Thompson prepared for them, they could access funds from the Thompson Trust to pay off their mortgages and other debts. The tax returns that Thompson prepared, and participants filed with the IRS, claimed refunds to which they were not entitled. In total, the scheme sought more than $325 million in fraudulent refunds, of which the IRS paid out $1,511,236.
The evidence at trial also established that after the IRS began to investigate the Debt Payoff Process, Thompson and Upshur attempted to obtain money from the IRS by other fraudulent means, including using checks drawn on closed bank accounts and trying to use financial instruments such as fictitious bonds. The defendants also continued to file false tax returns for themselves and others after the IRS assessed civil penalties against them and notified them that they were under criminal investigation.
In addition to the term of imprisonment, U.S. District Judge Wendy Beetlestone ordered Thompson to serve three years of supervised release. Upshur was previously sentenced to seven years in prison for his role in the scheme.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. He thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania, which provided support in the investigation and prosecution of this case.
IRS-Criminal Investigation investigated the case.
Trial Attorney Melissa S. Siskind, who serves as National Director of the Tax Division’s Tax Defier Initiative, prosecuted the case.
POSTPONED - MEDIA ADVISORY Marion County Man to be Sentenced in Federal Court for Kidnapping, Carjacking, and Murder of 80-Year-Old VictimRead the Press Release
FLORENCE, SOUTH CAROLINA — The sentencing of Dominique Brand, 31, of Marion, for kidnapping resulting in death, carjacking resulting in death, and using or carrying a firearm during and in relation to a crime of violence in a manner constituting murder—which was scheduled for Wednesday, March 8, at 10:00 am—has been postponed. A new date for sentencing will be set after the Supreme Court issues an opinion in Lora v. United States.
Operators and Attorney of Global Multi-Million-Dollar Cryptocurrency Ponzi Scheme “AirBit Club” Plead GuiltyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty pleas of PABLO RENATO RODRIGUEZ, GUTEMBERG DOS SANTOS, SCOTT HUGHES, CECILIA MILLAN, KARINA CHAIREZ, and JACKIE AGUILAR for their roles in an internationally coordinated fraud and money laundering ring that deceived individuals into investing in AirBit Club, a purported cryptocurrency mining and trading company. AirBit Club co-founder DOS SANTOS pled guilty before United States District Judge George B. Daniels on October 21, 2021. Senior AirBit Club promoters CHAIREZ, MILLAN, and AGUILAR pled guilty before Judge Daniels on January 31, February 8, and February 22, 2023, respectively, and are scheduled to be sentenced by Judge Daniels on June 28, July 25, and June 27, 2023, respectively. SCOTT HUGHES, an attorney who laundered Airbit Club fraud proceeds for RODRIGUEZ and DOS SANTOS, pled guilty before Judge Daniels on March 2, 2023, and is scheduled to be sentenced on August 9, 2023. Airbit Club co-founder RODRIGUEZ pled guilty before Judge Daniels earlier today and is scheduled to be sentenced on July 25, 2023. As part of their guilty pleas, the defendants collectively have been ordered to forfeit their fraudulent proceeds of Airbit Club, which include seized or restrained assets consisting of U.S. currency, Bitcoin, and real estate currently valued at approximately $100 million.
U.S. Attorney Damian Williams said: “The defendants took advantage of the growing hype around cryptocurrency to con unsuspecting victims around the world out of millions of dollars with false promises that their money was being invested in cryptocurrency trading and mining. Instead of doing any cryptocurrency trading or mining on behalf of investors, the defendants built a Ponzi scheme and took the victims’ money to line their own pockets. These guilty pleas send a clear message that we are coming after all of those who seek to exploit cryptocurrency to commit fraud.”
According to the Superseding Indictment, the defendants’ statements when pleading guilty, and statements made in related court filings and proceedings:
RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, CHAIREZ, and AGUILAR participated in a coordinated scheme in which victim-investors (the “Victims”) were induced to invest in AirBit Club based on the false promise of guaranteed profits in exchange for cash investments in club “memberships” (the “AirBit Club Scheme” or the “Scheme”). Beginning in late 2015, AirBit Club, through its founders, RODRIGUEZ and DOS SANTOS, as well as its promoters (the “Promoters”), including MILLAN, CHAIREZ, and AGUILAR, marketed AirBit Club as a multilevel marketing club in the cryptocurrency industry. Promoters falsely promised Victims that AirBit Club earned returns on cryptocurrency mining and trading and that Victims would earn passive, guaranteed daily returns on any membership purchased.
RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, CHAIREZ, and AGUILAR traveled throughout the United States and around the world to places in Latin America, Asia, and Eastern Europe, where they hosted lavish expos and small community presentations aimed at convincing Victims to purchase AirBit Club memberships. In furtherance of the AirBit Club Scheme, the Victims were fraudulently induced to buy memberships in cash, including in the Southern District of New York. Following a Victim’s investment, a Promoter provided the Victim with access to an online AirBit Club portal to view the purported returns on memberships (the “Online Portal”). While Victims saw “profits” accumulate on their Online Portal, those representations were false; no Bitcoin mining or trading on behalf of Victims in fact took place. Instead, RODRIGUEZ, DOS SANTOS, MILLAN, and AGUILAR enriched themselves and spent Victim money on cars, jewelry, and luxury homes, and financed more extravagant expos to recruit more Victims.
HUGHES, an attorney licensed to practice law in California, had previously represented RODRIGUEZ and DOS SANTOS in a Securities and Exchange Commission investigation related to another investment scheme known as Vizinova. He then aided RODRIGUEZ and DOS SANTOS in perpetrating the AirBit Club Scheme by, among other things, helping to remove negative information about AirBit Club and Vizinova from the internet.
In many instances, as early as 2016, Victims who attempted to withdraw money from the AirBit Club Online Portal and complained to a Promoter were met with excuses, delays, and hidden fees amounting to more than 50% of the Victim’s requested withdrawal, if they were able to make any withdrawal at all. In one instance, AGUILAR told one Victim of the AirBit Club Scheme who was complaining about her inability to withdraw AirBit Club returns that she should “bring new blood” into the AirBit Club Scheme in order to receive her returns.
In April 2020, another victim received a notice on the AirBit Club Online Portal that his account was closed – and principal investment lost – due to “execution of financial sustainability Reserve, policy #34 of the Airbit Club Terms and Conditions, due to the economic and financial crisis caused by (Covid-19).”
