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Thursday 12 January 2023
Illinois Man Sentenced to 19 Years in Prison for Coercion and Enticement of a MinorRead the Press Release
BOSTON – An Illinois man was sentenced yesterday in federal court in Boston for coercing and enticing a minor to produce sexually explicit images and videos.
Domenique Dequon Hines, 25, of Crystal Lake, Ill., was sentenced by U.S. Senior District Court Judge William G. Young to 19 years in prison and five years of supervised release. In September 2022, Hines pleaded guilty to one count of coercion and enticement of a minor.
“Less than two months after being released from prison for a child pornography offense, Mr. Hines went right back to exploiting and sexualizing children. He used social media to target, coerce and threaten a 14-year-old victim for his own sexual gratification. Mr. Hines is a danger to our children and accordingly, he will be removed from our community for nearly two decades,” said United States Attorney Rachael S. Rollins. “Protecting the safety, innocence and wellbeing of our children, especially from the threat of online predators like Mr. Hines, is a top priority.”
“Domenique Dequon Hines is a calculating and manipulative predator who targeted, exploited, and harmed a vulnerable child for life. No sentence for this man will wipe away the scars he left on his 14-year-old victim, and our thoughts are with both her and her family today,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division. “It is the FBI’s sincere hope that his punishment—almost two decades behind bars—will deter others from engaging in this repulsive, criminal conduct.”
In October 2020, approximately six weeks after being released from serving a sentence in Illinois for a child pornography offense, Hines met a 14-year-old Massachusetts victim on Instagram. Hines and the victim exchanged phone numbers and profile pictures and began communicating online via iMessage and other forms of internet communication for a period of approximately 10 days. On the first day of communications, Hines confirmed with the victim that she was 14 years old and he informed the victim that he is 23 years old. After confirming her age, Hines knowingly persuaded, induced, enticed and coerced the victim to take and send him, sexually explicit images and videos of herself. Hines requested that the victim call him “daddy,” and explained that if her parents ever try to take her phone, she should delete all of their text messages.
Hines was previously convicted of a child pornography offense in the state of Illinois.
U.S. Attorney Rollins, FBI SAC Bonavolonta and Norfolk County District Attorney Michael W. Morrissey made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus and Christopher R. Looney of Rollins’ Criminal Division 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.
Idaho Man Indicted for Federal Hate Crime Against LGBTQ Residents of BoiseRead the Press Release
BOISE — A federal grand jury in Boise returned an indictment on Jan. 10, charging an Idaho man with a hate crime.
The indictment alleges that on Oct. 12, 2022, Matthew Alan Lehigh, 31, attempted to cause bodily injury to two people in Boise by driving his car at them. This assault, the indictment alleges, was motivated by the actual and perceived sexual orientation of the victims.
Boise Police apprehended Lehigh, and the Ada County Prosecuting Attorney’s Office filed state charges against Lehigh.
If convicted of the federal charges, Lehigh faces a maximum penalty of ten years in federal prison.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Josh Hurwit for the District of Idaho and Special Agent in Charge Dennis W. Rice of the FBI’s Salt Lake City Field Office made the announcement. The Boise Police Department and FBI Salt Lake City Field Office investigated the case.
Assistant United States Attorney Katherine Horwitz for the District of Idaho and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If members of the public have information concerning hate crimes or wish to report a similar crime, they should contact the Federal Bureau of Investigation at (208) 344-7843 or the U.S. Attorney’s Office at (208) 334-1211.
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Idaho Man Indicted for Federal Hate Crime Against LGBTQ Residents of BoiseRead the Press Release
A federal grand jury in Boise returned an indictment on Jan. 10, charging an Idaho man with a hate crime.
The indictment alleges that on Oct. 12, 2022, Matthew Alan Lehigh, 31, attempted to cause bodily injury to two people in Boise by driving his car at them. This assault, the indictment alleges, was motivated by the actual and perceived sexual orientation of the victims.
Boise Police apprehended Lehigh, and the Ada County Prosecuting Attorney’s Office filed state charges against Lehigh.
If convicted of the federal charges, Lehigh faces a maximum penalty of 10 years in federal prison.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Josh Hurwit for the District of Idaho and Special Agent in Charge Dennis W. Rice of the FBI’s Salt Lake City Field Office made the announcement. The Boise Police Department and FBI Salt Lake City Field Office investigated the case.
Assistant U.S. Attorney Katherine Horwitz for the District of Idaho and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If members of the public have information concerning hate crimes or wish to report a similar crime, they should contact the FBI at (208) 344-7843 or the U.S. Attorney’s Office at (208) 334-1211.
Hyde Park Man Pleads Guilty to Armed Bank RobberyRead the Press Release
BOSTON – A Hyde Park man pleaded guilty today in federal court in Boston to the armed robbery of a Hyde Park bank.
Paul Whooten, 59, pleaded guilty to one count of armed bank robbery before U.S. District Court Judge Patti B. Saris who scheduled sentencing for April 12, 2023. Whooten was charged in February 2020.On Dec. 21, 2019, Whooten entered a branch of Rockland Trust Bank in Hyde Park, carrying something that appeared to be a rifle. Upon entering the bank, Whooten pointed it at the teller before stating, “Give me all of your money.” The teller filled Whooten’s bag with $13,603 in cash, and Whooten fled the bank on foot. Bank surveillance cameras captured images of the Whooten throughout the robbery.
Shortly after leaving the bank, Whooten was observed on the street wearing clothes consistent with those observed inside the bank and still holding what appeared to be a rifle in his hand. Law enforcement immediately apprehended Whooten and a black rifle-type BB gun and bag of cash were recovered from him.
The charge of armed bank robbery provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the U.S. Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement. Assistant U.S. Attorney Adam W. Deitch of Rollins’ Criminal Division is prosecuting the case.High-Ranking Hyena Crips Gang Member Charged with the Murder of 15-Year-Old Samuel Joseph in BrooklynRead the Press Release
An indictment was partially unsealed this afternoon in federal court in Brooklyn charging Martial H. Amilcar, also known as “Drippy,” and a co-defendant with the murder of 15-year-old Samuel Joseph. The indictment charges Amilcar, a senior member of the Hyena Crips gang, with killing Joseph in front of his teenage sister on February 22, 2019 as Joseph was leaving his apartment building near the Little Haiti section of Brooklyn. Amilcar was taken into federal custody earlier today, and is scheduled to be arraigned tomorrow before United States Magistrate Judge Taryn A. Merkl. If convicted of murder during and through the use of a firearm in relation to murder in-aid-of racketeering, Amilcar faces a potential sentence of life imprisonment or the death penalty.
Breon Peace, United States Attorney for the Eastern District of New York, and Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the arrest and charge.
“There is no crime more heinous than the killing of an innocent child. As alleged, Amilcar and his co-defendant brazenly murdered 15-year-old Samuel Joseph in retaliation for activities this young boy had nothing to do with,” stated United States Attorney Peace. “The brutal cycle of gang violence in this district, including the violence perpetrated by members of the Hyena Crips, must be stopped. We and our law enforcement partners are committed to that end. It is my hope that today’s indictment brings some measure of justice for the victim’s family.”
Mr. Peace expressed his appreciation to HSI’s Violent Gang Task Force and the New York City Police Department for their outstanding work in this investigation.
“While nothing can undo the pain that Martial Amilcar and his co-defendant allegedly inflicted upon the family of Samuel Joseph, it is my hope that by seeing him held accountable for his alleged crimes, they will be given some form of peace,” stated HSI Special Agent-in-Charge Arvelo. “HSI New York, along with our law enforcement partners, are dedicated to the eradication of gang violence in our communities, and we will continue to seek, apprehend, and hold accountable those who intend perpetuate such cruelty.”
As alleged in court documents, on February 22, 2019, Amilcar and a co-defendant drove to Samuel Joseph’s apartment building and waited outside until Joseph’s teenage sister arrived at the building’s entrance. While Joseph’s sister prepared to enter the building, Samuel Joseph was walking down an internal staircase towards the building’s exit. When Joseph’s sister opened the building door to enter, Amilcar walked into the building behind her, pulled out a gun and shot the 15-year-old boy three times at close range, killing him.
The shooting and events leading up to it were captured on security camera footage taken nearby.Amilcar and another individual allegedly killed Samuel Joseph in retaliation for an altercation earlier that day between Amilcar’s relative, a fellow gang member, and Joseph’s older brother, a rival gang member.
The charge in the indictment is an allegation and the defendant is presumed innocent unless and until proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Devon Lash, Andrew Wenzel, Jessica Weigel, and Joshua Dugan are in charge of the prosecution.
The Defendant:
MARTIAL H. AMILCAR (also known as “Drippy”)
Age: 26
Brooklyn, New YorkE.D.N.Y. Docket No. 23-CR-18 (PKC)
Hattiesburg Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Hattiesburg, Miss.- A Hattiesburg, Mississippi man pled guilty to possession of child pornography, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
Zane Michael Bonner, 44, pled guilty on January 10, 2023, in U.S. District Court in Hattiesburg.
According to court documents, Bonner was found to be in possession of a cellular telephone at his rehabilitation center residence in Hattiesburg on November 18, 2021, from which a forensic examination recovered over 2,500 visual depictions of minors engaging in sexually explicit conduct. Bonner has a previous conviction for possession of child pornography in the U.S. District Court for the Southern District of Alabama.
Bonner is scheduled to be sentenced on April 19, 2023, and faces a maximum penalty of 20 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation is investigating the case with the assistance of the Mississippi Attorney General’s Cyber Crimes Division and the Forest County Sheriff’s Office.
Assistant U.S. Attorney Andrea Jones is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
Hamden Man Admits Attempting to Travel to Fight for ISISRead the Press Release
KEVIN IMAN McCORMICK, 29, of Hamden, pleaded guilty today in Bridgeport federal court to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
U.S. Attorney Vanessa Roberts Avery, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, and Acting Special Agent in Charge Jean Pierre Njock of the Federal Bureau of Investigation’s New Haven Division made the announcement.
According to court documents and statements made in court, between August and October 2019, McCormick made several statements to others expressing a desire to travel to Syria and to fight for ISIS. In one conversation in October 2019, McCormick stated “I gotta fight bro, because those people, Abu Masa and ISIL, they fought for me bro, I know it, I can feel it, in my heart. So it’s my time to fight . . . It just is what it is bro, it’s just my – it’s just my time to go bro.” When McCormick was asked to elaborate on where he would like to travel, McCormick responded, “I don’t know, I don’t know bro – it’s gotta be like Syria. Where ISIL is at….whichever place is easiest, whatever place I can get there the fastest, the quickest, the easiest, and where I can have a rifle and I can have some people bro. That’s what I need, I need a rifle and I need some people, I need Islamic law, I need, that’s what I need, because if I have these things, it’s gonna to be very hard to kill me.”
On October 12, 2019, McCormick attempted to board a flight from Connecticut to Jamaica, but was prevented by the U.S. Department of Homeland Security. McCormick subsequently told an individual that he wanted to travel to Jamaica, and then onward to Syria to join ISIS. He also indicated that he wanted to acquire weapons.
On October 19, 2019, McCormick made a video during which he pledged allegiance to ISIS and its leader, Abu Bakr Al-Baghdadi. Also on that date, he purchased a plane ticket from Toronto, Canada, to Amman, Jordan. On October 21, 2019, McCormick was arrested after he traveled to a small private airport in Connecticut where he expected to board a plane that would fly him to Canada.
McCormick has been detained since his arrest.
The charge of attempting to provide material support to a designated foreign terrorist organization carries a maximum term of imprisonment of 20 years. McCormick is scheduled to be sentenced by U.S. District Judge Kari A. Dooley on April 6.
This matter has been investigated by Federal Bureau of Investigation’s Joint Terrorism Task Force (JTTF) with the assistance of the Transportation Security Administration (TSA).
The FBI’s JTTF includes participants from Homeland Security Investigations (HSI), Internal Revenue Service – Criminal Investigation Division, Naval Criminal Investigative Service, U.S. Marshals Service, U.S. Citizenship and Immigration Services, Connecticut State Police, Connecticut Department of Correction, Metropolitan Transportation Authority Police Department, Norwich Police Department, Hartford Police Department, Stamford Police Department, Norwalk Police Department, Town of Groton Police Department, UConn Police Department, Yale Police Department, and New York Police Department.
