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10 February 2023
Chicago Man Sentenced to Federal Prison for Possessing Heroin and Fentanyl He Intended to DistributeRead the Press Release
A man who intended to distribute heroin was sentenced on February 9, 2023, to 21 months in federal prison.
Tony Cornell Coleman, Jr., age 25, from Chicago, Illinois, received the prison term after a September 23, 2022 guilty plea to one count of possession with intent to distribute a controlled substance.
Evidence at the plea and sentencing hearings showed that, on February 1, 2022, law enforcement arranged a controlled drug buy from Coleman, Jr. When Coleman, Jr., arrived at the meeting location, officers took him into custody. Coleman, Jr. was in possession of 15.4 grams of a substance containing fentanyl and 4.91 grams of a substance containing heroin.
Coleman, Jr., was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Coleman, Jr., was sentenced to 21 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Coleman, Jr., is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Adam J. Vander Stoep and was investigated by the Dubuque Drug Task Force, the Fulton, Illinois, Police Department, the Clinton, Iowa, Police Department, and the Iowa Division of Narcotics Enforcement as part of the Northern Iowa Heroin Initiative.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1017.
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Cartel-Linked Brothers Sentenced to 70 Years for Meth TraffickingRead the Press Release
Two brothers with ties to a notorious Mexican cartel have been sentenced to a combined 70 years in federal prison for methamphetamine and money laundering offenses, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Pedro Hernandez Zarate, a 45 year-old Mexican national in the U.S. illegally, and his brother Ricardo Hernandez Zarate, a 33-year-old legal resident, were charged via criminal complaint in March 2021. Ricardo pleaded guilty in February 2022 to conspiracy to possess with intent to distribute methamphetamine and money laundering, and was sentenced in November 2022 to 40 years in federal prison (40 years on the drug charges and 20 years on the money laundering charges, to run concurrently). Pedro pleaded guilty in November 2021 to conspiracy to possess with intent to distribute methamphetamine and was sentenced Thursday to 30 years in federal prison.
"The FBI in collaboration with our law enforcement partners was able to successfully disrupt the illegal activities of individuals affiliated with Cartel de Jalisco Nuevo Generación (CJNG). This removal of large amounts of methamphetamine from our streets makes our communities safer from deadly narcotics," said FBI Dallas Acting Special Agent in Charge James J. Dwyer. "We will continue to work collaboratively to prosecute and dismantle the individuals and organizations that traffic and distribute narcotics into our communities."
According to court testimony, Pedro helped coordinate the transfer of approximately 112 liquid gallons of methamphetamine – a quantity with a street value of more than $9.9 million dollars -- to codefendants who planned to transport it from Texas to Oklahoma. The liquid meth – which arrived in Dallas in the diesel tank of a tractor trailer before being transferred into a holding tank and then given over to Pedro’s co-defendants – was seized by law enforcement in Gainesville, Texas.
Agents linked the meth shipment to the Cartel de Jalisco Nuevo Generación (CJNG) Transnational Criminal Organization, one of the two largest and most dangerous drug cartels in Mexico.
Meanwhile, Ricardo acted as a Dallas-area cell head, sourcing his methamphetamine from two suppliers in Mexico and selling kilogram quantities of meth, which he called “shaved ice,” to customers. He also instructed people to deliver methamphetamine in other parts of Texas.
Co-defendant Elmer Gardea Tello was previously sentenced to a term of 55 months confinement for his involvement in drug trafficking.
Eight additional defendants – including Benito Diaz Hernandez, Marcos Garcia Reyes, Rafael Diaz, Jose Alberto Plascencia Torres, Heleodoro Rosales Ramirez, Salvador Antonio Martinez, Walter Daniel Chapa Marty, and Uriel Marin Gaona – have entered guilty pleas in the case and await sentencing.
The investigation was led by the Federal Bureau of Investigation’s Dallas Field Office, with special assistance provided by the Texas Department of Public Safety, the Gainesville Police Department, Internal Revenue Service - Criminal Investigation, the Dallas Police Department, the Fort Worth Police Department, the Williamson County, Texas Sheriff’s Department, the Hawkins County Sheriff’s Department in Tennessee, the FBI’s Knoxville Field Office (Tennessee Resident Agency Office), and the Drug Enforcement Administration’s Dallas Strike Force 1. Assistant U.S. Attorneys George Leal and John Kull are prosecuting the case.
The case is an Organized Crime Drug Enforcement Task Forces (OCDETF) case. The OCDETF program was established in 1982 in order to attack and reduce the supply of illegal drugs entering the United States and to diminish violence and other criminal activity associated with the drug trade. The OCDETF program leverages the strengths of federal, state, and local law enforcement agencies to identify, disrupt, and dismantle the highest-level drug traffickers and drug trafficking networks using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information can be found at https://www.justice.gov/ocdetf.
California Woman Pleads Guilty to Violations of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS – LORRAINE SANCHEZ VALDEZ, age 31, of Covina, California, pled guilty on February 9, 2023 before United States District Court Judge Ivan L. R. Lemelle to a one-count superseding bill of information charging her with conspiracy to distribute and possess with the intent to distribute a quantity of methamphetamine in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(C), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, SANCHEZ VALDEZ conspired with others to distribute a quantity of methamphetamine within the Eastern District of Louisiana and elsewhere on or about May 15, 2021 and continuing to on or about June 7, 2021.
SANCHEZ VALDEZ is scheduled to be sentenced on May 17, 2023. SANCHEZ VALDEZ faces a term of imprisonment of up to twenty (20) years, a fine of up to $1,000,000, at least 3 years of supervised release, and a $100 mandatory special assessment fee.
This case was investigated by the Drug Enforcement Administration, Louisiana State Police, the Jefferson Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
California Man Pleads Guilty to Submitting False Declarations to Court in $50 Million LawsuitRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ROVIER CARRINGTON pled guilty today in Manhattan federal court before U.S. District Judge Valerie E. Caproni to submitting false declarations to the court in connection with a $50 million civil lawsuit.
U.S. Attorney Damian Williams said: “Rovier Carrington submitted fake evidence in court, knowingly swore that the fake evidence was true, and doubled down on his lies when confronted. Today’s conviction sends a message: when a party in civil litigation swears to tell the truth, breaking that oath has consequences.”
According to the Indictment and statements made in court proceedings and filings:
In a civil lawsuit that CARRINGTON filed in Manhattan federal court (the “Civil Case”), CARRINGTON sued Hollywood executives alleging that the executives had sexually assaulted him and that they had defrauded him in connection with a decision to refuse to produce CARRINGTON’s reality television program. CARRINGTON sought damages of $50 million in the Civil Case.
CARRINGTON submitted to the court several falsified emails (the “Faked Emails”) as exhibits to his amended complaint in the Civil Case, which included the following fabricated exchanges:
- CARRINGTON: My mind is scrambled after last night. I can't remove “Our Jewish bodies” and “Call me Mr. [Executive-1]” from repeating in my head. I can’t properly sit down after being viciously assaulted yet again by that two-sided shit [Executive-1]. This was too far. Too damn far. I have cuts on my face and thighs from him forcing himself into me. That bastard can’t take NO for an answer and he remains using his title to force himself onto me.
- CARRINGTON: Also, If [third party] thinks he can mute me like the others with an envelope filled with cash driving by his personal driver, he’s sadly mistaken. I get assaulted two days ago at the “Super 8” premiere by [Executive-1] who's been stalking me prior to this. Did [Executive-1] tell you he shows up at my place begging for me to be his private Boyfriend ? and say’s, “If I cared about my career I’d obey” ? He threaten my career becuase [sic] I want to work and not fly private with him or attend art museums when his trophy isn't there. This dude is newly married and doesn't comprehend he forces himself onto me. [Executive-1] clearly knows he's crossed the line after spitting in my face and grabbing my genitals while relaying “I'll never work again”.
- CARRINGTON: Here’s the dramatic series I was discussing with you. I appreciate you finally moving forward with both shows. Especially with our contract in place.
Executive-2: I’ll present the material to my business associates and we’ll figure out how to combine the reality show with the series. You keep me happy and we’ll do well together. :)
When confronted about the Faked Emails, CARRINGTON submitted a false affidavit to the court in the Civil Case, in which he swore under penalty of perjury that “Each and every email annexed to my Amended Complaint, and hereto, are forwarded copies of the original email I received, or exchanged, in the exact same condition, upon which the email was received, or exchanged . . . I have not doctored, fabricated, or altered, any of the emails annexed to my Amended Complaint, and hereto.”
The court in the Civil Case conducted a detailed investigation into whether the Faked Emails were real, which CARRINGTON tried to obstruct. Among other things, CARRINGTON (i) deleted one of the email accounts from which he had purportedly sent some of the Faked Emails the day after he filed his amended complaint; (ii) deleted another email account from which he had purportedly sent some of the Faked Emails, after the court began its investigation, and then called the email provider to confirm that the account’s emails would never be accessible; and (iii) failed to appear in court for questioning about the Faked Emails.
The court in the Civil Case ultimately dismissed the Civil Case and imposed sanctions on CARRINGTON, ruling, “these emails were fabricated, and that was bad enough, but the deactivation of the accounts, the efforts undertaken to really foreclose what is necessary discovery in this case, and the stream of lies to me necessitate the sanctions that I am imposing.”
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CARRINGTON, 34, of Los Angeles, California, pled guilty today to one count of submitting a false declaration to a court, 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. CARRINGTON is scheduled to be sentenced by Judge Caproni on June 1, 2023, at 3:00 p.m.
Mr. Williams praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Kevin Mead and Thomas S. Burnett are in charge of the prosecution.
CEO of Cryptocurrency and Forex Trading Platform Pleads Guilty to over $240 Million Scheme to Defraud InvestorsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of EDDY ALEXANDRE, the leader of a purported cryptocurrency and foreign exchange (“forex”) trading platform called EminiFX, who solicited more than $248 million in investments from tens of thousands of individual investors after making false representations in connection with the EminiFX trading platform. U.S. District Judge John P. Cronan accepted the defendant’s guilty plea.
U.S. Attorney Damian Williams said: “Eddy Alexandre admitted today to luring investors to his cryptocurrency investment scam by fabricating weekly returns of at least 5%. In reality, Alexandre failed to invest a substantial portion of this investors’ money and even used some funds for personal purchases. Alexandre’s scam caused investors to lose millions of dollars, and this case should serve as yet another warning to cryptocurrency executives that the Southern District of New York is closely watching and ready to prosecute any and all misconduct in the crypto markets.”
According to the allegations in the Indictment and other filings and statements made in court:
From in or about September 2021, up to and including in or about May 2022, ALEXANDRE operated EminiFX, Inc. (“EminiFX”), a purported investment platform that ALEXANDRE founded, and for which he solicited more than $248 million in investments from tens of thousands of individual investors. ALEXANDRE marketed EminiFX as an investment platform through which investors would earn passive income through automated investments in cryptocurrency and forex trading. ALEXANDRE offered his investors “guaranteed” high investment returns using new technology that he claimed was secret. Specifically, ALEXANDRE falsely represented to investors that they would double their money within five months of investing by earning at least 5% weekly returns on their investment using a “Robo-Advisor Assisted account” to conduct trading. ALEXANDRE referred to this technology as his “trade secret” and refused to tell investors what the technology was. Each week EminiFX’s website falsely represented to investors that they had earned at least 5% on their investment, which they could withdraw or re-invest.
In truth and in fact, and as ALEXANDRE well knew, EminiFX did not earn 5% weekly returns for its investors. ALEXANDRE did not even invest a substantial portion of the investor funds entrusted to him, and ALEXANDRE sustained millions of dollars in losses on the limited portion of funds that he did invest, which he did not disclose to his investors. Instead of using investors’ funds as he had promised, ALEXANDRE also misdirected at least approximately $14,700,000 to his personal bank account. For example, ALEXANDRE used $155,000 in investor funds to purchase a BMW car for himself and spent an additional $13,000 of investor funds on car payments, including to Mercedes Benz.
