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Thursday 15 December 2022
FBI and Local Drug Task Forces Make One of the Largest-Ever Drugs Seizures in Eastern Washington HistoryRead the Press Release
Richland – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that the FBI’s Southeast Washington Safe Streets Task Force, in partnership with multiple local law enforcement agencies, executed a series of federal search warrants at several residential locations in the Tri-cities area.
According to court documents, these drugs were seized on December 14, 2022 as part of an investigation into the use of the United States Postal Service to traffic multiple-pound quantities of dangerous controlled substances, including fentanyl-laced pills and methamphetamine. In total, the FBI and its local law enforcement partners seized more than 100,000 fentanyl-laced pills (to include pink and rainbow-colored pills), more than 50 pounds of methamphetamine, and approximately 1 kilogram of cocaine. The FBI and its local partners also seized approximately $15,000 in U.S. Currency and several money counters, which typically are used by banks to count large amounts of U.S. Currency. More than 20 firearms were seized, along with a significant amount of ammunition.
According to public court documents, several individuals have been charged in connection with the investigation. On December 6, 2022, Angel Ramon Barajas-Zarate was indicted by a federal grand jury on one count of Attempted Possession with Intent to Distribute 50 Grams or More of Actual Methamphetamine. Hector Sanchez-Mendez was charged with Possession with Intent to Distribute 500 Grams or More of Methamphetamine in a complaint filed on December 15, 2022. A separate complaint filed on December 15, 2022, charges Jeremy Obediha Hendricks and Nichole Diane Holland with Possession with Intent to Distribute 50 Grams or More of Actual (Pure) Methamphetamine.
U.S. Attorney Waldref commended the joint efforts of law enforcement for removing such a large quantity of illegal narcotics from the community. U.S. Attorney Waldref stated, “Illegal narcotics, and fentanyl in particular, have become a scourge across the United States. I’m grateful to the FBI and our critical Safe Streets Task Force partners for working together to combat this dangerous poison. Without their combined efforts, more than 100,000 deadly fentanyl-laced pills and more than 50 pounds of methamphetamine would not have been removed from the community. As a result, our neighborhoods and communities are safer and stronger.”
This ongoing case is being investigated by the FBI Task Force, along with the United States Postal Inspection Service. The FBI Task Force has been assisted by multiple local law enforcement entities, including the Benton County Sheriff’s Office, Richland Police Department, Kennewick Police Department, Pasco Police Department, West Richland Police Department, Franklin County Sheriff’s Office, the METRO Drug Task Force, and the Washington State Department of Corrections. The Drug Enforcement Administration and the United States Border Patrol also provided assistance. These cases are being prosecuted by Assistant United States Attorneys Stephanie Van Marter and Caitlin Baunsgard.
An indictment and a complaint are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
4:22-CR-6052-SAB
4:22-MJ-7217-ACE
4:22-MJ7218-ACE
Eleven Men Face Drug and Firearm Charges, Including for Sale of “Switches” That Turn Semi-Automatic Pistols into Fully Automatic Machine GunsRead the Press Release
Joint investigation led by FBI and involved ten other federal, state, local, and tribal law enforcement agencies
GRAND RAPIDS, MICHIGAN — At a 3:00 p.m. press conference in Benton Harbor this afternoon, U.S. Attorney Mark Totten was joined by several local, state, federal, and tribal law enforcement officials to announce that, earlier today, eleven men from Benton Harbor and Grand Rapids, Michigan were charged with drug trafficking and firearms crimes. Five were arrested this morning, and five were in custody on prior charges. Seven men face charges related to the possession and transfer of firearm conversion devices, known as “switches,” which transform ordinary semi-automatic pistols into fully automatic machine guns. According to a criminal complaint filed in the case, a switch can be installed with little technical knowledge in approximately one minute. Once installed, it can enable a semi-automatic pistol to fire over 1,000 rounds per minute with a single trigger pull.
“Today’s action represents a major step forward in our efforts to combat the rise of violent crime in Michigan,” said Mark Totten, U.S. Attorney for the Western District of Michigan. “The destructive capacity of a firearm equipped with a switch is staggering. These devices are an emerging threat to our communities, our children, our law enforcement officers, and anyone who stands in the path of their indiscriminate spray.” Totten also commended the joint law-enforcement effort behind today’s action: “These charges represent a remarkable, multi-agency effort that involved the FBI and ten other federal, state, local, and tribal law enforcement partners working together to keep West Michigan families safe.”