This case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed of the District of Connecticut and Trial Attorneys Justin Sher and John Cella from the Counterterrorism Section of the Justice Department’s National Security Division.
Haitian National Sentenced to Federal Prison for Firearms TraffickingRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Peniel Olibris, age 32, of Denver, was sentenced to one year and one day in federal prison, plus one year of supervised release, for smuggling goods, specifically firearms, from the United States to Haiti.
According to the plea agreement, the defendant came to the attention of law enforcement in October 2019 when a manager at a firearms store in Arvada reported a suspicious customer. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) began investigating Mr. Olibris’ other recent firearm purchases and learned he had recently purchased a number of pistols from another firearms store. ATF agents also determined, after Mr. Olibris’ background check was delayed, he went in to purchase firearms with an associate. In total, between February 2019 and June 2020, the two purchased 77 firearms. Law enforcement agents spoke with Mr. Olibris in July 2020, at which time he admitted to shipping “a few” firearms to Haiti, where he is from and where some of his family members still live. He explained that he placed the firearms in boxes inside of cars, and had the drivers take the cars from Colorado to Florida. In Florida, one of Mr. Olibris’ associates coordinated with the shipping company to send the cars containing firearms to Haiti. Mr. Olibris explained that he was trying to obtain a federal firearms license that would enable him to sell firearms but had not yet done so. According to documentation from the shipping company located in Fort Lauderdale, Florida, Mr. Olibris shipped thirteen cars to Haiti between September 30, 2019, and May 29, 2020. The terms and conditions for each shipment required Mr. Olibris to affirm the vehicles did not contain firearms, which are “prohibited by law.”
United States District Court Judge Regina M. Rodriguez sentenced Peniel Olibris on January 12, 2023.
“Illegal firearms trafficking – whether within the United States or across international borders – poses a serious threat to the safety of our communities,” said United States Attorney Cole Finegan. “We will continue to work with our law enforcement partners to disrupt the flow of these firearms, which have the potential to contribute to the incidence of violent crime.”
“The illegal flow of firearms fuels violence and places innocent people in danger and is responsible for the loss of lives daily,” said ATF Acting Special Agent in Charge Kirk Howard. “In our continued partnerships with Homeland Security Investigations and other federal, state and local partners, we will continue to vigorously pursue illegal firearms traffickers and hold them accountable for their reckless and illegal trades.”
“This sentencing sends the very clear message that HSI and our partners will relentlessly investigate and prosecute those who try to transport weapons across state lines with the ultimate goal of smuggling them overseas,” said Ryan L. Spradlin, special agent in charge, HSI Denver. “Our dedicated special agents and intelligence professionals will stop at nothing to ensure that weapons never make it into the hands of dangerous criminal organizations.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Homeland Security Investigations (HSI) conducted the investigation. Assistant United States Attorneys Laura Cramer-Babycz and Albert Buchman handled the prosecution of the case.
CASE NUMBER: 22-cr-00119
- Greene County Man Indicted for Possessing over 10,000 Fentanyl Pills and a Kilogram of Fentanyl Powder
Glenn County Man Sentenced to 3 Years in Prison for Being a Felon in Possession of AmmunitionRead the Press Release
SACRAMENTO, Calif. — Erick Perez, 35, of Orland, was sentenced today to 37 months in prison for being a felon in possession of ammunition and for violating his conditions of supervised release from a prior federal felon-in-possession conviction, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2019, Perez pleaded guilty to being a felon in possession of a firearm. In January 2021, he was sentenced to time served and began serving a three-year term of supervised release. Less than three months later, on April 1, 2021, law enforcement lawfully searched Perez’s house and found two loaded, privately manufactured handguns also known as ghost guns. Perez is prohibited from possessing firearms or ammunition because he had previously been convicted of felonies.
This case was the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Orland Police Department; the Glenn County Investigations and Narcotics Task Force; and the Glenn County District Attorney’s Office. Assistant U.S. Attorney Emily G. Sauvageau 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 U.S. Department of Justice 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.
Fort Wayne Man Sentenced to 180 Months in PrisonRead the Press Release
FORT WAYNE – Dana Green, 38 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after being found guilty of being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Green was sentenced to 180 months in prison followed by 4 years of supervised release.
According to documents in the case, in March 2022, while responding to a disturbance call, police located Green who was in possession of a handgun. Green’s criminal history revealed he has three prior felony offenses which prohibit him from possessing the firearm. His three prior felony convictions also qualified him as an armed career criminal for sentencing purposes.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Stacey R. Speith.
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.
Fort Wayne Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE –Jonathan Cross, 35 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to enticing a minor to engage in prostitution, announced United States Attorney Clifford D. Johnson.
Cross was sentenced to 120 months in prison followed by 3 years of supervised release.
According to documents in the case, between January and March 2022, Cross was communicating on social media with an undercover officer posing as a minor female. During the online communications, Cross made arrangements to meet up for sex and advised he would purchase a contraceptive before they met. On March 30, 2022, Cross was arrested when he arrived to meet who he thought was the minor female. At the time of his arrest, Cross was in possession of the contraceptive.
This case was investigated by the Federal Bureau of Investigation with the assistance of Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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Former Fugitive Sentenced to over 11 Years in Federal Prison for Possessing Child Sexual Abuse Material, 14 Years After Fleeing the United StatesRead the Press Release
INDIANAPOLIS- Larry Shaw, 49, of Indianapolis, Indiana, was sentenced to 135 months in federal prison for possession of child sexual abuse materials.
According to court documents, in 2007, the Indiana State Police began an investigation into known videos and files of child sexual abuse material being traded via Gnutella. Gnutella was a peer-to-peer network that allowed users to share files across the internet without using a central server. Larry Shaw was identified as one of several targets of the investigation.
On March 19, 2007, law enforcement officers executed a search warrant at Shaw’s residence. During an interview with officers, Shaw admitted to downloading child sexual abuse materials using peer-to-peer networks and storing them on his computer. Forensic examination of the computer found 177 video files depicting prepubescent children engaging in sexually explicit conduct with adults, including violent masochistic conduct, and depictions of rapes of children.
On May 2, 2007, Shaw, his legal counsel, and federal prosecutors met to discuss a pre-indictment resolution of the case. Shaw requested to think about the offer over the weekend, and the government agreed. On May 5 or 6, 2007, Shaw had fled the United States on an AirChina flight to Beijing. Shaw was apprehended and arrested nearly 14 years later in October of 2021 after he attempted to re-enter the United States in Chicago.
“Not only did Mr. Shaw trade abhorrent images and videos of children being sexually violated and tortured, but he also sought to evade the consequences of his actions for over 14 years,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “The successful arrest and prosecution of this defendant demonstrates that our Office, HSI, and IMPD will work to bring criminals to justice no matter how long it takes. The serious sentence imposed today demonstrates that those who seek gratification from the horrific abuse of the most vulnerable will be held accountable.”
“Possessing and viewing child exploitation material revictimizes children each time it is downloaded or shared. Our agents and partners are profoundly committed to investigating these crimes and going after the perpetrators,” said HSI Chicago Special Agent in Charge R. Sean Fitzgerald. “We will continue to work tirelessly to identify and investigate offenders like Shaw in our communities and ensure they pay for their crimes against children.”
Homeland Security Investigations investigated this case with the valuable assistance of IMPD. The sentence was imposed by U.S. District Court Judge, Richard L. Young. Judge Young also ordered that Shaw be supervised by the U.S. Probation office for 10 years following his release from federal prison. Shaw must also register as a sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanks Assistant United States Attorney Kate E. Olivier, who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Former Executive Director at Bedford Senior Living Center Sentenced to over 2 Years in Federal Prison for Embezzling over $419,000 over Five YearsRead the Press Release
NEW ALBANY- Dara Little, 35, of Mitchell, Indiana, was sentenced to 27 months in federal prison after pleading guilty to three counts of wire fraud.
According to court documents, in May of 2014, Dara Little was hired as the Executive Director of Nursing at a senior living facility in Bedford, Indiana. As part of her role, Little had access to a web-based platform used to submit business expense reimbursement requests. In January of 2016, Little was fired for timesheet fraud and theft of prescription medicine, however her access to the reimbursement request platform was not immediately disabled.
In January 2016, after she was fired, Little submitted 24 expense reimbursement requests totaling more than $58,770. The reimbursement requests contained forged and falsified receipts that had no connection to Little’s employment at the senior living facility. For example, Little submitted a receipt for $3,923.00 worth of “small furniture purchases” purportedly made at an Ashley Furniture location in Cincinnati that does not actually exist. Little continued to make reimbursement requests for expenses such as dishwasher maintenance, locksmith services, iPads, and baby strollers for five months after her termination. Little’s expense reimbursement request account was deactivated in September 2016.
The day after Little’s access to the expense reimbursement request was terminated, Little began using another employee’s account to submit more fraudulent reimbursement requests. As she did with her own account, Little submitted requests that contained forged and falsified receipts. Between September 2016 and March 2021, Little submitted 172 fraudulent reimbursement requests using the other employee’s account and, as a result, received more than $173,900 in payments from her former employer to which she was not entitled. The fraudulent requests she submitted included receipts from a Nando’s Chicken in England, a California Shoe Store, and for a cheerleading uniform. The receipt picture that Little used from Nando’s Chicken went viral in 2013 after it was posted online and was identified as belonging to the singer, Beyonce.
In October 2017, Little also began to use yet another employee’s account to submit fraudulent reimbursement requests to her former employer that contained forged and falsified receipts. Between October 2017 and March 2021, Little submitted 155 additional fraudulent reimbursement requests with the second employee’s account and, as a result, received more than $161,000 in payments to which she was not entitled. The fraudulent requests she submitted included the same receipt from Nando’s Chicken over 58 times, the Indiana Bureau of Motor Vehicles, Men’s Wearhouse, and for a Kid’s First Chemistry Set.
Investigators searched Little’s cell phone and found a note in which she admitted to stealing over $400,000 from her former employer over the course of five years, how the money was stolen, and what personal expenses the stolen funds paid for.
Little stole a total of more than $419,542 from her former employer.
“For over five years, the defendant repeatedly defrauded her former employer through lies and forged documents,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Our office will continue to prioritize prosecutions of fraud schemes that have lasting impacts on businesses and individuals. I commend the work of the FBI and prosecutors in our office to untangle this long string of embezzlement, proving once again that those who chose to violate the law in service of their greed will be held accountable for their crimes.”
“Ms. Little intentionally sought to personally benefit by diverting funds that were not her own to line her own pocket. This sentence should send a clear message to others who might consider doing the same,” said FBI Indianapolis Acting Special Agent in Charge Robert Middleton. “The FBI and our law enforcement partners will continue to work diligently to identify and investigate those who choose to enrich themselves at the expense of others.”
The FBI investigated this case. The sentence was imposed by U.S. District Court Judge Sarah Evans Barker. Judge Barker also ordered that Little be supervised by the U.S. Probation Office for 3 years following her release from federal prison. Little has also been ordered to pay the full amount of $419,542.45 in restitution.
U.S. Attorney Myers thanked Assistant United States Attorney Kate Olivier, who prosecuted this case.
Former Chief Financial Officer of Email Security Company Pleads Guilty to $50 Million Scheme to Defraud Investors and LendersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that NIHAT CARDAK, the former Chief Financial Officer (“CFO”) of the Virginia-based email security company GigaMedia Access Corporation, d/b/a GigaTrust (“GigaTrust”), pled guilty today in Manhattan federal court in connection with a scheme to defraud investors and lenders of millions of dollars through false and misleading misrepresentations, including fabricated bank statements and audit reports, and by impersonating a purported customer, auditor, and GigaTrust lawyer. U.S. District Judge Paul G. Gardephe accepted the defendant’s guilty plea.
U.S. Attorney Damian Williams said: “Nihat Cardak, along with his co-defendants Robert Bernardi and Sunhil Chandra, chose to lie and mislead investors and lenders in order to keep GigaTrust afloat instead of owning up to the company’s financial reality. Their scheme came crashing down in 2019 as GigaTrust filed for bankruptcy, and Cardak and Bernardi have now accepted responsibility for their criminal actions.”