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ALEXANDRE, 50, of Valley Stream, New York, pled guilty to one count of commodities fraud and agreed to pay forfeiture in the amount of $248,829,276.73, as well as restitution in an amount to be specified by the Court. The offense of commodities fraud carries a maximum sentence of 10 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 before Judge Cronan is scheduled for July 12, 2023, at 4:00 p.m.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation and also thanked the Commodity Futures Trading Commission, which brought a separate civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Nicholas Folly and Jared Lenow are in charge of the prosecution.
Boston Man Indicted for Commissioning Murder-for-Hire Targeting His Wife and Her BoyfriendRead the Press Release
BOSTON – A Boston man has been indicted by a federal grand jury for trying to hire a contract killer to murder his wife and the wife’s boyfriend.
Mohammed Chowdhury, 46, was indicted on two counts of use of interstate commerce facilities in the commission of murder-for-hire. Chowdhury was previously arrested and charged by criminal complaint on Jan. 17, 2023. He has remained in custody since.
According to the charging documents, in November 2022, an individual notified federal law enforcement that Chowdhury was soliciting assistance in having his wife murdered. The individual said that Chowdhury had allegedly paid someone to conduct the murder for hire, but that they took the money and did not follow through with Chowdhury’s request. It is alleged that Chowdhury subsequently told the individual that he needed the murder done as soon as possible and that he would get the money to do so, even robbing a store if necessary to obtain the funds. The individual provided Chowdhury’s phone number to law enforcement, who thereafter used an undercover agent posing as a contract killer to communicate with Chowdhury about his alleged murder for hire plot.
It is alleged that on numerous occasions in December 2022 and January 2023, Chowdhury met with undercover agents posing as the contract killer and their associates, to seek help with killing his wife and her new boyfriend whom she left him for. It is alleged that during these meetings and communications, Chowdhury explained that his wife wouldn’t let him see his children and that he wanted the undercover agents to rob and beat his wife and her boyfriend so that he would not be a suspect. Chowdhury allegedly asked the agents, “So how we gonna disappear his, uh, body?” and stated, “No evidence. No evidence. No evidence from like, you know, that, uh, I did something, you know?” Chowdhury allegedly provided the undercover agents with photographs of his wife and her new boyfriend, where they lived, where they worked and their work schedules. It is alleged that Chowdhury ultimately agreed to pay $4,000 per murder, with a deposit of $500.
Chowdhury met with the undercover agents on Jan. 17, 2023, allegedly provided the $500 deposit and confirmed that he wanted the murders committed. Chowdhury was then taken into federal custody.
In October 2019, Chowdhury was charged in Boston Municipal Court – Roxbury Division with violating an Abuse Prevention Order prohibiting him from abusing, contacting, or coming within a certain distance of his wife. Chowdhury pleaded to sufficient facts and received a continuance without a finding.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Boston Police Department provided valuable assistance with the investigation. Assistant U.S. Attorneys Luke A. Goldworm and John T. Dawley of Rollins’ Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Berkeley Resident Sentenced to Four Years in Prison in Tenderloin Fentanyl Distribution SchemeRead the Press Release
SAN FRANCISCO – David Ordonez was sentenced to 48 months in prison for his role in a scheme to distribute fentanyl and methamphetamine in the Tenderloin District of San Francisco, announced United States Attorney Stephanie M. Hinds and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Bob P. Beris. The sentence was handed down by the Honorable William H. Orrick, United States District Judge.
Ordonez, 20, of Berkeley, California, pleaded guilty to the charges on September 19, 2022. According to his plea application, Ordonez admitted he was guilty of conspiring to distribute fentanyl and distributing fentanyl and methamphetamine on multiple occasions in San Francisco’s Tenderloin neighborhood.
The government’s sentencing memorandum describes three separate sales, on February 9, February 24, and March 9, 2022, in which Ordonez sold drugs to an undercover officer working with the DEA and the San Francisco Police Department. The government argued that each of the transactions happened in the Tenderloin and in violation of state stay-away orders against Ordonez. The government argued that Ordonez sold the undercover officer around 59 grams of fentanyl and 30 grams of methamphetamine in exchange for $1,200 on February 24, 2022. The government also argued in its sentencing memorandum that Ordonez sold the same undercover officer around 28 grams of fentanyl and 71 grams of methamphetamine in exchange for $1,000 on March 10, 2022, after telling the undercover officer in a text message the day before the deal that Ordonez had “good” fentanyl. The government further argued that at his arrest in Berkeley on April 19, 2022, Ordonez ran from the police with a backpack containing around 1,118.8 grams—nearly 2.5 pounds—of fentanyl and around 98 grams of methamphetamine, along with other illegal drugs.
In his plea application, Ordonez admitted to conspiring with another person to work to sell more than 40 grams of fentanyl from February 9, 2022, to the date of his arrest on April 19, 2022. Ordonez also admitted to traveling to the area near 7th and Market Streets in San Francisco’s Tenderloin neighborhood, where he sold more than 40 grams of fentanyl to an undercover agent on February 24, 2022, and more than 50 grams of methamphetamine on March 10, 2022. Ordonez admitted that on April 19, 2022, he ran from police, dropping his backpack, which contained more than 40 grams of fentanyl. In its sentencing memorandum, the government argued that physical surveillance and cell phone data showed that Ordonez and his brother, Juan Carlos Hernandez-Ordonez, routinely travelled together from their shared apartment in Berkeley into the Tenderloin before their April 2022 arrests. The government argued that the location data supported the inference that Ordonez made a living selling fentanyl on a regular basis at particular times of day and night in the Tenderloin.
On May 3, 2022, a federal grand jury handed down an indictment charging Ordonez with one count of conspiracy to possess with intent to distribute 40 grams and more of fentanyl, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(B)(vi), two counts of possession with intent to distribute and distribution of 40 grams and more of fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(vi), and one count of possession with intent to distribute and distribution of 50 grams and more of a mixture and substance containing methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(viii). Ordonez pleaded guilty to each of these counts. In addition to the prison term of 48 months, Judge Orrick also ordered Ordonez to serve four years of supervised release to begin after his prison term. Ordonez has been detained since his arrest and will begin serving his sentence immediately.
On September 29, 2022, Ordonez’s brother, Juan Carlos Hernandez Ordonez, pleaded guilty to count four of the indictment, charging him with possession with intent to distribute and distribution of 40 grams and more of fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(vi). On January 12, 2023, Judge Orrick sentenced Hernandez-Ordonez to a prison term of 18 months, followed by four years of supervised release.
Assistant U.S. Attorney Lauren Harding is prosecuting the case with the assistance of Jasmine Sanders and Amala James. The prosecution is the result of an investigation by DEA and the San Francisco Police Department.
One Pill Can Kill: Beware of pills bought on the street: One Pill Can Kill. Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that purport to mimic the effects of Oxycodone, Percocet, and other drugs, but can be obtained at a lower cost. However, very small variations in the amount or quality of fentanyl creates huge effects on the potency of the counterfeit pills and can easily cause death. Fentanyl has now become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills are usually shaped and colored to resemble pills that are sold legitimately at pharmacies. For example, counterfeit pills known as M30s mimic Oxycodone, but when sold on the street they routinely contain fentanyl. These tablets are round and often light blue in color, though they may be made in many colors, and have “M” and “30” imprinted on opposite sides of the pill.
Ashton J. Ryan, Jr. Found Guilty of Fraud Resulting in Failure of First NBC BankRead the Press Release
NEW ORLEANS –Today U.S. Attorney Duane A. Evans announced that on February 9, 2023 a federal jury has returned a verdict of guilty on all forty-six (46) counts against former First NBC Bank President and CEO Ashton J. Ryan, Jr. and not guilty on all seven (7) counts against former First NBC Bank senior vice president Fred V. Beebe.
According to court documents and evidence presented at trial, from 2006 through April 2017, RYAN and others conspired to defraud First NBC Bank (the “Bank”) through a variety of schemes. RYAN was the President and CEO of the Bank for most of its existence. RYAN and others, conspired to defraud First NBC Bank by disguising the true financial status of certain borrowers and their troubled loans, concealing the true financial condition of the Bank from the Board of Directors (the “Board”), auditors, and examiners.
When members of the Board or the Bank’s outside auditors or examiners asked about loans to these borrowers, RYAN and others made false statements about the borrowers and their loans, omitting the truth about the borrowers’ inability to pay their debts without getting new loans. As a result, the balance on these borrowers’ loans continued to grow resulting, ultimately, in the failure of First NBC. The Bank’s failure cost the Federal Deposit Insurance Corporation’s deposit insurance fund slightly under $1 billion.
For RYAN, the charges include, Count 1, conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349, multiple instances of bank fraud as listed in Counts 2 through 37, in violation of Title 18, United States Code, Section 1344 and making false entries in bank records, in violation of Title 18, United States Code, Section 1005, as listed in Counts 38 through 46.
For each of the charged counts, the maximum penalties that may be imposed upon conviction are thirty years in prison; a fine of up to $1,000,000, or the greater of twice the gain to a defendant or twice the loss to any victim; up to five years of supervised release; and a $100 mandatory special assessment fee.
This case was investigated by the FBI New Orleans, the FDIC Office of Inspector General in Dallas, and the Federal Reserve Board of Governors’ Office of Inspector General in Miami. Agents and analysts devoted thousands of hours in reviewing millions of pages of emails, account records, and loan documents to uncover this fraud.
“We respect the jury’s verdict as it pertains to both individuals, said U.S. Attorney Duane A. Evans. “I want to thank the jurors who have done a great public service in giving their time to listen and evaluate the evidence and to render their verdict. This was a theft of epic proportions that grew from within that ultimately harmed the New Orleans economy. This case shows the dedication of this office, along with our law enforcement partners to prosecuting crime wherever it happens. Be it on the streets of our neighborhoods, or in board rooms downtown, this office will dedicate the time and resources to investigate and bring culprits to justice.”
“Mr. Ryan’s willingness to ignore and flaunt all sound financial practices left the American taxpayers to foot the 1-billion-dollar bill which remained following First NBC’s collapse,” said Douglas A. Williams, Jr., Special Agent in Charge of FBI New Orleans. “We thank our partners at the United States Attorney’s Office Eastern District, the FDIC Office of Inspector General and the Federal Reserve Board, Office of Inspector General. It is my hope that that today’s guilty verdict will result in some measure of justice for the more than 500 people who lost their jobs, and the countless stockholders who lost their financial investments.”
“The conviction of former FNBC President Ashton Ryan once again demonstrates that the FDIC OIG, working with our law enforcement partners, will continue to hold accountable bank executives who jeopardize the safety and soundness of our nation’s insured financial institutions,” said Anand Ramlall, Special Agent in Charge, Dallas Region, Office of Inspector General for the Federal Deposit Insurance Corporation.
“Ashton Ryan’s fraud scheme to deceive regulators and the public resulted in one of the largest bank failures since the financial crisis. His conviction sends a clear message that bank executives who commit fraud will be brought to justice for their actions. I commend our agent and our federal law enforcement partners for their hard work and persistence in this very complex case, which ultimately led to this conviction,” said Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau.
The trial was prosecuted by Assistant United States Attorneys Matthew Payne, Nicholas Moses (Financial Crimes Unit), and Ryan McLaren (Appeals Unit).