RODRIGUEZ, DOS SANTOS, HUGHES, CHAIREZ, and MILLAN sought to conceal the AirBit Club Scheme, as well as their respective control of the proceeds of that Scheme, by requesting that Victims purchase memberships in cash, using third-party cryptocurrency brokers, and by laundering the Scheme’s proceeds through several domestic and foreign bank accounts, including an attorney trust account managed by HUGHES (the “Hughes Trust Account”). The Hughes Trust Account was ostensibly intended to maintain custody of HUGHES’s law practice’s client funds. Instead, the Hughes Trust Account was used by RODRIGUEZ, DOS SANTOS, HUGHES, CHAIREZ, and MILLAN to conceal the nature and origin of the AirBit Club Scheme’s illicit proceeds. Through that account, HUGHES directed Victim funds to the personal expenses of RODRIGUEZ, DOS SANTOS, CHAIREZ, MILLAN, and himself, and funded promotional events and sponsorships designed to further promote the AirBit Club Scheme.
* * *
RODRIGUEZ, 40, of Irvine, California, DOS SANTOS, 48, of Panama City, Panama, MILLAN, 41, of Greensboro, North Carolina, CHAIREZ, 47, of Modesto, California, AGUILAR, 58, of Plano, Texas, and HUGHES, 47, of Newport Beach, California, have pled guilty to charges including wire fraud conspiracy, which carries a maximum potential sentence of 20 years in prison; money laundering conspiracy, which carries a maximum potential sentence of 20 years in prison; and bank fraud conspiracy, which carries a maximum potential sentence of 30 years in prison.
The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ (“HSI”) El Dorado Task Force, HSI Panama, the HSI Panama City Transnational Criminal Investigative Unit, and HSI New Orleans. Mr. Williams further thanked the attorneys and investigators at the Securities and Exchange Commission whose expertise and diligence were integral to the development of this investigation.
If you believe you are a victim of the AirBit Club fraud, updated information regarding the case and victims’ rights as well as contact information for the victim witness coordinator is available here.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Kiersten A. Fletcher, Samuel L. Raymond, and Cecilia E. Vogel are in charge of the prosecution.
Onceavo acusado sentenciado por estafar a miles de inmigrantes estadounidenses de habla hispana en un esquema de $15 millones de dólaresRead the Press Release
Un hombre de California fue sentenciado a 65 meses de prisión por su papel en la conspiración en centros de llamadas con sede en Perú que defraudaron a residentes estadounidenses de habla hispana, que los amenazaba falsamente con arresto, deportación y otras consecuencias legales. Es el onceavo acusado en ser sentenciado a prisión en el esquema.
De acuerdo con documentos judiciales, Luis Rendón, 60, de Harbor City, California, operaba en un centro de distribución que ayudaba a operadores del centro de llamadas a ejecutar un esquema de fraude desde Perú. Formaba parte de un esquema de fraude internacional centrado en defraudar residentes de habla hispana en Estados Unidos amenazándolos fraudulentamente con consecuencias legales si no pagaban productos de aprendizaje del idioma inglés (productos que las víctimas nunca solicitaron) o si no pagaban “tarifas de liquidación” falsas. Defraudaron a más de 30,000 residentes de habla hispana de Estados Unidos.
“Estos casos demuestran que la Rama de Protección al Consumidor perseguirá enérgicamente y procesará a los delincuentes internacionales que defraudan a los consumidores estadounidenses vulnerables”, dijo el Fiscal General Principal Adjunto, General Brian M. Boynton, jefe de la División Civil del Departamento de Justicia. “Las personas que defraudan a miembros de nuestras comunidades de inmigrantes se presentarán ante la justicia y rendirán cuentas ante los tribunales estadounidenses”.
“El Servicio de Inspección Postal de Estados Unidos trabaja arduamente para interrumpir y desmantelar las empresas delictivas dirigidas a los consumidores estadounidenses”, dijo Juan A. Vargas, Inspector a Cargo, División del Servicio de Inspección de Estados Unidos en Miami. “Junto con nuestros socios encargados de que se cumpla la ley, estamos enviando un claro mensaje a los delincuentes que crean que están a salvo porque no se encuentran en Estados Unidos: Continuaremos persiguiendo, arrestando y extraditando firmemente a quienes estén centrados en defraudar a los consumidores estadounidenses”.
Según documentos judiciales, Rendón era dueño y operaba International Latin Market, un centro de distribución con sede en California que facilitó el esquema de extorsión y fraude de telemercadeo a gran escala desde el 2011 hasta finales del 2017. Rendón ayudó y fue cómplice del esquema al proporcionar listas de posibles víctimas a los centros de llamadas en Perú, procesó pagos de tarjetas a las víctimas y envió tabletas con cursos de inglés precargados a las víctimas en el área de Miami y en todo Estados Unidos. Los centros de llamadas luego amenazaban y hostigaban a las víctimas para que pagaran clases fraudulentas, pretendiendo ser abogados y agentes del orden.
Con la sentencia de hoy, ya fueron sentenciados siete operadores y propietarios de centros de llamadas peruanos y cuatro operadores de centros de distribución que procesaron pagos y facilitaron el frauden en Estados Unidos. Los siete acusados, propietarios y operadores del centro de llamadas fueron extraditados de Perú y se declararon culpables de conspiración para cometer fraude postal y electrónico en un tribunal federal y recibieron importantes sentencias a prisión. El Juez Federal de Distrito, Robert N. Scola Jr., condenó a Henrry Milla, Carlos Espinoza, Jerson Rentería, Fernán Huerta, Omar Cuzcano, Evelyng Milla y Josmell Espinoza a sentencias que van de 88 a 110 meses en prisión. Dos acusados que facilitaron las operaciones de estos centros de llamadas fraudulentos, Milagros Urmeneta y Gonzalo Bazán, fueron sentenciados el año pasado por un asunto relacionado. Ángel Adrianzen, quien también operaba un centro de distribución con sede en Estados Unidos que facilitó un grupo adicional de centros de llamadas peruanos fraudulentos que estafaron a residentes de habla hispana en Estados Unidos, fue sentenciado a 121 meses en prisión por el Juez Scola en 2021.
El Servicio de Inspección Postal de Estados Unidos y la Rama de Protección al Consumidor investigaron el caso. El Abogado Superior Litigante, Phil Toomajian, y el Abogado Litigante, Max Goldman, de la Rama de Protección al Consumidor, están procesando los casos y la Fiscal Federal Adjunta, Annika Miranda, se encarga del decomiso de bienes. La Comisión Federal de Comercio, la Oficina de Asuntos Internacionales del Departamento de Justicia, la Oficina del Fiscal Federal del Distrito Sur de Florida, el Servicio de Seguridad Diplomática del Departamento de Estado y la Policía Nacional de Perú proporcionaron asistencia crítica.