Approximately 200 law enforcement officers executed the arrest and search warrants early this morning in Benton Harbor, Grand Rapids, and St. Joseph, Michigan, as well as Port St. Lucie, Florida. The charges include:
Name
Resident
Age
Charge
Evorion Anderson
Benton Harbor
20
Distribution of methamphetamine;
conspiracy to distribute methamphetamine
Jayvon Anthony
Benton Harbor
21
Possession or transfer of a machine gun; conspiracy to possess or transfer a machine gun; felon in possession of a firearm
Earl Austin IV
Benton Harbor
21
Distribution of methamphetamine; conspiracy to distribute methamphetamine; possession or transfer of a machine gun; conspiracy to possess or transfer a machine gun
Quincy Bowman
Benton Harbor
25
Conspiracy to possess or transfer a machine gun
Omarion Branch
Benton Harbor
19
Felon in possession of a firearm
Torez Burnett
Benton Harbor
20
Conspiracy to possess or transfer a machine gun
Nicholas Hallo
Grand Rapids
32
Felon in possession of a firearm
Demetrius Seuell
Benton Harbor
22
Possession or transfer of a machine gun and conspiracy to possess or transfer a machine gun
Timothy Thomas
Benton Harbor
25
Felon in possession of a firearm and ammunition
Armando Villanueva
Grand Rapids
22
Conspiracy to possess or transfer a machine gun
Eric Williams
Grand Rapids
23
Conspiracy to possess or transfer a machine gun
“Fighting violent crime requires approaches tailored to the needs of individual communities. That is why our approach to disrupting this conspiracy to distribute firearms, switches, and drugs involved the kind of coordination you see here today,” said James A. Tarasca, Special Agent in Charge of the Federal Bureau of Investigation in Michigan. “I believe it is the sacred duty of the FBI and our law enforcement partners to ensure people can live free from fear in their own homes and neighborhoods, and we will all continue to do everything we can to protect our communities from violent crime.”
“Conversion devices are not simple firearms parts or metal accessories, as commonly advertised. When a person uses an illegally converted weapon that shoots multiple rounds by a single function, it poses an even more serious threat to public safety,” said Craig Kailimai, Assistant Special Agent in Charge for the Detroit Field Division. “The collaborative effort and commitment between the U.S. Attorney’s Office, our Federal, State of Michigan, and Local partners to investigate and prosecute these cases protects our communities from this violent threat.”
The complaint included these photographs of uninstalled and installed switches as illustrations:
The investigation was led by the FBI, acting in cooperation with the Michigan State Police Southwest Enforcement Team (“SWET”), ATF, Drug Enforcement Administration, Department of Homeland Security, Benton Harbor Department of Public Safety, Benton Township Police Department, Berrien County Sheriff’s Office, Pokagon Band of Potawatomi Indians Tribal Police, Michigan Department of Corrections, and United States Postal Inspection Service.
The charges in a complaint are merely accusations, and all defendants are presumed innocent until and unless proven guilty in a court of law.
A copy of the criminal complaint can be found here.Law enforcement continues to search for Eric Williams. Members of the public with information as to Williams’s whereabouts are encouraged to contact the United States Marshals Service at (616) 456-2438. He is believed to be located in either Benton Harbor or Grand Rapids, Michigan.
Eric Williams
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Dorchester Man Sentenced to 12 Years in Prison for Racketeering ConspiracyRead the Press Release
BOSTON – A Dorchester man was sentenced yesterday for racketeering (RICO) conspiracy stemming from his involvement in the Boston-based street gang, NOB.
Darius Bass, a/k/a “Tre” or “Trigga Tre,” 28, was sentenced by U.S. District Court Judge Leo T. Sorokin to 12 years in prison and three years of supervised release. On June 3, 2022, Bass pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, commonly known as RICO conspiracy.
Bass is one of 10 defendants indicted together in June 2020, as part of a broader federal sweep targeting numerous NOB street gang members and associates in which 31 total defendants were charged. All of Bass’ co-defendants have pleaded guilty to various charges and are awaiting sentencing.
According to court documents, NOB – an abbreviation for the Norton/Olney/Barry streets in Dorchester – is a violent criminal enterprise whose members and associates are involved in numerous types of criminal activities throughout Massachusetts, including murders, attempted murders, armed robberies, drug trafficking, sex trafficking and illegal firearms offenses. During the investigation, numerous contraband items were seized including 11 firearms, over one kilogram of fentanyl (including over 2,000 fentanyl pills manufactured to appear as commercial oxycodone pills), a commercial pill press, over 15 pounds of marijuana and approximately $36,000 in cash.