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Arkansas, Washington Business Owners Indicted for Conspiring to Defraud COVID-19 Relief ProgramsRead the Press Release
Spokane, Washington – Today, Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a grand jury returned a Superseding Indictment charging Tyler Keith Andrews, age 37, of Bentonville, Arkansas, and Yuriy P. Anischenko, age 34, formerly of Spokane, with eleven counts of fraud in connection with a conspiracy to fraudulently obtain millions of dollars in COVID-19 relief funds intended for struggling businesses. The charges in the Superseding Indictment are the most recent announced by the Eastern Washington COVID-19 Fraud Strike Force, which was created in 2022 to combat fraud against COVID-19 relief programs in Eastern Washington.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided government-backed loans to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
“COVID-19 relief programs quickly ran out of money due to the number of people and businesses that requested funding, which meant that some deserving small businesses could not obtain funding to keep their businesses open during the COVID-19 pandemic,” said U.S. Attorney Waldref. “We created the COVID-19 Fraud Strike Force because it is critical to the strength and safety of our community in Eastern Washington that we all work together to combat pandemic-related fraud. Our dynamic Strike Force is ensuring that limited resources are provided to deserving local businesses that provide vital services for our communities.”
In February 2022, the U.S. Attorney’s Office began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the U.S. Attorney’s Office, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations, U.S. Department of Veterans Affairs OIG, Department of Homeland Security OIG, Air Force Office of Special Investigations, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments, convictions, and civil penalties, and have returned millions of dollars in fraudulently-obtained funds to the public.
The Superseding Indictment alleges that Andrews and Anischenko conspired with others to defraud COVID-19 relief programs by submitting fraudulent applications for funding for inactive businesses and by submitting false information. The Superseding Indictment further alleges that, as part of the conspiracy, Anischenko obtained more than $300,000, some of which he shared with Andrews, for two inactive and ineligible businesses. According to the Superseding Indictment, Anischenko recruited other co-conspirators for the scheme and connected them with Andrews, who then prepared and submitted fraudulent applications for the co-conspirators. The Superseding Indictment also alleges that Andrews submitted false and fraudulent COVID-19 funding applications for his own purported businesses. Finally, the Superseding Indictment charges Andrews with three counts of Aggravated Identity Theft for improperly using the name and identifying information of an Eastern Washington business owner to submit a fraudulent EIDL application, which the SBA did not approve. The Superseding Indictment alleges that the conspirators obtained millions of dollars through the fraud.
The fraud and conspiracy charges carry maximum sentences of up to 20 years in federal prison, while the identity theft charges carry 2-year mandatory sentences, which must be imposed consecutively to any sentences imposed on the fraud and conspiracy charges.
This case was investigated by SBA OIG, FBI, TIGTA, and the Strike Force. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting the case on behalf of the United States.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States v. Anishchenko et al., Case No: 2-22-CR-0057-TOR
Amazon seller and consultant sentenced to 20 months in prison for bribery scheme and illegal tactics to benefit himself and clientsRead the Press Release
Seattle – An Acworth, Georgia man, who was deeply involved in a bribery scheme to obtain inside information and improper benefits from Amazon employees was sentenced today to 20 months in prison, announced U.S. Attorney Nick Brown. Hadis Nuhanovic, 32, used inside information to break Amazon Marketplace platform rules and increase some sellers’ income to the detriment of others. At today’s sentencing hearing U.S. District Judge Richard A. Jones said there need to be significant consequences for commercial bribery. “I cannot find any other reason for your conduct than greed… Enough was not enough,” Judge Jones said.
“This was a long-running global conspiracy that not only harmed businesses selling on Amazon, it also harmed customers who purchased products unaware that they were counterfeit or the subject of customer complaints,” said U.S. Attorney Nick Brown. “Mr. Nuhanovic and his coconspirators bribed Amazon employees to reinstate banned products, or to remove bad reviews. Even after Amazon fired one of the coconspirators, Mr. Nuhanovic didn’t stop, he just recruited and bribed more employees for his and his coconspirators’ benefit.”
According to records filed in the case, since 2010, Nuhanovic operated an e-commerce business selling things such as DVDs, and smartphone cases. From 2017-18 he paid more than $20,000 in bribes for inside information from an Amazon employee. The inside info gave him a competitive advantage for his own business, and he also made money by selling some of the insider information to others. Nuhanovic communicated with that insider via an encrypted message system. He also recruited other Amazon employees who also accepted bribes.
The bribes assisted Nuhanovic with his scheme to continue selling counterfeit DVDs, by using legitimate invoices provided by insiders as a basis for his forged invoices – ones he used to claim that he was not selling counterfeits. He similarly used other companies’ invoices so he could continue selling dietary supplements from unapproved suppliers – something that put customers at risk.
Nuhanovic also used the inside information to help clients get reinstated, and to gin up false allegations about competitors. One competitor was suspended from the Amazon Marketplace because of a false intellectual property complaint filed by Nuhanovic and coconspirators. The coconspirators also sought confidential information on customers who posted bad reviews so that they could harass them.
"It was not good enough for Mr. Nuhanovic to cheat the public by selling counterfeit goods” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Instead, he and his coconspirators worked to deceive unwitting customers and further enrich themselves by bribing Amazon employees to assist in the scheme. I appreciate the work of our investigators and partners to put an end to this scheme.”
In asking the court to impose a two-year sentence, Assistant United States Attorney Miriam Hinman wrote to the court, “Nuhanovic and the co-conspirators’ crimes hurt Amazon and its users by violating basic principles of secure commerce upon which everyone relies. As our economy’s dependence on digital storefronts, platforms, and data continues to grow, almost every business entrusts its employees with valuable information—from key cards to private customer information—and the law must impose consequences on those who seek to wantonly violate that trust for personal profit.”
Nuhanovic also admits cheating on his taxes. In 2019 he claimed his company had gross receipts of $826,510 for tax year 2018. The actual gross receipts figure was $1,446,540. He failed to pay $125,050 in taxes for 2018 and an additional $35,403 in 2019.
Nuhanovic pleaded guilty to Conspiracy to violate the Travel Act and Filing a False Tax Return on September 28, 2022.
Today Judge Jones ordered him to forfeit $100,000 as proceeds of the conspiracy, and to pay $160,453 in restitution to the Internal Revenue Service.
One defendant in this case, Rohit Kadimisetty, pleaded guilty and was sentenced last year to ten months in prison and a $50,000 fine. Kristen Leccese and Joseph Nilsen have pleaded guilty and are scheduled for sentencing on June 9, 2023. The remaining defendant, Ephraim Rosenberg, is scheduled for trial on May 15, 2023.
The case is being investigated by the FBI, with assistance from the Internal Revenue Service-Criminal Investigations (IRS-CI), and the Department of Justice Office of International Affairs.
Alliance Man Sentenced for Distributing Heroin and Fentanyl AnalogueRead the Press Release
United States Attorney Steven Russell announced that Matthew Foster, 36, of Alliance, Nebraska, was sentenced today in federal court in Omaha, Nebraska, for distribution of heroin and fentanyl analogue. Senior United States District Judge John M. Gerrard sentenced Foster to 180 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 3-year term of supervised release.
On February 3, 2021, law enforcement was dispatched to a residence in Alliance regarding an overdose victim. Law enforcement was able to show that Foster provided a fentanyl pill to the victim that resulted in an overdose. Medical personnel revived the victim with Narcan and the person survived.
On February 10, 2021, law enforcement used a confidential informant to purchase heroin and blue Fentanyl pills from Foster in Alliance. Directly after the controlled purchase, law enforcement executed a search warrant on Foster’s residence on February 10, 2021. During the search warrant, law enforcement seized blue Fentanyl pills and heroin.
This case was investigated by the Alliance Police Department and WING Task Force. WING is the Western Nebraska Intelligence Narcotics Group and includes the Alliance Police Department, Sidney Police Department, Scottsbluff Police Department, Scotts Bluff County Sheriff’s Office, and the Nebraska State Patrol.
Accountant Ordered to Pay Restitution and Serve Probation for Fraud Targeting D.C. Nonprofit OrganizationRead the Press Release
Defendant Diverted Nonprofit’s Funds to Personal Accounts
WASHINGTON – Keane Sims, 28, of Camp Springs, Maryland, was ordered to pay $30,000 restitution and sentenced to five years of probation for defrauding the Friends Community on National Legislation, a national nonprofit organization, by diverting organization funds to personal accounts. The sentence was announced today by U.S. Attorney Matthew M. Graves and Chief Robert J. Contee III, of the Metropolitan Police Department (MPD).
Sims pleaded guilty in December 2022, in the Superior Court of the District of Columbia, to second degree felony fraud. The Honorable Neal E. Kravitz also ordered six months of supervised release.
According to the government’s evidence, Sims made 12 fraudulent transfers from the organization to two personal bank accounts in July and August 2018, totaling more than $40,000. Sims, who was employed by the company as an accountant and responsible for maintaining the organization’s accounts payable, used her access to the organization’s accounting and cash management systems to steal the funds and hide the fraudulent transactions by manipulating vendor payee information.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department’s Financial and Cyber Crimes Unit. They also commended the work of Assistant U.S. Attorneys Brian P. Kelly and Benjamin D. Bleiberg, who investigated and prosecuted the case.
9 February 2023
Whiteside County Man Pleads Guilty to Embezzlement from a Labor OrganizationRead the Press Release
ROCKFORD — A Morrison, Ill. man pleaded guilty in federal court before U.S. District Judge Iain D. Johnston to embezzling from a labor organization.
BRENT TOPPERT, 42, was the elected Financial Secretary-Treasurer of Local 238 of the Security, Police, and Fire Professionals of America (SPFPA). The SPFPA represented members engaged in providing security at a nuclear plant in Cordova, Ill. Toppert admitted in a plea agreement that in 2018 he made an unauthorized withdrawal of $500 from a bank account owned by the SPFPA, and that the withdrawal was not for any business purpose. Toppert admitted that he converted this money to his personal use.
The government alleged in the plea agreement that Toppert converted a total of $63,713.14 of the SPFPA’s assets to his personal use.
Toppert faces a maximum sentence of five years’ imprisonment. The actual sentence will be determined by the U.S. District Court, guided by the Sentencing Guidelines. Sentencing is set for June 6, 2023 at 1:30 p.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Thomas Murray, District Director of the U.S. Department of Labor – Office of Labor Management Standards. The government is represented by Assistant U.S. Attorney Michael D. Love.
Whispering Pines Registered Sex Offender Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
RALEIGH, N.C. – A Whispering Pines man and registered sex offender was sentenced today to 120 months in prison for possession of child pornography. Adam Mitchum Bailey, 44, was previously convicted on separate charges of child pornography possession in October of 2018. Bailey was charged with new child pornography charges in March of 2021. On August 22, 2022, Bailey pled guilty to possession of child pornography.
According to court documents and other information presented in court, Bailey pled guilty to the possession of child pornography and was sentenced in March 2019 to 24 months in the Bureau of Prisons (BOP) and 10 years of supervised release. Halfway through his time in BOP, he was transferred to the Austin Wilkes Society re-entry facility in Fayetteville, North Carolina to complete his sentence, and was released in November 2020. Days before his release, facility staff discovered and searched an unauthorized cellphone found on Bailey’s bed, revealing images of child pornography. Evidence within the phone indicated that it belonged to Bailey.
The cellphone, along with another cellphone confiscated from Bailey several weeks earlier, were turned over to the North Carolina State Bureau of Investigation Computer Crimes Unit. The second phone was also found to contain child pornography. In an interview with Bailey, he admitted to using both cellphones and electronically searching for the child pornography images.
Forensic examination of the phones recovered numerous files containing child pornography, including images of children under the age of 12. As a repeat offender, Bailey was subject to enhanced statutory minimums.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The North Carolina State Bureau of Investigation Computer Crimes Unit and the Bureau of Prisons investigated the case and Assistant U.S. Attorney Bryan M. Stephany prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-cr-00147-D.