According to the allegations in the Indictment and other filings and statements made in court:[1]
From in or about 2016 through at least in or about 2019, GigaTrust was a private company headquartered in Virginia that purported to be a market-leading provider of cloud-based content security solutions. Robert Bernardi founded GigaTrust and served as its Chief Executive Officer, while CARDAK and Sunil Chandra were GigaTrust’s CFO and Vice President of Business Development, respectively. The defendants devised a scheme to defraud investors and lenders by (i) fabricating and disseminating false and misleading bank account statements that overstated GigaTrust’s cash deposits; (ii) fabricating and disseminating false and misleading audit materials that purported to have been issued by GigaTrust’s auditors and overstated GigaTrust’s performance; (iii) forging and disseminating a false and misleading letter purporting to be from GigaTrust’s New York-based counsel; and (iv) impersonating or causing others to impersonate a purported customer and auditor of GigaTrust on telephone calls with a prospective lender.
Specifically, Bernardi sent fabricated audit materials to a New York-based investment firm, and Bernardi and CARDAK used fabricated bank statements to obtain multiple rounds of loans and investments for GigaTrust worth millions of dollars. After a New York-based bank (“Bank-1”), which had loaned GigaTrust $25 million, declared that GigaTrust had defaulted on the terms of its loan agreement, Bernardi and CARDAK induced additional investments in GigaTrust through, among other things, forging a letter purporting to be from GigaTrust’s New-York based counsel. Shortly thereafter, while negotiating another $25 million deal with a lender (“Lender-1”), Bernardi and CARDAK devised a scheme to impersonate a GigaTrust customer and auditor on requested diligence calls, which induced Lender-1 to make a $25 million loan to GigaTrust. Bernardi recruited Chandra to pose as one of GigaTrust’s alleged customers on a call with Lender-1. Bernardi and CARDAK also fabricated bank statements and sent them to Lender-1 right before closing the $25 million deal.
GigaTrust filed for Chapter 7 bankruptcy protection in the District of Delaware on or about November 27, 2019.
On August 17, 2022, Bernardi pled guilty to conspiracy to commit securities fraud, bank fraud, and wire fraud before Judge Paul G. Gardephe.
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CARDAK, 52, of Clifton, Virginia, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing for CARDAK is scheduled for May 16, 2023.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation in this case. Mr. Williams further thanked the Securities and Exchange Commission, which has filed a civil enforcement action against the defendants, for its cooperation and assistance in this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Peter J. Davis and Emily A. Johnson are in charge of the prosecution.
The charges contained in the Indictment against Sunil Chandra are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Former Biddeford Middle School Ed Tech Sentenced to 3+ Years for Possession of Child Sexual Abuse MaterialRead the Press Release
PORTLAND, Maine: A Biddeford man was sentenced today in U.S. District Court in Portland for possessing child sexual abuse materials.
Chief U.S. District Judge Jon D. Levy sentenced Jesse Kiesel, 49, to 44 months in prison followed by five years of supervised release. He was also ordered to pay $7,500 in monetary assessments applicable to defendants in child sexual exploitation cases and $4,000 in restitution. He pleaded guilty on July 21, 2022.
According to court documents, in April 2021, Kiesel engaged in an internet chat with an undercover member of law enforcement posing as a 13-year-old girl. During the chat, Kiesel steered the conversation towards the topics of sex and sexual contact and ultimately transmitted images of his erect penis to the undercover officer. Following the execution of a search warrant at his residence, numerous sexually explicit images of minors were recovered from his computer. According to court documents, at the time of his arrest, Kiesel was employed as an Ed Tech II at Biddeford Middle School.
Homeland Security Investigations investigated the case with assistance from the Biddeford Police Department, the Newbury (MA) Police Department and the United States Marshals Service.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer re-victimization each time the images are viewed. File a report with the National Center for Missing & Exploited Children at https://report.cybertip.org/ or 1-800-843-5678. Your report will be forwarded to a law enforcement agency for investigation and action. If you have an emergency that requires an immediate law enforcement response, call 911 or contact your local police or sheriff’s department.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
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Updated 01/23/23: reporting information added
Federal Inmate Indicted on Escape ChargeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Usbaldo Padilla, age 49, of Los Angeles, California, was indicted by a federal grand jury on an escape charge.
According to United States Attorney Gerard M. Karam, the indictment alleges that on October 11, 2022, Padilla escaped from the extended limits of his confinement from the United States Penitentiary Canaan, Waymart, Pennsylvania. Padilla had been furloughed to be transported by commercial bus to report to a halfway house in California to complete the term of his imprisonment. Padilla failed to report as required. Los Angeles police later arrested Padilla on November 11, 2022, while walking on a street, in Los Angeles, California.
The case was investigated by the United States Marshals and the Bureau of Prisons. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
The maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Extradited Seminole County Man Sentenced to More Than Eight Years in Federal Prison for COVID Relief FraudRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Don V. Cisternino (47, Chuluota) to eight years and six months in federal prison for wire fraud, aggravated identity theft, and illegal monetary transaction. The court also ordered Cisternino to forfeit a total of $1,071,923.98 seized from five different bank accounts, which are funds traceable to proceeds of the offense. In addition, the court entered an order of forfeiture in the amount of $7.21 million, which represents the total proceeds obtained by Cisternino from the wire fraud scheme. The court also ordered Cisternino to pay restitution to the U.S. Small Business Administration in the amount of $7,445,855.89. Cisternino had pleaded guilty on September 20, 2022, after being extradited from Croatia.
According to court documents, in May 2020, Cisternino fraudulently secured more than $7.2 million in emergency funds through a Paycheck Protection Program (“PPP”) loan. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted March 2020. It was designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in potentially forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. The PPP allowed qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses were required to use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities.
Cisternino’s PPP loan application falsely claimed that his business, MagnifiCo, had 441 employees and monthly payroll expenses in 2019 of more than $2.8 million. In truth, MagnifiCo had no employees other than Cisternino. In support of his PPP loan application, Cisternino submitted false W-2s for MagnifiCo’s purported employees, many of which listed the names and Social Security numbers of actual persons who were not MagnifiCo employees and who had not authorized Cisternino to use their identities.
Once he obtained the emergency loan of $7.2 million, Cisternino did not use these funds for qualifying expenses. Instead, he spent the funds for his own personal enrichment, including the purchase of Maserati and Mercedes-Benz vehicles, as well as the purchase of a 12-acre estate with a 12,579 sq. ft. residence in Seminole County, pictured below.
On January 22, 2021, after learning that he was under investigation for PPP loan fraud, Cisternino fled to Switzerland. He was arrested on April 11, 2021, pursuant to an Interpol Red Notice, as he attempted to enter Croatia from Slovenia by way of Italy.
“I would like to congratulate the dedicated prosecutors and agents, as well as our international partners, who brought this defendant to justice,” said Department of Justice Acting Director of COVID-19 Fraud Enforcement Michael Galdo. “This case demonstrates the Department of Justice’s ongoing commitment to prosecute those who defrauded our pandemic relief programs and bring them to justice no matter where in the world they try to hide.”
“The Paycheck Protection Program (PPP) was enacted to help businesses keep their workforce paid at the height of the pandemic. Unfortunately, Mr. Cisternino chose instead to use the funds he obtained as his personal pandemic piggyback,” said Ronald A. Loecker, IRS-CI Acting Special Agent in Charge. “This sentencing should serve as a warning to those who might have engaged in similar fraudulent activity that holding those accountable for these crimes remains a high priority for federal authorities.”
This case was investigated by the Internal Revenue Service – Criminal Investigation, Tampa Field Office. The Justice Department’s Office of International Affairs and Croatian authorities provided valuable assistance in securing Cisternino’s arrest and extradition. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt, with assistance from Assistant United States Attorneys Nicole Andrejko and Jeremy Bloor.
El Departamento de Justicia obtiene más de $31 millones de City National Bank para resolver alegaciones de discriminación crediticiaRead the Press Release
El Departamento de Justicia anunció hoy un acuerdo para resolver alegaciones de que City National Bank (City National) desarrolló un patrón o una práctica de discriminación crediticia a través de la exclusión financiera [“redlining” en inglés] en el Condado de Los Angeles. City National es el banco más importante con sede en Los Angeles y se cuenta entre los 50 bancos más grandes en los Estados Unidos. Esta resolución incluirá más de $31 millones en concepto de reparaciones para las personas y comunidades afectadas. El acuerdo, que forma parte de la Iniciativa para Combatir la Exclusión Financiera (solo en inglés) de nivel nacional del Departamento que lanzó el Fiscal General Merrick B. Garland en octubre de 2021, representa el acuerdo sobre exclusión financiera más importante de su historia.
"Quince meses después de que prometí que el Departamento de Justicia intensificaría agresivamente nuestros esfuerzos por combatir prácticas discriminatorias en el mercado de vivienda, hoy hemos conseguido el acuerdo sobre exclusión financiera más importante de la historia del Departamento”, dijo el Fiscal General Merrick B. Garland. “A la fecha, la Iniciativa para Combatir la Exclusión Financiera ha obtenido más de $75 millones en concepto de reparaciones para las comunidades que han sufrido discriminación crediticia. En el Departamento de Justicia seguiremos ampliando nuestros esfuerzos por hacer cumplir enérgicamente las leyes federales sobre equidad crediticia y nos esforzaremos para asegurar que las instituciones financieras ofrezcan a toda persona estadounidense igualdad de oportunidades para obtener crédito. En vísperas de la fecha en que el Dr. Martin Luther King Jr. hubiera cumplido 94 años, es un momento idóneo para reafirmar nuestro compromiso con su misión y para procurar la justicia para toda persona estadounidense”.
“Este acuerdo es histórico y marca la resolución más grande que jamás ha obtenido el Departamento de Justicia contra un banco que practicaba la exclusión financiera ilícita”, dijo la Fiscal General Auxiliar Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “Este acuerdo personifica el compromiso del Dr. Martin Luther King con la lucha contra la injusticia económica y con asegurar que toda persona de ascendencia afroestadounidense y todas las comunidades de color puedan tener acceso al sueño estadounidense y acceso libre al crédito que necesitan para comprar una vivienda. La exclusión financiera es una práctica de época antigua, contraviene los principios de equidad y justicia, y no tiene cabida en nuestra economía de hoy. Este acuerdo debe servir para enviar un mensaje claro a la industria financiera: nuestra expectativa es que los prestamistas proveen servicios a todos los miembros de la comunidad, y se responsabilizará a quienes no lo hagan”.
“Aprovechando las palabras del Dr. Martin Luther King Jr., el asunto de la vivienda justa es un ‘asunto moral’. Por lo tanto, poner fin a la exclusión financiera es un paso necesario para cerrar las brechas cada vez más amplias en términos de vivienda propia y patrimonio, especialmente en una ciudad tan grande y diversa como Los Angeles”, dijo Martin Estrada, Fiscal de los EE. UU. para el Distrito Central de California. “Es inaceptable ver que persiste la exclusión financiera en el siglo XXI, y este caso demuestra nuestro compromiso con combatir la exclusión financiera y responsabilizar a los bancos y demás entidades cuando desarrollan prácticas de discriminación ilícita. A través de este acuerdo, estamos tomando un paso grande hacia adelante al eliminar las barreras ilícitas y discriminatorias en los préstamos hipotecarios residenciales, y al satisfacer las necesidades de crédito en Los Angeles”.
La exclusión financiera es una práctica ilegal mediante la cual los prestamistas evitan prestar servicios crediticios a personas que residen en comunidades de color debido a la raza, color de piel u origen nacional de los residentes de dichas comunidades. La demanda entablada este día en el tribunal federal alega que entre el 2017 y al menos el 2020, City National evadió prestar servicios de crédito hipotecario a los vecindarios de mayoría afroestadounidense e hispana en el Condado de Los Angeles, y puso obstáculos a la obtención de préstamos hipotecarios de parte de los residentes de dichos vecindarios. La demanda alega también que durante el mismo período, otros bancos recibieron más de seis veces el número de solicitudes de vecindarios de mayoría afroestadounidense e hispana en Los Angeles que lo que recibió City National cada año. Además, durante los últimos 20 años, City National abrió solamente una sucursal en un vecindario de mayoría afroestadounidense e hispana, a pesar de abrir o adquirir 11 sucursales durante el mismo período. Y en contraste con sus sucursales en zonas de mayoría blanca, City National no asignó a ningún empleado en dicha sucursal para generar solicitudes de préstamos hipotecarios.