Bass was an active, central and violent member of the NOB gang who personally committed, planned and supported various crimes on behalf of the gang. The Court determined that Bass was responsible for two attempted murders and took those into consideration at sentencing. Specifically, in October 2016, individuals exchanged gunfire on the University of Massachusetts at Dartmouth campus in a public parking lot near campus housing. Later, in January 2017, several shots were fired at a target’s residence in a residential neighborhood in Randolph.
First Assistant United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Brian A. Kyes, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; New Bedford Police Chief Joseph C. Cordeiro; Quincy Police Chief Paul Keenan; Randolph Police Chief Anthony Marag; Brockton Police Chief Brenda Perez; Stoughton Police Chief Donna McNamara; Suffolk County District Attorney Kevin Hayden; Suffolk County Sheriff Steven W. Tompkins; Plymouth County Sheriff Joseph D. McDonald, Jr.; Bristol County District Attorney Thomas M. Quinn III; and Norfolk County Sheriff Patrick W. McDermott made the announcement today. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit prosecuted the case.
Doctor and Office Manager Indicted in Scheme to Defraud Medicare, Manufacture and Distribute FentanylRead the Press Release
For Further Information, Contact:
Assistant U. S. Attorneys Owen Roth and David ChuSAN DIEGO – Dr. David J. Smith, a pain management physician, and his office manager, Julia Ann Oertle, are charged in a federal grand-jury indictment with perpetuating a long-running scheme to commit healthcare fraud and to manufacture and distribute adulterated fentanyl.
Smith made his initial appearance today before U.S. Magistrate Judge Bernard G. Skomal. Smith’s bond was set at $1 million, secured by real property, with a limitation on his ability to practice medicine. Oertle was still at large.
According to allegations in the indictment, Smith purports to specialize in the installation and maintenance of intrathecal pain pumps which are surgically placed in a patient’s stomach with two catheters implanted on the spine; pain medicine is then infused into a reservoir in the pump periodically, and meted out directly into the spine.
Beginning in December 2017, Smith and Oertle began compounding fentanyl citrate into vials, in a room at Smith’s principal medical practice, San Diego Comprehensive Pain Management Center. According to the indictment, this compounding practice was grossly improper and resulted in the production of adulterated fentanyl. Smith nevertheless directed administration of this fentanyl to patients repeatedly.
The indictment alleges that beyond providing patients with adulterated fentanyl, Smith violated the applicable standards of care by, among other things, prescribing materially excessive quantities of fentanyl, prescribing unnecessary oral opioid medications in conjunction with pain-pump medication, and installing pain pumps in patients without proper assessments for patient need. Smith then had false and fraudulent reimbursement claims submitted to Medicare for these administrations. Among other things, the claims were inflated by nearly 60 percent; they sought reimbursement for large volumes of unnecessarily manufactured fentanyl; they falsely represented that excess fentanyl had been discarded, when in fact it was used; and they did not disclose that the fentanyl was adulterated.
According to the indictment, Oertle illegally ordered fentanyl citrate for compounding; compounded fentanyl with Smith; and helped direct the illegal billing practices.
“We are supposed to be able to trust our doctors with our lives,” said U.S. Attorney Randy Grossman. “This office will use all its resources to protect vulnerable patients from doctors who use them to make money, with no regard for their safety.” Grossman thanked the prosecution team, the FBI, the DEA, the FDA, and the other members of the investigative team for their excellent work on the case.
“Criminal misconduct within the healthcare system is not only deceitful, but also destructive,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office.
“David Smith and Julia Oertle allegedly abused their positions of trust by manufacturing and propagating this toxic poison to patients over an extended period of time, further unraveling the fentanyl crisis our country is experiencing. This investigation clearly demonstrates that the threat of the opioid crisis extends far beyond street level dealing. The FBI will continue to work with our law enforcement partners to protect our communities and ensure justice is served.”
"The DEA is committed to bringing to justice doctors that take the public’s trust and abuse it for their own purposes,” said DEA Special Agent in Charge Shelly S. Howe. “We are grateful for our relationships with the U.S. Attorney’s Office, the FBI and the other agencies who worked to bring these defendants to justice.”