Westminster Man Sentenced to 124 Months in Federal Prison for Weapons and Drug Trafficking ChargesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Michael Thomas Delguidice, age 62, of Westminster, was sentenced to 124 months prison and 3 years supervised release for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
According to the plea agreement, on December 5, 2020, Westminster police were dispatched to a residence for a domestic disturbance, where the victim reported her car had been shot the night before. She reported that she then received a text from the defendant asking her to go to Blackhawk with him. She refused and the defendant texted back: "Ready for round two then?" The victim reported that Delguidice was circling her block on his motorcycle. When police contacted Delguidice, they found baggies of methamphetamine totaling 93 grams, a loaded .38 caliber revolver, two speed re-loaders and $3,405 in his jacket. They also found a stolen 10mm Glock semi-automatic handgun and ammunition in his motorcycle bag. Shell casings from the previous night’s drive-by shooting were tested and matched the 10mm handgun in the bag.
Judge William J. Martinez sentenced the defendant on February 7, 2023.
The FBI Rocky Mountain Safe Streets Task Force and the Westminster Police Department investigated this case. Prosecution was handled by Assistant United States Attorney Brian Dunn.
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.
CASE NUMBER: 21-cr-00007
Wallingford Man Pleads Guilty to Child Exploitation ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Matthew B. Millhollin, Special Agent in Charge, Homeland Security Investigations (HSI), Boston, today announced that JASON GORISS, 49, last residing in Wallingford, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Alvin W. Thompson in Hartford to one count of possession of child pornography.
According to court documents and statements made in court, in November and December 2018, Goriss four images and five videos depicting minors engaged in sexually explicit conduct. The images and videos included depictions of prepubescent children, and at least one image of bondage. Goriss shared some of the images and videos on an internet-based blog.
Goriss previously was convicted in Connecticut Superior Court of risk of injury to a minor.
Goriss is currently incarcerated in state custody for a violation of probation, he has other charges for sexual assault and risk of injury to a minor pending in Connecticut Superior Court.
Judge Thompson scheduled sentencing for May 17, at which time Goriss faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of 20 years. The penalties in this matter are enhanced based on Goriss’s prior conviction for risk of injury to a minor.
This matter is being investigated by Homeland Security Investigations and the Wallingford Police Department, with the assistance of the Office of Adult Probation. The case is being prosecuted by Nancy V. Gifford and Neeraj N. Patel, with cooperation from the New Haven State’s Attorney’s Office.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
U.S. Citizen Sentenced to 30 Months in Prison for Conspiring to Provide Electronic Equipment and Technology to the Government of IranRead the Press Release
Earlier today, in federal court in Brooklyn, Kambiz Attar Kashani, a dual citizen of the United States and Iran, was sentenced by United States District Judge Eric R. Komitee to 30 months’ imprisonment for conspiring to illegally export U.S. goods, technology, and services to end users in Iran, including the Government of Iran, in violation of the International Emergency Economic Powers Act (IEEPA). The defendant has agreed to pay a $50,000 fine. Kashani pleaded guilty to the charge in June 2022.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General for the Justice Department’s National Security Division, and Joseph R. Bonavolanta, Special Agent-in-Charge, Federal Bureau of Investigation, Boston Division (FBI), announced the sentence.
“Kashani defied export restrictions and sanctions against Iran, a country that sponsors international terrorism,” stated United States Attorney Peace. “His scheme undermined U.S. foreign policy and national security interests, and warranted a substantial sentence of incarceration to deter others.”
“Kashani conspired to illegally export U.S. goods and technology for the benefit of the Central Bank of Iran, a designated entity that materially supports known terrorist organizations,” said Assistant Attorney General Olsen. “The Department remains vigilant against any efforts to circumvent our export control laws, which exist to protect the security of the United States and its people.”
“Kambiz Attar Kashani will now head to prison for strengthening the economy of one of the world’s most infamous state sponsors of terrorism to line his own pockets, while circumventing U.S. laws in place to protect our national security interests. He used two United Arab Emirates companies to procure items from multiple American technology companies, including one located right here in Massachusetts,” said Special Agent in Charge of the FBI Boston Division Bonavolonta. “Today’s sentencing should send a strong message that the FBI and its law enforcement partners will continue to pursue and hold accountable those individuals who illegally export our country’s sensitive information and technology to hostile nations such as the Government of Iran.”
Between February 2019 and June 2021, Kashani conspired to illegally export goods and technology to end users in Iran, including the Central Bank of Iran (CBI). The U.S. government recognizes CBI as an agency of the Government of Iran and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has classified it as a Specially Designated National (SDN) acting for or on behalf of a terrorist organization. According to the U.S. government, CBI has materially assisted, sponsored and provided financial, material or technological support, goods or services to Lebanese Hizballah, a terrorist organization, and to the Qods Force of Iran’s Islamic Revolutionary Guards Corps (IRGC), which is a branch of the Iranian armed forces and represents the primary means of the Government of Iran to direct and implement its global terrorism campaign.
Kashani and his co-conspirators perpetrated the illegal transshipping scheme through two separate United Arab Emirates (UAE) companies. They used the UAE companies to procure electronic goods and technology from multiple U.S. technology companies, including one located in Brooklyn, for end users in Iran, including CBI, without obtaining required OFAC export licenses. Certain of the goods and technology Kashani and his co-conspirators transshipped were classified by the U.S. Department of Commerce’s Bureau of Industry and Security as information security items subject to national security and anti-terrorism controls. Kashani and his co-conspirators intentionally concealed from the U.S. companies that they intended to send the items to Iran, falsely claiming that the UAE companies would be the ultimate end users.
As set forth in court papers, by providing the Government of Iran and end users in Iran with sophisticated, top-tier U.S. electronic equipment and software, the defendant and his co-conspirators enabled the Iranian banking system to operate more efficiently, effectively, and securely. In doing so, the defendant and his co-conspirators likely helped strengthen Iran’s economy and provided faster and more secure access to funds that enable the Government of Iran to further priorities including its nuclear program and terrorist agenda – exactly what the U.S. sanctions against Iran were intended to prevent.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon and Meredith A. Arfa are in charge of the prosecution, with assistance provided by Trial Attorney S. Derek Shugert of the Justice Department’s Counterintelligence and Export Control Section.
Defendant:
Kambiz Attar Kashani
Age: 45
United Arab EmiratesE.D.N.Y. Docket No. 22-CR-33 (EK)
U.S. Citizen Sentenced for Conspiring to Provide Electronic Equipment and Technology to the Government of IranRead the Press Release
Earlier today in federal court in Brooklyn, New York, Kambiz Attar Kashani, 44, a dual citizen of the United States and Iran, was sentenced to 30 months in prison for conspiring to illegally export U.S. goods and technology to end users in Iran, including the Central Bank of Iran, in violation of the International Economic Powers Act (IEEPA). The Central Bank of Iran is an Iranian government agency that, according to the U.S. government, has materially supported Lebanese Hizballah and the Qods Force of Iran’s Islamic Revolutionary Guards Corps, both designated terrorist organizations.
“Kashani conspired to illegally export U.S. goods and technology for the benefit of the Central Bank of Iran, a designated entity that materially supports known terrorist organizations,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department remains vigilant against any efforts to circumvent our export control and sanctions laws, which exist to protect the security of the United States and its people.”
“Kashani defied export restrictions and sanctions against Iran, a country that sponsors international terrorism,” said U.S. Attorney Breon Peace for the Eastern District of New York. “His scheme undermined U.S. foreign policy and national security interests and warranted a substantial sentence of incarceration to deter others.”
“This is a sobering reminder that illegally exporting material is not an abstract economic concern – it is a crime with a direct impact on the safety of the American people,” said Assistant Director Alan E. Kohler Jr. of the FBI Counterintelligence Division. “Kambiz Attar Kashani pleaded guilty to conspiring to illegally export technologies and goods to Iran, a designated state sponsor of terrorism. The recipient of these technologies was the Central Bank of Iran, an entity connected to organizations such as Iran’s Qods Force and Lebanese Hizbollah, both designated terrorist groups that represent a clear and present threat to the United States. As long as these threats persist, the FBI will not rest in our efforts to find these illegal exporters and bring them to justice.”
According to court documents, between February 2019 and June 2021, Kashani and his co-conspirators used two front companies in the United Arab Emirates (UAE) to illegally procure electronic goods and technology from multiple U.S. technology companies, including one located in Brooklyn, for end users in Iran, including the Central Bank of Iran. Certain goods and technology Kashani and his co-conspirators transshipped were controlled by the U.S. government for national security and anti-terrorism reasons. Kashani and his co-conspirators intentionally concealed from the U.S. companies that they intended to send the items to Iran, falsely claiming that the UAE companies would be the ultimate end users. By providing the Central Bank of Iran and other end users in Iran with sophisticated, top-tier U.S. electronic equipment and software, Kashani and his co-conspirators enabled the Iranian banking system to operate more efficiently, effectively and securely.
The FBI is investigating the case.
Assistant U.S. Attorneys Alexander A. Solomon and Meredith A. Arfa for the Eastern District of New York are prosecuting the case, with assistance provided by Trial Attorney S. Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section.
U.S. Attorney’s Office Staff use Readings to get Children Excited about LiteracyRead the Press Release
MIAMI – Reading is crucial to a child’s educational development and future success. This is why staff from the Law Enforcement Coordination and Community Outreach Section of the U.S. Attorney’s Office for the Southern District of Florida hold weekly readings for pre-kindergarten children in at-risk South Florida schools.
“Good morning, everyone,” said Law Enforcement Coordination Specialist Mark McKinney to a group of pre-kindergarten students at Robert Ingram Elementary School in Opa-locka. “Are you all excited? We have to begin a new book to keep building your vocabularies.”
The children got quiet, sat down, and listened with great attention as McKinney read books predominately about animals. In between books he would stand the children up and play a quick game with them before grabbing the next one from his bag.
“He has such an impact on these kids,” said Adriana Ruiz, a pre-kindergarten teacher at Robert Ingram Elementary School. “He sparks a curiosity about books. After he leaves, we have playtime and the children choose a book even though they can’t read it yet—they pretend. There is a big difference between having to read and wanting to read. Mark motivates them.”
That is the reason for this program, to build a solid educational base by giving children a love for reading.
“We’ve been doing these readings for at least six years,” said Law Enforcement Coordination and Community Outreach Section Chief J.D. Smith. “We started this because research indicates that if children don’t read at grade level by the end of the fourth grade, they start to fall behind their peers academically. This can result in many of them eventually dropping out.”
Research suggests that poor readers are, in fact, four times as likely to drop out of school. Law Enforcement Coordination and Community Outreach Section staff organize these readings at schools in areas considered to be book deserts. These communities lack access to certain resources, books among them.
“Some of the most vulnerable pre-kindergarten kids don’t have access to a library so we bring books with us to help build up their home libraries and develop that love of reading,” said McKinney. “If they get that at an early age, it will help their odds of success in the future.”
Anyone interested in donating children’s books may do so by emailing U.S. Attorney’s Office staff at [email protected] or by calling (305) 961-9134.
U.S. Attorney’s Office Reaches Settlement with Ocean County Nail Salon to End Disability DiscriminationRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office has reached settlement with an Ocean County, New Jersey, nail salon to resolve allegations that the salon discriminates against individuals with mobility impairments in violation of the Americans with Disabilities Act of 1990 (ADA), U.S. Attorney Philip R. Sellinger announced today.
Under the settlement, USA Nails Inc. of Point Pleasant, New Jersey, agrees to adopt and post in a conspicuous place a non-discrimination policy, to train current and future employees on the requirements of Title III of the ADA, and to pay $1,000 in damages to the individual complainant in this matter. Title III prohibits disability discrimination in places of public accommodation, like nail salons. The settlement resolves allegations that USA Nails discriminated against persons with mobility impairments by refusing nail services those using a wheelchair.
“Disability discrimination violates the ADA and cannot be tolerated,” U.S. Attorney Philip R. Sellinger said. “This agreement ensures that customers will not be turned away from receiving nail services simply because they happen to have a disability.”