Según la orden por consentimiento propuesta, la cual está sujeta a la aprobación del tribunal y fue presentada este día ante el Tribunal de Distrito de los EE. UU. para el Distrito Central de California, junto con una demanda, City National Bank ha aceptado las siguientes condiciones:
- Invertirá al menos $29.5 millones en un fondo de subsidios crediticios para residentes de vecindarios de mayoría afroestadounidense e hispana en el Condado de Los Angeles; al menos $500,000 en publicidad y alcance destinados a los residentes de dichos vecindarios; al menos $500,000 en un programa de educación financiera de consumidores para ayudar a mejorar el acceso al crédito por parte de los residentes; y al menos $750,000 en el desarrollo de alianzas comunitarias para prestar servicios que mejoren el acceso al crédito hipotecario residencial.
- Abrirá una nueva sucursal en un vecindario de mayoría afroestadounidense e hispana, y evaluará oportunidades de expansión futura dentro del Condado de Los Angeles; garantizará que se dediquen al menos cuatro ejecutivos de crédito hipotecario para atender a los vecindarios de mayoría afroestadounidense e hispana; y contratará a un Gerente de Crédito Comunitario a tiempo completo para supervisar el desarrollo continuo de servicios crediticios en los vecindarios de mayoría afroamericana e hispana.
- Desarrollará una Evaluación Comunitaria de Necesidades Crediticias, un estudio de mercado basado en la investigación, para ayudar a identificar las necesidades de servicios financieros en las secciones censales de mayoría afroestadounidense e hispana dentro del Condado de Los Angeles.
City National trabajó en cooperación con el Departamento para remediar los alegatos de exclusión financiera. Simultáneamente con este acuerdo, City National ha anunciado que está tomando medidas proactivas para ampliar sus servicios crediticios en otros mercados del país para ofrecer mayor acceso al crédito por parte de las comunidades de color. Específicamente, City National se está esforzando para facilitar mayores oportunidades de vivienda propia en comunidades desfavorecidas, incluso mediante la creación de un programa de crédito hipotecario residencial de propósito especial para atender zonas geográficas en varias partes del país, entre ellas New York, Georgia, Nevada y Tennessee. Además, City Nacional tiene proyectado el lanzamiento de un programa de crédito para pequeñas empresas a fin de ayudar a los empresarios desfavorecidos a manejar y hacer crecer sus negocios.
En octubre de 2021, el Fiscal General Garland lanzó la Iniciativa para Combatir la Exclusión Financiera (solo en inglés) del Departamento de Justicia, un esfuerzo coordinado de ejecución de la ley para abordar esta forma persistente de discriminación en contra de las comunidades de color. Esta iniciativa está ampliando el alcance del Departamento mediante el fortalecimiento de las alianzas entre las fiscalías de los EE. UU. en todo el país, sus socios regulatorios y sus aliados en las fiscalías generales estatales. Desde el lanzamiento de la iniciativa, el Departamento ha anunciado cinco casos de exclusión financiera y acuerdos por un valor combinado de $75 millones en concepto de reparaciones para las comunidades que han sido víctimas de discriminación crediticia, incluyendo un acuerdo por $20 millones con Trident Mortgage Company y un acuerdo por $13 millones con Lakeland Bank.
Se puede encontrar información adicional sobre la aplicación de las leyes sobre equidad crediticia en www.justice.gov/fairhousing. Las personas pueden denunciar la discriminación crediticia al llamar a la línea telefónica del Departamento de Justicia para informar sobre discriminación en la vivienda en 1-833-591-0291 o mediante la presentación de un informe en línea.
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Decatur Man Sentenced to 46 Months for Sexual Abuse of a MinorRead the Press Release
United States Attorney Steven Russell announced that Juwan Grant, 24, of Decatur, Nebraska, was sentenced today in federal court in Omaha for sexual abuse of a minor. United States District Judge Brian C. Buescher sentenced Grant to imprisonment for 46 months. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release and will be required to register as a sex offender.
Grant impregnated a minor victim in the early months of 2021 on the Omaha Nation Indian Reservation. The child was carried to term and was born in November of 2021. The minor victim was 12 years old at the time of the offense. Grant was 10 years older.
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.
This case was investigated by the Federal Bureau of Investigation.
Crypto Fraud Victims Receive over $17 Million in Restitution from BitConnect SchemeRead the Press Release
A federal district court in San Diego ordered today that over $17 million in restitution be distributed to approximately 800 victims from over 40 different countries due to their investment losses in BitConnect, a massive cryptocurrency investment scheme, which defrauded thousands of investors worldwide.
On Sept. 16, 2021, Glenn Arcaro, 44, the top U.S.-based promoter for BitConnect, pleaded guilty to conspiracy to commit wire fraud. Separately, on Feb. 25, 2022, the founder of BitConnect, Satish Kumbhani, was indicted for his central role in the multibillion-dollar fraud.
As part of Arcaro’s plea, he admitted to conspiring with others to exploit investor interest in cryptocurrency by fraudulently marketing BitConnect’s initial coin offering and digital currency exchange as a lucrative investment. Arcaro and co-conspirators misled investors about BitConnect’s “Lending Program.” Under this program, Arcaro touted BitConnect’s purported proprietary technology, known as the “BitConnect Trading Bot” and “Volatility Software,” as being able to generate substantial profits and guaranteed returns by using investors’ money to trade on the volatility of cryptocurrency exchange markets.
In truth, however, BitConnect operated a textbook Ponzi scheme by paying earlier BitConnect investors with money from later investors. Arcaro and his co-conspirators ensured that up to 15% of the money invested into BitConnect went directly into a slush fund to be used for the benefit of its owner and promoters.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Randy Grossman for the Southern District of California, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.
The FBI Cleveland Field Office and IRS-CI Los Angeles Field Office investigated the case. The Justice Department’s Office of International Affairs and U.S. Postal Inspection Service provided indispensable assistance to the investigation.
Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Carl Brooker, Lisa Sanniti, and Mark W. Pletcher and Contract Attorney Mark McDonald for the Southern District of California are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Council Bluffs Woman Sentenced for Wire FraudRead the Press Release
United States Attorney Steven Russell announced that Loretta L. Janssen, 58, of Council Bluffs, Iowa, was sentenced today by United States District Judge Brian C. Buescher to 12 months’ and one day imprisonment for wire fraud. After Janssen’s release from prison, she will begin a three-year term of supervised release. There is no parole in the federal system. Janssen was also ordered to pay restitution of $200,963.11.
During 2015 to 2021, Janssen paid her personal credit card using funds drawn from a business bank account of her former employer, for whom she had worked as a bookkeeper. The former employer did not authorize any of the payments. Each month from June 2015 to July 2021, Janssen initiated the payment of her personal credit card, using her online account, and selected the former employer’s bank account as the source for the payments. The cumulative total was $200,963.11.
This case was investigated by the United States Secret Service and the Sarpy County Sheriff’s Office.
Connecticut Man Admits to Attempting to Travel to Fight for ISISRead the Press Release
Kevin Iman McCormick, 29, of Hamden, pleaded guilty today in federal court to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
According to court documents and statements made in court, between August and October 2019, McCormick made several statements to others expressing a desire to travel to Syria and to fight for ISIS. In one conversation in October 2019, McCormick stated, “I gotta fight bro, because those people, Abu Masa and ISIL, they fought for me bro, I know it, I can feel it, in my heart. So it’s my time to fight . . . It just is what it is bro, it’s just my – it’s just my time to go bro.” When McCormick was asked to elaborate on where he would like to travel, McCormick responded, “I don’t know, I don’t know bro – it’s gotta be like Syria. Where ISIL is at….whichever place is easiest, whatever place I can get there the fastest, the quickest, the easiest, and where I can have a rifle and I can have some people bro. That’s what I need, I need a rifle and I need some people, I need Islamic law, I need, that’s what I need, because if I have these things, it’s gonna to be very hard to kill me.”
On Oct. 12, 2019, McCormick attempted to board a flight from Connecticut to Jamaica but was prevented by the U.S. Department of Homeland Security. McCormick subsequently told an individual that he wanted to travel to Jamaica, and then onward to Syria to join ISIS. He also indicated that he wanted to acquire weapons.
On Oct. 19, 2019, McCormick made a video during which he pledged allegiance to ISIS and its leader, Abu Bakr Al-Baghdadi. Also on that date, he purchased a plane ticket from Toronto, Canada, to Amman, Jordan. On Oct. 21, 2019, McCormick was arrested after he traveled to a small private airport in Connecticut where he expected to board a plane that would fly him to Canada.
McCormick has been detained since his arrest.
The charge of attempting to provide material support to a designated foreign terrorist organization carries a maximum term of imprisonment of 20 years. McCormick is scheduled to be sentenced by U.S. District Judge Kari A. Dooley on April 6.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Vanessa Roberts Avery for the District of Connecticut, and Assistant Director Robert R. Wells of the FBI’s Counterterrorism Division made the announcement.
The FBI’s Joint Terrorism Task Force (JTTF) is investigating the case with assistance provided by the Transportation Security Administration (TSA).
Assistant U.S. Attorney Peter S. Jongbloed of the District of Connecticut and Trial Attorneys Justin Sher and John Cella of the National Security Division’s Counterterrorism Section are prosecuting the case.
Collin County Man Charged with Distributing Fentanyl in the Eastern District of TexasRead the Press Release
PLANO, Texas – A Plano has been charged with drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Eric William Mather, also known as “Truth”, 36, was named in a fourth superseding indictment returned by a federal grand jury on Nov. 9, 2022 in the Eastern District of Texas. The indictment charges Mather with multiple federal violations including conspiracy to distribute fentanyl and conspiracy to launder money. Mather made his initial appearance on Jan. 12, 2023, before U.S. Magistrate Judge Christine Nowak.
According to the indictment, in September of 2022, the North Texas North Texas OCDETF Strike Force 2 (SF2), with the assistance of the DEA Dallas Tactical Diversion Squad (TDS), identified Mather as a fentanyl source of supply selling raw powdered fentanyl, and counterfeit pharmaceutical pills laced with fentanyl. During his arrest, a search warrant was executed on his residence, resulting in the seizure of over 2 kilograms of raw powdered fentanyl, over a kilogram of fentanyl laced pills, a pill press, 30 firearms, and luxury vehicles. Mather is ultimately alleged to be responsible for multiple overdoses in the North Texas region.
If convicted, Mather faces up to life in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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 is being investigated by the U.S. Postal Inspection Service; Drug Enforcement Administration; U.S. Marshals Service; IRS-Criminal Investigations; Dallas Police Department; and the Collin County Sheriff's Office. The case is being prosecuted by Assistant U.S. Attorney Heather Rattan.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Cocaine Dealer Sentenced to More Than Six Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Leon Erick Williams (41, St. Petersburg) to 6 years and 9 months in federal prison for distributing cocaine. Williams had pleaded guilty on October 11, 2022.
According to court documents, Williams previously served a 12-year federal prison sentence for his involvement in a multi-kilogram cocaine distribution conspiracy in Hillsborough County. In February 2022, while on federal supervised release for that offense, Williams sold cocaine to undercover police officers at an adult entertainment club in Pinellas Park. Williams then coordinated another cocaine deal with the undercover officers via text message. A few days later, Williams sold the undercover officers more cocaine in the club’s restroom. Unbeknownst to the undercover officers, Williams had been arrested on unrelated drug charges on the night of February 9, 2022. He was released on bond from the Pinellas County Jail on February 10, 2022, and returned to the club later that day to sell more cocaine.
This case was investigated by the Pinellas County Sheriff’s Office and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney David W.A. Chee.
Clearwater Drug Dealer Sentenced to Fifteen Years in Federal Prison for Distributing FentanylRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Justin Roberson (34, Clearwater) to 15 years in federal prison for possession with the intent to distribute methamphetamine and fentanyl. Roberson had pleaded guilty on September 20, 2022.
