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Friday 20 January 2023
Former Firefighter Sentenced to Eight Years in Prison for Transportation of Child PornographyRead the Press Release
Des Moines, IA – A West Des Moines man was sentenced yesterday to eight years in federal prison for transportation of child pornography.
According to court documents, James Dean Gathercole, age 55 of West Des Moines, knowingly uploaded an image of child pornography to a 72-member Internet group chat room in May 2020. Gathercole also knowingly possessed at least five videos and two images of child pornography on his cellular phone in September 2020.
As recently as 2020, Gathercole was employed as a firefighter at departments in the Des Moines metro area.
In addition to his term of imprisonment, Gathercole was ordered to serve a term of supervised release of seven years and pay a total of $40,000 in fines and a $100 special assessment.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. Homeland Security Investigations investigated the case.This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. For more information about Internet safety education, please visit https://www.justice.gov/psc and click on the resources tab.
Former Correctional Officer Convicted After Seven-Day Trial for a Racketeering Conspiracy to Smuggle Contraband into Maryland’s Chesapeake Detention FacilityRead the Press Release
Baltimore, Maryland – A federal jury yesterday convicted former Correctional Officer Andre Davis, a/k/a “2 Chainz,” age 37, of Baltimore, for a racketeering conspiracy at the Chesapeake Detention Facility (CDF), in Baltimore, Maryland, after a seven-day trial. Two other correctional officers (COs), four detainees, and two outside “facilitators” previously pleaded guilty to their roles in the conspiracy, which involved paying bribes to correctional officers to smuggle contraband, including narcotics, tobacco, and cell phones, into the prison.
The guilty verdict was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Carolyn J. Scruggs of the Maryland Department of Public Safety and Correctional Services.
According to court documents and the evidence presented at trial, CDF is run by the Maryland Department of Public Safety and Correctional Services (DPSCS) pursuant to a contract with the United States Marshals Service (USMS) and is primarily used for the housing of federal pretrial detainees. CDF is a maximum-security prison that houses approximately 500 male and female detainees. There are six housing areas, or “pods” in CDF.
The evidence showed that from at least 2016, Davis, along with other employees, detainees and associates of CDF, participated in a conspiracy to smuggle contraband into CDF, including narcotics, cell phones, and tobacco. According to the evidence at trial, Davis abused his position of trust as sworn officer of DPSCS by engaging in illegal activities to enrich himself.
According to the trial testimony, Davis smuggled contraband into CDF for multiple detainees, including co-defendants Donte Thomas, Andre Webb, and Bernard Bey. At the direction of the detainees, Davis met with outside facilitators to receive contraband and bribe payments. The evidence showed that Davis smuggled Suboxone, tobacco, and cellular telephones and communication devices into CDF, in exchange for bribes.
As detailed during the trial, the defendant detainees and facilitators paid Davis and his co-defendant COs for smuggled contraband using cash and electronic payment platforms, including Cash App.
Davis faces a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge George L. Russell, III, has scheduled sentencing for April 3, 2023, at 9:30 a.m.
United States Attorney Erek L. Barron commended the FBI and DPSCS for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Peter J. Martinez and Robert I. Goldaris, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Federal agent sent to prison for aiding drug smugglingRead the Press Release
McALLEN, Texas – A former Border Patrol (BP) agent has been ordered to federal prison for attempting to aid and abet smuggling cocaine through a checkpoint, announced U.S. Attorney Alamdar S. Hamdani.
Oberlin Cortez Pena Jr., 23, La Joya, pleaded guilty Dec. 17, 2021.
Today, U.S. District Judge Randy Crane sentenced him to a total of 121 months in federal prison to be immediately followed by five years of supervised release.
At the hearing, the court heard additional evidence that he had brandished an AR-15 rifle while meeting with co-defendant Edwin Alejandro Castillo to plan the smuggling of a second load of cocaine through the Falfurrias BP checkpoint. Pena attempted to convince the court that he possessed the rifle because he was on his way to hunt hogs after meeting Castillo.
In handing down the sentence, the court found Pena’s explanation unconvincing and assessed a sentencing enhancement for possession of a firearm during drug trafficking. The court further noted that honest law enforcement is the foundation of civil society, and the presence of a corrupt agent, especially at the BP checkpoint, could lead to immeasurable damage to the country.
“Honest law enforcement is a cornerstone of public trust,” said Hamdani. “This defendant violated his oath to defend the Constitution, and he betrayed that trust to engage in criminal activity for financial gain. Today’s sentence is a message that we will aggressively investigate and prosecute allegations of law enforcement corruption and continue to seek significant sentences when necessary to protect the public and their trust in our institutions.”
At the time of his plea, Pena admitted that on two separate occasions, he helped smuggle over five kilograms of cocaine through the Falfurrias checkpoint. Specifically, he used his knowledge as a BP agent and directed loads through particular checkpoint lanes, further acting as a scout and providing information about the inspection lanes and which one to use. Pena also gave detailed instructions on how to conceal the drugs and tactics to employ in order to distract the canine unit at the checkpoint.
Four others have been convicted as part of the investigation. Kristian Nicole West, 33, Corpus Christi, and Herbey Jose Solis III, 29, Mission, pleaded guilty to alien smuggling.
Castillo, 24, Sullivan City, and Jose Luis Duran, 26, Mission, admitted to alien smuggling. At the time of their pleas, Castillo also admitted to bribery, while Duran was also convicted of conspiracy to commit bribery. They each received 36 months in prison.
Previously released on bond, Pena was taken into custody in December 2022 after he was found possessing a firearm at a ranch. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of Homeland Security - Office of Inspector General conducted the investigation with assistance from Customs and Border Protection - Office of Professional Responsibility and BP. Assistant U.S. Attorneys Jongwoo Chung and John Pearson prosecuted the case.
Federal Grand Jury Indicts Two on Fraud ChargesRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment on January 18, 2023, charging Yeniseis Saavedra and Alien Saavedra with conspiracy to commit wire fraud and disaster fraud and Yeniseis Saavedra with filing a false statement, disaster fraud and aggravated identity theft.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Andrea M. Kropf of the Department of Transportation Office of Inspector General, Midwestern Region, and U.S. Postal Inspector in Charge Lesley Allison of the Pittsburgh Division made the announcement.
According to the indictment, Yeniseis Saavedra, 32, and Alien Saavedra, 33, of Louisville, Kentucky, were charged with one count of conspiracy to commit wire fraud and one count of aiding and abetting disaster fraud. The indictment charges both with conspiring to defraud factoring (trucking loan) companies by submitting false bills of lading. The indictment also charges both with filing for lost wage assistance payments authorized by a Presidential Memorandum resulting from the COVID-19 pandemic with the Kentucky Office of Unemployment. The filing for lost wage assistance payments were on behalf of Alien Saavedra and failed to report that Alien Saavedra was receiving wages from the motor carrier industry.
Yeniseis Saavedra was also charged with making a false statement to the United States Department of Transportation, Federal Motor Carrier Safety Administration when she falsely filed an application on behalf of another, C.S., claiming that C.S. was going to operate a trucking company. However, C.S. was not aware of the application filing, and Yeniseis Saavedra was operating the company.
Yeniseis Saavedra was also charged with disaster fraud for filing for lost wage assistance payments authorized by a Presidential Memorandum resulting from the COVID-19 pandemic with the Kentucky Office of Unemployment on behalf of C.S. Again, C.S. was unaware of the filing, this time for lost wage assistance payments, and C.S. did not receive any of the lost wage payments. Instead, the lost wage payments were sent to a bank account controlled by Yeniseis Saavedra.
Lastly, Yeniseis Saavedra was charged with aggravated identity theft for using the identity and social security number of C.S. without C.S.’s authorization to obtain the lost wage assistance payments.
Yeniseis Saavedra and Alien Saavedra made their initial court appearances this week before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. If convicted, Yeniseis Saavedra faces a mandatory minimum sentence of 2 years in prison and a maximum sentence of 87 years in prison, and Alien Saavedra faces a maximum sentence of 50 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the United States Department of Transportation Office of Inspector General and the United States Postal Inspection Service with the assistance of the United States Department of Labor.
Assistant U.S. Attorney Joe Ansari is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Eastern PA Woman Pleads Guilty to Possessing Drugs in Butler Hotel RoomRead the Press Release
PITTSBURGH, PA – A former resident of Upper Darby, Pennsylvania, was convicted of a possessing with intent to distribute a quantity of a mixture and substance containing a detectible amount of heroin and a detectible amount of fentanyl, and a quantity of a mixture and substance containing a detectible amount of cocaine, United States Attorney Cindy K. Chung announced today.
Shameekha Mu-Min, 31, pleaded guilty to one count before United States District Judge Robert J. Colville.
In connection with the guilty plea, the Court was advised that, on June 24, 2020, during a search of a hotel room in Butler, Pennsylvania, in which Mu-Min was located, investigators recovered multiple cell phones on Mu-Min’s bed, a grinder with residue, and $3,920.00 of drug-trafficking proceeds. During a subsequent search of Mu-Min’s person, investigators recovered approximately 4.824 grams of a mixture and substance containing a detectible amount of cocaine, a Schedule II controlled substance, and 3.029 grams of a mixture and substance containing detectible amounts of fentanyl, a Schedule II controlled substance, and heroin, a Schedule I controlled substance.
udge Colville scheduled sentencing for May 12, 2023, at 3:00 p.m. The law provides for a total sentence of not more than 20 years in prison, a fine of up to $1,000,000, 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 Attorneys Yvonne M. Saadi and Craig W. Haller are prosecuting this case on behalf of the government.
The Pennsylvania State Police, the Federal Bureau of Investigation, and the Butler County District Attorney’s Drug Task Force led the investigation leading to the conviction in this case.
Eagle Butte Man Indicted for Assault Resulting in Serious Bodily InjuryRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury and Assault with a Dangerous Weapon.
Peyton James Jewett, age 34, was indicted in January of 2023. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 17, 2023, and pleaded not guilty.
The maximum penalty upon conviction for Assault Resulting in Serious Bodily Injury or Assault with a Dangerous Weapon is 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges Jewett assaulted another person on August 13, 2022, with shod feet and a bat, resulting in serious bodily injury. This conduct occurred in Ziebach County, South Dakota.
These charges are merely accusations and Jewett is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carl Thunem is prosecuting the case.
Jewett has been remanded to the custody of the U.S. Marshals Service pending trial.
Drug Trafficker Pleads Guilty to Selling Fatal FentanylRead the Press Release
The drug dealer who sold the fentanyl that killed an Abilene man pleaded guilty this week to a federal drug crime, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Elijah James Perez, 21, was indicted in September 2022. He pleaded guilty Tuesday to distribution of fentanyl resulting in death.
- U.S. Attorney Leigha Simonton“Fentanyl has shattered far too many lives. And far too often, users don’t understand that the pills they’re ingesting are laced with this deadly drug. Let this case be a warning to drug dealers throughout Texas: If you sell the fentanyl that causes an overdose death, we will hold you accountable to the fullest extent of the law.”
According to court documents, Mr. Perez admits that he sold fentanyl to a victim, identified in court documents as J.W., on Feb. 11, 2022.
The following day, J.W. was found nonresponsive on his bed. After 40 minutes of attempted resuscitation, he was pronounced dead on scene.
Witnesses told law enforcement they believed J.W. had ingested Percocet, but an autopsy found that J.W. died from the toxic effects of fentanyl.
According to plea papers, Mr. Perez admits that approximately three days before J.W.’s death, Mr. Perez offered to sell him “5 percs.” Three days later, Mr. Perez met with J.W. outside his home around 10 p.m. to make the sale. The pills were laced with fentanyl.
Six minutes later, J.W. texted his girlfriend that he’d received some “percs” that were “hella strong.” Hours later, he was dead of an overdose.
- DEA Dallas Field Division Special Agent in Charge, Eduardo A. Chávez“The consequences of trafficking drugs is real. The deadly effects of fentanyl have claimed the lives of two people: one who we will never get back and another who will spend years in prison as a result. Families are forever changed. The DEA will continue to investigate these crimes with a relentless pursuit of justice and accountability for the criminal organizations that distribute these deadly drugs.”
If the federal district judge accepts his plea of guilty, Mr. Perez faces a mandatory minimum sentence that includes 20 years in federal prison. A sentencing date has not yet been set.
The Drug Enforcement Administration’s Dallas Field Office and the Abilene Police Department conducted the investigation. Assistant U.S. Attorney Matt Tusing is prosecuting the case.
DePuy Synthes, Inc. Agrees to Pay $9.75 Million to Settle Allegations Concerning Kickbacks Paid to Massachusetts Orthopedic SurgeonRead the Press Release
Medical device manufacturer DePuy Synthes, Inc. (DePuy), a subsidiary of Johnson & Johnson, has agreed to pay $9.75 million to resolve allegations it violated the False Claims Act by paying kickbacks to an orthopedic surgeon based in Massachusetts to induce his use of DePuy products.