The Department of Justice’s enforcement efforts under the ADA seek equal opportunity and dignity in all aspects of life, including access to public accommodations such as nail salons. This settlement agreement is the third agreement that the Department of Justice has reached with a nail salon through its U.S. Attorney Program for ADA Enforcement, and the first in the District of New Jersey. In June 2021, the U.S. Attorney’s Office for the Middle District of North Carolina entered a settlement agreement resolving an allegation that a nail salon in Durham, North Carolina, refused to provide services to an individual with HIV. And in June 2022, the U.S. Attorney’s Office for the Eastern District of Louisiana reached a settlement agreement with a nail salon in Harahan, Louisiana, to resolve an allegation that an individual was refused services because of the inability to transfer out of their wheelchair.
In 2022, U.S. Attorney Sellinger created a Civil Rights Division with the sole focus on enforcing federal civil rights laws, including the ADA, with the goal of protecting and upholding the civil rights of those in our community. Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
The government is represented by Senior Civil Rights Counsel Kelly Horan Florio of the U.S. Attorney’s Office Civil Rights Division in Newark.
U.S. Attorney’s Office Enters Settlements to Ensure Equal Access for Individuals with Disabilities at Seven Intercity Rail StationsRead the Press Release
GRAND RAPIDS, MICHIGAN — The U.S. Attorney’s Office for the Western District of Michigan has reached five settlement agreements with the following cities to resolve findings of violations of the Americans with Disabilities Act (ADA):
- The City of Bangor
- The City of Dowagiac
- The City of Holland
- The City of Kalamazoo
- The Michigan Department of Transportation (MDOT)
Under these agreements, the intercity rail stations in Bangor, Dowagiac, Holland, Kalamazoo, and Albion will be made accessible to individuals with disabilities. In addition, the U.S. Attorney’s Office resolved ADA compliance issues at two other rail stations in Battle Creek and Grand Rapids through letters of resolution with the owners of those facilities.
Under the five settlement agreements, each city and MDOT committed to making their intercity rail stations accessible. Over the next three years, each will modify portions of its rail station and its access points, including parking lots, waiting areas, restrooms, and platforms. These agreements, along with the Justice Department's 2020 settlement with Amtrak, are a part of the Department of Justice’s ongoing effort to achieve the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities, through equal access to transportation.
The U.S. Attorney’s Office is dedicated to enforcing federal civil rights laws, including the ADA, with the goal of protecting and upholding the civil rights of all people in our community. Individuals who believe they may have been victims of discrimination may call the U.S. Attorney’s Office Civil Rights Hotline at 616-808-2195. Additional information about the ADA can be found at www.ada.gov or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).
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U.S. Attorney’s Office Concludes Investigation into Fatal Shooting in Fort Slocum ParkRead the Press Release
No Charges to Be Filed Against Metropolitan Police Sergeant
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against a Sergeant from the Metropolitan Police Department who was involved in the fatal shooting, in July 2022, of Kevin Hargraves-Shird, at Fort Slocum Park in Northwest Washington.
The U.S. Attorney’s Office and the Metropolitan Police Department (MPD) conducted a comprehensive review of the incident. This included a review of law enforcement and civilian eyewitness accounts, physical evidence, recorded body-worn camera (BWC) footage, recorded radio communications, forensic reports, the autopsy report, and reports from the Metropolitan Police Department.
According to the evidence, around 4 p.m., on Saturday, July 30, 2022, MPD Sergeant Reinaldo Otero-Camacho of the Fourth District responded to a radio dispatch for a shooting that had just occurred in the 900 block of Longfellow Street, near the MPD 4th District Police Station. According to radio broadcasts and information known to MPD, an individual involved in the shooting—during which two juveniles had been shot—had gotten into a white vehicle and fled. Sergeant Otero observed the fleeing vehicle and attempted to conduct a traffic stop. The fleeing vehicle refused to stop. After a brief chase, the vehicle struck a curb near the edge of Fort Slocum Park. At the time of the crash, a neighborhood resident was hosting a party and had set up an inflatable moon bound for several children attending the party.
When the car stopped, three males immediately fled. One male, Mr. Hargraves Shird, also started to flee, but appeared to return to the vehicle and rummage through it looking for something. When Sergeant Otero arrived, Mr. Shird immediately fled, as well. As Sergeant Otero exited his police cruiser, he screamed “Gun, gun, gun!” and discharged one round from his service pistol, striking Mr. Shird in the right ear. Although on-scene officers provided emergency medical assistance, Mr. Hargraves-Shird was transported to MedStar Hospital where he was pronounced dead later that evening.
A gun with Mr. Hargraves-Shird’s DNA was recovered a few feet from where he fell to the ground. Although many civilians at the party observed some aspects of the incident, the inflatable moon-bounce blocked the view. Based on the entry wound of the bullet, as well as Sergeant Otero’s and Mr. Hargraves-Shird’s positioning, Mr. Hargraves-Shird was likely facing Sergeant Otero at the time he fired his weapon.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the Sergeant Otero used excessive force under the circumstances.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove civil rights violations, prosecutors must typically be able to prove that the involved officers willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are investigated fully and completely. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
U.S. Attorney’s Office Collects $3,418,522.70 in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson announced today that the Southern District of West Virginia collected $3,418,522.70 in criminal and civil actions in Fiscal Year 2022. Of this amount, $1,771,403.30 was collected in criminal actions and $1,647,119.40 was collected in civil actions.
Additionally, the Southern District of West Virginia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2,698,400.58 in cases pursued jointly by these offices. Of this amount, $2,372.47 was collected in criminal actions and $2,696,028.11 was collected in civil actions.
In 2022, the Southern District of West Virginia recovered $907,074.64 from Dr. Craig M. Morgan and Eye Consultants of Huntington Inc. to resolve allegations that they submitted false claims to Medicare and Medicaid. In late 2021, the District recovered $500,000 from Henry Schien, Inc., (“HSI”) a wholesale medical distributor based in Long Island, New York, as part of a settlement agreement with the United States to resolve civil penalty claims arising from its improper distribution of opioids and other controlled substances to medical and dental practitioners in five states in violation of the Controlled Substances Act (CSA).
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.
Additionally, the U.S. Attorney’s office in the Southern District of West Virginia, working with partner agencies and divisions, collected $2,255,269 in asset forfeiture actions in FY 2022. 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.
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.
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Two Men Sentenced for Shipping Methamphetamine from Los Angeles to Greater MinnesotaRead the Press Release
ST. PAUL, Minn. – Two men have been sentenced to prison for trafficking methamphetamine that was shipped through mail from Los Angeles to Bemidji, Minnesota, announced United States Attorney Andrew M. Luger.
According to court documents, on July 20, 2021, Molandas Johnson, 26, brought five pounds of methamphetamine to a Post Office in Los Angeles and shipped it to an address in Bemidji, Minnesota. After federal agents from Minnesota observed Johnson ship the package, the agents obtained a search warrant to seize the packaged methamphetamine. Days later, U.S. Postal Investigators and other officers conducted a controlled delivery of the package in Bemidji, and observed co-conspirator Luis Francisco Hernandez, 24, picking up the package.
Johnson pleaded guilty on July 6, 2022, to conspiracy to distribute controlled substances. He was sentenced on January 25, 2023, in U.S. District Court by Judge Nancy E. Brasel to 10 years in prison followed by five years of supervised released.
Hernandez also pleaded guilty on July 6, 2022, to distribution of controlled substances. He was sentenced on February 9, 2023, by Judge Nancy E. Brasel to nine years in prison, followed by four years of supervised release.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the U.S. Postal Inspection Service, the Bureau of Indian Affairs, the Minnesota Bureau of Criminal Apprehension, and the Paul Bunyan Drug Task Force.
Assistant U.S. Attorney Bradley M. Endicott and Drew R. Winter prosecuted the case.
Twice Convicted Federal Felon Pleads Guilty to Wire Fraud as Federal Trial Was About to BeginRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Steven D. Blumhagen, 71, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to wire fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Jonathan P. Cantil and John D. Fabian, who are handling the case, stated that between April 2016, and January 2020, Blumhagen defrauded three investors out of $400,000, by soliciting the victims to purchase interests in entities he claimed to own, manage, or control. Blumhagen told victims that their investments would enable those entities to finance legal marijuana operations, real estate developments, and an investment technology, and that they could expect significant returns on their investments. Instead of using the money as promised, Blumhagen used some or all of the money for personal expenses. He also used the investment of one victim to pay back previous victims. Part of the scheme involved a limited liability company allegedly owned by Blumhagen’s children, which they knew nothing about.
As a result of the scheme, at least one victim experienced a substantial financial hardship, withdrawing funds from a retirement account, resulting in substantial penalties.
Blumhagen has two prior federal convictions in the Western District of New York. In 2006, he pleaded guilty to conspiracy to commit mail fraud for bilking investors out of more than $10,000,000 related to his sale of shares in the golf course project Tee-to-Green, and was sentenced to serve 57 months in prison and ordered to pay more than $10,000,000 in restitution. In 2018, Blumhagen pleaded guilty to bank theft for his involvement in a bond scheme, which raised more than $1,400,000 from potential investors. Blumhagen was sentenced to time served and ordered to pay more than $1,200,000 in restitution. Blumhagen was on pre-trial release for the bank theft charge when he committed the wire fraud.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Darren Cox.
Sentencing is scheduled for June 9, 2023, before Judge Sinatra.
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Tulsa Man Pleads Guilty to Second Degree MurderRead the Press Release
A defendant pleaded guilty Wednesday in federal court for shooting and killing a man who attempted to drive away after a brief verbal altercation, announced U.S. Attorney Clint Johnson.
Dillon Charles Wilson, 26, of Tulsa, pleaded guilty to second degree murder in Indian Country.
Wilson admitted that on Jan. 19, 2022, he shot victim Jamitric Landrum, killing him.
Tulsa Police officers were dispatched to the 5900 block of Charles Page Boulevard in Tulsa just after 1 am in reference to the shooting. The victim was located in a wrecked vehicle with a gunshot wound to the back and was transported to the hospital where was later pronounced dead.
According to court documents, a witness told responding officers that she and the victim were driving around looking for an unknown individual they thought had try to force his way into her apartment. The victim was driving the vehicle and pulled into a parking lot near the apartment complex. She stated that she saw two men and a woman in the parking lot talking to a tow truck driver. At one point, Landrum unrolled the window and made a remark to one of the men, who considered it disrespectful. The man, later identified as Wilson, then pulled out a firearm. The witness stated that the victim attempted to drive away when Wilson started shooting at the vehicle. The victim was struck, grabbed his chest, attempted to continue driving, then crashed into a pole. The witness relayed that she saw the shooter get into a gray SUV that sped away.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney John E. Brasher is prosecuting the case.
This case was prosecuted as 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.
Tallahassee Man Indicted for Six Armed Robberies Spanning One WeekRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury has returned a thirteen-count indictment charging Keshawn Jarmarlin Robinson, 21, of Tallahassee, Florida, with six counts of Hobbs Act Robbery, six counts of brandishing a firearm during the commission of a crime of violence, and one count of being a felon in possession of a firearm. The indictment was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
The indictment alleges on or about November 15, 2022, Robinson robbed a Subway restaurant, on or about November 19, 2022, Robinson robbed a business known as the Tobacco Outlet, on or about November 20, 2022, Robinson robbed a Dollar General store, and on or about November 22, 2022, Robinson robbed an Advanced Auto Parts store, a Firehouse Subs restaurant, and the Lemon Pepper restaurant. Each of the robbery locations are in the city of Tallahassee. During each of the robberies, Robinson brandished a firearm. As a previously convicted felon, Robinson is prohibited from possessing a firearm or ammunition under federal law.
If convicted, Robinson faces: 20 years in prison for each Hobbs Act robbery; a mandatory consecutive term of not less than 7 years in prison up to life for each count of brandishing a firearm in furtherance of a crime of violence; and up to 15 years imprisonment for possession of a firearm by a convicted felon.