El Departamento de Justicia continúa investigando y presentando cargos en otros asuntos similares relacionados con amenazas contra residentes de habla hispana en Estados Unidos. Si usted, o alguien que conoce, tiene 60 años o más y fue víctima de fraude financiero, tiene ayuda disponible en la Línea Directa Nacional de Fraude a Ancianos: 1-833-FRAUD-11 (1-833-372-8311).
Puede encontrar información adicional sobre la Rama de Protección al Consumidor y sus esfuerzos para combatir el fraude en www.justice.gov/civil/consumer-protection-branch.
Omaha Man Pleads Guilty to Role in Multi-Million Dollar EmbezzlementRead the Press Release
United States Attorney Steven Russell announced that Jeffrey Stenstrom, 42, of Omaha, Nebraska pleaded guilty to a Criminal Information today charging him with Conspiracy to Commit Money Laundering. Stenstrom faces a maximum possible punishment of 20 years’ imprisonment, a fine of $500,000 or twice the amount of the laundered funds, or both. As part of his sentence, Stenstrom has agreed to pay restitution in excess of $5,100,000 to Darland Properties, LLC. Stenstrom also admitted to forfeiture allegations agreeing to forfeit his interest in a 2020 McLaren 600LT Spider, multiple trucks, various items of jewelry, a residence in Arizona, multiple properties in Nebraska, currency, and multiple life insurance policies worth in excess of $2,000,000.
United States Magistrate Judge Michael D. Nelson ordered a Pre-Sentence Investigation be conducted and set Stenstrom’s sentencing hearing in front of Chief United States District Court Judge Robert F. Rossiter, Jr. for June 2, 2023, at 1:30 pm.
Stenstrom is also currently pending sentencing for Income Tax Evasion in a different matter where he faces a maximum possible punishment of 5 years’ imprisonment, a $250,000 fine, or both. In that matter Stenstrom agreed to pay $1,954,505.10 in restitution to the Internal Revenue Service.
This case was investigated by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation.
Olathe Man Pleads Guilty to Airport Disruption Following Police Chase on Downtown Airport RunwayRead the Press Release
KANSAS CITY, Mo. – An Olathe, Kansas, man who led police officers on a high-speed chase down a runway at the downtown airport pleaded guilty in federal court today to disrupting airport operations as well as illegally possessing a firearm.
Efren Torres-Rodriguez, 35, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of damaging or disrupting an international airport and one count of being a felon and an unlawful user of a controlled substance in possession of a firearm.
Kansas City, Mo., police officers were notified of a suspicious car, a Dodge Charger, parked near a gate at the Charles B. Wheeler Downtown Airport on Feb. 1, 2022. When officers arrived, they found Torres-Rodriguez passed out in the driver’s seat of the running car. Officers turned off the car and opened the door, which woke up Torres-Rodriguez.
Officers ordered Torres-Rodriguez out of the car, but he refused. Instead, Torres-Rodriguez started the vehicle. An officer discharged his taser as Torres-Rodriguez drove away. Officers pursued Torres-Rodriguez, who crashed through the gate to the airfield. Torres-Rodriguez drove at speeds up to 100 miles per hour down the airport runway, with officers in pursuit. Torres-Rodriguez drove on a tarmac on the west side of the airfield. When he attempted to cross over the airstrip into a grassy area, his vehicle became inoperable.
Officers removed Torres-Rodriguez from the vehicle after he refused to get out, and placed him under arrest. Officers found a clear plastic bag in his pants pocket that contained 4.6 grams of methamphetamine.
When officers searched Torres-Rodriguez’s vehicle, they found a Glock .40-caliber semi-automatic handgun with an extended magazine, which were both empty of ammunition, under the driver’s seat. They also found several rounds of ammunition and drug paraphernalia.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Torres-Rodriguez has prior felony convictions for possession of a firearm with a prior violent offense, for being a felon in possession of a firearm, and for robbery.
Torres-Rodriguez was interviewed by law enforcement officials and admitted to using methamphetamine every other day and to smoking marijuana daily since he was 15 years old.
As a result of Torres-Rodriguez’s actions, the airport’s activities were significantly disrupted. For approximately 40 minutes, operations at the airport were closed and planes were not allowed to land or take off. Torres-Rodriguez’s further interfered with the operations at the airport as two aircraft had delayed departures, one aircraft had a delayed arrival and had to remain airborne for approximately 50 minutes, one aircraft had to cancel its flight and one aircraft did not depart. Torres-Rodriguez destroyed the gate and caused serious damage to the air navigation facility’s fence that is designed to keep both trespassers and animals away from the runways. In addition to disrupting the airport’s aviation services, Torres-Rodriguez’s actions endangered the safety of those utilizing the airport.
Under federal statutes, Torres-Rodriguez is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Oklahoma City Man Convicted of Producing Child PornographyRead the Press Release
OKLAHOMA CITY – NATHAN BENFALL, 34, of Oklahoma City, pleaded guilty today to producing child pornography, announced United States Attorney Robert J. Troester.
On October 5, 2022, a federal grand jury returned a four-count indictment against Benfall. Counts 1 and 2 alleged Benfall sexually exploited a child on two separate occasions. Count 3 alleged Benfall distributed child pornography. Count 4 alleged Benfall possessed child pornography.
Today, Benfall pleaded guilty before U.S. District Judge Stephen P. Friot to producing child pornography, as charged in Count 1 of the indictment. As part of his plea, Benfall admitted that he used a hidden camera in his home bathroom to video-record a boy’s genitals for Benfall’s own sexual gratification.
At sentencing, Benfall faces mandatory minimum sentence of not less than 15 years and up to 30 years in a federal prison, a $250,000 fine, up to lifetime supervised release, and up to $50,100 in assessments. In determining Benfall’s sentence, the Court will take into account the nature and circumstances of the offense, Benfall’s history and characteristics, and the need to protect the public from further crimes of Benfall. Sentencing will take place in approximately 120 days. Benfall will also be required to register as a convicted sex offender under the Sex Offender Registration and Notification Act.
This case is the result of an investigation by the FBI’s Oklahoma City Field Office and the Oklahoma City Police Department. It is being prosecuted by Assistant U.S. Attorney Brandon Hale.
This case is part of Project Safe Childhood (PSC), a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc.
Reference is made to court filings for further information.