The settlement announced today resolves allegations that DePuy violated the Anti-Kickback Statute (AKS) and caused the submission of false or fraudulent claims to Medicare by paying the orthopedic surgeon kickbacks in the form of free spinal implants and tools for use in surgeries that the surgeon performed overseas to induce that surgeon to use DePuy products in surgeries performed in the United States. As part of the settlement, DePuy has admitted that from at least July 2013 through February 2018, DePuy, acting through certain former sales representatives, gave the Massachusetts surgeon thousands of dollars’ worth of free DePuy implants and instruments, including cages, rods, screws, plates, and surgical instrumentation, that the surgeon used to perform surgeries overseas for patients who were not federal health care beneficiaries. Of the $9.75 million to be paid by DePuy, approximately $7.23 million will be returned to the federal government, and approximately $2.52 million will be returned to Massachusetts, which jointly funded claims for surgeries involving DePuy devices that were submitted to the Massachusetts Medicaid program.
The AKS prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
“Medical device manufacturers are prohibited from providing free items to induce a physician to use their devices,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When medical devices are used in surgical procedures, patients deserve to know that their device was chosen based on quality of care considerations and not on improper inducements from manufacturers.”
“Today the United States resolves allegations that DePuy provided over $100,000 worth of free product to a surgeon in order to secure and reward that physician’s continued business,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “Unlawful kickbacks can severely distort medical judgment as well as the market for medical devices. The millions of patients that depend on our health care system deserve untainted medical decisions. This settlement reflects our commitment to stamping out illegal kickbacks.”
“The American people, as both taxpayers and consumers, expect medical device manufacturers like DePuy to abide by relevant laws and regulations. When such health care companies provide illegal kickbacks in order to boost profits, their actions erode public confidence in the health care system, can compromise the patient-physician relationship, and waste government health program funding,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “In close cooperation with our law enforcement partners, we will continue to thoroughly investigate allegations of fraud to protect both federal health care programs and those served by them.”
“Today’s settlement makes it crystal clear that it is illegal for medical device companies to provide physicians with free medical products to win business and boost their bottom line through illegal kickback schemes,” said Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Division. “Every year, health care fraud costs taxpayers billions of dollars. It is not a victimless crime and this unscrupulous scheme orchestrated by DePuy is just one example of how the FBI and our partners are working hard every day to protect both patients and taxpayers.”
The lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Aleksej Gusakovs, who is a former sales representative for DePuy. Under those provisions, private parties, known as relators, can file an action on behalf of the United States and receive a portion of the recovery. The qui tam case is captioned United States et al. ex rel. John Doe v. Johnson & Johnson, et al., No. 17-cv-11502 (D. Mass.). As part of today’s resolution, Gusakovs will receive approximately $1.37 million.
The settlement was a result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the District of Massachusetts. The HHS-OIG provided investigative support.
The government’s pursuit of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
The matter was handled by Senior Trial Counsel Benjamin C. Wei of the Civil Division and Assistant U.S. Attorneys Jessica Weber and Andrew Caffrey for the District of Massachusetts.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Dallas Man Convicted of Federal Drug Trafficking Violations in Eastern District of TexasRead the Press Release
SHERMAN, Texas – A Dallas man has been convicted of federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Eric R. Roberts, 51, was convicted of multiple federal violations, including continuing criminal enterprise; conspiracy to possess with intent to distribute marijuana; conspiracy to commit money laundering; and possession of a firearm in furtherance of a drug trafficking crime. Roberts was found guilty by a jury following a 10-day trial before U.S. District Judge Amos Mazzant.
The jury also returned a verdict for criminal forfeiture of a large amount of property seized from Roberts, including 37 firearms, 8 vehicles, and $436,295 in US currency.
Four additional co-defendants - Ronald Lewis McGuire, Lowell Eugene Sargent, Philip S. Lala, and Christopher Shaun Ragle - were found guilty by the same jury of conspiracy to possess with intent to distribute marijuana and conspiracy to commit money laundering. The jury found that all five defendants were individually responsible for 1000 kilograms or more of a mixture or substance containing a detectable amount of marijuana.
According to information presented in court, Roberts was a leader of a large-scale national drug trafficking organization spanning several years, with McGuire, Sargent, Lala, and Ragle acting as drivers.
Roberts was indicted by a federal grand jury on April 15, 2021. He faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the Drug Enforcement Administration and the Mesquite Police Department and prosecuted by Assistant U.S. Attorneys Brent L. Andrus and Ernest Gonzalez.
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Colorado Man Sentenced to Federal Prison for Role in Money Laundering ConspiracyRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces James Albert Witte, age 69, formerly of Wray, Colorado, was sentenced to 26 months in federal prison for conspiracy to commit money laundering. Witte was also ordered to serve three years of supervised release and pay $763,089.21 in restitution to the victims of the scheme.
According to the plea agreement in the case, from January of 2020 until September of 2020, the defendant was part of a conspiracy to launder funds obtained from a government official impersonation scheme. Victims were contacted by telephone and coerced into believing they were under investigation by “agents” of federal law enforcement agencies (the FBI, SSA, DHS, Treasury, or DEA). It was further part of the conspiracy that the conspirators told these victims that their identities had been connected to a criminal incident, their imminent arrest and/or deportation from the United States had been ordered by law enforcement, and that the only way to avoid arrest and or deportation was to pay the “Government” large sums of money, as instructed. The victims were instructed to withdraw cash from their bank accounts and mail the cash to various addresses, which turned out to be Walgreens stores in northeastern Colorado. Witte’s role in the scheme was to use fake identification cards provided to him by a conspirator to pick up victims’ packages of cash mailed to the Walgreens stores. He used some of the cash to purchase money orders, which one of his codefendants then deposited into third-party accounts. The cash contained in 33 packages picked up by Witte, the shipping costs for those packages, and shipping costs for another 15 packages that were either intercepted by law enforcement or a victim, resulted in a loss to the victims of $763,089.21. Witte received a percentage of the cash in each package he picked up.
Judge Raymond P. Moore sentenced the defendant on January 20, 2023.
This investigation was conducted jointly with investigators from the Social Security Administration (SSA) Office of Inspector General (OIG), United States Postal Inspection Service, Department of Homeland Security-OIG, Homeland Security Investigations (HSI), and the Sterling, Colorado Police Department. The District Attorney for the 13th Judicial District also provided assistance. This case was prosecuted by Assistant U.S. Attorneys Martha A. Paluch and Laura Hurd.
CASE NUMBER: 22-cr-00202
Clearfield Man Pleads Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A resident of Clearfield, PA pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Toby Lee Coker, age 37, of Clearfield, PA, pleaded guilty to Counts Two and Eight of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, from July 2019 to June 2020, Coker did conspire to distribute and possess with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine. Further, on or about February 20, 2020, Coker did distribute a quantity of methamphetamine.
Judge Gibson scheduled sentencing for May 30, 2023. The law provides for a minimum sentence of 15 years in prison and maximum sentence of life in prison, a fine of $20,000,000 or both, for Count Two and a maximum sentence of 30 years in prison, a fine of $2,000,000 or both, for Count Eight. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Coker. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Chicago Man Convicted of Participating in Illegal Kickback ConspiracyRead the Press Release
UPDATE
The defendant’s conviction was overturned pursuant to a decision by the Seventh Circuit, and he was acquitted on all counts.
A federal jury in the Northern District of Illinois convicted a Chicago man yesterday for participating in a conspiracy to pay approximately $25 million in illegal kickbacks to generate business for his durable medical equipment pharmacy.
According to evidence presented at trial, Mark Sorensen, 53, worked at Symed, a Chicago pharmacy that paid illegal kickbacks to obtain patients to bill to Medicare, TRICARE, and the Department of Labor’s Office of Workers’ Compensation Programs (OWCP). Between 2015 and 2018, Sorensen illegally bought patient leads from Bernie Perconti. Perconti obtained the leads from others, including Christine Anderson and Craig O’Neil. Without the involvement of the Symed, the conspirators could not have submitted claims to obtain reimbursement from Medicare or other federal health care benefit programs. Perconti, O’Neil, and Anderson each pleaded guilty to conspiracy to pay and receive kickbacks in 2019, July 2020, and January 2021, respectively, and are scheduled to be sentenced at a later date.
Sorensen was convicted of one count of conspiracy and three counts of payment of illegal kickbacks. He faces a maximum penalty of five years in prison on each count of conviction. 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; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Robert W. ‘Wes’ Wheeler Jr. of the FBI Chicago Field Office; Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG); Special Agent in Charge Irene Lindow of the Department of Labor Office of Inspector General (DOL-OIG), Chicago Region; and Special Agent in Charge Darrin Jones of the Department of Defense Office of Inspector General (DOD-OIG) made the announcement.
The FBI, HHS-OIG, DOL-OIG, and DOD-OIG investigated the case.
Assistant Chiefs Leslie S. Garthwaite and Daniel J. Griffin of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Chester County Doctor Sentenced to Two Years in Prison for Operating Pill Mill Out of Main Line Pain ClinicRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Yutong Zhang, 64, of Berwyn, PA, a physician, was sentenced to two years in prison, and three years of supervised release by United States District Court Judge Michael M. Baylson for operating a pain management medical practice in St. Davids, PA, as a “pill mill.”
In February 2022, the defendant pleaded guilty to an Information charging four counts of distributing oxycodone-containing medications outside of the usual course of professional practice and for no legitimate medical purpose. From approximately 2016 through 2020, Zhang sold medically unnecessary prescriptions for oxycodone and other controlled substances to about 120 so-called patients, who were actually cash-paying customers. The defendant frequently supplied these prescriptions after conducting only a cursory physical examination or without any examination at all, and did not take steps, such as ordering diagnostic testing, designed to discern the root cause of the pain reportedly suffered by patients.
In a separate but related civil settlement, the U.S. Attorney’s Office and Zhang agreed to resolve his civil penalty liability under the Controlled Substances Act. Zhang agreed to pay $715,000 in civil penalties for his controlled substance prescribing. The civil settlement also permanently prevents Zhang from ever prescribing controlled substances.
“The U.S. Attorney’s Office is committed to fighting the opioid epidemic on all fronts, including prosecuting drug dealers who happen to have a medical degree,” said U.S. Attorney Romero. “As a physician, Yutong Zang was certainly aware of the inherently dangerous nature of the drugs he was selling, but he chose to profit from sales of prescriptions, instead of providing genuine medical treatment. His actions kept addicted customers returning to his office, contributing to the opioid crisis on the streets of Philadelphia.”
“Today we see yet another local physician going to prison for pushing powerful pills to addicts,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “We see a waste of all that education and experience, and we see a monstrous ethical lapse. Zhang and other doctors who deal oxycodone to anyone who can pay for it are directly fueling the opioid crisis and its mounting human toll here. The FBI is committed to holding accountable medical professionals who choose to throw away their oath and get involved in this dangerous drug diversion.”
“Dr. Zhang demonstrated a complete and utter disregard of his medical oath as a doctor by prescribing powerful prescription painkillers for no legitimate purpose and for profit only,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “In addition to his federal prison sentence, Dr. Zhang will have to pay a $715,000 civil penalty fine and is prohibited from ever prescribing controlled substances again.”
“As a physician, Dr. Zhang was trusted to care for his community,” said Acting Attorney General Michelle Henry. “He violated that trust by prescribing highly addictive drugs that fuel the opioid crisis throughout Pennsylvania. We will hold any individual, including health care professionals, accountable when they recklessly put the lives of others at risk."
“We are pleased to shut down this illegal operation within our community,” said Radnor Township Police Superintendent Chris Flanagan. “These ‘pill mills’ effect everyone involved; the user, their friends and their families. Over time they truly ruin lives. The teamwork from the F.B.I., U.S. Attorney’s Office, P.A. Attorney General Task Force Members, and Delaware County D.A., was instrumental to bring this case to prosecution. We encourage those struggling with drug addiction to seek support from the many free resources where they live. Please report “pill mills” or other drug activities to your local authorities so action can be taken."
The case was investigated by the Radnor Police Department, the Pennsylvania Office of the Attorney General, the Federal Bureau of Investigation, and the the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. The criminal case is being prosecuted by Assistant United States Attorney Elizabeth Abrams, and the civil settlement was handled by Assistant United States Attorney Anthony D. Scicchitano.
Cave Springs Man Pleads Guilty to Tax EvasionRead the Press Release
FAYETTEVILLE — A Cave Springs man and former general manager at several Northwest Arkansas car dealerships pleaded guilty yesterday to evading more than $263,000 in federal income taxes. U.S. District Judge Timothy L. Brooks presided over the plea hearing, in Jonathan M. Wichman, 35, waived indictment and pleaded guilty to a criminal information charging him with tax evasion.
According to court documents and statements made in court, Wichman worked from 2014 through 2020, mainly as a general manager at car dealerships in Northwest Arkansas. In October 2018, Wichman accessed his employer’s online payroll system and caused the dealership to not withhold any federal income taxes or employment taxes from his 2019 and 2020 wages. During these years, Wichman earned a total of $856,882 in wages, including $360,739 from the dealership where he altered his federal tax withholdings.
Wichman did not file his tax returns with the IRS for tax years 2019 and 2020. Also, he did not timely file his tax returns for tax years 2014 through 2018 despite receiving correspondence from the IRS asking why he had not filed his tax returns. In May 2018, the IRS filed substitutes for returns for Wichman for tax years 2014 and 2016 and assessed additional taxes, which he also did not pay.
Wichman told investigating agents that he knew he owed past due taxes to the IRS. Wichman said he prepared his taxes using commercial software, and each year, the program showed he owed a large amount of taxes. Wichman claimed he did not have the money to pay his taxes, so he did not file his tax returns. However, the investigation revealed that Wichman did have money available to pay his taxes. From 2018 through 2021, Wichman made cash transactions at various casinos and banks totaling more than $1,079,000. In addition, from 2014 through 2022, Wichman spent more than $513,000 on luxury vehicles, a travel trailer, and a Florida vacation.