According to court documents, the Clearwater Police Department (CPD) and the Drug Enforcement Administration (DEA) were involved in an investigation involving the distribution of methamphetamine, cocaine, and fentanyl in Clearwater. Law enforcement received information that Roberson was distributing cocaine and methamphetamine. Undercover operations conducted by CPD and DEA resulted in the arrest of Roberson for the distribution of methamphetamine and fentanyl. Additionally, law enforcement recovered several firearms used by Roberson during his distribution of the narcotics. The firearms included rifles and semi-automatic weapons.
This case was investigated by the Clearwater Police Department and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorneys Craig Gestring and Maria Guzman.
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.
Clay County Man Sentenced to Prison for Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – Robert Owen Johnson, 56, of Procious, was sentenced today to six years in prison, to be followed by five years of supervised release, for distribution of child pornography. Johnson must also register as a sex offender.
According to court documents and statements made in court, on February 20, 2021, Johnson used Facebook and his cell phone to distribute a video of child pornography to another Facebook user during a conversation. Johnson further admitted that between 2020 and 2021, he used this Facebook account to chat with individuals and to possess and distribute child pornography.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Kristin F. Scott prosecuted 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. 2:21-cr-155.
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Chandler Man Sentenced to 30 Months for Alien Smuggling in Southern ArizonaRead the Press Release
TUCSON, Ariz. – Michael Andrew Nelson, 30, of Chandler, Arizona, was sentenced Tuesday, January 10, 2023, by United States District Judge Scott H. Rash to 30 months in prison, followed by 36 months of supervised release. Nelson was convicted of Conspiracy to Transport Illegal Aliens for Profit and Transportation of Illegal Aliens for Profit following a bench trial held on August 10, 2022.
On November 14, 2021, U.S. Border Patrol agents, near Naco, Arizona, observed a heavily weighted down Jeep Patriot driving suspiciously in and out of a national park area. During a subsequent stop, five undocumented noncitizens were removed from the backseat and cargo areas of the SUV. Nelson was the front seat passenger, and co-defendant, Michelle Wilson, was the driver. The five undocumented noncitizens each indicated they paid substantial sums of money to smugglers in Mexico in exchange for transportation to various cities within the United States.
Co-defendant Michelle Wilson pleaded guilty in December 2021. She is scheduled for sentencing on April 10, 2023, before Judge Rash.
United States Border Patrol agents from Bisbee, Arizona, conducted the investigation in this case. Assistant United States Attorneys Micah Schmit and Kevin Schiff, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-3127-TUC-SHR (BGM)
RELEASE NUMBER: 2023-003_Nelson et al.# # #
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.
Camden Man Sentenced to 140 Months in Prison for Role as Supervisor in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 140 months in prison for his role as a shift supervisor of a drug trafficking organization and conspiring to distribute heroin, cocaine, and crack in the city of Camden, U.S. Attorney Philip R. Sellinger announced.
Christopher Vasquez, 32, of Camden, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an indictment charging him with conspiracy to distribute more than one kilogram of heroin, more than 280 grams of crack cocaine, and unspecified quantities of cocaine and fentanyl.
According to documents filed in this case and statements made in court
Vazquez admitted that he was a “shift manager” in a drug-trafficking organization operating in the 400-500 block of Pine Street in Camden, supervising and directing the street-level sellers who were involved in distributing controlled substances to customers. From January 2018 to Nov. 28, 2018, he met with conspirators who were involved in the scheme and discussed the operations and management of the drug trafficking organization. He also provided drugs to street-level sellers.
All 19 of the charged defendants have previously entered guilty pleas on drug conspiracy charges before Judge Bumb.
In addition to the prison term, Judge Bumb sentenced Vazquez to seven years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the Camden County Police Department, under the direction of Chief Gabe Rodriguez; the Camden County Prosecutor’s Office, under the direction of Prosecutor Grace C. MacAulay; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Acting Chief Larry Robb; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Forces (OCDETF), which identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Bristol Man Sentenced to 20 Years in Prison for Meth and Firearms ConvictionsRead the Press Release
ABINGDON, Va. – A Bristol, Virginia, man, was sentenced this week to 20 years in federal prison for possessing with the intent to distribute crystal ice methamphetamine and for illegal possession of a firearm.
William Everett Himes, 38, was convicted after pleading guilty in June 2021 to one count of possessing with the intent to distribute 50 grams or more of crystal ice methamphetamine as well as one count of being a felon in possession of a firearm.
According to court documents, the charges stem from a Washington County Virginia Sheriff’s Office traffic stop in January 2020, where Himes fled from police and was later found to be in possession of crystal ice methamphetamine. A loaded .45 caliber firearm and more crystal ice methamphetamine were recovered from the front passenger seat of Himes’ vehicle. At the time of Himes’ arrest, he was prohibited from possession of a firearm due to prior felony drug and violent crime convictions, including two 2012 felony convictions in Bristol, Virginia related to methamphetamine.
United States Attorney Christopher R. Kavanaugh, Virginia Attorney General Jason Miyares, and Jarod Forget, Special Agent in Charge of the DEA’s Washington Division, made the announcement.
The investigation of this case was conducted by the Drug Enforcement Administration, the Washington County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, and Firearms.
Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Senior Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Bloomington Man Sentenced to Federal Prison for Possessing a Full-Auto Glock “Switch”Read the Press Release
PEORIA, Ill. – A Bloomington, Illinois, man, Javares Hudson, 22, of the 600 block of West Monroe Street, was sentenced today to 33 months in federal prison for possessing a Glock “Switch”, an aftermarket attachment designed to convert Glock handguns into fully automatic machine guns. U.S. District Judge James E. Shadid also sentenced Hudson to a three-year term of supervised release to be served after his release from prison. There is no parole in the federal system.
Evidence presented during a court hearing showed that on January 23, 2022, Hudson went to the hospital for treatment following a gunshot wound he sustained outside a nightclub. Police officers arrived at the hospital at the same time as Hudson, seeking information from him and to perform a gunshot residue test. Before a responding officer obtained all of the information he sought, hospital staff began treating Hudson and discovered that he had something plastic in his mouth. After much protest, Hudson eventually spit out a small baggie containing an item that qualifies as a “machine gun” under federal law, also known as a “Glock Conversion Device.”
Hudson was arrested in McLean County in January 2022 and remained in state custody until a criminal complaint was filed in federal court. A federal grand jury subsequently returned an indictment against him in February 2022. He entered a guilty plea in September 2022. Hudson has remained in the custody of the U.S. Marshals Service since his federal indictment.
The statutory penalties for possession of a machinegun are up to 10 years’ imprisonment, to be followed by up to three years of supervised release. A fine of up to $250,000 is also possible.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Bloomington Police Department; and the Peoria Police Department investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
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.
Bessemer Man Indicted on Drug and Gun Charges Appears in Federal CourtRead the Press Release
BIRMINGHAM, Ala. -- A Bessemer man arrested by the U.S. Marshals Gulf Coast Regional Fugitive Task Force, on January 4, 2023, appeared in federal court today, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus Watson.
Tahji Alonzo Orr, 24, was arraigned before U.S. Magistrate Judge Staci G. Cornelius on charges of possession with the intent to distribute marijuana, possession with the intent to distribute a controlled substance containing a detectable amount of heroin and fentanyl, possession of a machine gun during and in relation to a drug trafficking crime, and illegally possessing a machine gun, that is, a Glock 9mm pistol equipped with a “Glock switch” – an after-market device designed to illegally convert a semiautomatic Glock pistol into a fully automatic machine gun. The charges stem from events that occurred in March 2022 in Jefferson County. Orr was ordered detained pending trial.
The maximum penalty for possession with the intent to distribute marijuana is five years in prison. The maximum penalty for possession with the intent to distribute a controlled substance containing a detectable amount of heroin and fentanyl is 20 years in prison. The minimum penalty for carrying a machine gun during and in relation to a drug trafficking crime is life in prison. The maximum penalty for possession of a machine gun is 10 years in prison.
The ATF investigated the case along with U.S. Marshals Gulf Coast Regional Fugitive Task Force, the Hoover Police Department and the Bessemer Police Department. Assistant U.S. Attorney Michael Royster is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Appointment of a Special CounselRead the Press Release
Attorney General Merrick B. Garland announced today the appointment of a former career Justice Department prosecutor and former U.S. Attorney for the District of Maryland Robert K. Hur to serve as special counsel to conduct the investigation of matters that were the subject of the initial investigation by U.S. Attorney John R. Lausch Jr. related to the possible unauthorized removal and retention of classified documents or other records discovered at the Penn Biden Center for Diplomacy and Global Engagement and the Wilmington, Delaware, private residence of President Joseph R. Biden Jr.
“Based on Mr. Lausch's initial investigation, I concluded that, under the Special Counsel regulations, it was in the public interest to appoint a Special Counsel. In the days since, while Mr. Lausch continued the investigation, the Department identified Mr. Hur for appointment as Special Counsel.
“This appointment underscores for the public the Department's commitment to both independence and accountability in particularly sensitive matters, and to making decisions indisputably guided only by the facts and the law.
I am confident that Mr. Hur will carry out his responsibility in an even-handed and urgent manner, and in accordance with the highest traditions of this Department.”
Angelina County Drug Trafficker Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas - A Lufkin man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Fabian Fernando Hernandez, 20, pleaded guilty on July 19, 2022, to possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 60 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, Hernandez was identified by law enforcement as a possible distributor of narcotics in the East Texas area. On Jan. 15, 2022, the Rusk Police Department conducted a traffic stop of a vehicle Hernandez was driving. During the traffic stop Hernandez fled on foot. Officers found nearly sixty grams of cocaine and almost 500 grams of marijuana in the vehicle abandoned by Hernandez, as well as pistol. Hernandez was indicted by a federal grand jury on April 6, 2022.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lufkin Police Department, and the Rusk Police Department and prosecuted by Assistant U.S. Attorney Donald S. Carter.
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23-Year-Old Man Sentenced to over 7 Years for Attempted Murder of a U.S. Border Patrol AgentRead the Press Release
TUCSON, Ariz. – Rey David Marquez-Jimenez, 23, of Mexico, was sentenced today by United States District Judge Jennifer G. Zipps to 85 months in prison, followed by three years of supervised release. Marquez-Jimenez pleaded guilty to one count of Attempted Murder of a Federal Officer. The Court also ordered Marquez-Jimenez to pay $99.57 in restitution to the U.S. Department of Labor for expenses related to the agent’s medical care.
On January 26, 2022, near Hereford, Arizona, Marquez-Jimenez - without provocation - attacked a United States Border Patrol (USBP) agent. Marquez-Jimenez tackled the agent as he attempted to handcuff another individual. Marquez-Jimenez punched the agent several times and tried to pull the agent’s firearm from his holster. When the firearm came out of the holster, Marquez-Jimenez tried to point it at the agent. He then got on top of the agent and attempted to slash and stab him with a knife. The agent gained control of the knife, and Marquez-Jimenez fled on foot before being apprehended by other USBP agents.
“Our colleagues in the United States Border Patrol have a difficult and sometimes dangerous job,” said United States Attorney Gary Restaino. “Most noncitizens who enter the United States do so peacefully, and with the intention of seeking a better life for their families. To the small number of undocumented aliens who ignore law enforcement commands and engage in aggressive behavior, be warned: We will vindicate the rights of Border Patrol agents by prosecuting violent offenders commensurate with their unlawful actions.”
“This agent fought for his life while working to protect the American people and safeguard our borders. Assaults on law enforcement officials continue to occur and this is just one of the thousands that happened in 2022,” said Akil Davis, special agent in charge of the FBI Phoenix Field Office. “The FBI remains committed to ensure that those who commit acts of violence against law enforcement officials will be brought to justice.”
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Sarah B. Houston, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-00175-TUC-JGZ-LCK
RELEASE NUMBER: 2023-004_Marquez-Jimenez# # #
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.
Wednesday 11 January 2023
Worcester Investment Advisor Sentenced to More Than Eight Years in Prison for Fraud and Witness TamperingRead the Press Release
BOSTON – A Worcester-based investment adviser was sentenced today in connection with a long-running scheme to steal more than $2.8 million from six clients.