New Haven Man Sentenced to More Than 8 Years in Prison for Possessing Gun and Drugs on Supervised ReleaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ROBBIE SMITH, 34, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 100 months of imprisonment, followed by three years of supervised release, for firearm and narcotics offenses, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, in July 2016, Judge Bolden sentenced Smith to 36 months of imprisonment and three years of supervised release for participating in a narcotics trafficking organization that distributed heroin and crack cocaine throughout New Haven. He was released from prison in May 2018.
In December 2018, New Haven Police received information that Smith was in possession of a handgun and had been involved in a shooting incident. On December 28, 2018, a court-authorized search of Smith’s apartment revealed a loaded Smith & Wesson K-22 revolver, a quantity of crack cocaine, and drug packaging materials. The revolver had been reported stolen in Madison.
Smith’s criminal history also includes a state conviction for first-degree robbery. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Smith has been detained since his arrest. On July 18, 2019, he pleaded guilty to unlawful possession of a firearm by a felon, and possession with intent to distribute cocaine base (“crack”). Smith also admitted that he had violated the terms of his supervised release.
This investigation was conducted by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
U.S. Attorney Avery thanked the New Haven State’s Attorney’s Office for its cooperation in the investigation and prosecution of this case.
New Britain Fentanyl Dealer Sentenced to More Than 6 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ROBERTO MERCEDES-RODRIGUEZ, 43, of New Britain, was sentenced yesterday by U.S. District Judge Robert N. Chatigny in Hartford to 78 months of imprisonment, followed by four years of supervised release, for fentanyl distribution and firearm possession offenses.
According to court documents and statements made in court, an investigation by the Drug Enforcement Administration New Haven Tactical Diversion Squad and the New Britain Police Department determined that Mercedes-Rodriguez and others were selling fentanyl throughout the greater New Britain area. In February 2021, New Britain Police arrested Mercedes-Rodriguez on state charges after he was found in possession of a quantity of packaged fentanyl, a loaded stolen 9mm handgun, and two loaded high capacity magazines. Investigators continued to investigate Mercedes-Rodriguez while he was released on bond in his state case and, between August 2021 and February 2022, observed him conducting hand-to-hand drug transactions.
Mercedes-Rodriguez was arrested on a federal criminal complaint on February 24, 2022. On that date, a court-authorized search of his Cottage Place residence revealed 2,000 wax paper folds containing fentanyl.
Mercedes-Rodriguez’s criminal history includes felony convictions for narcotics, robbery, assault, failure to appear and domestic violence-related offenses, and multiple probation violations. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On December 12, 2022, Mercedes-Rodriguez pleaded guilty to one count of unlawful possession of a firearm by a felon, and one count of possession with intent to distribute 40 grams or more of fentanyl.
Mercedes-Rodriguez has been detained since March 11, 2022, when his bond was revoked.
This investigation was conducted by the Drug Enforcement Administration New Haven Tactical Diversion Squad and the New Britain Police Department. The case was prosecuted by Assistant U.S. Attorneys Tara E. Levens and John T. Pierpont, Jr.
Narcotrafficker Pleads Guilty to International Cocaine Trafficking ConspiracyRead the Press Release
NEWS RELEASE SUMMARY – March 8, 2023
SAN DIEGO – A narcotrafficker pleaded guilty today to international cocaine trafficking conspiracy.
According to court documents, beginning in the 1980s through 2017, Raul Flores-Hernandez, aka El Tio, 70, led a drug-trafficking organization based in Mexico’s Jalisco State that trafficked cocaine from South America to Mexico for subsequent importation into the United States. He leveraged his business connections to coordinate the transportation of substantial quantities of cocaine from Colombia, Peru, and Bolivia to ports in Mexico, from which they were transported by land to and across the U.S. border.
In July 2017, Mexican authorities arrested Flores-Hernandez at the request of the United States. He was extradited from Mexico to the United States in February 2021.
Flores-Hernandez 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 14 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.
The Organized Crime and Drug Enforcement Task Force (OCDETF) supported this case.
The DEA Los Angeles and San Diego Field Divisions, FBI Washington Field Office, and HSI San Diego Field Office are investigating the case. Customs and Border Protection in San Diego provided substantial assistance.
The Justice Department thanks Mexican authorities for their assistance in securing the arrest and extradition of Flores-Hernandez.
Assistant U.S. Attorney Kyle Martin for the Southern District of California, Acting Deputy Chief Katharine Wagner and Trial Attorney Melanie Alsworth of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance.
DEFENDANT Case Number 17CR0051 (BAH)
Raul Flores-Hernandez Age: 70 Guadalajara, MX
SUMMARY OF CHARGES
International Conspiracy to Distribute Controlled Substances – 21 U.S.C. §§ 959(a), 960(a)(3), 960(b)(1), and 963
Maximum penalty: Life in Prison and $10 million fine
AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Federal Bureau of Investigation
Customs and Border Protection
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Narcotrafficker Pleads Guilty to International Cocaine Trafficking ConspiracyRead the Press Release
A narcotrafficker pleaded guilty today to international cocaine trafficking conspiracy.
According to court documents, beginning in the 1980s through 2017, Raul Flores-Hernandez, aka El Tio, 70, led a drug-trafficking organization based in Mexico’s Jalisco State that trafficked cocaine from South America to Mexico for subsequent importation into the United States. He leveraged his business connections to coordinate the transportation of substantial quantities of cocaine from Colombia, Peru, and Bolivia to ports in Mexico, from which they were transported by land to and across the U.S. border.
In July 2017, Mexican authorities arrested Flores-Hernandez at the request of the United States. He was extradited from Mexico to the United States in February 2021.
Flores-Hernandez 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 14 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, U.S. Attorney Randy Grossman for the Southern District of California, Administrator Anne Milgram of the DEA, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The Organized Crime and Drug Enforcement Task Force (OCDETF) supported this case.
The DEA Los Angeles and San Diego Field Divisions, FBI Washington Field Office, and HSI San Diego Field Office are investigating the case. Customs and Border Protection in San Diego provided substantial assistance.
The Justice Department thanks Mexican authorities for their assistance in securing the arrest and extradition of Flores-Hernandez.
Acting Deputy Chief Katharine Wagner and Trial Attorney Melanie Alsworth of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorney Kyle Martin for the Southern District of California are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance.
Montgomery Man Convicted of Illegally Possessing Ammunition Used During Shooting at a FuneralRead the Press Release
Montgomery, Alabama – Today, United States Attorney Sandra J. Stewart announced that Gerald Dyron Little, 41, from Montgomery, Alabama, was found guilty of illegally possessing ammunition he used during a shooting at a funeral.