In total, Wichman did not pay $263,615 in income taxes to the IRS, and also admitted that he failed to pay income taxes to the state of Arkansas. Wichman agreed to pay restitution, including penalties and interest, to both the U.S. Treasury and Arkansas Department of Finance and Administration.
Wichman is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison. He also faces a period of supervised release, monetary penalties, and restitution. The U.S. District Judge will determine his sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Internal Revenue Service-Criminal Investigation is investigating the case.
Assistant U.S. Attorney Steven Mohlhenrich is prosecuting the case for the United States.
Canadian Leader of Complex Nigerian Fraud and Money Laundering Ring SentencedRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Akohomen Ighedoise (48, Thornhill, Ontario) to 17 years and 6 months in federal prison for conspiracy to commit mail and wire fraud. As part of his sentence, the court also entered an order of forfeiture of $10,632,546.36, representing the proceeds of the charged criminal conduct, and ordered Ighedoise to pay $4,389,340.97 in restitution to the victims. Ighedoise had pleaded guilty on September 13, 2022, following his extradition to the United States from Canada.
According to court documents and evidence presented at the trials of his convicted coconspirators, as well as at his sentencing hearing, Ighedoise, a dual citizen of Nigeria and Canada, worked for an international criminal organization based in Nigeria that defrauded dozens of victims across the United States and then laundered the funds through a complex network of bank accounts. The organization, known as the Black Axe Group or Neo Black Movement of Africa, coordinated fraud and money laundering activity throughout the globe via cells or “zones” in Nigeria, Canada, the United States, and elsewhere. During the conspiracy, Ighedoise was the “ihaza,” or treasurer, of the Black Axe Group’s North America zone based in Ontario, Canada.
The fraud schemes took several forms. Many of the victims were widowed, single, or divorced elderly women who developed relationships with fake suitors on dating websites as part of so-called “romance scams.” The women were then convinced to wire money, which often consisted of their entire retirement savings and cash taken out from home equity to bank accounts in the United States as part of a supposed investment opportunity. The conspirators also defrauded title companies with fake cashier’s checks in phony real estate transactions, leaving the companies on the hook for the losses once the checks bounced. Other victims included businesses targeted by email spoofing and hacking schemes, as well as law firms that were solicited online to perform legal work and then provided fake cashier’s checks for deposit into the firms’ trust accounts.
Victims were instructed to wire their money into numerous funnel accounts held by conspirators in the United States, known as “money mules,” and the funds were then quickly moved to other accounts in the United States and around the world before the victims could discover the fraud. From at least 2012 to October 2015, Ighedoise worked with co-conspirator Ikechukwu Derek Amadi and others to recruit more than a dozen individuals in the United States to act as money mules. Ighedoise and Amadi then had those individuals wire most of the victims’ funds overseas, including to Hong Kong, China, Canada and Nigeria, to promote the conspiracy and conceal the source of the funds. The group moved at least $10 million in frauds proceeds during this time.
This case was investigated by the Federal Bureau of Investigation, with assistance from various federal and local law enforcement partners throughout the country, as well as Canadian authorities, including the Toronto Police Service in Ontario, and the Toronto Strategic Partnership. It was prosecuted by Assistant United States Attorney Patrick Scruggs.
Bullhead Man Sentenced on Firearm ChargeRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced that a Bullhead, South Dakota, man convicted of Possession of a Stolen Firearm was sentenced on January 18, 2023, by U.S. District Judge Charles B. Kornmann.
Nicholas Black Cloud, age 21, was sentenced to six months in federal prison, followed by three years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
Black Cloud was indicted for Possession of a Stolen Firearm by a federal grand jury in January of 2022. He pleaded guilty on October 17, 2022.
On October 25, 2021, Black Cloud stole a pistol from a vehicle in McLaughlin, South Dakota. When he later encountered the police, Black Cloud threw the pistol away so he would not get caught with it. Law enforcement subsequently recovered the firearm.
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.
This case was investigated by the Corson County Sheriff’s Office, the Bureau of Indian Affairs – Office of Justice Services, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Cameron Cook prosecuted the case.
Black Cloud was immediately remanded to the custody of the U.S. Marshals Service.
Brockton Man Sentenced for Firearm and Ammunition OffenseRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for possessing a firearm and ammunition as a convicted felon.
Nicholas Mendes, 40, was sentenced by U.S. District Judge Patti B. Saris to 80 months in prison and three years of supervised release. On March 22, 2022, Mendes pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
On the evening of May 21, 2020, local police responded to a report of possible gunshots in Brockton. At the scene, officers found a parked vehicle with three occupants inside, one of whom was Mendes sitting in the driver’s seat, and the passenger door open. A subsequent search of the vehicle revealed a FN Model 509, 9mm semi-automatic pistol with a partially obliterated serial number tucked directly under the driver seat where Mendes was sitting. The semi-automatic firearm was loaded with six rounds of 9mm ammunition – including one round in the chamber. At the time, Mendes was on state probation with electronic monitoring.
Mendes is prohibited from possessing a firearm and ammunition due to prior convictions that include intimidation, possession of a firearm, carrying a firearm without a license, narcotics offenses and assault and battery.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brockton Police Chief Brenda Perez; and Plymouth County District Attorney Timothy J. Cruz made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crime Unit prosecuted the case.
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.
Bank Employee Admits Role in Fraud ConspiracyRead the Press Release
PROVIDENCE – A Providence woman who was previously employed by Citizens Bank admitted to a federal judge that she stole the banking information of unsuspecting individuals, businesses, and a law firm, and then provided that information to the leader of a bank fraud conspiracy, who used it to create fraudulent personal and business checks, announced United States Attorney Zachary A. Cunha.
Savonnah Briggs, 28, admitted that, while employed by the bank, she accessed customer information and check images, and provided screenshots of that information to Richard Kobi, 27, of Providence. Kobi then used the stolen information to create fraudulent checks that he deposited into his own bank, or that he provided to other individuals that he solicited on Facebook and paid to deposit the checks into bank accounts they controlled. After the checks were deposited, Koboi and others made, or attempted to make, rapid withdrawals of cash from ATMs or bank tellers.
According to information presented to the court, members of the conspiracy created and deposited approximately $330,000 worth of counterfeit checks.
On Thursday, Briggs pleaded guilty to a charge of conspiracy to commit bank fraud. She is scheduled to be sentenced on April 25, 2023. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Richard Kobi pleaded guilty on April 27, 2022, to conspiracy to commit bank fraud, ten counts of bank fraud, and being a felon in possession of a firearm. He was sentenced in December 2022 to three years in federal prison.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by the U.S. Postal Inspection Service, with the assistance of the FBI, United States Secret Service, ATF, Rhode Island State Police, Providence Police Department, and Delaware State Police.
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Arrest and Criminal Charges Announced Against British and Russian Businessmen for Facilitating Sanctions Evasion of Russian Oligarch’s $90 Million YachtRead the Press Release
Two businessmen, Vladislav Osipov, 51, a Russian national, and Richard Masters, 52, a United Kingdom national, are charged in separate indictments unsealed today in the U.S. District Court for the District of Columbia, with facilitating a sanctions evasion and money laundering scheme in relation to the ownership and operation of the Motor Yacht (M/Y) Tango (International Maritime Organization number 1010703), a $90 million, 255-foot luxury yacht owned by sanctioned Russian oligarch Viktor Vekselberg. The defendants are charged with conspiracy to defraud the United States and to commit offenses against the United States, violating the International Emergency Economic Powers Act (IEEPA), and money laundering. The United States requested that the Kingdom of Spain provisionally arrest Masters for purposes of extradition. The arrest was executed by the Spanish Guardia Civil today. An arrest warrant against Osipov is outstanding.
“Today’s indictments and the arrest executed by Spanish law enforcement demonstrate the FBI’s continued focus on tracking down and holding accountable those who assist sanctioned Russian oligarchs,” said FBI Deputy Director Paul Abbate. “The FBI, along with our international partners, will continue to aggressively investigate and pursue anyone who facilitates the corrupt practices of others, placing our institutions at risk.”
“Facilitators of sanctions evasion enable the oligarchs supporting Vladimir Putin’s regime to flout U.S. law. The United States will not allow its financial institutions and persons to be manipulated or defrauded for the purposes of benefitting those supporting an illegal war,” said U.S. Attorney Matthew M. Graves for the District of Columbia.
“The Department of Justice has been clear. Corporations and executives have a choice: they can participate in the global effort to uproot corruption, sanctions violations, and money laundering, and enjoy the benefits of prompt and fulsome cooperation; or they can, as Osipov and Masters are alleged to have done, attempt to shield themselves and their clients behind a veil of fraud,” said Director Andrew Adams of Task Force KleptoCapture. “These men made their decisions, and now face the consequences of a failed attempt to profit through, rather than standing against, a sophisticated, transnational criminal enterprise.”
“Russian oligarchs are the product of an ecosystem of corruption that abuses rule-of-law-based monetary structures to enrich themselves with the luxury trappings and lifestyles that everyday people only dream of – all the while as thousands of Ukrainians are homeless due to Russia’s unlawful invasion,” said Special Agent in Charge Ivan J. Arvelo of the Homeland Security Investigations (HSI) New York Field Office. “As stewards of the American financial system, HSI will not stand idly by as U.S. dollars are used by oligarch criminal networks to operate and maintain these high value symbols of corruption. Last year, working with our partners at the Justice Department and FBI, we removed the yacht Tango from an oligarch’s portfolio and with today’s actions we have followed through on our promise of accountability to those that conduct illicit financial transactions on behalf of the oligarchs. The message is clear: Putin’s cronies will find no succor in their riches and those that illegally enable such lifestyles will be called to justice.”
“The indictment alleges that both defendants used a variety of techniques to mask ownership of the Motor Yacht Tango in violation of U.S. law,” said Special Agent in Charge Alvin M. Winston of the FBI Minneapolis Field Office. “Together with the Justice Department’s KleptoCapture Task Force, the FBI will hold accountable those who assist Russian Oligarchs in their efforts to hide assets and violate sanctions. We thank our international partners who helped facilitate the arrest of Richard Masters in Spain earlier today."
According to the indictment, despite U.S. sanctions issued against Vekselberg in April 2018, Osipov and Masters facilitated the operation of Tango through the use of U.S. companies and the U.S. financial system, attempting to obfuscate Vekselberg’s involvement in the vessel. Osipov, an employee of Vekselberg who functioned as a property manager for Tango, designed a complicated ownership structure of shell companies to hide Vekselberg’s ownership of the yacht, despite that Vekselberg designed the yacht, was the sole user, and was the ultimate beneficial owner.
As alleged, Masters ran a yacht management company in Palma de Mallorca, Spain. After Vekselberg was sanctioned in April 2018, Masters’s company took over the management of Tango, and conspired with others to evade the U.S. sanctions. According to the indictment, among other things, Masters devised a scheme to use a false name for the yacht, “the Fanta,” in order to hide from financial institutions that payments in U.S. dollars were ultimately for the benefit of Tango and Vekselberg. As a result of this obfuscation, U.S. financial institutions processed hundreds of thousands of dollars of transactions for Tango that they otherwise would not have permitted had they known of Vekselberg’s involvement in the financial transaction. Further, these payments and Vekselberg’s involvement therein were not reported to the Department of the Treasury.
Additionally, according to the indictment, Osipov and Masters advised and enabled Tango employees to continue to do business with numerous U.S. companies, using various workarounds to avoid sanctions, such as payments in other currencies and through third parties. As a result of these schemes, the working mechanisms of Tango, to include its internet, technology, weather forecasting and computing systems, as well as the trappings of Tango, including its satellite television, luxury goods, and teleconferencing software, were all U.S.-origin products and services supplied by U.S. companies, for the benefit of Vekselberg. The efforts of these facilitators permitted Tango to continue to operate as a luxury yacht with the full array of services and luxury goods available to it, supported by hundreds of thousands of dollars of illegally-obtained U.S. services and U.S. financial transactions, and all for the benefit of Vekselberg.
On April 4, 2022, Spanish law enforcement executed a Spanish court order freezing Tango. The Spanish acted following a request from the Department of Justice that it assist with the execution of a seizure warrant, issued in March 2022 by the U.S. District Court for the District of Columbia, which alleged that Tango was subject to forfeiture based on violations of U.S. bank fraud, money laundering, and sanctions statutes.
The FBI Minneapolis Field Office is investigating the case. Valuable assistance has been provided by the HSI New York Field Office and the Spanish Guardia Civil - Jefatura de Informacion – Unidad Central Especial Numero III (UCE-III).
Assistant U.S. Attorney Karen P. Seifert, with valuable assistance provided by Assistant U.S. Attorneys Rajbir Datta and Maeghan Mikorski, Paralegals Brian Rickers and Jorge Casillas, and Legal Assistant Jessica McCormick, all of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance in working with the Spanish authorities throughout this matter.