James Kenneth Couture, 42, of Sutton, was sentenced by U.S. District Judge Nathaniel M. Gorton to 100 months in prison and three years of supervised release. Couture was also ordered to pay restitution of $1,924,585 and forfeiture of $2,874,585. In September 2022, Couture pleaded guilty to four counts of wire fraud, four counts of aggravated identity theft, one count of investment adviser fraud and one count of witness tampering.
Couture was a registered investment adviser, with an office in Worcester. In that capacity, he invested his clients’ funds in securities and various insurance products, including annuities, and set up and assisted clients with profit-sharing plans and other retirement products. From approximately 2009 to 2020, Couture misappropriated approximately $2.8 million from his clients by transferring funds out of his clients’ accounts, investing it in fictitious mutual funds and then selling other clients’ holdings to pay investment returns. In June 2016, Couture liquidated one client’s variable annuities to fund withdrawals by another client. Similarly, in December 2019 and January 2020, Couture paid a client he had previously defrauded by selling other clients’ mutual funds. As part of this scheme, Couture forged clients’ signatures on documents, or caused clients to sign documents by falsely representing that the proceeds of transactions would be used for the clients’ benefit. Couture also stole from clients using their own profit-sharing plans and conducting transactions in their names to disguise his fraudulent transactions.
Couture was initially charged in connection with this scheme in June 2021. After those initial charges were filed, Couture engaged in witness tampering by creating fake documents purported to be for his clients’ accounts and providing false information to at least one victim in the case for approximately six months. Couture was subsequently charged with witness tampering in connection with his efforts to deceive this victim on Jan. 14, 2022.
United States Attorney Rachael Rollins, Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The U.S. Securities & Exchange Commission and the Employee Benefits Security Administration of the U.S. Department of Labor provided valuable assistance with the investigation. Assistant U.S. Attorney Kriss Basil of Rollins’ Securities, Financial & Cyber Fraud Unit and Assistant U.S. Attorney Carol Head, Chief of Rollins’ Asset Recovery Unit, prosecuted the case.
Wiretap Investigation Leads to Another Waterloo Man Involved in Mexico-Based Drug Trafficking Organization Being Sent to Federal PrisonRead the Press Release
A Waterloo man involved in a Mexico-based drug trafficking organization was sentenced on January 6, 2023, to 29 years in federal prison.
Anthony Howard Amundson, age 40, from Waterloo, Iowa, received the prison term after a June 3, 2022 guilty plea to one count of conspiracy to distribute a controlled substance.
Evidence at sentencing showed that, from 2017 to January 2020, Amundson was a member of a Mexico‑based drug trafficking organization that was distributing methamphetamine in the Waterloo, Iowa area. Amundson was in and out of state custody during that time period; however, when in the community, Amundson distributed several kilograms of methamphetamine imported from Mexico. Amundson was intercepted on a wiretap communicating directly with the Mexico‑based source of supply. Amundson exercised a leadership role over another member of the drug trafficking organization.
Amundson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Amundson was sentenced to 348 months’ imprisonment, and he must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Amundson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Ashley Corkery and Dillan Edwards. This case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Mid-Iowa Task Force (Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Marshalltown Police Department), Iowa National Guard and Counter Drug Program, Tri-County Task Force (Cedar Falls Police Department, Waterloo Police Department, Black Hawk County Sheriff’s Office), the Federal Bureau of Investigation, the FBI Safe Streets Task Force, the Drug Enforcement Administration, Iowa Division of Narcotics Enforcement, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-02034.
Follow us on Twitter @USAO_NDIA.
Washington man admits trafficking fentanyl in Great FallsRead the Press Release
GREAT FALLS — A Spokane, Washington, man admitted to trafficking charges today after law enforcement found hundreds of fentanyl pills in a vehicle in which he was a passenger in Great Falls, U.S. Attorney Jesse Laslovich said.
Yevgeniy Rudnitskiy, 34, pleaded guilty to possession with intent to distribute controlled substances. Rudnitskiy faces a maximum of 20 years in prison, a $1 million fine and at least three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for May 25. Rudnitskiy was detained pending further proceedings.
The government alleged in court documents that in October 2022, Russell Country Drug Task Force agents were surveilling a motel room in Great Falls as part of an ongoing drug investigation. Two men, including Rudnitskiy, left the room, entered a vehicle, drove a short distance and parked. Co-defendant Kelly Sterling Wait, of Williston, North Dakota, was the driver. Rudnitskiy got out of the vehicle and appeared to steal several items from trucks in the lot. The investigation led to the Montana Highway Patrol stopping the vehicle. Wait was removed from the driver’s seat and a loaded pistol was removed from his waistband, along with a fanny pack he had. Rudnitskiy also was removed from the passenger seat and a bundle of cash and a bag were observed where he had been sitting. The vehicle was searched on a state warrant. Approximately 186 fentanyl pills were found in the fanny pack, and six bags, each containing 100 fentanyl pills, were found in the trunk. Another 60 fentanyl pills were found in the passenger seat area. Cash seized from Rudnitskiy and from where he had been sitting totaled $3,734. Wait recently pleaded guilty in the case and is pending sentencing.
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case, which was investigated by the Russell Country Drug Task Force, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Highway Patrol and Great Falls Police Department.
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Utah Man Who Coerced and Enticed Minors Across the United States via the Internet was Sentenced to 300 Months ImprisonmentRead the Press Release
SALT LAKE CITY, Utah – A Woods Cross, Utah man was sentenced to 25 years in prison after pleading guilty to coercion and enticement of a minor and attempted sexual exploitation via production of child pornography.
Landon Germaine, 34, was also placed on supervised release for life, in addition to his term of imprisonment.
According to court documents, Germain pleaded guilty to coercion and enticement of a minor. He admitted to knowingly persuading, inducing, enticing and coercing the minor victims to engage in sexual activity for which any person could be charged with a criminal offense. Germaine also pleaded guilty to attempted sexual exploitation via production of child pornography. He admitted to knowingly persuading, inducing, enticing and coercing a minor to engage in sexually explicit conduct to produce a visual depiction, and the images were produced using materials that had been mailed or shipped or transported in interstate commerce.
Assistant U.S. Attorneys' Carol Dain for the District of Utah and Carly Marshall for the Western District of Arkansas prosecuted this case along with Trial Attorney Kaylynn Foulon with the U.S. Department of Justice Criminal Division Child Exploitation and Obscenity Section.
The FBI investigated the cases in Utah and Arkansas.
Undocumented Man Sentenced to 18 Months for Illegal Re-Entry to U.S.Read the Press Release
BENTON, Ill. – A man originally from Mexico was sentenced to 18 months in federal prison in a U.S. District Court on Wednesday after he admitted to re-entering the U.S. after previously being deported.
Jose A. Navarro-Laguna, 41, pled guilty to Illegal Re-Entry after Deportation.
According to court documents, Navarro-Laguna was driving a car with a female passenger when the Illinois State Police conducted a traffic stop on Interstate 57 southbound near Mount Vernon, Illinois on Aug. 24, 2022. ISP troopers observed the female passenger did not speak English, and Navarro-Laguna stated he was giving her a ride to Alabama.
Upon searching the vehicle, ISP troopers only found clothing and personal items belonging to Navarro-Laguna and was thus suspicious the passenger was a victim of human trafficking and reported the incident to DHS. Navarro-Laguna admitted he knew the female was not legally present in the U.S., and that he gave rides to individuals for payment.
“Individuals in the U.S. illegally can pose significant threats to local public safety through undetected drug smuggling and human trafficking,” said U.S. Attorney Rachelle Aud Crowe. “It’s concerning that the defendant admitted to transporting another immigrant in exchange for payment, and I appreciate the efforts by the Illinois State Police and the Department of Homeland Security to investigate this incident and apprehend Navarro-Laguna.”
“Navarro-Laguna had no regard for human life and the rule of law,” said HSI Chicago Special Agent in Charge R. Sean Fitzgerald. “Today’s sentencing sends a message that HSI and our law enforcement partners are committed to working together to investigate human trafficking and protect our communities from those who engage in these heinous crimes.”
“The Illinois State Police has zero tolerance for human traffickers and we remain vigilant in our protection of human trafficking victims,” said ISP Director Brendan F. Kelly.
Since 2005, Navarro-Laguna has been found guilty of Illegal Entry in the U.S. and deported on at least three separate occasions. The sentencing guidelines for an illegal re-entry offense are zero to six months, but the sentencing judge noted the defendant’s previous consequences have not deterred him.
HSI led the investigation with assistance from ISP, and Assistant U.S. Attorney Karelia prosecuted the case.
January is recognized nationally as Human Trafficking Awareness Month.
U.S. Attorney’s Office Recognizes January as National Human Trafficking Prevention MonthRead the Press Release
CLEVELAND – In recognition of January as National Human Trafficking Prevention Month, the U.S. Attorney's Office for the Northern District of Ohio is encouraging residents to continue the fight against human trafficking by raising awareness and reporting tips to the National Human Trafficking Hotline at 1-888-373-7888 or text 233733.
“Addressing human trafficking in Northern Ohio remains a top priority for our office and law enforcement partners,” said First Assistant U.S. Attorney Michelle M. Baeppler. “In order for us to keep the pressure on traffickers, we need the public’s help to report tips to law enforcement. Only through a collaborative approach can we help end this insidious crime.”
January 11th is recognized as National Day of Human Trafficking Awareness. Today, communities around the country #WearBlue to help raise awareness and encourage others to help prevent trafficking by reporting tips to law enforcement.
Over the past year, the U.S. Attorney’s Office for the Northern District of Ohio has announced several high-profile human trafficking convictions and sentencings, including:
U.S. v. Jason S. Huffman (4:21-cr-348). On September 27, 2022, Jason Huffman was sentenced to more than 27 years in prison after he pleaded guilty to a five-count charging him with transportation of visual depictions of minors engaged in sexual conduct, possession of child pornography. and sexual exploitation of children.
In Feb. 2021, law enforcement authorities executed a search warrant at Huffman’s Youngstown-area residence and found images of child pornography on multiple cellphones belonging to Huffman, including images Huffman had created of a minor victim engaged in sexually explicit conduct.
U.S. v. Reuben Rankin (4:19-cr-716). On July 12, 2022, Reuben Rankin was sentenced to 40 years in prison following convictions of sex trafficking of a minor, production of child pornography, assaulting a federal agent with a deadly weapon, discharging a firearm during a crime of violence and felon in possession of a firearm.
According to court documents, in May 2019, Rankin engaged in sex trafficking of a minor and production of child pornography in order to raise money to purchase drugs, clothing, and an SUV. Rankin relied heavily on income earned from commercial sex acts to fund his lifestyle.
U.S. v. Larrien Brown-Austin (5:20-cr-114). On May 24, 2022, Larrien Brown-Austin was sentenced to 15 years in prison and a lifetime of supervised release after he pleaded guilty to participating in a sex trafficking conspiracy that forced victims to perform sex acts in exchange for money.
According to court records, from June through August of 2018, Brown-Austin lived at a residence in Canton provided by his father that he used to facilitate commercial sex acts. In June of 2018, Brown-Austin met two victims and forced both to live at the residence, perform sex acts in exchange for money and provide him with the profits.
U.S. v. Holden Gallagher (3:18-cr-479). In March 2022, Holden Gallagher was sentenced to 30 years in prison and a lifetime supervised release after he pleaded guilty to sexual exploitation of a child, receipt, and distribution of child pornography, and possession of child pornography.
Court documents state that on July 31, 2015, law enforcement investigators obtained several electronic devices, including a laptop and hard drive, which contained numerous files of child pornography from Gallagher’s Sylvania area residence. Additionally, investigators determined that some of the images contained a depiction of a minor known to Gallagher and that Gallagher had corresponded with the minor victim and gotten the minor to produce images of child pornography.
In addition, to support the victims of human trafficking, various organizations in the Northern District of Ohio were awarded more than $5.7 million in grant funding in the previous fiscal year from the Department of Justice to provide services and aid, including:
- $2.5 million to The Cuyahoga County Sexual Assault Kit (SAK) Taskforce, led by the Cuyahoga County Prosecutor’s Office (CCPO).