“U.S. consumers must be able to trust that their medicines meet FDA’s required standards of safety and effectiveness,” said Acting Special Agent in Charge Christopher M. Alston, FDA Office of Criminal Investigations Los Angeles Field Office. “Our office will continue to pursue and bring to justice those who jeopardize the public’s health and the public’s trust.”
“According to allegations in the indictment, these defendants were trusted with the medical care of their patients but instead used treatments that were not medically necessary in order to gain financially,” stated Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation’s Los Angeles Field Office. “We will continue to serve the public and help put a stop to schemes like this that take advantage of our medical system and put patients’ care at risk.”
In California, patients receiving treatment at this practice who feel they want to change providers may contact their primary care provider for continued care. Individuals seeking access to primary care or pain management service can find a provider through a local Federal Qualified Health Center. Patients with insurance should contact their health insurance company. Those who are struggling with their intake of opioids can find local providers at Choose Change CA or 1-800-879-2772. Those needing emergency access to substance-use treatment or who are experiencing opioid withdrawal can visit a California Bridges Emergency Room.
In Nevada, patients receiving treatment at this practice who feel they want to change providers may contact their primary care provider for continued care. Individuals needing access to primary care or pain management service can find a new provider through a local Federal Qualified Health Center. Patients with insurance should contact their health insurance company. Those who are struggling with opioid addiction may contact the Nevada Substance Abuse Help Line: 1-775-825-4357 or toll free 1-800-450-9530. Individuals can also contact the Nevada 24-hour help line at 1-800-273-8255 or Text CARE to 839863.
DEFENDANTS Case Number 22-CR-
David James Smith Age: 62 Rancho Santa Fe, California
Julia Ann Oertle Age: 52 Las Vegas, Nevada
SUMMARY OF CHARGES
Conspiracy –18 U.S.C. § 371
Conspiracy to Manufacture and Distribute Controlled Substances –21 U.S.C. §§ 841(a), 841(b)(1)(C), 846
Healthcare Fraud – 18 U.S.C. § 1349
False Claims – 18 U.S.C. § 287
Manufacture of Controlled Substances – 21 U.S.C. § 841(a)
Adulteration of Fentanyl – 21 U.S.C. §§ 331, 333
Maximum penalty: Life in prison and a mandatory minimum term of 10 years in prison; a $10,000,000 fine; supervised release for a maximum of life, and a mandatory minimum term of 5 years; $100 special assessment per count of conviction.
AGENCIES
Federal Bureau of Investigation
Drug Enforcement Administration
Food and Drug Administration
U.S. Department of Health and Human Services
U.S. Marshal Service
Internal Revenue Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Developer Sentenced to 4 Years in Federal Prison for Offering a Million-Dollar Bribe to Secure a $45 Million L.A. County LeaseRead the Press Release
LOS ANGELES – A real estate developer was sentenced today to 48 months in federal prison for offering to buy a million-dollar home for a Los Angeles County public official in exchange for the official’s assistance securing a $45 million county lease for the developer.
Arman Gabaee, 61, a.k.a. “Arman Gabay,” of Beverly Hills, was sentenced by United States District Judge George H. Wu, who also ordered him to pay a fine of $1,149,000.
Gabaee pleaded guilty on May 2 to one count of bribery.
Gabaee was a co-founder and co-managing partner of the Charles Company, a Hollywood-based commercial and residential real estate development firm. The then-county employee whom Gabaee bribed was Thomas M. Shepos, 72, of Palmdale. Shepos was a high-level official in Los Angeles County’s Real Estate Division involved in awarding contracts to real estate developers.
In the years leading up to his million-dollar bribe offer, from approximately 2010 to April 2017, Gabaee paid Shepos bribes and kickbacks of approximately $1,000 every month in exchange for county leases, preferential contract terms, non-public information and other benefits. Shepos began cooperating with the FBI in December 2016. From then until April 2017, Gabaee paid Shepos $6,000 in cash bribes during recorded meetings in cars, restaurants and men’s restrooms, prosecutors said.
After years of paying cash bribes, Gabaee in 2016 “sought to further exploit the corrupt arrangement, this time soliciting Shepos’s help obtaining a $45 million county lease for his Hawthorne Mall property – a lease he believed would increase the value of his property ten-fold,” prosecutors said in sentencing papers. In recordings, Gabaee offered to buy Shepos a million-dollar home in exchange for his assistance securing a 10-year, $45 million county lease for office space in the Hawthorne Mall, which Gabaee owned and was redeveloping. Gabaee admitted in his plea agreement to placing two offers on a Northern California home, first for $1,035,000 and later for $1,065,000, as a bribe for Shepos in exchange for the $45 million lease.