The case has been coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with its allies and partners, 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 leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Arrest and Criminal Charges Against British and Russian Businessmen for Facilitating Sanctions Evasion of Russian Oligarch’s $90 Million YachtRead the Press Release
Yacht Previously Seized and One Arrest Today by Spain at Request of United States
WASHINGTON – Two businessmen - Vladislav Osipov, 51, a dual Russian and Swiss national, and Richard Masters, 52, a United Kingdom national, are charged in separate indictments, unsealed today in U.S. District Court in the District of Columbia, with facilitating a sanctions evasion and money laundering scheme in relation to the ownership and operation of the Motor Yacht (M/Y) Tango (International Maritime Organization number 1010703), a $90 million, 255-foot luxury yacht owned by sanctioned Russian oligarch Viktor Vekselberg. The defendants are charged with conspiracy to defraud the United States and to commit offenses against the United States, violating the International Emergency Economic Powers Act (IEEPA), and money laundering. The United States requested that the Kingdom of Spain provisionally arrest Masters for purposes of extradition. The arrest was executed by the Spanish Guardia Civil today. An arrest warrant against Osipov is outstanding.
The charges were announced by United States Attorney Matthew M. Graves, Director Andrew Adams of Task Force KleptoCapture, FBI Special Agent in Charge Alvin M. Winston Sr. of the Minneapolis Field Office, and Homeland Security Investigations Special Agent in Charge Ivan J. Arvelo of HSI’s New York Field Office.
According to the indictment, despite U.S. sanctions issued against Vekselberg in April 2018, Osipov and Masters facilitated the operation of Tango through the use of U.S. companies and the U.S. financial system, attempting to obfuscate Vekselberg’s involvement in the vessel. Osipov, an employee of Vekselberg who functioned as a property manager for Tango, designed a complicated ownership structure of shell companies to hide Vekselberg’s ownership of the yacht, despite that Vekselberg designed the yacht, was the sole user, and was the ultimate beneficial owner.
Masters ran a yacht management company in Palma de Mallorca, Spain. After Vekselberg was sanctioned in April 2018, Masters’s company allegedly took over the management of Tango and conspired with others to evade the U.S. sanctions. According to the indictment, among other things, Masters devised a scheme to use a false name for the yacht, “the Fanta,” in order to hide from financial institutions that payments in U.S. dollars were ultimately for the benefit of Tango and Vekselberg. As a result of this obfuscation, U.S. financial institutions processed hundreds of thousands of dollars of transactions for Tango that they otherwise would not have permitted had they known of Vekselberg’s involvement in the financial transaction. Further, these payments and Vekselberg’s involvement therein were not reported to the Department of the Treasury.
Additionally, according to the indictment, Osipov and Masters advised and enabled Tango employees to continue to do business with numerous U.S. companies, using various workarounds to avoid sanctions, such as payments in other currencies and through third parties. As a result of these schemes, the working mechanisms of Tango, to include its internet, technology, weather forecasting, and computing systems, as well as the trappings of Tango, including its satellite television, luxury goods, and teleconferencing software, were all U.S.-origin products and services supplied by U.S. companies, for the benefit of Vekselberg. The efforts of these facilitators permitted Tango to continue to operate as a luxury yacht with the full array of services and luxury goods available to it, supported by hundreds of thousands of dollars of illegally-obtained U.S. services and U.S. financial transactions, and all for the benefit of Vekselberg.
“Facilitators of sanctions evasion enable the oligarchs supporting Vladimir Putin’s regime to flout U.S. law,” said U.S. Attorney Graves. “The United States will not allow its financial institutions and persons to be manipulated or defrauded for the purposes of benefitting those supporting an illegal war.”
“The Department of Justice has been clear. Corporations and executives have a choice: they can participate in the global effort to uproot corruption, sanctions violations, and money laundering, and enjoy the benefits of prompt and fulsome cooperation; or they can, as Osipov and Masters are alleged to have done, attempt to shield themselves and their clients behind a veil of fraud,” said Director Adams of Task Force KleptoCapture. “These men made their decisions, and now face the consequences of a failed attempt to profit through, rather than standing against, a sophisticated, transnational criminal enterprise.”
“The indictment alleges that both defendants used a variety of techniques to mask ownership of the Motor Yacht Tango in violation of U.S. law,” said FBI Special Agent in Charge Winston. “Together with the Justice Department’s KleptoCapture Task Force, the FBI will hold accountable those who assist Russian Oligarchs in their efforts to hide assets and violate sanctions. We thank our international partners who helped facilitate the arrest of Richard Masters in Spain earlier today."
“Russian oligarchs are the product of an ecosystem of corruption that abuses rule-of-law- based monetary structures to enrich themselves with luxury trappings and lifestyles.” said HSI Special Agent in Charge Arvelo. “Today’s actions have demonstrated our commitment to hold those that conduct illicit transactions on behalf of the oligarchs accountable.”
On April 4, 2022, Spanish law enforcement executed a Spanish court order freezing Tango. The Spanish acted following a request from the Department of Justice that it assist with the execution of a seizure warrant, issued in March 2022 by the U.S. District Court for the District of Columbia, which alleged that Tango was subject to forfeiture based on violations of U.S. bank fraud, money laundering, and sanctions statutes.
The case is being investigated by the FBI’s Minneapolis Field Office. Valuable assistance has been provided by the Homeland Security Investigation’s New York Field Office and the Spanish Guardia Civil - Jefatura de Informacion - Unidad Central Especial Numero III (UCE-III). The case is being prosecuted by Assistant U.S. Attorney Karen P. Seifert, with valuable assistance provided by Assistant U.S. Attorneys Rajbir Datta and Maeghan Mikorski, Paralegals Brian Rickers and Jorge Casillas, and Legal Assistant Jessica McCormick, all of the United States Attorney’s Office for the District of Columbia. The Justice Department’s Office of International Affairs provided significant assistance in working with the Spanish authorities throughout this matter.
The case has been coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2 and under the leadership of the Office of the Deputy Attorney General, the task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.
Armed Repeat Felon Sentenced to over Nine Years in Federal Prison Following High-Speed Flight from PoliceRead the Press Release
INDIANAPOLIS –Patrick Owens, 33, of Indianapolis, Indiana, was sentenced to 115 months in federal prison after pleading guilty to one count of unlawful possession of a firearm by a convicted felon.
According to court documents, on April 12, 2019, an Indianapolis Metropolitan Police Department (IMPD) officer initiated a traffic stop on Patrick Owens as he was heading northbound on Binford Boulevard in Indianapolis. When asked for a driver’s license, Owens told the officer that he did not have one. The officer asked Owens if there were any weapons in the vehicle and Owens indicated that there were none. Owens then flipped open the center armrest, exposing the bottom of an extended handgun magazine. The officer commanded Owens to remove his hands from the steering wheel, and in response Owens started the car and sped away.
Owns led officers on a high-speed pursuit on I-65 and I-465, where he fishtailed across three lanes and struck an Infinity SUV. Owens continued his flight after the collision, reaching speeds of over 86 miles per hour. He exited I-465 at Keystone Avenue and proceeded onto a construction-filled 96th street. Owens swerved to go through the construction site, but lost control of the vehicle and hit a power pole. Owens then jumped out of the vehicle and fled on foot, initially holding the extended handgun magazine from his vehicle before tossing it on the ground as he ran.
IMPD officers caught up with Owens and took him into custody and recovered the extended magazine, which was loaded with 25 live rounds of .40 caliber ammunition. Officers located a loaded semiautomatic handgun in Owens’ car, as well as marijuana, $21,300 in cash, and two additional loaded .40 caliber magazines. Owens is prohibited from possessing a firearm under federal law due to his previous felony convictions, including resisting law enforcement, carrying a handgun without a license, and burglary.
Zachary A. Myers, United States Attorney for the Southern District of Indiana and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division made the announcement.
ATF investigated this case with valuable assistance from the Indianapolis Metropolitan Police Department. The sentenced was imposed by U.S. District Judge Sarah Evans Barker. As part of the sentence, Judge Barker ordered that Owens be supervised by the U.S. Probation Office for 3 years following his release from federal prison. Owens was also ordered to pay $6,778 in restitution to the owner of the Infinity SUV and the insurance company.
U.S. Attorney Myers thanked Assistant U.S. Attorney Barry D. Glickman, who prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Thursday 19 January 2023
تحسم وزارة العدل مسألة الوصول إلى اللغة المتعلقة بمحكمة لويزيانا العلياRead the Press Release
ملحوظة: هذا البيان الصحفي مترجم إلى لغات مختلفة. انظر المرفقات الواردة أدناه.
أصدرت وزارة العدل اليوم قرارًا في مسألة تتعلق بالمحكمة العُليا في لويزيانا (Louisiana Supreme Court, LASC) بناءً على الإجراءات التي اتخذتها LASC لتحسين إمكانية الوصول إلى الإجراءات والعمليات القضائية في الولاية للأفراد ذوي الكفاءة المحدودة في اللغة الإنجليزية (limited English proficiency, LEP).
في مايو 2019، أبرمت وزارة العدل ومذكرة اتفاق LASC (Memorandum of Agreement, MOA) لمعالجة شكوى بموجب الباب السادس من قانون الحقوق المدنية لعام 1964 (Title VI of the Civil Rights Act of 1964, Title VI). وTitle VI هو قانون فيدرالي يحظر ممارسة التمييز على أساس العرق واللون والأصل القومي من جانب أي جهات متلقية للمساعدة المالية الفيدرالية، ويشمل ذلك محاكم الولايات. ومنذ توقيع MOA، اتخذت LASC عددًا من الإجراءات التصحيحية لتحسين وصول LEP من المتعاملين مع المحاكم في جميع أنحاء ولاية لويزيانا.
وصرّحت كريستين كلارك، مساعدة المدعي العام لـ Civil Rights Division (دائرة الحقوق المدنية) بوزارة العدل، قائلة: "يجب أن تضمن المحاكم في جميع أنحاء بلادنا أن بابها مفتوح للجميع، ومنهم الأفراد ذوو الكفاءة المحدودة في اللغة الإنجليزية". وواصلت قائلة: "سنواصل عملنا للتأكد من أن أنظمة المحاكم، ومنها المحكمة العُليا في لويزيانا LASC، لديها السياسات والممارسات والمترجمين الشفويين والموارد الأخرى اللازمة لضمان توفير إمكانية اللجوء إلى القضاء للأفراد ذوي الكفاءة المحدودة في اللغة الإنجليزية".
وكذلك علّق دوان إيه إيفان، وكيل وزارة العدل بالولايات المتحدة للمنطقة الشرقية من ولاية لويزيانا، قائلًا: "أثبتت المحكمة العُليا في لويزيانا LASC، بالإجراءات التي اتخذتها، التزامًا بضمان توفير إمكانية الوصول إلى محاكم الولاية في لويزيانا لـ LEP". وأضاف قائلًا: "يلتزم مكتبي بالتصدي لجميع أشكال التمييز، ويشمل ذلك التمييز ضد LEP".
من الجدير بالذكر أن LASC اتخذت عددًا من الإجراءات لإعداد برنامج تواصل لغوي وتنفيذه، وتوسيع نطاق توافر خدمات المساعدة اللغوية المجانية لـ LEP في ولاية لويزيانا. وأنشأت LASC Office of Language Access (مكتب التواصل اللغوي) واعتمدت Language Access Plan (خطة التواصل اللغوي) الأولى لمحاكم ولاية لويزيانا. وكذلك أنشأت LASC نظامًا لشكاوى التواصل اللغوي مركزيًا بالإضافة إلى توفير نموذج شكوى عبر الإنترنت بعدة لغات غير الإنجليزية. وبالنسبة لموظفي المحاكم، أعدت LASC برامج تدريبية بشأن التواصل اللغوي، وأيضًا بطاقة معلومات قضائية تركز على إمكانية الوصول إلى المترجمين الشفويين لدى المحكمة، وغيرها من موارد التواصل اللغوي. وعلاوة على ذلك، نجحت LASC في الدعوة إلى تغيير قانون الولاية الذي سمح للمحاكم بفرض رسوم على LEP مقابل تكلفة توفير مترجم شفوي، ثم تبنت قواعد جديدة للمحاكم بناءً على هذا التغيير في قانون الولاية.
تعاونت Civil Rights Division (دائرة الحقوق المدنية) بوزارة العدل ومكتب وكيل وزارة العدل بالولايات المتحدة للمنطقة الشرقية من ولاية لويزيانا في بحث هذه المسألة. وتتوفر معلومات إضافية عن Civil Rights Division على موقعها الإلكتروني على هذا الرابط www.justice.gov/crt، كما تتوفر معلومات عن الكفاءة المحدودة في اللغة الإنجليزية LEP وTitle VI على www.lep.gov. ويمكن لأفراد الجمهور الإبلاغ عن انتهاكات الحقوق المدنية المحتملة على https://civilrights.justice.gov/report/.
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Wisconsin Man Indicted for Forced LaborRead the Press Release
An indictment was unsealed today in the Western District of Wisconsin charging a Wisconsin man with one count of labor trafficking.
According to the indictment, between August 2020 and Aug. 5, 2022, Austin Koeckeritz, 29, used force, threats of force and coercion, to cause an adult woman to engage in forced labor for nearly two years.
The charge of forced labor carries a maximum of 20 years in prison, up to five years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney for the Western District of Wisconsin Timothy M. O’Shea and Special Agent in Charge Michael E. Hensle of the FBI Milwaukee Field Office made the announcement.
The FBI Milwaukee Field Office and the River Falls Police Department conducted the investigation. The Pierce County District Attorney’s Office provided assistance.