This case resulted from an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tallahassee Police Department. Assistant United States Attorney Eric K. Mountin is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
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.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
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 for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Stockton Man Indicted for Using a Firearm to Rob Fire Wings RestaurantRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Douglas Sharron Piggee Jr., 51, of Stockton, charging him with Hobbs Act Robbery, brandishing a firearm during and in relation to a crime of violence, and being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on July 21, 2022, Piggee robbed employees of the Fire Wings restaurant in Stockton while brandishing a loaded Polymer 80 Glock 19-style, privately manufactured handgun. Piggee is prohibited from possessing firearms or ammunition because he has previously been convicted of seven felonies, including armed bank robbery and being a felon in possession of a firearm.
This case is the product of an investigation by the San Joaquin County Sheriff Office, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Emily G. Sauvageau is prosecuting the case.
If convicted, Piggee faces a minimum statutory penalty of seven years in prison, a maximum penalty of life in prison, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
St. John the Baptist Man Sentenced to 97 Months Imprisonment for Violations of Federal Firearms and Narcotics LawsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ALFRED STEWART, age 34, of St. John the Baptist Parish, was sentenced on February 7, 2023 by United States District Court Judge Wendy B. Vitter to serve a total of 97 months in federal prison for violations of federal firearms and narcotics laws.
STEWART previously pled guilty on August 30, 2022, to several counts of an indictment charging him with conspiring to distribute cocaine, possession with the intent to distribute cocaine, cocaine base, and methamphetamine, being a felon in possession of a firearm, possesing a firearm in furtherance of a drug trafficking crime.
STEWART was sentenced to 37 months in prison for the narcotics offenses and for being a felon in possession of a firearm and to 60 consecutive months for possessing a firearm in furtherance of a drug trafficking crime for a total sentence of 97 months in federal prison. He was also sentenced to serve 5 years of supervised release following his release from custody and was ordered to pay a mandatory special assessment fee totaling $400.
This case was investigated by agents with the Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Maurice E. Landrieu, Jr. of the Narcotics Unit.
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St. Clair County Felon Admits Machine Gun ChargeRead the Press Release
ST. LOUIS – A convicted felon from Cahokia Heights, Illinois on Thursday admitted being caught with a machine gun at a St. Louis, Missouri hotel.
Henry Miller, 33, pleaded guilty in front of Stephen R. Clark to a charge of being a felon in possession of a firearm and possession of a machine gun.
St. Louis Metropolitan Police Department officers were summoned to the hotel on Dec. 9, 2021 after Miller rented a room using a stranger’s credit card information and a mobile phone app, Miller’s plea says. Later in the day, police found Miller in the lobby with a blue satchel next to him that contained a 9mm Glock pistol that had been modified with a device, sometimes referred to as a Glock “switch,” that converted it into a fully automatic weapon. The Glock had a 29-round extended magazine. A 17-round magazine was also in the satchel. A backpack contained 300 grams of marijuana, a digital scale, $2,889 in cash and another conversion device. The conversion device alone, even if not attached to a weapon, is a machine gun under federal law.
Miller later admitted knowing that the Glock had been modified and admitted testing it to see if it worked.
Miller is scheduled to be sentenced June 8. Each charge carries a potential penalty of up to ten years in prison, a $250,000 fine or both.
The St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
Springdale Woman Sentenced to over 11 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Springdale woman was sentenced today to 137 months in prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, In March of 2021, local law enforcement began investigating a drug trafficking organization operating within the Western District of Arkansas, Fayetteville Division. Through source reporting, investigators learned that, Krystle Marie Owen, age 36, was a member of the organization.
In January of 2022, detectives with the Rogers police department conducted a controlled purchase of methamphetamine from Owen. The suspected methamphetamine was subsequently sent to the Department of Homeland Security Laboratory and tested positive. In February of 2022, investigators with the Fourth Judicial District Drug Task Force arrested Owen after she fled from detectives. Owen had just received a package containing over 1,600 fentanyl pills, which she intended to distribute. Owen was also held accountable for her role in a large-scale drug trafficking organization operating in Northwest Arkansas, which included defendants Antonio Hernandez, Michael Southerland, Troy Franklin and Skylar Houston. All were previously sentenced in Federal Court.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Fourth Judicial District Drug Task Force investigated the case, assisted by the Rogers Police Department.
Assistant U.S. Attorney David Harris prosecuted the case.
This effort is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF 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.
Six Genovese Organized Crime Family Defendants Plead Guilty to RacketeeringRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty pleas of four members and two associates of the Genovese Organized Crime Family to racketeering conspiracy. Genovese Family associate THOMAS POLI pled guilty before United States District Judge John G. Koeltl on September 29, 2022, and is scheduled to be sentenced by Judge Koeltl on April 13, 2023. Genovese Family Captain NICHOLAS CALISI, Solider JOHN CAMPANELLA, and associate MICHAEL POLI pled guilty before Judge Koeltl on February 8, 2023, and are scheduled to be sentenced by him on June 27, 2023. Genovese Family Captain RALPH BALSAMO and Soldier MICHAEL MESSINA pled guilty before Judge Koeltl earlier today and are scheduled to be sentenced by him on June 28, 2023.
U.S. Attorney Damian Williams said: “We remain committed to protecting the people of the Southern District of New York from being preyed on by organized crime. Today’s pleas demonstrate that those who swear a lifetime allegiance to criminal organizations will be prosecuted, no matter their efforts to insulate themselves.”
According to the Superseding Indictment, the defendants’ statements when pleading guilty, and statements made in related court filings and proceedings:
The Genovese Organized Crime Family is part of a nationwide criminal organization known by various names, including “La Cosa Nostra” (“LCN”) and the “Mafia,” which operates through entities known as “Families.”
Like other LCN Families, the Genovese Organized Crime Family operates through groups of individuals known as “crews.” Each “crew” has as its leader a person known as a “Captain” and consists of “made” members, known as “Soldiers.” Soldiers are aided in their criminal endeavors by other trusted individuals, known as “associates,” who sometimes are referred to as “connected” or identified as “with” a Soldier or other member of the Family. Associates participate in the various activities of the crew and its members. In order for an associate to become a made member of the Family, the associate typically needs to demonstrate the ability to generate income for the Family and/or that the associate is capable of committing acts of violence.
A Captain is responsible for supervising the criminal activities of his crew, resolving disputes between and among members of the Family, resolving disputes between members of the Family and members of other Families and other criminal organizations, and providing Soldiers and associates with support and protection. In return, the Captain typically receives a share of the illegal earnings of each of his crew’s Soldiers and associates.
At times relevant to the charges in the Superseding Indictment, NICHOLAS CALISI and RALPH BALSAMO were Captains in the Genovese Family, MICHAEL MESSINA and JOHN CAMPANELLA were Soldiers in the Genovese Family, and MICHAEL POLI and THOMAS POLI were associates of the Genovese Family.
Members of the Genovese Family, including CALISI, BALSAMO, MESSINA, and CAMPANELLA, and associates MICHAEL POLI and THOMAS POLI, engaged in extortionate extensions of credit, financing extortionate extensions of credit, collecting extensions of credit by extortion, extortion, operating illegal gambling businesses, and the transmission of gambling information.
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A chart containing the ages, residency information, and the charges to which the defendants pled guilty, as well as the maximum penalties they face, is attached.
The maximum penalties are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Office of the New York Attorney General’s Organized Crime Task Force and the Kings County District Attorney’s Office and thanked the Federal Bureau of Investigation for its assistance in this investigation.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Celia V. Cohen, Rushmi Bhaskaran, and Justin Rodriguez, as well as Special Assistant U.S. Attorney Pamela Murray, are in charge of the prosecution.
Defendant
Age
City Of Residence
Charges
Max Penalties
MICHAEL MESSINA
69
New Fairfield, CT
Racketeering conspiracy
20 years
NICHOLAS CALISI
63
Boca Raton, FL
Racketeering conspiracy
20 years
RALPH BALSAMO
51
Bronx, NY
Racketeering conspiracy
20 years
JOHN CAMPANELLA
47
Bronx, NY
Racketeering conspiracy
20 years
MICHAEL POLI
37
Hawthorne, NY
Racketeering conspiracy
20 years
THOMAS POLI
64
Bronx, NY
Racketeering conspiracy
20 years
Sioux Falls Woman Sentenced for False StatementRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. Circuit Judge Jonathan A. Kobes, sitting in federal district court, has sentenced a Sioux Falls, South Dakota, woman convicted of False Statement to a Federal Officer. The sentencing took place on February 1, 2023.
Darla Thompson, 48, was sentenced to two years of probation, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and $5,000 in restitution.
Thompson was indicted for False Statement to a Federal Officer by a federal grand jury in March of 2021. She pleaded guilty on October 7, 2022.
The conviction stems from Thompson, while employed as the Custer Branch Manager of Sentinel Federal Credit Union from January of 2018 until August of 2020, using her position at the bank to apply for and receive a loan in a friend’s name. Thompson altered the serial number on the collateral for the loan in order to conceal matters from the bank. The loan was ultimately discovered when the friend became delinquent on the loan. The friend did not know about the loan and Thompson had no permission to use the friend’s name or identity. When questioned about the loan and other matters, Thompson provided false information to a Special Agent with the FBI.
This case was investigated by the Custer County Sheriff’s Office and the FBI. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Serial Fraudster Sentenced to Prison for Lead Role in $2.2 Million Unemployment Fraud SchemeRead the Press Release
DETROIT – A Detroit man was sentenced today to 8 years in federal prison on charges of conspiring to defraud multiple government agencies out of more than $2.2 million in Covid-19 pandemic assistance funds and also to defraud the United States Postal Service (USPS) of more than $200,000, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Irene Lindow, Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Andre Martin, Special Agent in Charge, U.S. Postal Service Office of Inspector General.
Chaz Duane Shields, 35, of Detroit, was sentenced this afternoon by United States District Judge Robert H. Cleland in the United States District Court in Port Huron. Judge Cleland also ordered Shields to pay over $2 million in restitution to the States of California, Michigan, Nevada, and Louisiana, the Small Business Administration, and the USPS.
According to court records, beginning as early as May 2020 and continuing through at least July 2021, Shields and his co-conspirators agreed to submit more than 240 fraudulent unemployment insurance claims to over 20 states, in order to fraudulently obtain more than $2.2 million in unemployment insurance benefits. Shields also successfully obtained a fraudulent $20,833 Paycheck Protection Program (PPP) loan.
Separately, Shields defrauded the U.S. Postal Service of over $200,000 through a scheme in which he conspired to submit more than 1,000 fraudulent Domestic Indemnity Insurance claims, in the names of more than 40 separate individuals to the USPS. Shields and others used USPS Self-Service Kiosks to mail a number of packages. For each of the packages, the conspirators subsequently filed a fraudulent Domestic Indemnity Insurance claim by attesting that the package contained an item of significant value. In reality, the packages typically contained empty plastic picture frames with little to no value. The USPS mailed a check for each successful claim, which Chaz and his co-conspirators cashed, knowing that they were not entitled to the postal indemnity insurance payments.
Shields has an extensive history of fraud and deceit, having accumulated six separate state fraud convictions – five in Michigan and one in Maryland – since 2016.
“We remain committed to working with our law enforcement partners to investigate and prosecute thefts from a multitude of federal programs, especially those aimed at pandemic relief. Individuals who steal money from the government should know that they will be held accountable. Today’s sentence sends a strong message that financial crime does not pay,” U.S. Attorney Ison said.
“Shields and his co-conspirators submitted fraudulent unemployment insurance claims that siphoned off more than $2 million intended to assist individuals who lost their jobs during the COVID-19 pandemic,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI remains committed to working with our law enforcement partners to identify fraudsters like this defendant and hold them fully accountable for their crimes."