- $799,355 awarded to Advocating Opportunity (AO) in Toledo to provide services, support, and advocacy for trafficked and exploited people.
- $399,084 awarded to the Rape Crisis Center in Akron to enhance existing anti-human trafficking work.
In February 2022, the Attorney General announced the release of the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888 or text 233733.
- U.S. Attorney's Office Recognizes National Human Trafficking Prevention Month
U.S. Attorney Announces Sextortion Indictment and Seeks to Identify Additional VictimsRead the Press Release
Provides tips for parents and kids on protecting themselves from growing threat on Snapchat and other social media platforms
GRAND RAPIDS, MICHIGAN — Today U.S. Attorney Mark Totten announced charges against Brandon Huu Le, 21, of Maitland, Florida for coercion and enticement of a minor, sexual exploitation of a minor, and receipt of child pornography in connection with an alleged sextortion scheme using the popular social media app, Snapchat. Sextortion involves threats against a victim—including threats to publish or distribute private and sensitive information about someone—if the victim does not provide the perpetrator with sexually explicit images or videos, sexual favors, or money.
“These charges represent serious allegations, and we are moving with all diligence to make our case and protect the public,” said U.S. Attorney Mark Totten, for the Western District of Michigan. He continued: “Sextortion is on the rise and represents a real and present danger to every child, teenager, and user of social media. We will use every power at our disposal to protect our most vulnerable community members from this emerging threat.”
“The use of the internet to threaten and manipulate children into producing sexually explicit images, and then threatening to share or publish those images to get the victims to produce more is predatory conduct that is very harmful to minor victims,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “I commend the young victims who came forward to report Le’s behavior. Reporting to law enforcement is the brave, first step towards holding these predators accountable for their actions.”
The Government alleges that on August 10 and 11, 2019, Mr. Le used Snapchat to contact a 13-year-old girl living in the Western District of Michigan. The indictment alleges that Mr. Le steered the Snapchat conversation to sexual topics; took a screenshot of the sexual portion of the conversation; and then threatened to publicly post that conversation online with the victim’s name if the victim did not provide him with sexually explicit photos and material.
The U.S. Attorney’s Office and the FBI are working to identify other individuals, nationwide, who Le may have approached. The U.S. Attorney’s Office believes that Le used the name “Ty” and the following usernames on various social media, messaging, and e-mail accounts:
addityyt
tyaddinude
tyaddibaby
tycroneaddi
tygrazittenudef
If you believe that you are a victim in this case, please visit https://www.justice.gov/usao-wdmi/victim-and-witness-assistance-program/vw-large-cases/Le or contact Kathy Schuette, Victim Coordinator, at (616) 808-2034.
The FBI provides the following six tips on how people can protect themselves from sextortion schemes:
- Be selective about what you share online. If your social media accounts are open to everyone, a predator may be able to figure out a lot of information about you.
- Be wary of anyone you encounter for the first time online. Block or ignore messages from strangers.
- Be aware that people can pretend to be anything or anyone online. Videos and photos are not proof that people are who they claim to be. Images can be altered or stolen. In some cases, predators have even taken over the social media accounts of their victims.
- Be suspicious if you meet someone on one game or app and this person asks you to start talking on a different platform.
- Be in the know. Any content you create online—whether it is a text message, photo, or video—can be made public. And nothing actually “disappears” online. Once you send something, you don’t have any control over where it goes next.
- Be willing to ask for help. If you are getting messages or requests online that don’t seem right, block the sender, report the behavior to the site administrator, or go to an adult. If you have been victimized online, tell someone.
If you have information about or believe you are a victim of sextortion, contact your local FBI field office, call 1-800-CALL-FBI, or report it online at http://tips.fbi.gov. More information is available at https://www.fbi.gov/how-we-can-help-you/safety-resources/scams-and-safety/common-scams-and-crimes/sextortion.
The FBI is investigating this case and Assistant U.S. Attorney Adam Townshend is prosecuting it.
The charges in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty in a court of law.
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Two Plead Guilty to Conspiring to Traffic Stolen Medical Products from the Battle Creek Veterans Affairs Medical CenterRead the Press Release
A Pennsylvania man has been federally charged with related crimes
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced today that Jennifer Robertson, age 52, of Battle Creek, Michigan, and Michelle McAllister, age 56, of Jerome, Michigan, pled guilty to participating in a multi-year, interstate conspiracy to transport and traffic diabetic test strips stolen from the Battle Creek Veterans Affairs Medical Center to a Pennsylvania man named Steven Anderson. Anderson faces federal charges for related crimes, and is presumed innocent until and unless proven guilty in a court of law.
“My office takes government theft very seriously,” said U.S. Attorney Mark Totten, for the Western District of Michigan. “Thefts from VA medical centers deprive other veterans of needed medical care and resources. My office is dedicated to serving and protecting our nation’s veterans.”
According to their plea agreements, Robertson spent over 20 years in procurement for the Battle Creek VA Pharmacy, where she was responsible for ordering supplies for veterans in need of medical care. In June 2017, Robertson stole 10 boxes of diabetic test strips from the pharmacy’s inventory, and arranged online to meet McAllister and sell them for cash. After completing that transaction and several similar ones, McAllister realized that Robertson’s test strips were stolen, but decided to keep buying from her. She confided in Anderson that her “matra [sic] is not to ask too many questions.” Anderson replied: “Lol.” For over two years, Robertson and McAllister conducted hundreds of such transactions. Throughout the scheme, Robertson admitted stealing over 7,500 boxes of diabetic test strips, costing the Battle Creek VA Pharmacy over $400,000.
“The theft of medical supplies intended for our nation’s veterans is a grave offense. Such schemes erode public trust, steal from the taxpayer, and divert valuable resources away from those who have rightfully earned them,” said Special Agent in Charge Gregory Billingsley of the VA Office of Inspector General’s Central Field Office. “My office is resolved to investigate and root out anyone who would attempt to benefit from these fraudulent activities.”
“Medical products, such as diabetic test strips, that are not in the legitimate supply chain can present a health risk to those who buy and use these diverted products,” said Acting Special Agent in Charge Ronne G. Malham, FDA Office of Criminal Investigations Chicago Field Office. “FDA will continue to protect consumers by investigating and bringing to justice those who attempt to traffic in diverted medical products.”
This investigation was led by the Food and Drug Administration and the VA Office of Inspector General, with assistance from the United States Postal Inspection Service. Finally, as noted above, the charges in the indictment against Steven Anderson are merely accusations, and he is presumed innocent until and unless he is proven guilty in a court of law.
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The U.S. Attorney’s Office for the Northern District of Florida Collects $4.3 Million Dollars in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
TALLAHASSEE, FLORIDA - Jason R. Coody, United States Attorney for the Northern District of Florida announced today that the Northern District of Florida collected $4,367,699.63 in criminal and civil actions in Fiscal Year 2022. Of this amount, $3,831,162.71 was collected in criminal actions and $536,536.92 was collected in civil actions.
“These impressive numbers are the result of the hard work by our office’s civil and criminal divisions, and strong coordination with our federal, state, and local law enforcement partners,” said U.S. Attorney Coody. “This office will always seek to recover every dollar possible from those who engage in illegal activities so that those funds can be restored to the federal treasury, and help victims recover from crimes perpetrated against them.”
The Northern District of Florida Criminal Division collected $1,270,500.00 from John Thomas Burnette following his conviction at trial and sentencing for a multi-year scheme involving extortion, fraud, and bribery.
In July of 2022, the Northern District of Florida Civil Division obtained $130,000 as part of a settlement with Ahmad Ismail to resolve potential violations under the Controlled Substances Act, including allegations that Ismail failed to maintain complete and accurate records of controlled substance inventory, and dispensation.
Additionally, the U.S. Attorney’s office in Northern District of Florida, working with partner agencies and divisions, collected $3,128,304 in assets which had been tainted by crime. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
For more information about the Crime Victims Fund, please visit https://ovc.ojp.gov/about/crime-victims-fund.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Texas Biologist Sentenced for Wildlife TraffickingRead the Press Release
A federal judge in Amarillo yesterday sentenced Dr. Richard Kazmaier, 55, to six months in prison, three years of post-release supervision, and a $5,000 fine. Kazmaier pleaded guilty on Aug. 19, 2022, to a Lacey Act felony for importing protected wildlife into the United States without declaring it or obtaining the required permits.
According to court documents, Kazmaier was an associate professor of biology at West Texas A&M University before resigning in October 2022. A federal grand jury issued an indictment in January 2022 charging Kazmaier with smuggling goods into the United States and two violations of the Endangered Species Act. Kazmaier pleaded guilty to a superseding information charging the Lacey Act, the nation’s oldest wildlife trafficking statute. The court dismissed the indictment at the government’s request.
The Lacey Act and federal regulations require importers to declare wildlife to customs and U.S. Fish and Wildlife Service when it enters the country. Between March 2013 and February 2020, Kazmaier admitted he imported wildlife items from Bulgaria, Canada, China, Czech Republic, Indonesia, Latvia, Norway, Russia, South Africa, Spain, the United Kingdom, and Uruguay into Texas without declaring them. Kazmaier admitted he purchased and imported approximately 358 wildlife items with a total market value of $14,423 from eBay and other online sales websites. He did not import any live animals and instead purchased mostly skulls, skeletons, and taxidermy mounts.
The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) regulates trade in endangered or threatened species through permit requirements. The United States and 183 other countries are signatories to the CITES treaty. Kazmaier acknowledged importing 14 protected species without obtaining permits, including the Eurasian otter, lynx, caracal, vervet monkey, greater naked-tailed armadillo, and king bird-of-paradise.
The U.S. Fish and Wildlife Service’s Office of Law Enforcement in Redmond, Washington, conducted the investigation as part of Operation Global Reach. The operation focused on the trafficking of wildlife from Indonesia to the United States.
The government is represented by Assistant U.S. Attorney Anna Marie Bell for the Northern District of Texas and Senior Trial Attorney Ryan Connors of the Department of Justice’s Environmental Crimes Section.
Tallahassee Man Sentenced to Nearly 20 Years in Federal Prison for Drug Trafficking OffensesRead the Press Release
TALLAHASSEE, FLORIDA – Stephen Jerome Brinson, 47, of Tallahassee, Florida, was sentenced to just under twenty years (239 months) in federal prison after previously pleading guilty to multiple counts of distribution of fentanyl, offenses committed while Brinson was under federal supervision after his release from federal prison for his 2005 federal narcotics conviction. The sentence was announced by Jason R. Coody, U.S. Attorney for the Northern District of Florida.
“Those who repeatedly commit serious crimes, in this case while still under supervision from the prior offense, are deserving of significant prison sentences,” stated U.S. Attorney Coody. “With our law enforcement partners, we are committed to identifying and aggressively prosecuting those recidivist offenders who callously distribute such addictive and deadly controlled substances. This sentence is further proof of our resolve.”
In early 2021, investigators with the Leon County Sheriff’s Office and Drug Enforcement Administration developed information that Brinson, who was then serving a period of court-ordered supervision following his prior 84-month sentence for conspiracy to distribute cocaine and cocaine base, had resumed his drug trafficking activities. Investigators quickly conducted two controlled purchases of what was initially thought to be heroin, but subsequently tested positive as 14 grams of fentanyl. Upon his indictment, Brinson was immediately taken into custody where he has remained pending sentencing.
“Last year, 68% of the American lives lost to drug overdoses and poisonings were due to an illicit synthetic opioid, like fentanyl, the same poison that Mr. Brinson was distributing in his community,” said Drug Enforcement Administration Miami Field Division Special Agent in Charge Deanne L. Reuter. “This sentence not only holds Mr. Brinson accountable for his crimes, but also reaffirms the DEA Miami Field Division’s commitment to working closely with our law enforcement partners to bring those who distribute this poison in our North Florida communities to justice.”