Assistant U.S. Attorney Taylor Kraus for the Western District of Wisconsin and Trial Attorneys Slava Kuperstein and Julie Pfluger of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
The FBI is asking anyone with information about Austin Koeckeritz to contact the FBI Milwaukee Field Office at (414) 276-4684. If you or someone you know is a victim of human trafficking, please call the National Human Trafficking Hotline at 1-888-373-7888.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty.
Watervliet Woman Admits to SBA Loan Application FraudRead the Press Release
ALBANY, NEW YORK – Ouida Cordell, age, 47, of Watervliet, New York, pled guilty today to one count of wire fraud for her submission of a fraudulent Economic Injury Disaster Loan (EIDL) application to the U.S. Small Business Administration (SBA).
United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Darren B. Cox, Acting Special Agent in Charge of the Buffalo Field Office of the FBI, made the announcement.
As part of her guilty plea, Cordell admitted that on July 13, 2020, she submitted an online application to the SBA for an EIDL on behalf of her company, Bashment Entertainment LLC, that falsely overstated Bashment’s annual revenues. As a result of the fraud, Cordell and her company Bashment received an EIDL loan in the amount of $149,500 for which she and the company were not entitled.
Sentencing is scheduled for June 28, 2023, before United States District Judge Glenn T. Suddaby. Cordell faces up to 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The FBI, with assistance from the New York State Department of Taxation and Finance, Office of Internal Affairs, and the U.S. Treasury Inspector General for Tax Administration, investigated this case. Assistant U.S. Attorney Rick Belliss is prosecuting this case.
Washington, D.C. Man Sentenced in Maryland to More Than Four Years in Federal Prison for Using the Stolen Personal Information of Identity Theft Victims to Attempt to Obtain Financing to Purchase Luxury VehiclesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Travon Demetrius Hardie, a/k/a “Juug,” age 25, of Washington, D.C., to 54 months in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft, in connection with a scheme to use the stolen personal information of identity theft victims to obtain financing to purchase luxury vehicles. Judge Xinis also ordered Hardie to pay restitution of $56,920.77 and entered a forfeiture money judgment in the amount of $697,041.13. The sentence was imposed on January 17, 2023.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Ross Luciano of the United States Secret Service - Baltimore Field Office; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; and Chief Russell E. Hamill III of the Laurel Police Department.
According to his plea agreement, from November 2020 through February 2022, Hardie and co-defendants John Paul Thompson, Jr. and Nickolas Alexander Mathis, obtained the stolen personal identifying information (“PII”) of identity theft victims, manufactured fake identification documents with the stolen PII, and used those fake identification documents to attempt to obtain financing for the purchase of at least 31 luxury vehicles from dealerships in Maryland, Delaware, New Jersey, and Virginia. Hardie admitted that he manufactured some of the fraudulent identification documents which were used to perpetuate the ongoing fraud scheme.
The attempted loss as a result of the scheme was at least $1,808,708.47, and the defendants used, without permission, the names and personal identifying information of at least 25 victims. Hardie successfully obtained at least 11 automobiles, worth at least $697.041.13, as a result of the scheme. In addition to paying restitution, Hardie must also forfeit: a rifle with no serial number; two high capacity drum magazines for the rifle; three handguns; eight magazines; more than 300 rounds of ammunition; and other items used to create the fraudulent identity documents, all of which were recovered during searches of locations related the fraud scheme.
Co-defendants Nickolas Alexander Mathis, age 38, of Laurel, Maryland, and John Paul Thompson, Jr., age 38, of Lanham, Maryland, have both pleaded guilty to their roles in the scheme. Each faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy and for wire fraud; and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. Judge Xinis has scheduled sentencing for Thompson and Mathis for February 1, 2023 and February 24, 2023, respectively.
United States Attorney Erek L. Barron commended the U.S. Secret Service, the HSI, the U.S. Postal Inspection Service, and the Laurel Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Leah Grossi and Geonard Butler, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Virginia Man Convicted of Possessing Unregistered SilencersRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Falls Church man yesterday evening on charges of unlawful possession of unregistered silencers.
According to court records and evidence presented at trial, Hatchet Speed, 41, began panic buying firearms in early 2021. From February to May 2021, Speed purchased at least twelve firearms and spent more than $40,000 at stores that sold firearms, firearm accessories, and ammunition.
In March 2021, during the midst of his firearm purchases, Speed purchased three silencers from a company in Georgia. While the silencers were marketed as “solvent traps” ostensibly to be used in cleaning the barrel of a firearm, they were actually designed to serve as silencers. The silencers were not registered to Speed in the National Firearms Registration and Transfer Record, as required by law. By circumventing the registration requirements for silencers, Speed was able to take possession of the silencers within a week of purchasing them.
In early 2022, Speed met with an undercover employee of the FBI. During these meetings, Speed discussed his anti-Semitic, anti-government ideologies with the FBI undercover employee. Speed also discussed taking violent action in furtherance of his ideologies. Speed praised the approach of jihadists and suggested that their approach would be an effective way to “wipe out” the opposition, referring to Jewish people. Speed discussed his efforts to identify targets who were “reachable” by someone like him, stating that he thought about using a “mock trial” to decide which people to add to “the list.” During this discussion, Speed confirmed to the FBI undercover employee that he believed his “solvent traps,” meaning his unregistered silencers, would come in handy for this purpose.
Speed faces a maximum penalty of 30 years in prison when sentenced on April 13. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Michael H. Glasheen, Special Agent in Charge of the FBI Washington Field Office Counterterrorism Division; and Christopher Amon, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after U.S. District Judge Michael S. Nachmanoff accepted the verdict.
Assistant U.S. Attorneys Thomas Traxler and Amanda Lowe are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-165.
Undocumented Man Gets 46 Months in Prison for Trafficking FentanylRead the Press Release
EAST ST. LOUIS, Ill. – A man originally from Mexico was sentenced to 46 months in federal prison in a U.S. District Court on Wednesday after admitting to possessing hundreds of grams of a controlled substance containing fentanyl with intent to distribute.
Luciano Gomezllanos-Martinez, also known as Joaquin Navarez-Urena, pled guilty to possession of more than 400 grams of a controlled substance with intent to distribute and illegal reentry after deportation. In addition to his 46-month sentence, he must pay a $200 fine.
“Even the smallest amount of fentanyl can cause harm to an individual, and carting hundreds of grams through Madison County is a major threat to public safety in downstate Illinois,” said U.S. Attorney Rachelle Aud Crowe. “Our community is fortunate to have brave men and women of law enforcement working to secure our roadways, and I applaud the investigators for filing these charges and apprehending the defendant.”
“Trafficking fentanyl is trafficking death and the ISP will pursue traffickers with everything we’ve got,” said Illinois State Police Director Brendan F. Kelly.
According to court documents, Gomezllanos-Martinez was a passenger in a vehicle on Interstate 70 in Madison County when the car was pulled over by the Illinois State Police on Oct. 5, 2021. When officers searched the vehicle, they recovered pills containing 771 grams of fentanyl and 616 grams of heroin.
The car was driven by Jimmy Carrasco of Arizona, and he is also facing a possession charge of more than 400 grams of a controlled substance with intent to distribute.
Previously, Gomezllanos-Martinez was deported from the U.S. in March 2017. After serving his sentence in the Federal Bureau of Prisons, he will be deported.
The DEA led the investigation with assistance from the Illinois State Police. Assistant U.S. Attorney Dan Kapsak prosecuted the case.
Two Pennsylvania Men Sentenced for Roles in Return to Sender Drug InvestigationRead the Press Release
PITTSBURGH, PA – Two Pennsylvania men have been sentenced on their convictions for violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy K. Chung announced today.
United States District Judge Christy Criswell Wiegand imposed a sentence of 24 months in prison followed by three years of supervised release on Darryl Isaacs, age 57, of Punxsutawney, Pennsylvania. According to information presented to the court, Isaacs transported approximately 50 kilograms of marijuana and 250 grams of cocaine between distributors based in the Western District of Pennsylvania.
Judge Wiegand also sentenced Brandon Coder, age 34, of Penfield, Pennsylvania, to 41 months of imprisonment followed by three years of supervised release. According to information presented to the court, Coder received parcels that were shipped from California to the Western District of California containing a total of between 1.5 kilograms and five kilograms of methamphetamine. Coder also mailed parcels containing United States currency to California at the direction of Derek Hillebrand, the leader of the drug trafficking organization.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball prosecuted this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout
the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach
that leverages the strengths of federal, state, and local law enforcement agencies against criminal
networks.Two Charlotte Businessmen Indicted for Allegedly Failing to Account for and Pay More Than $600,000 in Trust Fund TaxesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that a federal grand jury in Charlotte returned an indictment, charging two Charlotte businessmen with failing to account for and pay over to the Internal Revenue Service (IRS) more than $600,000 in trust fund taxes.
Donald "Trey" Eakins, Special Agent in Charge of the IRS, Criminal Investigation Division (IRS-CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
According to the indictment, rFactr was a company with offices in Charlotte, that sold software and provided ongoing support for that software to companies that were leveraging their social networks as part of their sales platforms. Richard Brasser was rFactr’s Chief Executive Officer and Gregory Gentner was its Chief Operating Officer. The indictment alleges that, from 2015 through 2017, Brasser and Gentner caused rFactr to collect more than $600,000 in trust fund taxes from the wages of its employees but neither accounted for the taxes by filing Forms 941 with the IRS nor timely paying over the withheld taxes to the IRS.
As alleged in the indictment, Brasser and Gentner had a history of noncompliance with rFactr’s employment tax obligations. Specifically, between 2013 and 2017, Brasser and Gentner allegedly failed to comply with rFactr’s employment tax obligations by failing to timely file rFactr’s employment tax returns and failing to timely pay over to the IRS rFactr’s employment taxes. In total, Brasser and Gentner allegedly caused rFactr to owe more than $1.1 million in employment taxes.
The indictment further alleges, between May 2018 and December 2021, Brasser evaded the payment of the trust fund recovery penalty (TFRP), by using nominee bank accounts to pay for personal expenses, including country club fees, luxury furniture, credit card bills, and private school tuition; purchasing real and personal property in the names of nominees instead of his own name; purchasing real and personal property and paying for other personal expenses while falsely representing to the IRS that he did not have sufficient funds to pay the TFRP; and making false oral and written statements to the IRS about his income, expenses, and assets.
Finally, the indictment also alleges that Brasser and Gentner both filed 2015 and 2016 tax returns which falsely reported that taxes were withheld and paid over to the IRS on their behalf by rFactr. As a result, Brasser either fraudulently reduced his tax due and owing or fraudulently received a refund, and Gentner fraudulently received a refund.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Brasser and Gentner each face a maximum sentence of five years in prison for each of multiple counts of failing to account for and pay over the trust funds taxes and up to three years in prison for each of multiple counts of filing false personal tax returns. Brasser also faces a maximum sentence of five years in prison for evasion of payment, if convicted.
IRS-Criminal Investigation is investigating the case.
Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Two Charged with Fentanyl Distribution in Fresno CountyRead the Press Release
FRESNO, Calif. — U.S. Attorney Phillip A. Talbert, Acting Drug Enforcement Administration Special Agent in Charge Bob P. Beris, Fresno County Sheriff John Zanoni, and Fresno County District Attorney Lisa Smittcamp announced two recent arrests in Fresno County that are part of increased and coordinated enforcement efforts to block the distribution of fentanyl.
“The U.S. Attorney’s Office continues to target the criminal drug networks that are flooding the United States with deadly, fentanyl-laced pills,” said U.S. Attorney Talbert. “We remain committed to reducing drug-related violence and overdose deaths caused by these deadly pills. Law enforcement efforts, however, are not enough, and I urge the public to be aware of the threats and dangers of these pills.”
“Fentanyl is the greatest drug threat to public health and safety in the Central Valley,” said Bob P. Beris. “The substantial amount of fentanyl-laced pills and powder seized in these investigations has undoubtedly saved lives. DEA remains committed to holding accountable those who distribute this poison that wreaks havoc in our communities.”
A federal grand jury returned an indictment against Pedro Miranda-Muro, 23 of Los Angeles, charging him with trafficking 400 grams and more of fentanyl and 100 grams and more of heroin and related offenses. Miranda-Muro was stopped by law enforcement officers for traffic violations on Interstate 5. According to court documents, during a search of Miranda-Muro’s vehicle after a Jan. 3, 2023, stop, several cellophane-wrapped packages were found that were believed to contain narcotics. Later, lab results showed that the packages contained approximately 5 kilograms of fentanyl and a half kilogram of heroin. Additionally, law enforcement found evidence on Miranda-Muro’s cellphone establishing that Miranda-Muro rented at least four storage lockers to store the drugs, picked up shipments of controlled substances that he then further distributed, picked up payment for the drugs totaling tens of thousands of dollars on multiple occasions, delivered proceeds to others, paid at least one uncharged co-conspirator, and retained his “share” of the money.
A separate criminal complaint alleges that Uriel Sotelo-Patino, 35 of Selma, possessed with intent to distribute over 400 grams of fentanyl. According to court documents, Sotelo-Patino, a suspected supplier of fentanyl, offered to sell 5,000 counterfeit M30 pills laced with fentanyl to a confidential source working with law enforcement. According to court documents, Sotelo-Patino showed the confidential source a photograph of eight gallon-sized zip lock bags filled with small blue pills and three other packages. On Jan. 4, 2023, Sotelo-Patino was detained on his way to meet with the confidential source. During searches of residences associated with Sotelo- Patino, law enforcement agents seized over 17 kilograms of fentanyl-laced pills and a pound of heroin.