"Chaz Shields and his co-conspirators submitted more than 240 fraudulent unemployment insurance claims to multiple state workforce agencies, resulting in the payment of more than $2.2 million in fraudulent benefits. Their scheme diverted money away from American workers in need of relief from the financial effects of unemployment. We will continue to work with our law enforcement partners to safeguard the unemployment insurance system from those who exploit these benefit programs,” said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
Co-conspirators Cortney Shaquan Shields, 31, and Daeshawn Tamar Posey, 27, both of Detroit were previously sentenced to 41 months and 63 months in prison, respectively, in connection with this case. Co-conspirator Brittany Levett Witherspoon, 26, of Warren has also pleaded guilty and will be sentenced on May 1, 2023.
This case was investigated by the U.S. Department of Labor, Office of the Inspector General, the Federal Bureau of Investigation, and the USPS Office of the Inspector General. The case is being prosecuted by Assistant United States Attorneys Ryan A. Particka, and Timothy J. Wyse, and Special Assistant United States Attorney Corinne M. Lambert.
Russian National Charged with Bank Fraud Related to Hacking CampaignRead the Press Release
NEWARK, N.J. – A Russian national was charged in an indictment unsealed today in connection with a series of computer system intrusions that occurred in 2009 and 2010, U.S. Attorney Philip R. Sellinger announced.
Vitaly Kovalev, aka “Bentley,” “Bergen,” and “Alex Konor,” is charged with conspiracy to commit bank fraud and eight counts of bank fraud.
According to the indictment:
From as early as September 2010, Kovalev participated in a conspiracy to obtain unauthorized access to bank accounts held at United States-based financial institutions and transfer funds from those accounts to accounts controlled by Kovalev and his conspirators. Kovalev and his conspirators gained unauthorized access to accounts and made unauthorized transfers of funds into other bank accounts established by, and at the direction of, Kovalev, solely for the purpose of receiving the stolen funds. At the direction of Kovalev, the funds would then be withdrawn or transferred out of these accounts. Kovalev and his conspirators were able to transfer without authorization nearly $1 million from the victim bank accounts, at least $720,000 of which was transferred overseas.
The substantive and conspiracy charges of bank fraud are punishable by a maximum sentence of 30 years in prison and a maximum fine of $1 million.
U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Jose Riera, with the investigation.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore, Chief of the Cybercrime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Rochester Man Pleads Guilty to Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Robert Colon, 32, of Rochester, NY, pleaded guilty to possession with intent to distribute fentanyl before U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Cassie M. Kocher, who is handling the case, stated that between January 2022, and March 9, 2022, Colon sold quantities of cocaine, fentanyl, and/or para-fluorofentanyl to an undercover law enforcement officer on different occasions, which resulted in an arrest warrant being issued on March 23, 2022. Colon was taken into custody on May 30, 2022. At that time, he possessed approximately 189 baggies containing fentanyl, approximately 16 baggies of cocaine, and $1,748 in cash, which represented drug proceeds.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith, the Greater Rochester Area Narcotics Enforcement Team, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
Sentencing is scheduled for June 15, 2023, at 2:00 p.m. before Judge Geraci.
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Rapid City Man Sentenced for Possession of Child PornographyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Possession of Child Pornography. The sentencing took place on February 3, 2023.
Zahkim Vela, 23, was sentenced to three years in federal prison, follow by five years of supervised release. Vela was ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100 and $8,000 in restitution. Vela will be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Vela was indicted for Receipt of Child Pornography and Possession of Child Pornography by a federal grand jury in December of 2021. He pleaded guilty on October 12, 2022.
Vela was federally indicted following a Cybertip from the National Center of Missing and Exploited Children regarding the download of child pornography using the application Kik Messenger. A search of Vela’s Kik Messenger account contained videos and images of child pornography including of infants and toddlers. The Internet Crimes Against Children Taskforce executed a search warrant on Vela’s home and located multiple devices. Vela admitted to receiving, saving, and distributing images of child pornography on Kik Messenger.
This case was investigated by Homeland Security Investigations, the South Dakota Division of Criminal Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Vela was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Illegal Possession of FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on February 3, 2023.
Michael Wilson, 37, was sentenced to four years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Wilson was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in April 2022. He pleaded guilty on October 21, 2022.
In February 2020, in Rapid City, Wilson, a previously convicted felon who is prohibited from possessing firearms, knowingly possessed a Taurus, 9mm caliber, semi-automatic pistol, which was found after Wilson came into contact with law enforcement.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the South Dakota Division of Criminal Investigation, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Wilson was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Illegal Possession of FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. Circuit Judge Jonathan A. Kobes has sentenced a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on February 1, 2023.
Bullman, 25, was sentenced to three years and one month in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Bullman was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in July 2022. He pleaded guilty on October 14, 2022.
In April 2022, in Rapid City, Bullman, a previously convicted felon who is prohibited from possessing firearms, was knowingly in possession of an Iberia Firearms Incorporated, model JS40, .40 caliber, semi-automatic pistol, which was found after Bullman came into contact with law enforcement.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Bullman was immediately remanded to the custody of the U.S. Marshals Service.
Prolific Wadesboro Methamphetamine Trafficker and Co-Conspirator Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Cormelius Smith, 32, a prolific methamphetamine trafficker in Wadesboro, N.C., was sentenced to 151 months in prison followed by five years of supervised release today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Smith’s co-conspirator, Jack Kelly Leak, 49, also of Wadesboro, was ordered to serve 121 months in prison followed by five years of supervised release for his role in the drug distribution ring.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Thedis Spencer of the Wadesboro Police Department join U.S. Attorney King in making today’s announcement.
According to information contained in court documents and court proceedings, between September 2021 and April 2022, the DEA began an investigation into Smith’s methamphetamine trafficking activities in and around Wadesboro. Over the course of the investigation, law enforcement determined that Smith was a prolific drug trafficker responsible for supplying methamphetamine to a network of local dealers in Anson County, including Leak. Court records also show that Smith’s trafficking activities extended beyond Anson County, to include Union, Richmond, Stanly, and Mecklenburg Counties.
According to documents filed with the court, over the course of the investigation Smith engaged in multiple drug transactions with confidential sources cooperating with law enforcement. On December 8, 2021, law enforcement executed an arrest warrant at Smith’s residence, from which they seized methamphetamine, digital scales, firearms and more than $23,000 in drug proceeds. At today’s sentencing hearing, the Court determined that Smith, assisted by Leak and others, was responsible for trafficking more than two kilograms of methamphetamine.
Smith and Leak pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, and distribution of methamphetamine. The defendants are currently in federal custody. They will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended the DEA and the Wadesboro Police Department for their investigation of the case, and thanked the Anson County Sheriff’s Office, the Union County Sheriff’s Office, the Richmond County Sheriff’s Office, the Stanly County Sheriff’s Office, the Charlotte-Mecklenburg Police Department, and the Marshville Police Department for their assistance.
U.S. Attorney King also thanked the District Attorney’s Office in Prosecutorial District 21 which encompasses the counties of Anson and Richmond, the District Attorney’s Office in Prosecutorial District 30 which has jurisdiction over Union County, and the District Attorney’s Office in Prosecutorial District 28, which includes Stanly County.
Assistant United States Attorneys Regina Pack and Christopher Hess of the U.S. Attorney’s Office prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Portland Gang Affiliate Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
PORTLAND, Ore.—A Portland resident and affiliate of the Rollin’ 60s Crips gang was sentenced to federal prison today for illegally possessing a firearm as a convicted felon.
Kneko Tyray Moore, 34, was sentenced to 77 months in federal prison and three years’ supervised release.
According to court documents, on the evening of April 17, 2020, the Portland Police Bureau (PPB) received numerous calls from neighbors about an unruly gathering taking place at the Lone Fir Cemetery in southeast Portland during the height of the Covid-19 pandemic. Callers reported that approximately 20 people were having a barbeque and playing loud music in the cemetery. The gathering was a memorial party for Patrick Kimmons, a deceased Rollin’ 60s Crips gang member buried at the cemetery.
An undercover officer reported seeing known members or associates of the Rollin’ 60s Crips gang, including Moore, at the gathering. Six of the attendees, also including Moore, were on state or federal supervision following felony weapons convictions. When marked police cars arrived on scene, Moore quickly left the group and walked toward a black sedan. He entered the vehicle and sped away, nearly hitting a tree and an unmarked police vehicle.
Two officers then assigned to PPB’s Gun Violence Reduction Team followed Moore as he left the cemetery and pulled him over after he almost struck another car. Both officers recognized Moore as a Rollin’ 60s affiliate and convicted felon and reported he was visibly nervous and trembling. Moore became agitated when the officers impounded his vehicle and placed him under arrest for interfering with an officer. When officers searched Moore’s vehicle, they found a loaded .40 caliber semi-automatic pistol with a chambered round on the front passenger floorboard.
On October 6, 2020, a federal grand jury in Portland returned an indictment charging Moore with illegally possessing a firearm as a convicted felon. On December 10, 2021, he was found guilty after a four-day trial.
This case was investigated by PPB and the FBI with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It was prosecuted by Gary Sussman and Leah Bolstad, Assistant U.S. Attorneys for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Port St. Lucie Man Sentenced to Prison for Possession of Child Sexual Abuse MaterialRead the Press Release
MIAMI – Nicholas James Sorgenfrey, 38, of Port St. Lucie, Fla., who previously had been convicted of a sex offense, has been sentenced to 12 years in prison for possessing child sexual abuse material on his cell phone and cloud storage account.
According to the affidavit, Sorgenfrey uploaded child sexual abuse material to his cell phone service provider’s cloud storage system. A review of this content revealed material of prepubescent minors. After a search of his residence, Sorgenfrey admitted to using social media apps to obtain sexually explicit images and videos. A search of his phone revealed several videos depicting sexually explicit conduct of children, including preteen children.
United States Attorney for the Southern District of Florida Markenzy Lapointe and acting Special Agent in Charge Maged Behnam, FBI Miami, announced the sentence imposed by U.S. District Court Judge Aileen Cannon who sits in Ft. Pierce, Fla.
FBI and the Martin County Sheriff’s Office investigated the case. Assistant U.S. Attorney Christopher Hudock prosecuted it.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 PSC’s initiative and information regarding internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pittsburgh Man Pleads Guilty to Distributing and Possessing Child Sex Abuse Materials, Immediately Sentenced to 8 Years in PrisonRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty yesterday in federal court in Pittsburgh to distributing and possessing material depicting the sexual exploitation of minors, and upon conviction, was sentenced to 96 months’ imprisonment and 10 years’ supervised release, United States Attorney Cindy Chung announced today.
U.S. District Judge J. Nicholas Ranjan imposed the sentence on Cody Green, age 25.
According to information presented to the court during the guilty plea hearing, Green was communicating with other individuals using private communication applications, to include Wickr and Tumbler, and distributed on July 16, 2021, and Aug. 30, 2021, images and videos to those individuals which depicted the sexual exploitation of prepubescent minors. A search warrant was executed at his residence on Sept. 1, 2021, by agents of the Federal Bureau of Investigation and other members of the Western Pennsylvania Violent Crimes Against Children Task Force. Green’s cellular telephone was seized and found to contain 19 still images and 248 videos containing child sex abuse material, some of which depicted sex acts with children younger than 2 years old.
Prior to imposing sentence, Judge Ranjan emphasized the egregious nature of Green’s conduct and communications, and stated that he hoped that he would take advantage of sex offender and mental health treatment while incarcerated. Judge Ranjan further ordered Green to pay a total of $15,300 in special assessments, as well as restitution to ten child victims totaling $32,000. The court revoked Green’s bond and he was taken into custody.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation and other members of the Western Pennsylvania Violent Crimes Against Children Task Force for the investigation leading to the successful prosecution of Green.
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.justice.gov/psc.