According to court records and evidence presented at trial, on June 26, 2021, Little attended a memorial service for one of his relatives at the municipal complex in Fort Deposit, Alabama. During the gathering, Little caused a disruption and family members asked him to leave. Little complied and left the facility. After the memorial service, family members and attendees gathered in a nearby cemetery for a graveside service. Witnesses testified that Little was in the front passenger seat of a white SUV parked at the cemetery near the burial site. The windows of the SUV were down and loud music was coming from the vehicle, disturbing the service. Family members went to the vehicle and asked Little and the driver of the SUV to leave, as they were being disruptive. The two failed to do so. Instead, Little began arguing with the family members. The driver then grabbed a handgun. Little took the handgun from the driver and then fired the weapon from the open window of the SUV. Officers from the Fort Deposit Police Department were nearby and rushed to the scene after hearing the shots. However, Little fled before they arrived. Four funeral attendees, including the brother of the deceased, were struck by bullets during the shooting.
Investigators interviewed witnesses and soon identified Little as the shooter. Law enforcement also recovered four discharged shell casings from the scene. The State of Alabama issued an arrest warrant for Little and he was arrested in Montgomery by the United States Marshals Service during the early morning hours of July 1, 2021. That same day, federal agents obtained a complaint and arrest warrant charging Little with being a felon in possession of ammunition.
In reaching its verdict on March 8, 2023, the jury found that the shell casings recovered from the scene came from ammunition possessed by Little during the shooting. Little had a previous felony conviction and is prohibited by federal law from possessing a firearm or ammunition. Following this conviction, Little faces a sentence of up to 10 years in federal prison with no parole. State charges related to the shooting are pending.
The Fort Deposit Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case, with assistance from the Lowndes County Sheriff’s Office, the Alabama Department of Forensic Sciences, and the United States Marshals Service. Assistant United States Attorneys Stephen K. Moulton and Brandon W. Bates are prosecuting the case.
Missouri Woman Sentenced to 8 Years in Federal Prison for Methamphetamine PossessionRead the Press Release
CAPE GIRARDEAU – April M. Rulo, 47, of Branson, Missouri, was sentenced Tuesday to 8 years in federal prison for the offense of possession of methamphetamine with intent to distribute. Rulo appeared for her sentencing hearing before U.S. District Judge Stephen N. Limbaugh Jr. at the federal courthouse in Cape Girardeau, Missouri.
At a guilty plea hearing last year, Rulo admitted that she was in possession of 95 grams of methamphetamine that she had picked up from her supplier in Springfield, Missouri, and was delivering to Piedmont, Missouri, for distribution to others. On June 22, 2022, a confidential source alerted law enforcement officers that Rulo was bringing several ounces of methamphetamine into Wayne County and would be arriving at a convenience store in Piedmont to deliver the narcotics. A Southeast Missouri Drug Task Force Officer made contact with Rulo, and she consented to a search of the vehicle she was traveling in. Officers located four baggies of methamphetamine packaged for distribution, marijuana, and Hydrocodone pills.
This case was investigated by the Southeast Missouri Drug Task Force and the Wayne County Sheriff’s Department. Assistant U.S. Attorney Julie Hunter handled the prosecution for the government.
Missouri Man Admits Machine Gun ChargeRead the Press Release
CAPE GIRARDEAU– A man from Pemiscot County, Missouri on Wednesday admitted possessing a machine gun after a shootout in 2022.
Jamaal L. Jackson Jr., 20, of Caruthersville, pleaded guilty in front of U.S. District Judge Stephen N. Limbaugh Jr. to one count of possession of a machine gun.
On Aug. 23, 2022, the Caruthersville Police Department responded to a shootout between two groups in the city. Jackson admitted being among the group standing on a corner and shooting at a vehicle that was driving past. That group then fled to Jackson’s girlfriend’s house, where police later found a backpack containing Jackson’s identification and a Glock 19 pistol with a drum magazine. The pistol had jammed with 16 rounds left in the magazine, Jackson’s plea agreement says. It also had part of a “Glock switch,” which converts a semi-automatic firearm into a fully automatic weapon, attached. Another part of the switch was found at the scene of the shooting.
Jackson was indicted in November.
The charge carries a potential penalty of up to ten years in prison, a $250,000 fine or both.
The Caruthersville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Christopher Shelton is prosecuting the case.
Middle Georgia Man with Prior Voluntary Manslaughter Conviction Sentenced to Prison on Gun ChargeRead the Press Release
MACON, Ga. – A Macon resident who was previously convicted and sentenced to ten years imprisonment for voluntary manslaughter was sentenced to federal prison after he was caught trying to sell a firearm and ammunition in the community.
Jeffery Maurice Willis, 45, of Macon, was sentenced to serve 33 months in prison to be followed by three years of supervised release by U.S. District Judge Marc Treadwell on March 7 after he previously pleaded guilty to possession of a firearm by a convicted felon. There is no parole in the federal system.
“The U.S. Attorney’s Office is holding individuals with prior violent felonies accountable at the federal level when they are caught with firearms,” said U.S. Attorney Peter D. Leary. “Working with law enforcement, we are using every resource available to protect our communities from the threat of firearms in the hands of criminals.”
“ATF will continue to dedicate federal resources in conjunction with crucial federal and local law enforcement partners to the pursuit of eradicating and forestalling criminal activity in the communities we serve,” said ATF Assistant Special Agent in Charge Beau Kolodka.
“This case is an example of how a felony conviction for a violent crime as a young adult will carry federal consequences when that individual chooses to illegally take up a firearm later in life,” said Bibb County Sheriff David Davis.
According to facts entered in court, ATF agents conducted several controlled buys of firearms and ammunitions in May 2021 as part of a larger investigation into gun trafficking and drug distribution in Macon and the surrounding areas. ATF agents observed and recorded Willis sell a .44 revolver and five rounds of ammunition in Macon on May 6, 2021. Willis was previously convicted of voluntary manslaughter in the Superior Court of Bibb County, Georgia, in 1997. It is illegal for a convicted felon to possess a firearm.
This case is the result of Operation United Front, an ongoing ATF-led investigation into illegal gun possession and drug distribution in Middle Georgia utilizing the National Integrated Ballistic Information Network (NIBIN).
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Bibb County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Will Keyes prosecuted the case.