The case against Pedro Miranda-Muro is the product of an investigation by the DEA, the Fresno County Sheriff’s Office, and the Fresno County District Attorney’s Office. Assistant U.S. Attorney Kimberly A. Sanchez is prosecuting the case.
The case against Sotelo-Patino is the product of an investigation by the DEA, the Clovis Police Department, the Selma Police Department and the Fresno County District Attorney’s Office. Assistant U.S. Attorney Justin Gilio is prosecuting the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
The trafficking charges in each of these cases carry a maximum penalty of life in prison, a mandatory minimum of 10 years in prison, a fine of up to $10 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tucson Man Sentenced to Nine Years for Conspiracy to Distribute FentanylRead the Press Release
TUCSON, Ariz. – Last week, Francisco Pantoja, 25, of Tucson, Arizona, was sentenced by United States District Judge John C. Hinderaker to nine years in prison, followed by three years of supervised release. Pantoja pleaded guilty to Conspiracy to Distribute Fentanyl in connection with the overdose death of a young person in July 2020.
On the afternoon of July 1, 2020, Pantoja provided three pills to the victim. Approximately three hours later, the victim was discovered unresponsive. The Pima County Medical Examiner concluded that the cause of death was fentanyl intoxication. During the investigation, agents executed a search warrant at Pantoja’s residence where they located over 5,500 fentanyl pills and approximately $21,000 in cash.
The Drug Enforcement Administration recently announced, as part of its One Pill Can Kill public service campaign, that six out of every 10 fentanyl-laced pills tested in 2022 contain a potentially lethal dose of fentanyl: https://www.dea.gov/alert/dea-laboratory-testing-reveals-6-out-10-fentanyl-laced-fake-prescription-pills-now-contain.
The DEA and the Tucson Police Department conducted the investigation in this case. Assistant United States Attorneys Rebecca Garvey and Stefani Hepford, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-20-02096-TUC-JCH (BGM)
RELEASE NUMBER: 2023-006_Pantoja# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Prison Inmates Found Guilty of Murder for Beating Fellow Prisoner to Death at Victorville Federal PrisonRead the Press Release
SANTA ANA, California – Three prison inmates have been found guilty of second-degree murder in the beating death of another inmate at the Federal Correctional Institution II in Victorville, the Justice Department announced today.
A federal jury found the defendants committed the October 1, 2013, murder of a 38-year-old inmate identified in court documents as “J.S.,” who was repeatedly hit and kicked, dying because of blunt force trauma to the head.
The defendants who were found guilty late Wednesday are:
- Aurelio Patino, a.k.a. “Augie,” 39, most recently of Riverside, who at the time of the murder was serving a 16-month sentence for being a felon in possession of a firearm and ammunition, and previously was serving a 100-month sentence in a California state prison;
- Christopher Ruiz, 48, most recently of San Diego, who is serving a 10-year sentence after being convicted of racketeering and methamphetamine-related charges; and
- Jose Villegas, a.k.a. “Torch,” 41, most recently of Los Angeles, who is serving a 15-year sentence in a methamphetamine case.
According to evidence presented at their six-day trial, J.S. was escorted to the recreation yard in the prison, where he was attacked. Patino, Ruiz and Villegas used their hands and feet to strike J.S. In addition to the murder charge, all three defendants pleaded guilty in November 2022 to conspiracy to commit the second-degree murder of J.S.
United States District Judge Cormac J. Carney scheduled a June 12 sentencing hearing, at which time each defendant will face a statutory maximum sentence of life in federal prison.
The FBI investigated this matter.
Assistant United States Attorneys Gregory S. Scally, Gregory W. Staples, and Faraz R. Mohammadi of the Santa Ana Branch Office are prosecuting this case.
Three New Yorkers Sentenced on Drug Trafficking ChargesRead the Press Release
Burlington, Vermont - The United States Attorney’s Office announced that Oscar Maldonado, 41, Jamal Jones, 34, and Curtis Christian, 31, all of New York City, were recently sentenced in United States District Court in Rutland following their guilty pleas to charges that they conspired to distribute heroin, fentanyl, cocaine and cocaine base, or actually distributed those substances. Today, Chief U.S. District Judge Geoffrey Crawford sentenced Maldonado to 24 months of imprisonment, to be followed by a three-year term of supervised release. Last week, Judge Crawford sentenced Jones to one year and one day of imprisonment, to be followed by three years of supervised release. In September, Judge Crawford sentenced Christian to two years of probation. The court ordered Maldonado to surrender to the Bureau of Prisons on March 14 to begin serving his sentence. Jones is already incarcerated.
According to court records, Maldonado conspired with others, including Joshua Preston, 34, of Johnson, to distribute narcotics in Vermont between about 2017 and March 2020. Maldonado sent the drugs to Vermont via couriers that included Jones and Christian. Many of those drugs were delivered to Preston, who redistributed them in Vermont. Preston was arrested in 2020; Maldonado, Christian and Jones were arrested in 2021 after their indictment in this case. Preston previously pleaded guilty and is serving a 48-month sentence.
This case was investigated by the Drug Enforcement Administration and the DEA Task Force.
Maldonado was represented by Assistant Public Federal Defender Steven Barth. Jones was represented by Devin McLaughlin, Esq. and Christian by John Mabie, Esq. The prosecutor was Assistant U.S. Attorney Gregory Waples.
Three Men Sentenced for Roles in Bribery ConspiracyRead the Press Release
Three Texas men were sentenced yesterday for their roles in a conspiracy to pay bribes to two city commissioners in Weslaco in exchange for their official actions in connection with city contracts worth tens of millions of dollars.
Former Hidalgo County Commissioner Arturo C. Cuellar Jr., 69, of Progresso Lakes, was sentenced to 20 years in prison. Ricardo Quintanilla, 57, and John F. Cuellar, 60, both of Weslaco, were sentenced to 200 months and three years in prison, respectively.
“Americans deserve safe, clean water provided through fair and open contracting, not illicit back-room deals,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As this prosecution demonstrates, the Department of Justice is committed to prosecuting public officials and their enablers who award infrastructure contracts based on corrupt connections instead of merit.”
“Our office will not turn a blind eye to public corruption, especially when it results in significant burdens to residents within our district,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “Weslaco was warned for years to upgrade its water infrastructure in order to provide potable water. The defendants used this opportunity to participate in a multimillion-dollar scheme that ultimately saddled residents with debt and bribery costs for their drinking water system. We hope the message in today’s sentencings will deter others from committing such crimes and provide some closure to the citizens of Weslaco.”
According to court documents and evidence presented at trial, Arturo Cuellar and Quintanilla agreed with others to bribe two Weslaco City Commissioners, John Cuellar and Gerardo Tafolla, in exchange for official actions favorable to engineering companies seeking large contracts with the city. From approximately March 2008 through December 2015, one of the participants in the scheme received approximately $4.1 million from two engineering companies and shared nearly $1.4 million with Arturo Cuellar. Arturo Cuellar used a company he controlled to facilitate the payment of approximately $405,000 in bribes to his cousin, John Cuellar, which were disguised as legitimate legal expenses. In exchange for these payments, John Cuellar took several official actions to benefit the companies, including helping to award contracts worth approximately $38.5 million to rehabilitate Weslaco’s water treatment facilities. Quintanilla received approximately $85,000 during the course of the scheme and used that money to pay cash bribes to Tafolla for his official actions to benefit the companies that received the water treatment plant contracts.
Arturo Cuellar and Quintanilla were convicted at trial in the Southern District of Texas in October 2022. Arturo Cuellar was convicted of 61 counts in total, including one count of conspiracy to commit honest services wire fraud, four counts of honest services wire fraud, one count of federal programs bribery, one count of money laundering conspiracy, 27 counts of money laundering, and 27 counts of Travel Act violations. Quintanilla was convicted of 15 counts in total, including one count of conspiracy to commit honest services wire fraud, four counts of honest services wire fraud, one count of federal programs bribery, one count of money laundering conspiracy, and eight counts money laundering. John Cuellar pleaded guilty to one count of conspiracy to commit honest services fraud in August 2019.
“Today’s sentencing is a testament to the FBI’s commitment to pursue public corruption alongside our law enforcement partners. Any public official who chooses to serve themselves over their constituents will be brought to justice. Rio Grande Valley residents deserve elected leaders who can be trusted,” said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Field Office. “The FBI would like to thank the U.S. Attorney’s Office, the Department of Justice Public Integrity Section, and the IRS for their partnership and dedication to bringing these corrupt individuals to justice.”
“IRS Criminal Investigation remains steadfast in its commitment to quickly unravel public corruption schemes, as these frauds greatly undermine the trust placed by the public in its elected officials,” said Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation (IRS-CI) Houston Field Office. “No matter how complex the financial fraud, or well-insulated the corrupt officials and individuals or businesses are, our special agents will rigorously work to hold all accountable to face the consequences of their crimes and personal greed. We continuously ask the public to submit allegations of public corruption fraud to IRS-CI, FBI, and the U.S. Attorney’s Office.”
Tafolla pleaded guilty in April 2019 and will be sentenced at a later date.
The FBI San Antonio Field Office and IRS-CI Houston Field Office investigated the case.
Senior Litigation Counsel Marco A. Palmieri and Trial Attorney William J. Gullotta of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Roberto Lopez Jr. for the Southern District of Texas are prosecuting the case. Deputy Chief of PIN Peter M. Nothstein and former PIN Trial Attorneys Erica O’Brien Waymack and Jessica C. Harvey provided valuable assistance.
Three Charged in Firearm Straw Purchasing ConspiracyRead the Press Release
BOSTON – Three individuals, including a Federal Firearms Licensee, have been charged in connection with a scheme to illegally straw purchase firearms.
Cory Daigle, 29, of Revere; Gustavo Rodriguez, 20 of Boston; and Shakim Grant, 21, of Boston, were each charged with conspiracy to make false statements with respect to the acquisition of a firearm. Daigle was also charged with possession of a machinegun and Grant was charged with making false statements with respect to the acquisition of a firearm. Daigle and Rodriguez were arrested yesterday morning and, following an appearance in federal court in Boston, were detained pending a detention hearing scheduled for 3 p.m. today. Grant remains at large.
According to the charging documents, the investigation arose following a November 2022 shooting in the Hyde Park neighborhood of Boston. It is alleged that during a search of Rodriguez’s residence in Hyde Park the following day, several firearms, assorted ammunition and firearm components and/or accessories were seized. While the search was underway, Grant allegedly arrived at the scene and advised law enforcement that the firearms seized belonged to him, not Rodriguez, and that he had been storing his firearms inside the residence.
Subsequent interviews, cellphone forensics, financial records and firearm records allegedly revealed that Grant obtained three Glock firearms and ammunition for Rodriguez, who does not have a license to legally possess or carry firearms and is precluded from having firearms in Massachusetts based on his age. It is alleged that the Glock firearms were purchased from Daigle – a Federal Firearms Licensee and the proprietor of Steelworks Defense Solutions in Littleton. Grant and Rodriguez allegedly communicated via Snapchat approximately two hours prior to the search of Rodriguez’s residence, during which the two conspired to coordinate a story to provide law enforcement as to why firearms would be found at Rodriguez’s residence.
According to court documents, during a search of Daigle’s residence, a machine gun barrel and receiver; machine gun bolt with no serial number; two short-barrel rifles, one with a machine gun conversion device; machine gun conversion device with no serial number; and a semi-automatic rifle were seized.
“The majority of gun violence, including shootings and murders, is committed with an illegal (e.g., unregistered, stolen, etc.) firearm. Usually, by a prohibited individual (e.g., unlicensed, underage, precluded due to criminal history, etc.). Straw purchases are serious crimes that result in deadly firearms getting into the hands of people the law strictly prohibits from having them. We need to prosecute straw purchasers with the same zeal we often have for end users. If the straw purchase never happened, that firearm never makes it into the hands of a prohibited person seeking to use it unlawfully,” said United States Attorney Rachael S. Rollins. “We allege that these defendants engaged in a straw purchasing conspiracy and made false statements in forms required by federal firearms laws in an attempt to cover their tracks. That one of these defendants holds an FFL and has been authorized to sell firearms should be an eye opener to many. People who circumvent regulations and requirements regarding firearms in our Commonwealth can and will face administrative, civil, or criminal consequences by state, local or federal prosecutors.”
“When you buy a gun for someone who is legally prohibited from possessing a firearm, you could be buying yourself time in federal prison,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, & Explosives, Boston Field Division. “The surge of gun violence in our cities is being fueled by individuals who circumvent the law and put firearms in the wrong hands. Our mission is clear and we will continue working with our partners to stop the flow of illegal firearm transfers that fuel the cycles of violence.”
“Boston and every other major city across the country is dealing with the unprecedented proliferation of guns. It is this type of partnership that makes it possible for us to have a substantive impact by bringing local, state and federal powers to bear on those who are allegedly helping to put guns on our streets. This is good police work by our Boston Police officers and the troopers and agents involved. It’s a true partnership with our state and federal counterparts and we look forward to working with U.S. Attorney Rollins as her office guides this case through the criminal justice system,” said Boston Police Commissioner Michael Cox.