Philadelphia Man Pleads Guilty His Role in a Robbery Spree Targeting Latino Businesses in North Philadelphia One Year AgoRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Acia Moore, 20, of Philadelphia, PA, pleaded guilty today to two counts of attempted Hobbs Act robbery, one count of Hobbs Act robbery, and one count of carrying and using a firearm during the commission of a crime of violence. Moore and co-defendant, Omar White-Davis, 29, of Philadelphia, were charged by Indictment with these offenses in connection with multiple armed robberies of businesses in the Feltonville and Juniata sections of North Philadelphia, including Café Tinto restaurant on Wyoming Avenue, which was targeted twice in two days.
According to the Indictment, the defendants attempted to rob and did rob a variety of small businesses, both together and separately, stealing approximately $3,100 dollars total between November 21 and December 6, 2021. The incidents detailed are as follows:
- On November 21, 2021, White-Davis attempted to rob the Ariel Grocery, 2000 block of E. Pacific Street;
- On December 1, 2021, Moore robbed the Al-Molhem Store, 400 block of E. Wyoming Avenue;
- On December 2, 2021, White-Davis and Moore robbed Café Tinto, 100 block of E. Wyoming Avenue;
- On December 4, 2021, Moore returned to Café Tinto approximately 48 hours later and robbed it again;
- On December 6, 2021, Moore robbed the Leslie Mini Market, 4200 block of Bodine Street; and,
- Also on December 6, 2021, approximately an hour later, Moore and White-Davis attempted to rob the Hernandez Food and Deli Market, 4500 block of D Street.
“These defendants robbed small local businesses in the Feltonville and Juniata neighborhoods," said U.S. Attorney Romero. "They were so brazen that they targeted the same business twice in two days. We will remain dedicated to making our neighborhoods safer, and to working with our local, state and federal partners to identify, investigate, apprehend, and prosecute violent individuals like these defendants."
“Moore and his co-defendant went on a crime spree, targeting neighborhood businesses six times in just over two weeks and threatening their victims at gunpoint to terrify them into compliance,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Now that they’ve admitted to their crimes, they'll be off the street and not able to menace innocent people who are just trying to make a living.”
After pleading guilty, Moore is set to be sentenced in April 10, 2023 before the Honorable Gerald A. McHugh.
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 case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert.
Philadelphia Auto-Mechanic Pleads Guilty to Trafficking Hazardous Automobile Airbags from ChinaRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline Romero announced that Emiliano Rodriguez, 45, a citizen of the Dominican Republic residing in Philadelphia, PA pleaded guilty to one count of trafficking in counterfeit goods, and two counts of causing the delivery of hazardous materials by air carrier in connection with a scheme to utilize counterfeit goods in used vehicles, which he then resold to unsuspecting customers.
From at least in or about January 2017 through on or about October 30, 2019, defendant Rodriguez, an auto mechanic, fraudulently imported airbags from China and installed these defective parts in salvaged autos which were then reintroduced to the consumer market. China has been identified as the largest exporter of counterfeit commodities, including counterfeit airbags. Persons involved in the trade of counterfeit airbags engage in this practice in an effort to increase profits from their sales by decreasing the costs of the parts used to replace the original items. Unsuspecting motorists purchase remanufactured vehicles unaware of the history or the substandard/defective part(s) used in the vehicle reconstruction. Once purchased and driven on public roads, the vehicles expose the driver, passengers and general public to the hazards associated with vehicle malfunctions due to the use of substandard parts. Some of these malfunctions may include tires prone to blow-outs, brakes unable to withstand the high temperatures associated with highway driving speeds, and airbags incapable of timely inflation or over-inflation that result in the death or serious injury of the driver or others exposed to the defective airbag. In this case, federal agents recovered more than 450 counterfeit airbags and parts from Rodriguez’s residence and business.
"Counterfeit airbags are playing Russian roulette with the lives of unsuspecting consumers," said U.S. Attorney Romero. "The National Highway Traffic Safety Administration notes that counterfeits have consistently been shown to malfunction. Emiliano Rodriguez peddled these airbags for profit, knowing lives would be at risk. Consumers must also be aware of the threat. Our office will continue to work with federal, state, and local law enforcement partners to keep these dangerous counterfeit products from being imported."
“Emiliano Rodriguez’s plea should serve as a potent warning that disreputable actors could circumvent our laws and safety protocols by using international commerce to obtain and install faulty, unsafe, and counterfeit equipment in order to make a profit,” said Special Agent in Charge of Homeland Security Investigations Philadelphia William S. Walker. “In all commercial transactions, we urge consumers to conduct their own research and only purchase from reputable dealers who have a verifiable track record of legal performance. The consequences of not doing so can be dire, including monetary losses or even the loss of life or limb.”
“Today’s announcement is a sober reminder that the safety of the public is put at grave risk when counterfeit airbags are illegally transported by air and later introduced into the market and cars traveling on our roads,” said Christopher A. Scharf, Special Agent in Charge, Department of Transportation Office of Inspector General, Northeastern Region. “As we continue working with our law enforcement and prosecutorial partners, we also encourage the public to review resources available at https://www.nhtsa.gov/equipment/air-bags#the-topic-fake-air-bags.”
The defendant faces a maximum possible sentence of 10 years’ imprisonment, three years of supervised release, fines of $50,000, and a $200 special assessment. As a non-U.S. citizen, he also faces deportation.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations and the Department of Transportation, and is being prosecuted by Assistant United States Attorney M. Beth Leahy.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacist Convicted for $1M Prescription Drug FraudRead the Press Release
A federal jury in the Middle District of Florida convicted a Virginia man today for his role in a scheme to defraud Medicare of over $1 million in prescription drug benefits.
According to court documents and evidence presented at trial, Ronald A. Beasley II, 33, of Portsmouth, was the pharmacist in charge at NH Pharma, a pharmacy located in Lake Mary, Florida. Through NH Pharma, Beasley and his co-conspirators billed Medicare for expensive compound drug creams that they never actually purchased or dispensed, and instead provided Medicare patients an inexpensive compound drug cream not covered by Medicare. Inventory records showed that NH Pharma did not buy enough of the expensive prescription drugs to fill all the prescriptions NH Pharma billed to Medicare. In total, Beasley and his co-conspirators received more than $1 million in fraudulent proceeds from Medicare.
Beasley was convicted of conspiracy to commit health care fraud and three counts of health care fraud. He is scheduled to be sentenced on April 25 and faces a maximum penalty of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge David Walker of the FBI Tampa Field Office; and Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of the Inspector General (HHS-OIG), Miami Regional Office made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorneys Reginald Cuyler Jr. and Darren C. Halverson of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Passaic County Lawyer Charged with Fraud in Connection with COVID-19 Relief FundsRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, attorney was arrested today for fraudulent acts he committed in connection with COVID-19 relief funds, U.S. Attorney Philip R. Sellinger announced.
Morton Chirnomas, 60, of Clifton, New Jersey, is charged by complaint with one count of wire fraud. He is scheduled to appear before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to the complaint:
From May 2020 to September 2020 Chirnomas fraudulently obtained a $150,000 loan through the COVID-19 Economic Injury Disaster Loans program. He also falsely obtained $200,000 in unemployment insurance benefits using the names of other people.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, twice the gross profits, or twice the gross loss suffered by the victims of the offense, whichever is greatest.
U.S. Attorney Sellinger credited postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Orrington Man Faces up to 20 Years Following Guilty Plea to Drug Trafficking and Gun ChargesRead the Press Release
BANGOR, Maine: An Orrington man pleaded guilty today in U.S. District Court in Bangor to conspiracy to traffic methamphetamine and fentanyl in Penobscot County as well as conspiring to make false statements to federal firearms licensee.
According to court records, between January 2018 and December 2021, Joshua Jerrell, 27, conspired to distribute and possess with the intent to distribute methamphetamine, a substance containing methamphetamine and fentanyl. Jerrell regularly arranged to obtain quantities from a source through phone calls, texts and social media using coded language. He would then distribute these drugs to his customers in Penobscot County. In June 2021, Jerrell made false statements to a federal firearms licensee in Holden in an attempt to obtain firearms for his drug supplier.
Jerrell faces a maximum term of 20 years imprisonment on the drug charge and up to five years on the firearms conspiracy charge. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration, Maine Drug Enforcement Agency, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistance was provided by the Orono, Bangor, Brewer, Caribou, Presque Isle and Houlton police departments. U.S. Attorney Darcie N. McElwee also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office.
Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Omaha Man Sentenced for Firearm and Drug Trafficking CrimesRead the Press Release
United States Attorney Steven Russell announced that Zaire Robinson, 28, of Omaha, Nebraska, was sentenced on February 8, 2023, in federal court in Omaha for possessing methamphetamine with the intent to distribute and possessing a firearm during a drug trafficking crime. United States District Judge Brian C. Buescher sentenced Robinson to 120 months’ imprisonment on the drug charge and 60 months on the gun charge, consecutive, for a total sentence of 180 months. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release for each charge, to run concurrently.
On September 18, 2020, a source working with law enforcement purchased a Keltec .380 handgun and $80 worth of marijuana from Robinson. On October 15, 2020, the source bought 3.5 grams of marijuana and a Ruger 9mm handgun from Robinson. On January 27, 2021, the source bought an AR15 rifle with high-capacity magazine, various calibers of ammunition, and additional firearm companion items. On March 22, 2022, the source went to Robinson’s apartment to purchase 10 fentanyl pills. Law enforcement searched the apartment on March 28, 2022, and seized hundreds of fentanyl pills, a small quantity of cocaine, and a Glock 22, .40 caliber firearm.
This evidence led officers to a second location where six pounds of methamphetamine and two ounces of powder cocaine were seized. Robinson admitted to possessing the narcotics and firearms.
This case was investigated by the Omaha Police Department and Bureau of Alcohol, Tobacco, Firearms & Explosives.
North Carolina Man with a Violent Criminal Past is Convicted of Armed Heroin Trafficking in Athens, GeorgiaRead the Press Release
ATHENS, Ga. – A North Carolina man with a violent criminal history was convicted by a federal jury today on charges related to armed heroin trafficking in the Athens community.
Nathaniel Hilliard III, 37, of Raleigh, North Carolina, was found guilty of one count of possession of a firearm by a convicted felon, three counts of distribution of heroin and one count of failure to appear today following a three-day trial that began on Feb. 7 before U.S. District Judge C. Ashley Royal. Hilliard faces a maximum penalty of 20 years in prison and a $250,000 fine for each count of distribution of heroin and a maximum penalty of ten years in prison and a $250,000 fine for both possession of a firearm by a convicted felon and failure to appear.
According to court documents and evidence presented at trial, local and federal agents were investigating armed drug trafficking in the Athens community in May 2016. Hilliard sold an FBI confidential informant (CI) a .38 special revolver and several small quantities of heroin between May 23-25, 2016, at the Rolling Ridge Apartments in Athens. All of the buys were audio and video recorded, and one occurred in the presence of what appeared to be a preschool-aged child. Hilliard has prior convictions for conspiracy to commit robbery with a dangerous weapon and assault by strangulation out of North Carolina.
While on pretrial release, Hilliard was living in North Carolina and being supervised by a U.S. Probation Officer (P.O.) in the Western District of North Carolina. On April 7, 2022, Hilliard’s P.O. advised him to make sure he appeared in court for his pretrial conference in Athens on April 13, 2022, but Hilliard was uncooperative and did not show up to a requested meeting with his P.O. the next day. He also failed to appear at his pretrial conference in Athens. A bench warrant was issued for his arrest and Hilliard was located on July 8, 2022, after he was arrested in Charlotte, North Carolina, on domestic violence charges.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF 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 case was investigated by the FBI Athens Middle Georgia Safe Streets Gang Task Force, Northeast Georgia Regional Drug Task Force and the Athens Clarke County Police Department Gang Unit.
The case is being prosecuted by Assistant U.S. Attorneys Mike Morrison and Tamara Jarrett.