Wiretap calls showed that with a long-term, reliable tenant like the county anchoring the mall, Gabaee believed he could get bank loans to redevelop the property, attract other tenants, and ultimately increase the mall’s assessed value from $17 million to $500 million. With the county lease, Gabaee was considering selling the mall to capitalize on its increased value, wiretap calls showed.
“This defendant gamed the system during a seven-year bribery spree designed to expand his real estate empire,” said United States Attorney Martin Estrada. “The scheme culminated in a massive million-dollar bribe that was motivated by Mr. Gabaee’s immense greed. By facilitating this pay-to-play system, Mr. Gabaee undermined confidence in the integrity and fairness of our public institutions.”
Shepos pleaded guilty in November 2018 to one count of making false statements to federal investigators who were investigating his financial relationship with Gabaee and one count of subscribing to a false tax return related to payments he received from Gabaee. Shepos is scheduled to be sentenced on January 19, 2023.
The FBI investigated this matter.
Assistant United States Attorneys Lindsey Greer Dotson and Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section prosecuted this case.
Correctional Officer Pleads Guilty to Accepting Bribes and Smuggling Contraband into NEOCCRead the Press Release
CLEVELAND – A Northeast Ohio Correctional Center (NEOCC) correctional officer pleaded guilty on Wednesday, Dec. 14, 2022, to accepting bribes in return for supplying marijuana, tobacco, and narcotics to inmates at the facility.
According to court documents, from February 2017 to July 2019, Terry Terrigno, 30, of Canfield, Ohio, maintained a post-office box and regularly received portions of tobacco, marijuana, and Suboxone through the mail from the associates of inmates entrusted to his care.
Court documents state that Terrigno then smuggled the contraband into the NEOCC and redistributed it to the inmates in his care. In return, Terrigno received electronic bribery payments made through a mobile phone application.
In total, Terrigno received more than $8,650 in bribery payments.
This case was investigated by the Department of Justice Office of the Inspector General (DOJ OIG) and the Cleveland FBI. This case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould.
Connecticut Physician and Urgent Care Practice Pay over $4.2 Million to Settle False Claims Act AllegationsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General, today announced that JASDEEP SIDANA, M.D. and DOCS MEDICAL GROUP, INC. (doing business as Docs Medical), DOCS MEDICAL INC., DOCS URGENT CARE LLP, LUNG DOCS OF CT, P.C., EPIC FAMILY PHYSICIANS, LLP, and CONTINUUM MEDICAL GROUP, LLC (collectively, “DOCS”), have entered into a civil settlement agreement with the federal and state governments in which they will pay a total of $4,267,950.21 to resolve allegations that they submitted false claims for payment to Medicare and the Connecticut Medicaid program for medically unnecessary allergy services, unsupervised allergy services, and services improperly billed as though provided by Sidana. The agreement also resolves allegations that Sidana and DOCS improperly billed for certain office visits associated with COVID-19 tests.
Sidana is a physician who specializes in pulmonology and is the owner and Chief Executive Officer of DOCS, a medical practice with more than 20 facilities throughout Connecticut that offers a variety of services to its patients, including primary and urgent care, allergy testing and treatment, and COVID testing.
Medicare and Connecticut Medicaid pay only for services or items that are medically necessary. Some services also have supervision requirements, and allergy tests and the preparation of allergy immunotherapy must be directly supervised by a physician. Direct supervision requires the supervising physician to be present in the same office suite, and immediately available to render assistance if needed.
In early 2014, DOCS and Sidana started providing allergy testing and treatment services to their patients. The government alleges that between October 1, 2016, and September 30, 2017, DOCS and Sidana submitted false claims to Medicare and Medicaid for immunotherapy services that were not medically necessary, and were not directly supervised by a physician. The allegations also involve claims to Medicare and Medicaid for medically unnecessary annual re-testing of allergy patients between January 1, 2014, and November 11, 2018.
The government also alleges that between January 1, 2014, and January 1, 2019, DOCS and Sidana submitted claims for medical services performed by Sidana on dates of service when he was traveling internationally and did not perform or supervise the services. Instead, the services were actually performed by lower-level providers, who typically receive a lower reimbursement rate from Medicare and Medicaid for such services.