Merced Man Sentenced to 7 Years in Prison for Sexual Assault in Yosemite National ParkRead the Press Release
FRESNO, Calif. — Ramonchito Racion, 52, of Merced, was sentenced today to seven years and one month in prison for one count of attempted sexual abuse and one count of abusive sexual contact, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, Racion, who was working as a cook for a private company in Yosemite in the summer of 2019, sexually assaulted his roommate while the roommate was sleeping. Racion was found guilty by a federal jury after a six–day trial.
This case was the product of an investigation by the National Park Service. Assistant U.S. Attorneys Michael G. Tierney and Justin J. Gilio prosecuted the case.
Maryland Man Sentenced to 21 Months in Prison for Firearms OffenseRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Zyeaire Brent, age 26, of Salisbury, Maryland, was sentenced on March 3, 2023, to 21 months’ imprisonment by United States District Court Judge Robert D. Mariani for unlawfully possessing a firearm as a convicted felon.
According to United States Attorney Gerard M. Karam, Brent previously pleaded guilty to possessing a loaded 9mm Smith & Wesson pistol on November 19, 2020, in Susquehanna County, while knowing that he had previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
The matter was investigated by the Federal Bureau of Investigation (FBI), the Pennsylvania State Police, and the Susquehanna County District Attorney’s Office. Assistant United States Attorney James Buchanan prosecuted the case.
This case is also 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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Local banker sent to prison for money laundering conspiracyRead the Press Release
BROWNSVILLE, Texas – A former Wells Fargo branch manager has been ordered to federal prison for helping a drug trafficking ring launder their money through his bank, announced U.S. Attorney Alamdar S. Hamdani.
Stephen Roland Reyna, 36, pleaded guilty Sept. 1, 2021.
Today, U.S. District Judge Rolando Rivera ordered Reyna to serve 20 months in federal prison to be immediately followed by 16 months of supervised release with home detention. At the hearing, the court Reyna was given and held a position of trust with the bank, of which he took advantage. In handing down the sentence, the court noted the amount of money Reyna laundered and the sequence of events in which he participated.
“If you help drug traffickers ‘clean’ their money, you will be prosecuted,” said Hamdani. “It is especially disappointing that a bank manager for Wells Fargo chose to violate his position of trust for easy money, money from organizations that are destroying our communities.”
Reyna was the manager of a Wells Fargo branch in Harlingen. While serving in that position and utilizing his position and knowledge of the banking industry, Reyna assisted a drug trafficking organization to launder $410,000 in drug sale proceeds.
The organization would transport multi-kilogram cocaine loads from the Rio Grande Valley to northern states. Upon successful delivery, thousands of dollars in drug proceeds would then be dispersed through multiple Wells Fargo bank accounts in the northern states.
Reyna would coordinate with multiple co-conspirators in the Rio Grande Valley to launder the funds through their accounts at Wells Fargo. Reyna ensured the proceeds were successfully withdrawn from his branch in Harlingen.
Co-conspirators would frequently pay Reyna in cash right after he helped them get their drug proceeds out of the bank.
Reyna ultimately admitted he suspected the funds were from illegal activity, including narcotics trafficking.
Reyna was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with assistance from the Cameron County District Attorney’s Office and Wells Fargo. Assistant U.S. Attorneys David A. Lindenmuth and Karen Betancourt prosecuted the case.
Life Sentence for Sex Trafficking of A MinorRead the Press Release
LITTLE ROCK—A Palestine man was sentenced to life in prison for conspiracy to commit sex trafficking of a six-year-old child. Mario Waters, 34, was sentenced today by United States District Judge Brian S. Miller.
In February 2018, a six-year-old child was taken to Arkansas Children’s Hospital due to symptoms that were later determined to be caused by several sexually transmitted diseases. The child was interviewed by an FBI forensic interviewer and disclosed that a man, later determined to be DeMarcus George, had raped her. The child also disclosed that another man, later determined to be Mario Waters, had also raped her. The child told interviewers that the rape occurred in a hotel room with a curtain in the middle of the room, and she described a picture hanging on the wall in the hotel room. According to the child, on at least one occasion, Waters came to the hotel room where she was with George; Waters raped her; and Waters gave George money.
Law enforcement was able to locate a hotel in Little Rock that matched the description provided by the minor, including the picture on the wall and the curtain in the room. Financial records from the hotel showed that the minor’s mother had rented a room at the hotel in March 2018 and paid with a credit card. The child has since been removed from the mother’s custody.
Doctors at Arkansas Children’s Hospital determined that it was unlikely the child had obtained each sexually transmitted disease from the same offender and that there were likely multiple offenders. Officers obtained search warrants for George and Waters’ blood and urine. Results indicated that George and Waters tested positive for sexually transmitted diseases that the minor had contracted.
Both George and Waters were indicted in September 2019, and both pleaded guilty in November 2021. Both defendants admitted in court that they had sexual contact with the minor and were involved in trafficking her with others. George was sentenced to life in prison on October 25, 2022. There is no parole in the federal system.
The case was investigated by the FBI and the Little Rock Police Department. Assistant United States Attorney Kristin Bryant prosecuted the case.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Lexington Man Sentenced to 151 Months for Fentanyl Trafficking and Possession of a Firearm by a Convicted FelonRead the Press Release
FRANKFORT, Ky.— A Lexington, Ky., man, Isaiah Wimberly, 30, was sentenced to 151 months in federal prison on Wednesday, by U.S. District Judge Gregory Van Tatenhove, for possession with intent to distribute 40 grams or more of fentanyl and possession of a firearm by a convicted felon.
According to his plea agreement, an arrest warrant was issued for Wimberly in September 2021. Upon executing the warrant, after Wimberly had exited his vehicle, a search of the vehicle discovered two, loaded firearms. A search of his residence then uncovered 90 grams of fentanyl, scales, and an unloaded firearm. Thereafter, in April 2022, law enforcement received information that Wimberly was selling narcotics at a local hotel. Wimberly was arrested and law enforcement seized an additional 191 grams of fentanyl. Wimberly admitted that he possessed the narcotics seized on both occasions and that he intended to distribute it. Wimberly also admitted that he knew he was prohibited from possessing a firearm, due to prior felony convictions.
Wimberly pleaded guilty in September 2022. Wimberly was previously convicted, in June of 2019, of being a convicted felon in possession of a firearm and possession of a controlled substance in the first degree, in Fayette Circuit Court.