This prosecution resulted from a combined investigation conducted by the Drug Enforcement Administration, the Tallahassee Police Department, the Leon County Sheriff’s Office, and the North Florida Hi-Intensity Drug Trafficking Area (HIDTA) Task Force. Assistant United States Attorney Eric K. Mountin prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation named Operation White Gold. 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. More information about OCDETF may be found at https://www.justice.gov/OCDETF.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Statement of U.S. Attorney Breon Peace on Mccann et al.Read the Press Release
Hi, I’m United States Attorney for the Eastern District of New York Breon Peace. Thank you all for joining us today. With me today are: Keechant Sewell, Commissioner of the New York City Police Department, James W. Essig, Chief of Detectives of the New York City Police Department, Deputy Chief Joseph Gulotta, Commanding Officer of Detective Borough Brooklyn South, Captain Genienne King, Commanding Officer of Violent Crimes Squad, Detective Borough Brooklyn South, Captain Gary Marcus, Lieutenant Mohammed Islam, Detective Michael Griffith, of Detective Borough Brooklyn South Violent Crimes Squad, Frank Tarentino, III, Special Agent in Charge of the Drug Enforcement Administration, New York Division, and My U.S. Attorney’s Office team, Assistant United States Attorneys Adam Amir, Irisa Chen, James Simmons, and Francisco Navarro.
We are here today to announce the arrest and charging of four defendants, David Mccann, Tajhai Jones, Raymond Minaya, and Calvin Tabron for trafficking over 50 firearms, fentanyl, and crack cocaine in the Canarsie neighborhood of Brooklyn. This is one of the first prosecutions in the nation—and the first unsealed indictment in New York—under the Bipartisan Safer Communities Act, the first federal statute specifically designed to target gun trafficking, which was enacted by Congress in June 2022. The charges brought today exemplify how the Bipartisan Safer Communities Act can be used as an effective tool in our continued battle against gun violence that plagues communities in Brooklyn, across New York City and Long Island, and across the nation.
These charges and the arrest made today are the culmination of a significant investigation into firearms and narcotics trafficking occurring largely in and near the Breukelen Houses public housing complex in Canarsie. The defendants sold an NYPD undercover officer over 50 guns. The defendants, of course, did not believe they were selling guns to a law enforcement officer. They thought they were selling these guns to a drug dealer. The undercover officer told the defendants that he was a drug dealer who needed guns and that he was also going to resell some of the guns. Despite this knowledge, Mccann and others continued to sell large quantities of drugs and guns to the undercover officer without hesitation.
Some of the firearms were made from “ghost gun” kits. Certain of the guns sold had a defaced serial number, which makes it more difficult for law enforcement to trace them. Several of the guns trafficked by the defendants have been linked by law enforcement to prior violence in Brooklyn. For example, one defendant, Minaya, sold the undercover officer a gun that was used in an August 21, 2021 shooting in Bedford-Stuyvesant during which armed perpetrators shot into a large crowd gathered for a family day celebration. In total, eight people were shot. Another gun sold by Minaya to the undercover officer is linked to a December 18, 2021 shooting of an individual in Canarsie, in the blocks surrounding the Breukelen Houses complex. That individual sustained multiple gunshot wounds to his body, including his right hand, shoulder, neck, and the base of his skull.
The investigation revealed that defendant Tabron would often purchase three or four guns at a time from retailers in Virginia Beach and Lynnhaven, Virginia, for the express purpose of bringing them to Brooklyn to engage in sales set up by his co-defendants.
While engaging in the gun trafficking conspiracy, Mccann and co-conspirators also sold more than a kilogram of fentanyl to the undercover officer. Mccann and Minaya also engaged in a narcotics conspiracy that sold over 100 grams of crack cocaine to the undercover officer.
The defendants’ drug and gun deals occurred primarily in vehicles outside homes in Canarsie. Almost all the deals occurred in the middle of the afternoon and in broad daylight, with the dealers sometimes boldly walking down public streets carrying bags of dangerous guns past residents. And, many of these transactions took place during the day in the summer months at the Canarsie Pier—a popular recreational area where scores of Brooklyn families picnic and play with their children at the playground.
The evidence of the defendants’ involvement in the alleged conduct includes (1) video and audio recordings made by the undercover officer during gun and drug sales with the defendants; (2) text and telephone records; (3) surveillance, GPS and social media showing the defendants’ whereabouts at particular times; and (4) physical evidence, including firearms, ammunition and drugs.
Additionally, when agents arrested one of the defendants in Brooklyn this morning, he was in illegal possession of two handguns, including one with an extended magazine. The defendant threw one of the guns out a window in an attempt to hide it. But agents recovered both guns at the scene.
By charging the defendants today, our Office and law enforcement partners have interrupted a network of firearms traffickers that endangers our community. Prosecutions of gun trafficking prior to the enactment of the Bipartisan Safer Communities Act relied on statutes concerning unlicensed sale, transport and delivery of firearms, and false statements made to acquire firearms. By using the new law in the charges today, we are able to streamline these prosecutions by charging firearm trafficking conspiracy as a standalone federal crime. This charge also comes with increased penalties should the defendants be proven guilty.
As the first prosecution to utilize this new legislation in New York, and one of the first in the country, we are demonstrating that we are prepared to use all the tools at our disposal—new and old—to combat gun violence. Reducing gun violence will always be one of the foremost priorities of this Office.
I’d like to give special thanks to the NYPD and the officers on this case – especially the undercover officer, who displayed extreme bravery by repeatedly engaging with the defendants to take over 50 guns off the street, and to the DEA and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), for their work on this case. I’d also like to thank the team from my Office who have worked tirelessly to protect our community.
I’ll now turn it over to NYPD Commissioner Sewell.
Statement from U.S. Attorney Jason M. Frierson on National Human Trafficking Prevention MonthRead the Press Release
LAS VEGAS – The U.S. Attorney’s Office released the following statement from U.S. Attorney Jason M. Frierson for the District of Nevada today to commemorate National Human Trafficking Prevention Month and National Day of Human Trafficking Awareness:
“January is National Human Trafficking Prevention Month, and today is National Day of Human Trafficking Awareness.
“Traffickers exploit and deprive some of our most vulnerable populations of their freedom. The U.S. Attorney’s Office remains committed to working together with state, local, federal, and tribal law enforcement partners to increase our combined prevention efforts and to raise awareness, investigate, vigorously prosecute perpetrators of human trafficking crimes, and support victims and survivors.
“Combating human trafficking takes an all-hands-on-deck approach – It’s a partnership between law enforcement and the community. We can end human trafficking and prevent this crime. Anyone who has information about a potential human trafficking incident is encouraged to report that information to the National Human Trafficking Hotline at 1-888-373-7888, which is available 24 hours a day, seven days a week.”
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San Francisco MS-13 Associates Sentenced to Prison for Roles in Gang-Related Murders and Attempted Cover-UpRead the Press Release
SAN FRANCISCO- Kevin Guatemala Zepeda, a/k/a “Mision,” and Fernando Romero Bonilla, a/k/a “Black,” were sentenced today to 204 and 84 months in prison, respectively, for their separate roles in planning and covering up a MS-13 gang-related murder announced United States Attorney Stephanie M. Hinds and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King. The sentences were handed down by the Hon. Richard Seeborg, Chief U.S. District Judge.
Zepeda and Bonilla were two of 13 defendants named in a second superseding indictment filed on November 4, 2021. The indictment described a broad range of racketeering crimes committed by the transnational criminal organization MS-13. Among the crimes described in the indictment is the murder of a suspected gang rival in the parking lot of the Gray Whale Cove trail in Pacifica. On September 13, 2022, Bonilla pleaded guilty to racketeering conspiracy and a January 24, 2019, assault on a family in the Mission District of San Francisco that included a 15-year-old boy. Bonilla admitted that as part of the racketeering conspiracy, he attempted to cover up the murder at Gray Whale Cove by removing a piece of potentially incriminating evidence. On October 4, 2022, Zepeda pleaded guilty to racketeering conspiracy and his participation in the January 24, 2019, assault. Zepeda admitted to participating in the planning of the murder at Gray Whale Cove and providing the weapons that his associates used to commit the murder. He further admitted that he helped remove potentially incriminating evidence from the scene of the murder.
MS-13 operates in El Salvador, Honduras, Guatemala, Mexico, and at least 20 states in the United States. The MS-13 clique in San Francisco is the 20th Street clique. The second superseding indictment filed in this case describes how the 20th Street clique relies on crime to operate, including to avoid detection by law enforcement, to initiate new recruits, to enhance the reputation of the gang and individual gang members, to maintain control of drug distribution channels, and to intimidate people who might testify against or otherwise defy the gang. The second superseding indictment also describes several violent crimes to which numerous defendants have pleaded guilty. According to his plea agreement, Zepeda acknowledged that he retrieved from his house the gun and machete used in the murder. In addition, after fellow gang members committed the murder, Zepeda drove to the murder scene to remove a piece of evidence that would have implicated his clique mates. For his part, Bonilla admitted in his plea agreement that he accompanied Zepeda after the murder to remove the incriminating evidence from the scene. Both defendants pleaded guilty to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d), and assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(3) and 2.
In addition to the prison terms, Chief Judge Seeborg ordered a five-year term of supervised release for Zepeda and a three-year term of supervised release for Bonilla.
Several of Zepeda’s and Bonilla’s co-defendants pleaded guilty to crimes in connection with the racketeering conspiracy and have been sentenced as follows:
Defendant
Age
Charges
Sentence
EVERT
GALDAMEZ
CISNEROS
a/k/a “Talentoso”
25
Racketeering Conspiracy
18 U.S.C. § 1962(d)
60 months in prison
Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3) and 2
OSCAR ESPINAL a/k/a “Chuy”
32
Racketeering Conspiracy
18 U.S.C. § 1962(d)
144 months in prison
Attempted Murder in Aid of Racketeering
18 U.S.C. §§ 1959(a)(5) and 2
MISSAEL MENDOZA
22
Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3) and 2
36 months in prison
CHRISTIAN QUINTANILLA
22
Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3) and 2
36 months in prison
BRIGIDO JOSUE GONZALES SALES a/k/a “Inocente” or “Kiko”
22
Racketeering Conspiracy
18 U.S.C. § 1962(d)
144 months in prison
Attempted Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5) and 2
Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3) and 2
ALEXIS CRUZ ZEPEDA a/k/a “Zorro”
29
Racketeering Conspiracy
18 U.S.C. § 1962(d)
192 months in prison
Attempted Murder in Aid of Racketeering
18 U.S.C. §§ 1959(a)(5) and 2
In addition, the following defendants have pleaded guilty to their role in the racketeering conspiracy and are awaiting sentencing:
Defendant
Age
Charges
Maximum Statutory Penalty
ROGELIO BELLOSO ALEMAN
a/k/a “Smiley”
29
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life in prison
Fine of $250,000
Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3) and 2
20 years in prison
Fine of $250,000
ABNER MARROQUIN ALEGRIA
a/k/a “Coche” or “Chapin”
42
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life in prison
Fine of $250,000
EDWIN ALVARADO AMAYA
a/k/a “Muerte”
25
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life in prison
Fine of $250,000
Attempted Murder in Aid of Racketeering
18 U.S.C. §§ 1959(a)(5) and 2
10 years in prison
Fine of $250,000
KENNETH CAMPOS,
a/k/a “Nesio”
33
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life in prison
Fine of $250,000
Assault with a Dangerous Weapon in Aid of Racketeering (two counts)
18 U.S.C. §§ 1959(a)(3) and 2
20 years in prison
Fine of $250,000
KEVIN REYES MELENDEZ
a/k/a “Neutron”
30
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life in prison
Fine of $250,000
Attempted Murder in Aid of Racketeering (two counts)
18 U.S.C. §§ 1959(a)(5) and 2
10 years in prison
Fine of $250,000
Discharge of a Firearm During and in Furtherance of a Crime of Violence
18 U.S.C. § 924(c)
Life in prison
(Mandatory minimum of 5 years (7 years if brandished, 10 years if discharged))
Fine of $250,000
Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3) and 2
20 years in prison
Fine of $250,000
This case is being prosecuted by the Organized Crime Strike Force of the Office of the United States Attorney. The prosecution is the result of an investigations by HSI, the San Francisco Police Department Homicide Unit and Community Violence Reduction Team, San Mateo County Sheriff’s Office Gang Intelligence Unit and Investigations Bureau, Daly City Police Department, Pinole Police Department, Redwood City Police Department Street Crimes Reduction Team, and San Pablo Police Department.