The charges of possession of machineguns provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to a $250,000. The charge of false statements with respect to the acquisition of a firearm provides for a sentence of up to five years in prison, one year of supervised release and a fine of up to a $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.
U.S. Attorney Rollins, ATF Boston SAC Ferguson and Commissioner Cox made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Texas Couple Pleads Guilty to Orchestrating an Extensive Multi-Million COVID-19 Fraud Scheme in North CarolinaRead the Press Release
RALEIGH, N.C. – Edward Whitaker, 55, and Schunda Coleman, 50, pleaded guilty today to conspiracy to commit money laundering for their role in helping dozens of North Carolina residents fraudulently obtain Paycheck Protection Act (“PPP”) COVID-19 loans.
“This couple orchestrated a vast scheme to steal taxpayer money meant to help small businesses weather a global pandemic,” said U.S. Attorney Michael Easley. “Now, they are facing up to 20 years in federal prison. We are vigorously pursuing criminals who ripped off public programs for profit while the pandemic crippled local businesses.”
The married couple from Edinburg, TX, operated a nation-wide scheme to help people across the country commit PPP fraud. According to the criminal complaint and information summarized in court, Whitaker and Coleman created fraudulent supporting documents and applications for PPP loans, which they provided to individuals for a fee. In addition to supplying the documents, the pair assisted “clients” in falsifying the number of employees and gross wages paid by a company prior to the COVID pandemic, in order to help them qualify for a PPP loan. Whitaker would instruct these individuals on how to make it appear that the PPP loan was being paid out to employees, which in reality the money was transferred back to the client.
According to the criminal information, Whitaker and Coleman collectively facilitated the fraudulent disbursement of more than $15 million in PPP and Economic Injury Disaster Loan Program (EIDL) loans. To further promote the scheme, the couple utilized middlemen, who were in turn paid a fee, to recruit additional individuals to submit fraudulent loan applications.
Late last year, Quentin Jackson pled guilty in the same conspiracy for both utilizing Whitaker and Coleman to obtain his own fraudulent PPP loans, as well as for recruiting additional individuals in the Eastern District of North Carolina to use Whitaker and Coleman to obtain fraudulent PPP funds. Jackson ultimately recruited over a dozen individuals to obtain fraudulent PPP loans through Whitaker and Coleman’s scheme.
“The PPP and EIDL programs did not create a limitless pot of money”, said Special Agent in Charge, Donald “Trey” Eakins, IRS Criminal Investigations, Charlotte Field Office. “Economic relief efforts were meant to assist those in most need who have been affected by the COVID-19 pandemic. Criminals think these funds are an easy target to take advantage of innocent people. Be assured that IRS Criminal Investigation, together with our law enforcement partners and the U.S Attorney’s Office, will hold those accountable who engage in similar behavior.”
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to the millions of Americans who were economically suffering from the COVID-19 pandemic. The CARES Act and additional appropriations authorized up to $649 billion in forgivable loans to small businesses through the Paycheck Protection Program (PPP). Financial institutions issued the PPP loans, which were guaranteed by the Small Business Administration (SBA).
Whitaker and Coleman both pleaded guilty to Conspiracy to Commit Money Laundering in violation of 18 U.S.C. § 1956(h) and face up to 20 years in prison and a potential fine.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States Magistrate Judge Robert T. Numbers II accepted the plea. Internal Revenue Service (IRS) Criminal Investigation is leading the investigation, and Assistant U.S. Attorneys David G. Beraka and Karen K. Haughton are prosecuting 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-00257-D.
Swansea Man Sentenced for Child Pornography OffenseRead the Press Release
BOSTON – A Swansea man was sentenced today in federal court in Boston for possessing child sexual abuse material (CSAM).
Todd Miozza, 52, was sentenced by U.S. Senior District Judge William G. Young to 10 years in prison and five years of supervised release. In September 2022, Miozza pleaded guilty to one count of possession of child pornography.
Miozza obtained and traded CSAM over the internet via a messaging platform. During a search of Miozza’ s residence in June 2022, his iPhone and laptop were seized and found to contain child sexual abuse material. In total, 411 videos and 331 images constituting CSAM were found across Miozza’s devices and electronic storage media, depicting children ranging from infants to approximately 12 years old.
Miozza was previously convicted of possession of child pornography in the District of Massachusetts in 2002.
United States Attorney Rachael S. Rollins and Matthew Millhollin, Special Agent in Charge for Homeland Security Investigations in New England made the announcement. The Swansea Police Department provided valuable assistance to the investigation. Assistant U.S. Attorney Elianna J. Nuzum of Rollins’ Major Crimes Unit prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Southwest Baltimore “NFL” Gang Member Sentenced to 25 Years in Federal Prison for a Racketeering Conspiracy, Including Committing a MurderRead the Press Release
Baltimore, Maryland – U.S. District Judge Julie R. Rubin today sentenced D’Andre Preston, age 26, of Baltimore, to 25 years in federal prison, followed by five years of supervised release, for participating in a violent racketeering conspiracy, specifically, the NFL Criminal Enterprise, including committing a murder. The term NFL stands for Normandy, Franklin, and Loudon, which are three adjacent streets that run through the Edmondson Village. Members of NFL have social and family ties to the Edmondson Village neighborhood in southwest Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration, Washington Division; Chief Marcus Jones of the Montgomery County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from at least 2016 through March 2020, D’Andre Preston was an associate of the NFL Criminal Enterprise, which engaged in a pattern of criminal racketeering activity including murder, narcotics trafficking and smuggling, illegal firearms possession, bribery, witness intimidation, and witness retaliation. Preston admitted that he participated in illegal activities with other NFL Enterprise members, including committing a murder on the enterprise’s behalf. As detailed in Preston’s plea agreement, in October 2018, a co-conspirator solicited co-defendant Darran Malik Butler to murder Leonard Shelley so that members of the NFL enterprise could collect a bounty that had been placed on Shelley. On October 31, 2018, Preston and co-defendant Darran Butler followed Shelley into a convenience store and shot Shelley numerous times, killing him. Following the murder, Darran Butler posted a picture on Instagram of himself holding the bounty proceeds for Shelley’s murder.
On November 9, 2022, co-defendant Darran Malik Butler, age 23, of Baltimore, was also sentenced to 25 years in federal prison. More than 30 defendants in this and related cases have pleaded guilty to their roles in the racketeering conspiracy.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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. Project Safe Neighborhoods (PSN) is 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.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the FBI, the DEA, the Montgomery County Department of Police and the Baltimore Police Department for their work in the investigation. Mr. Barron commended the U.S. Postal Inspection Service; the City of Rockville Police Department; the Baltimore County and Howard County Police Departments; the Frederick County Sheriff’s Office; the Maryland State Police; the West Virginia State Police; the Virginia State Police; the Warren County (VA) Sheriff’s Department; the Winchester (VA) and Front Royal (VA) Police Departments; and the Frederick County and Howard County State’s Attorney’s Offices for their assistance in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorneys John W. Sippel, Jr., James T. Wallner, and Robert I. Goldaris, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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South Texas woman sentenced for trafficking over $1M in crystal meth and black tar heroinRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old Mission woman has been sent to prison following her conviction of possession with the intent to distribute more than 31 kilograms of meth, announced U.S. Attorney Alamdar S. Hamdani.
Cristina Inez Marquez pleaded guilty April 28, 2022.
Today, U.S. District Judge David S. Morales ordered Marquez to serve 190 months in federal prison to be immediately followed by five years of supervised release.
At the time of her plea, Marquez admitted that on Dec. 29, 2021, she drove a gray Ford Explorer northbound on Highway 281 near Alice. She also admitted to knowingly transporting and possessing over 31 kilograms of meth and five kilograms of heroin.
Law enforcement conducted a traffic stop and conducted an inspection. At that time, they discovered the fuel tank had been tampered with and removed. Upon examining the contents, authorities found 12 concealed bundles of what appeared to be crystal meth and black tar heroin. The weight of the bundles exceeded 85 pounds.
Analysis later confirmed the substances in the bundles were in fact crystal meth at 95% purity with a net weight of 31.41 kilograms and black tar heroin with a net weight of 5.95 kilograms. The drugs had an estimated street value of more than $1.3 million.
Marquez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney John Marck prosecuted the case.
Sioux City Middle School Teacher Pleads Guilty in Federal Court to Child Sex CrimeRead the Press Release
A Sioux City teacher pled guilty January 13, 2023, in federal court in Sioux City.
Andrew John Heller, age 39, from Sergeant Bluff, Iowa, was convicted of attempted enticement of a minor.
The FBI and Sioux City Police Department were conducting an undercover investigation to identify subjects engaged in human trafficking in Sioux City, Iowa. As part of the operation, law enforcement posted an advertisement for sex services on a frequently used dating website.
Andrew Heller, a middle school teacher and high school baseball coach, contacted an undercover phone number, responding to an ad purporting to be from a 19-year-old female offering sexual services on the website in exchange for money. What Heller did not know was that an undercover FBI agent was responding. The FBI agent immediately posed as a 14-year-old girl. Heller agreed to pay $200 cash and bring some Trulys in exchange for sex with someone he thought was an underage female. The meeting date was scheduled, and Heller showed up, as previously arranged, in his vehicle. He was searched by police, who found the cash and Trulys, along with condoms.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Heller was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Heller faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of up to life imprisonment, a $250,000 fine, and 5 years up to life of supervised release following any imprisonment.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Federal Bureau of Investigation and the Sioux City Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4059.
Follow us on Twitter @USAO_NDIA.
Ship Owner and Operator Sentenced for Environmental CrimesRead the Press Release
WASHINGTON – Empire Bulkers Limited and Joanna Maritime Limited, two related companies based in Greece, were sentenced today for committing knowing and willful violations of the Act to Prevent Pollution from Ships (APPS) and the Ports and Waterways Safety Act related to their role as the operator and owner of the Motor Vessel (M/V) Joanna.
The prosecution stems from a March 2022 inspection of the M/V Joanna in New Orleans that revealed that required pollution prevention equipment had been tampered with to allow fresh water to trick the sensor designed to detect the oil content of bilge waste being discharged overboard. The ship’s oil record book, a required log presented to the U.S. Coast Guard, had been falsified to conceal the improper discharges..
During the same inspection, the Coast Guard also discovered an unreported safety hazard. Following a trail of oil drops, inspectors found an active fuel oil leak in the engine room where the pressure relief valves on the fuel oil heaters, a critical safety device necessary to prevent explosion, had been disabled. In pleading guilty, the defendants admitted that the plugging of the relief valves in the fuel oil purifier room and the large volume of oil leaking from the pressure relief valve presented hazardous conditions that had not been immediately reported to the Coast Guard in violation of the Ports and Waterways Safety Act. Had there been a fire or explosion in the purifier room, it could have been catastrophic and resulted in a loss of propulsion, loss of life, and pollution, according to a joint factual statement filed in court.
“Make no mistake, willful tampering with required pollution control equipment and falsifying official ship logs to conceal illegal discharges are serious criminal offenses,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “In concealing major safety problems from the Coast Guard, the defendants here not only violated the law, but also recklessly risked the lives of the crew and the environment.”
“This ship owner and manager operated their foreign flagged vessel in U.S. waters in deliberate violation of the environmental and safety laws designed to protects our ports and waters,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Illegal, deceitful and dangerous conduct will not be tolerated and will be prosecuted to the full extent of the law.”
U.S. District Court Judge Mary Ann Vial Lemmon sentenced the two related companies to pay $2 million ($1 million each) and serve four years of probation subject to the terms of a government approved environmental compliance plan that includes independent ship audits and supervision by a court-appointed monitor.
The U.S. Coast Guard Investigative Service investigated the case with assistance from Coast Guard Sector New Orleans and the Eighth Coast Guard District
Senior Litigation Counsel Richard A. Udell of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney G. Dall Kammer for the Eastern District of Louisiana prosecuted the case
Attachment: Joint Factual Statement
Ship Owner and Operator Sentenced for Environmental CrimesRead the Press Release
Empire Bulkers Limited and Joanna Maritime Limited, two related companies based in Greece, were sentenced today for committing knowing and willful violations of the Act to Prevent Pollution from Ships (APPS) and the Ports and Waterways Safety Act related to their role as the operator and owner of the Motor Vessel (M/V) Joanna.
The prosecution stems from a March 2022 inspection of the M/V Joanna in New Orleans that revealed that required pollution prevention equipment had been tampered with to allow fresh water to trick the sensor designed to detect the oil content of bilge waste being discharged overboard. The ship’s oil record book, a required log presented to the U.S. Coast Guard, had been falsified to conceal the improper discharges..
During the same inspection, the Coast Guard also discovered an unreported safety hazard. Following a trail of oil drops, inspectors found an active fuel oil leak in the engine room where the pressure relief valves on the fuel oil heaters, a critical safety device necessary to prevent explosion, had been disabled. In pleading guilty, the defendants admitted that the plugging of the relief valves in the fuel oil purifier room and the large volume of oil leaking from the pressure relief valve presented hazardous conditions that had not been immediately reported to the Coast Guard in violation of the Ports and Waterways Safety Act. Had there been a fire or explosion in the purifier room, it could have been catastrophic and resulted in a loss of propulsion, loss of life, and pollution, according to a joint factual statement filed in court.