Under federal law, Wimberly must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for four years.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Division; Jodi Cohen, Special Agent in Charge, FBI Louisville Field Office; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by ATF, FBI, and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney Cindy Rieker.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Lebanon County Woman Sentenced for Making Interstate ThreatsRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lisa Marie Famiglietti, age 42, of Lebanon, Pennsylvania, was sentenced on March 3, 2023, by U.S. District Court Judge Jennifer P. Wilson to a period of time-served, consisting of 35 days’ incarceration, for making interstate threats.
According to United States Attorney Gerard M. Karam, between October and December 2021, Famiglietti sent multiple explicitly threatening messages to two victims through fake Instagram and Twitter accounts. The threats included burning down the victim’s house with the victim inside, throwing the victim into a fire pit, and using an ax to break the victim’s arms, legs, and head. Famiglietti’s cyberthreats continued even after she was confronted by the FBI in November 2021. As argued by the government at sentencing, Famiglietti’s anonymous interstate threats were particularly alarming and unsettling to the victims, because the victims did not know who was making the threats and what steps, if any, were being taken to carry out the threats.
In addition to her five weeks in prison, the Court ordered Lisa Famiglietti to serve one year of supervised release to include computer monitoring software on all her electronic devices.
The case was investigated by the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Samuel S. Dalke prosecuted the case.
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Leader of Illegal Copyright Infringement Scheme Sentenced to 5 ½ Years’ ImprisonmentRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Bill Omar Carrasquillo, 36 years old, of Swedesboro, NJ, was sentenced to 66 months’ imprisonment, five years of supervised release, more than $30 million in forfeiture, and more than $15 million in restitution by United States District Court Judge Harvey Bartle III, for crimes arising from a wide-ranging copyright infringement scheme that involved piracy of cable TV, access device fraud, wire fraud, money laundering, and hundreds of thousands of dollars of copyright infringement.
As the Indictment set forth, from about March 2016 until at least November 2019, Carrasquillo along with his co-defendants operated a large-scale internet protocol television (IPTV) piracy scheme in which they fraudulently obtained cable television accounts and then resold copyrighted content to thousands of their own subscribers, who could then stream or playback content. The defendants also made fraudulent misrepresentations to banks and merchant processors in an effort to obtain merchant processing accounts. During the period of their scheme, the defendants earned more than $30 million. Carrasquillo, in particular, converted a large portion of his profits into homes and dozens of vehicles, including high-end sports cars. When agents attempted to seize those items pursuant to judicially-authorized warrants, Carrasquillo made false statements about and attempted to hide some of those vehicles, including a Freightliner recreational vehicle and a McLaren sports vehicle.
Carrasquillo was convicted of one count of conspiracy; one count of violating the Digital Millennium Copyright Act; 1 count of reproduction of a protected work; 3 counts of public performance of a protected work; 1 count of access device fraud; 1 count of wire fraud; 1 count of making false statements to a bank; 1 count of money laundering; 1 count of making false statements to law enforcement officers; and 1 count of tax evasion.
In addition to a sentence of 66 months’ imprisonment, the court ordered Carrasquillo to pay $10.7 million in restitution to the victim cable companies, more than $5 million in restitution to the IRS, and to forfeit over $30 million in illegal proceeds that he reaped from the scheme.
"Income gained from the infringement of copyrights is taken seriously, and the federal government will continue its commitment to protecting copyright holders, creators, and the millions of customers who enjoy the fruits of a strong intellectual property rights system," said U.S. Attorney Romero. "Carrasquillo and his co-defendants operated a large-scale cable piracy scheme. They fraudulently obtained cable television accounts and then resold copyrighted content to tens of thousands of subscribers across the country and abroad, earning over 30 million dollars in illicit revenue in about three years, none of which was reported on state or federal income tax return. Accordingly, today's sentencing of Omar Carrasquillo includes prison time and substantial forfeiture and restitution reflecting the severity of his actions."
“Making money off of someone else’s copyrighted work is theft, plain and simple,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Mr. Carrasquillo hijacked all of this content, sold it to his subscribers, and lived large off the illegal proceeds. Today’s sentence should send a message that willfully stealing another party’s intellectual property is a serious crime and the FBI is committed to holding violators accountable.”
“Whether obtained legally or illegally, all income must be reported,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. Carrasquillo took multiple steps to evade his tax liability, including attempting to hide the source of his ill-gotten gains by depositing them into bank accounts held in names other than his own. Thanks to the hard work of IRS-CI and its law enforcement partners, Carrasquillo has been held accountable for his criminal conduct.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation and is being prosecuted by Assistant United States Attorneys Matthew T. Newcomer and Sara A. Solow, and DOJ Computer Crime and Intellectual Property Section Trial Attorneys Adrienne Rose and Jason Gull. Special Assistant United States Attorney David Weisberg and Assistant United States Attorney Lauren Baer also assisted with the prosecution, forfeiture, and restitution.
Laurence Doud, Former CEO of Pharmaceutical Distributor, Sentenced to 27 Months in Prison for Conspiring to Unlawfully Distribute Controlled Substances and Defrauding the DEARead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that LAURENCE F. DOUD III, the former Chief Executive Officer of Rochester Drug Co-Operative, Inc. (“RDC”), was sentenced today in Manhattan federal court to 27 months in prison for conspiring to unlawfully distribute oxycodone and fentanyl and conspiring to defraud the Drug Enforcement Administration (“DEA”). DOUD was sentenced today by United States District Judge George B. Daniels after being convicted at trial in February 2022.
U.S. Attorney Damian Williams said: “Laurence Doud cared more about his own paycheck than his responsibility as CEO of RDC to prevent dangerous opioids from making their way to pharmacies, drug dealers, and people struggling with addiction. The sentence imposed today holds Doud responsible for shipping massive amounts of dangerous and highly addictive oxycodone and fentanyl to pharmacies that he knew were illegally dispensing those controlled substances and reaffirms this Office’s commitment to seeking justice for the many victims of the opioid epidemic.”
According to the Indictment and the evidence at trial:
Violations of the Federal Narcotics Laws
From 2012 through March 2017, DOUD knowingly and intentionally violated the federal narcotics laws by distributing, through RDC, dangerous, highly addictive opioids to pharmacy customers that he knew were being sold and used illicitly. At the direction of its senior management, including DOUD, RDC supplied large quantities of oxycodone, fentanyl, and other dangerous opioids to pharmacy customers that its own compliance personnel determined were dispensing those drugs to individuals who had no legitimate medical need for them. RDC, at the direction of DOUD and others, distributed controlled substances to those pharmacies even after identifying “red flags” of diversion, including dispensing highly abused controlled substances in large quantities; dispensing primarily controlled substances; dispensing quantities of controlled substances in amounts consistently higher than accepted medical standards; accepting a high percentage of cash for controlled substance prescriptions; dispensing to out-of-state patients; and filling controlled substances prescriptions issued by practitioners acting outside the scope of their medical practice, under investigation by law enforcement, or on RDC’s “watch list.” In addition, and at DOUD’s direction, RDC frequently brought on pharmacy customers that had been terminated by other distributors.