“Make no mistake, willful tampering with required pollution control equipment and falsifying official ship logs to conceal illegal discharges are serious criminal offenses,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “In concealing major safety problems from the Coast Guard, the defendants here not only violated the law, but also recklessly risked the lives of the crew and the environment.”
“This ship owner and manager operated their foreign flagged vessel in U.S. waters in deliberate violation of the environmental and safety laws designed to protects our ports and waters,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Illegal, deceitful and dangerous conduct will not be tolerated and will be prosecuted to the full extent of the law.”
U.S. District Court Judge Mary Ann Vial Lemmon sentenced the two related companies to pay $2 million ($1 million each) and serve four years of probation subject to the terms of a government approved environmental compliance plan that includes independent ship audits and supervision by a court-appointed monitor.
The U.S. Coast Guard Investigative Service investigated the case with assistance from Coast Guard Sector New Orleans and the Eighth Coast Guard District
Senior Litigation Counsel Richard A. Udell of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney G. Dall Kammer for the Eastern District of Louisiana prosecuted the case.
Serial Fraudster Sentenced to Nine Years in Federal Prison for Participating in Elder Fraud “Grandparent” Scheme and a COVID-19 CARES Act Unemployment Benefit SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Medard Ulysse, age 38, most recently of Miami, Florida, today to nine years in federal prison, followed by three years of supervised release, for wire fraud and conspiracy to commit mail fraud in relation to multiple fraud schemes, including an elder fraud “grandparent” scam and a COVID-19 CARES Act fraud related to unemployment benefits. Judge Bennett also ordered Ulysse to pay restitution totaling $2,485,512. Of that amount $1,866,745 is for the elder fraud scam and $618,767 is for the unemployment benefits scheme.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Special Agent in Charge Troy W. Springer, of the National Capital Region, U.S. Department of Labor, Office of Inspector General.
“This is a despicable crime causing fear and emotional turmoil for some of the most vulnerable members of our society,” said Special Agent in Charge Thomas J. Sobocinski of the FBI's Baltimore field office. “Ulysse used fraud and deceit to prey upon grandparents’ trust and love. The FBI is committed to combatting elder fraud and financial exploitation and ensuring our seniors are protected.”
“As a part of multiple fraud schemes, Medard Ulysse conspired with others to use stolen identities to defraud pandemic Unemployment Insurance programs established under the CARES Act to unlawfully obtain over $618,000, which deprived those who were truly in need of assistance during the pandemic,” said Troy W. Springer, Acting Special Agent in Charge, National Capital Region, U.S. Department of Labor, Office of Inspector General. “I am grateful for the strong partnerships with the U.S. Attorney’s Office for the District of Maryland, the FBI, and our state workforce agency partners, as we continue focused efforts to hold accountable those who undermine the integrity of unemployment assistance programs.”
According to his guilty plea, from January 2018 to November 2019, Ulysse and others executed an elder fraud scam, called a “grandparent scam,” in which they persuaded elderly victims to send thousands of dollars in cash by posing as a police officer, lawyer, or other person in law enforcement and convincing victims that their grandchild needed money for bail or legal fees. If the victims sent money, conspirators asked for more cash claiming that additional funds were needed for legal expenses, fines, or damages. Conspirators called the elderly victim pretending to be the victim’s grandchild or other troubled relative to convince the victims to send cash. To conceal the scheme, the conspirators told the victims that a gag order had been placed on the case or that the situation was embarrassing for the grandchild, and that the victim should not share the information with others.
The victims were directed to send cash to residential addresses, that were either vacant or for sale, so no one would be at those locations at the time of the deliveries. Ulysse recruited people to assist in retrieving the packages. Co-conspirators opened the packages, counted the cash inside and sent Ulysse video recordings of the packages being opened and counted, then delivered the fraud proceeds to Ulysse and to other people involved in the scheme. Ulysse distributed, and directed co-conspirators to distribute, cash payments to other members of the conspiracy for their participation in the scheme.
As a result of the execution of the elder fraud scheme, Ulysse and his co-conspirators convinced at least 83 different victims to send a total of at least $2,420,280. Ulysse’s criminal actions resulted in substantial financial hardship to at least five victims.
From April 2020 to November 2020, Ulysse conducted an COVID-19 CARES Act unemployment benefit scheme to fraudulently obtain unemployment funds, including Federal Pandemic Unemployment Compensation (FPUC) and Pandemic Unemployment Assistance (PUA) established under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. As part of the scheme, Ulysse and his conspirators used the identities of numerous victims to submit fraudulent unemployment claims to multiple state workforce agencies, including the Maryland Department of Labor and the California Employment Development Department. The fraudulent applications listed individual victims’ names, social security numbers, and dates of birth. The Maryland Department of Labor and other state workforce agencies disbursed benefits through debit cards issued in the names of the applicants and mailed to addresses provided in the applications, which were locations accessible to Ulysse and other members of the conspiracy. Once conspiracy members obtained the funds on state issued debit cards, they used the funds for their personal benefit.
In total, between April 2020 and November 2020, Ulysse and his co-conspirators submitted at least 143 fraudulent applications in the names of identity theft victims and obtained approximately $618,767 in fraudulent funds.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
United States Attorney Erek L. Barron commended the FBI and the DOL-OIG for their work in the investigation, and thanked the Lowndes County Sheriff’s Department for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Christine Goo, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/elder-justice-initiative.
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Schuylkill County Man Sentenced to 70 Months’ Imprisonment for Methamphetamine TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on January 13, 2023, Jorgelis Torres-Figueroa, age 25, of McAdoo, PA, was sentenced to 70 months’ imprisonment to be followed by a 3-year term of supervised release by United States District Court Judge Robert D. Mariani for conspiracy to distribute over 50 grams of methamphetamine.
According to United States Attorney Gerard M. Karam, from September through November 2018, along with a coconspirator, Torres-Figueroa distributed approximately 490 grams of methamphetamine at locations in and around Hazleton, PA.
This matter was investigated by the Drug Enforcement Administration (DEA) and the Pennsylvania State Police (PSP). Assistant United States Attorney Jeffery St John prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Schenectady Man Pleads Guilty to Drug and Gun Manufacturing ChargesRead the Press Release
ALBANY, NEW YORK – Daniel Scotsross, age 30, of Schenectady, New York, pled guilty today to attempted possession with intent to distribute N-dimethyltryptamine (DMT), a hallucinogen similar to lysergic acid diethylamide (LSD), and making firearms in violation of the National Firearms Act.
United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
Scotsross admitted that he accepted a package addressed to him at his Schenectady residence that contained what Scotsross expected to be over 10 kilograms of bark containing DMT. After a search warrant was executed at his residence, Scotsross was found with quantities of liquid DMT. He admitted that he possessed the DMT because intended to distribute it to others.
Scotsross also admitted to possessing two firearms, specifically, a combination of parts designed and intended for use in converting firearms into machine guns. He also possessed a 3-D printer and instructions for manufacturing firearms using the printer.
Scotsross faces a maximum sentence of 20 years in prison, a fine of up to $1 million, and a term of post-imprisonment supervised release of at least 3 years when he is sentenced before United States District Glenn T. Suddaby on June 8, 2023. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by HSI, United States Postal Inspection Service, and Customs and Border Protection, with the assistance of the Schenectady Police Department, Albany County Sheriff’s Department, and the New York State Police Crime Scene Emergency Response Team, and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Satsuma Postal Carrier Indicted on Theft of Mail ChargeRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Sara Brady (47, Satsuma), formerly a postal carrier in St. Johns County, with theft of mail by a postal employee. If convicted, Brady faces up to 5 years in federal prison and payment of restitution to the victims in the case. Brady was arrested on January 18, 2023, by the United States Postal Service – Office of Inspector General.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by United States Postal Service – Office of Inspector General. It will be prosecuted by Assistant United States Attorney David B. Mesrobian.
IndictmentSanilac County Trucker Sentenced to 30 Years in Prison for Transporting a Minor Across State Lines for Illegal Sex ActsRead the Press Release
DETROIT – A Sanilac County trucker was sentenced to 30 years in federal prison for transporting a minor across state lines to engage in unlawful sexual activity, 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.
Kenneth George Zehnder, 37, of Lexington, Michigan, was sentenced by United States District Judge Terrence G. Berg. Zehnder, an interstate truck driver, pleaded guilty to taking a 15-year-old girl out of the state of Michigan with the intent to sexually assault her.
In August 2019, Zehnder took the 15-year-old girl on an interstate trucking trip, where he sexually assaulted her nearly every night. After being assaulted in the cabin of the semi-truck, the victim texted 911, and police found the truck using information she provided. Video from Zehnder’s truck showed him leaving the driver’s area of the truck at the time of the assault and later emerging from the sleeping area pulling up and buttoning his pants. Zehnder was arrested and charged with sexually assaulting the victim in Minnesota. After Zehnder’s arrest, a 12-year-old girl who Zehnder took on a different out-of-state truck trip earlier that summer also reported to police that Zehnder sexually assaulted her on numerous occasions in different states during that trip. Both minors reported that Zehnder had assaulted them for years prior to his arrest.
“This sentence holds this offender responsible for the damage and terror he inflicted on this minor. I applaud her bravery for notifying the police and bringing him to justice. This office will continue to aggressively prosecute those who seek to harm children.” U.S. Attorney Ison stated.
“The defendant in this case sexually abused his victims for years,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “Those same victims demonstrated remarkable courage, bravely reporting the crimes in the face of their abuser and helping to bring an end to the perpetrator’s abusive actions. The FBI and its law enforcement partners across the nation will continue working to protect our communities from predators like Mr. Zehnder whose actions cause incalculable damage to their young victims.”
This case was investigated by the Northeast Michigan Trafficking and Exploitation Crimes Task Force of the Federal Bureau of Investigation, the Clay County Sheriff’s Department, the Stearns County Sheriff’s Department, and the Michigan State Police, and was prosecuted by Assistant United States Attorney Christopher Rawsthorne in a cooperative effort with the Stearns County Attorney’s Office.
River Falls Man Indicted for Forced LaborRead the Press Release
WASHINGTON – An indictment was unsealed today in the Western District of Wisconsin charging a Wisconsin man with one count of labor trafficking.
According to the indictment, between August 2020 and Aug. 5, 2022, Austin Koeckeritz, 29, River Falls, Wisconsin, used force, threats of force and coercion, to cause an adult woman to engage in forced labor for nearly two years.
The charge of forced labor carries a maximum of 20 years in prison, up to five years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney for the Western District of Wisconsin Timothy M. O’Shea and Special Agent in Charge Michael E. Hensle of the FBI Milwaukee Field Office made the announcement.
The FBI Milwaukee Field Office and the River Falls Police Department conducted the investigation. The Pierce County District Attorney’s Office provided assistance.
Assistant U.S. Attorney Taylor Kraus for the Western District of Wisconsin and Trial Attorneys Slava Kuperstein and Julie Pfluger of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
The FBI is asking anyone with information about Austin Koeckeritz to contact the FBI Milwaukee Field Office at (414) 276-4684. If you or someone you know is a victim of human trafficking, please call the National Human Trafficking Hotline at 1-888-373-7888.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty.
Raleigh County Man Sentenced to Prison for Child Pornography CrimeRead the Press Release
BECKLEY, W.Va. – Austin Michael Light, 21, of Beaver, was sentenced today to eight years and one month in prison, to be followed by 25 years of supervised release, for possession of prepubescent child pornography.
According to court documents and statements made in court, on January 27, 2021, law enforcement officers received a CyberTipline report from the National Center for Missing and Exploited Children (NCMEC) regarding possible child pornography uploaded to a Google Mail account. The investigation led officers to Light. On August 18, 2021, investigators executed a search warrant at Light’s residence and seized several electronic devices including Light’s cell phone.
A forensic analysis of Light’s cell phone revealed nine images and 49 videos of minors and prepubescent minors, including infants, engaged in sexually explicit conduct. Several of the videos were of adults sexually assaulting infants and toddlers as well as prepubescent minors, and of minors engaged in sadistic or masochistic conduct. Light admitted to downloading the child pornography from the internet from January 2020 until at least August 18, 2021. Light further admitted to attempting to upload a video depicting child pornography to the internet on January 26, 2021.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) Violent Crimes Against Children Task Force.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Julie White prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-259.
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Raleigh County Man Pleads Guilty to Child Exploitation CrimeRead the Press Release
BECKLEY, W.Va. – James Edward Cook, 43, of Arnett, pleaded guilty today to attempted enticement of a minor.
According to court documents and statements made in court, in December 2021, Cook began communicating with an individual on Facebook he believed to be a 9-year-old girl living in Beckley. Cook admitted that he discussed sexually explicit topics with the minor female, offered to teach her about sex, and told the minor female he wanted to be the first person with whom she had sexual intercourse. Cook further admitted that he told the minor female he would make a video of them having sexual intercourse for the first time, and discussed getting the minor female pregnant in the future.
On December 28, 2021, Cook arranged to meet the minor female outside a Raleigh County school. When Cook arrived at the location that evening, he was arrested by law enforcement.
Cook is scheduled to be sentenced on May 5, 2023, and faces a mandatory minimum of 10 years and up to life in prison, at least five years and up to a lifetime of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) West Virginia Human Trafficking and Child Exploitation Task Force, the West Virginia Crimes Against Children (ICAC) Task Force, and the West Virginia State Police.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Julie M. White is prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-43.
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