Conspiracy to Defraud the DEA
From 2012 through March 2017, DOUD took steps to conceal RDC’s illicit distribution of controlled substances from the DEA and other law enforcement authorities. Among other things, DOUD made the deliberate decision not to investigate, monitor, or report to the DEA pharmacy customers that DOUD and others at RDC knew were diverting controlled substances for illegitimate use. Because they knew that reporting these pharmacies would likely result in the DEA investigating and shutting down RDC’s customers, RDC’s senior management, including DOUD, directed the company’s compliance department not to report them and instead to continue supplying those customers with dangerous controlled substances that the company knew were being dispensed and used for illicit purposes. Among other things, pursuant to DOUD’s instructions, and contrary to the company’s representations to the DEA, RDC opened new customer accounts without conducting due diligence and supplied those customers – some of whom had been terminated by other distributors – with dangerous controlled substances. Additionally, DOUD caused RDC to avoid filing suspicious order reports with the DEA as required by law. As a result, the DEA’s ability to identify and prevent the illicit dispensing of highly addictive controlled substances by several of RDC’s pharmacy customers was impeded.
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In addition to his prison term, LAURENCE F. DOUD III, 79, of Port Orange, Florida, was sentenced to three years of supervised release and ordered to pay a $100,000 fine.
Mr. Williams praised the outstanding investigative work of the DEA’s Westchester Tactical Diversion Team and thanked Special Agents of United States Attorney’s Office for their assistance.
The prosecution of this case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Thomas Burnett, Nicolas Roos, and Alexandra Rothman are in charge of the prosecution and represented the Government at trial. Assistant U.S. Attorney Louis Pellegrino also participated in the investigation into RDC and DOUD.
Kissimmee Felon Given Maximum Sentence for Stockpiling Firearms and Ammunition in His ResidenceRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Daniel Stephen King (28, Kissimmee) to 10 years in federal prison for possessing firearms and ammunition as a convicted felon. The court also ordered King to forfeit nine firearms and multiple rounds of ammunition. A federal jury had found King guilty on November 14, 2022.
According to testimony and evidence presented at trial, on April 23, 2022, the Osceola County Sherriff’s Office was called to King’s residence due to a domestic disturbance. When the deputies arrived, a resident of the house frantically ran outside with her four-year old daughter. The deputies were informed that King had a large number of firearms and ammunition in the house and that King had strapped on a bullet proof vest. At the time, King was a convicted felon who was on probation and prohibited from possessing firearms or ammunition. The deputies surrounded the house, and after approximately two hours, they persuaded King to come out and surrender. A warrant was obtained to search the residence and nine firearms were recovered, including three rifles, hundreds of rounds of ammunition, and a ballistic vest. A rifle safe, multiple gun lockboxes, magazines, and an ammunition can were also recovered from inside of the house.
King has a criminal history that includes multiple firearms offenses for which he served prison time, as well as violations of probation.
This case was investigated by the Osceola County Sheriff’s Office, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney John M. Gardella.
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.
Keys Lobster Company and its President Pled Guilty to Exporting Falsely Labeled ProductRead the Press Release
MIAMI – Aifa Seafood, Inc., (Aifa), a Florida corporation, and its president, Jiu Fa Chen, 57, of Parkland, Fla., have pled guilty to exporting falsely labeled spiny lobster from Florida to China.
According to court documents, including a Joint Factual Statement submitted by the parties, from May through August 2019, Aifa purchased seafood products for export to China. To meet the high demand for spiny lobster, Aifa imported lobster from Haiti for reexport to China. Aifa reexported approximately 5,900 pounds of lobster and falsely labeled the product in shipping documents as “Live Florida Spiny Lobsters, Product of U.S.A.”
Aifa faces a sentence of up to five years’ probation and a fine of up to $500,000. Chen faces a term of imprisonment of up to five years, a fine of $250,000, and a period of three years supervised release. Judge Moreno set the sentencing hearing for both defendants on May 23, at 9:30 a.m.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Director Manny Antonaras of the National Oceanic & Atmospheric Administration (NOAA), Southeast Division, acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI), Miami, and Major Alberto Maza, Regional Commander of the Florida Fish and Wildlife Conservation Commission (FWC), Division of Law Enforcement, South B Region, announced the convictions.
NOAA Office of Law Enforcement, HSI Key Largo, and FWC Division of Law Enforcement investigated the case. Assistant U.S. Attorney Thomas Watts-FitzGerald is prosecuting the case.
If you have any information regarding this investigation, or other wildlife crimes, you may contact the NOAA Office of Law Enforcement Hotline: (800) 853-1964 and the U.S. Fish & Wildlife Service at 1-800-344-9453. Locally, environmental crimes, including wildlife violations and environmental justice matters may be reported to the U.S. Attorney’s Office at 305-961-9001 or [email protected] .
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 22-cr-20479.
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KC Man Pleads Guilty to Illegally Possessing Machine Gun Used in Fatal Shooting of KC FiremanRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man pleaded guilty in federal court today to illegally possessing the firearm used in the fatal shooting of an Independence, Mo., firefighter during an altercation in a liquor store parking lot.
Ja’Von L. Taylor, 23, pleaded guilty before U.S. District Judge Stephen R. Bough to one count of being a felon in possession of a firearm and one count of possessing a machine gun. Taylor has been detained in federal custody without bond since his arrest.
By pleading guilty today, Taylor admitted he was in possession of a Glock .40-caliber handgun, which had been converted to a machine gun. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Taylor has prior felony convictions for robbery and distributing marijuana.
According to court documents, Independence police officers were dispatched to Liquor Land, 11100 E. U.S. 40 Highway in Independence, on a reported shooting of an Independence firefighter on Oct. 6, 2022. Taylor was located across the street and taken into custody.
Officers searched Taylor’s vehicle and found the Glock machine gun, a broken extended magazine, and a 15-round magazine. Taylor told investigators that he bought the gun from a guy off the street a few months ago for $500.
Under federal statutes, Taylor is subject to a sentence of up to 25 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing is scheduled on Aug. 3, 2023.
This case is being prosecuted by Assistant U.S. Attorney Gregg R. Coonrod. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.