Finally, the government contends that when administering tests for COVID, DOCS and Sidana improperly billed Medicare and Connecticut Medicaid for certain evaluation and management (“E&M”) services, commonly referred to as office visits. The government alleges that between April 1, 2020, and December 31, 2020, on the same dates that patients received COVID-19 tests, DOCS and Sidana submitted claims for moderately complex “level 3” E&M services, when those level 3 office visits were not in fact provided.
“Depriving Medicare and Medicaid programs of federal funds that have been set aside for the care and treatment of beneficiaries is disgraceful,” said U.S. Attorney Avery. “Medical services billed to Medicare and Medicaid must be provided based on each patient’s individual medical needs. Providers who participate in government programs must only bill for medically necessary services, and must accurately bill for the services provided. This office is committed to vigorously pursuing health care providers who submit false or fraudulent claims to federal health care programs.”
“Healthcare providers are expected to closely follow Medicare rules and bill properly — nothing more, nothing less,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “When that obligation is violated, government health care programs – and American taxpayers – pay the price. We are committed to pursuing these types of allegations along with our law enforcement partners as we work to protect the integrity of our federal healthcare system.”
As part of this settlement, DOCS and Sidana have entered into a three-year Integrity Agreement with the Department of Health and Human Services, Office of the Inspector General that is designed to ensure future compliance with the requirements of federal healthcare programs.
This matter was investigated by the Office of the Inspector General for the Department of Health and Human Services, and the Connecticut Office of the Attorney General. This case was prosecuted by Assistant U.S. Attorney Sara Kaczmarek, with the assistance of Auditor Kevin Saunders, and by Deputy Associate Attorney General Gregory O’Connell of the Attorney General’s Office.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Task Force at (203) 777-6311.
Charleston County Man Indicted for Wire FraudRead the Press Release
CHARLESTON, SOUTH CAROLINA — A federal grand jury returned a three-count indictment against Jonathan Ramaci, 58, of Charleston, for wire fraud.
Count One of the Indictment alleges that Ramaci diverted at least $600,000 of investor funds that had been raised for his company, Elements of Genius, to another company he controlled, Mobile Life Labs, which were then used for his personal use. Counts Two and Three allege that Ramaci submitted fraudulent documents to the Small Business Administration and approved third party lenders to receive Payroll Protection and Emergency Injury Disaster Relief loans.
Ramaci faces a maximum penalty of twenty years for each count. A detention hearing is scheduled for 3:00 pm on December 15, 2022, before United States Magistrate Judge Molly H. Cherry.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The case was investigated by the Federal Bureau of Investigation in coordination with the Securities Division of the Office of the South Carolina Attorney General. Assistant U.S. Attorney Amy F. Bower is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Centralia, Illinois, Man Sentenced to 15 Years of Imprisonment for Drug and Gun ChargesRead the Press Release
SPRINGFIELD, Ill. – A Centralia, Illinois, man, Charles R. Hays, 45, of the 400 block of Clarida Drive, was sentenced on December 14, 2022, to 15 years of imprisonment after pleading guilty to possession with the intent to distribute 50 or more grams of actual methamphetamine; possession with the intent to distribute 5 or more grams of actual methamphetamine; and possession of a firearm in furtherance of a drug trafficking crime.
At the sentencing hearing in front of U.S. District Judge Sue E. Myerscough, the government presented evidence that on October 15, 2019, Hays was arrested following a traffic stop near Owaneco, Illinois, and found in possession of 60.3 grams of 94% pure methamphetamine. Several weeks later, on November 27, 2019, Hays was again arrested following a second traffic stop in Taylorville, Illinois, and found in possession of 8.8 grams of 94% pure methamphetamine and a Smith and Wesson .38 Special, Model 36 revolver, loaded with five rounds of ammunition. Hays has prior felony convictions and was previously sentenced to the Illinois Department of Corrections for possession of a controlled substance with the intent to distribute and unlawful possession of a firearm by a convicted felon.
Hays was indicted in March 2020 and pleaded guilty to all three charges in October 2021.
The Illinois State Police; Taylorville Police Department; and the Drug Enforcement Administration, Springfield Division investigated the case. Assistant U.S. Attorney Timothy A. Bass represented the government in the prosecution.
Cartersville businessman sentenced to federal prison for filing a false tax returnRead the Press Release
ROME, Ga. - Mohammed Ajmal, a Cartersville businessman, has been sentenced for making and subscribing a false tax return. Ajmal failed to report income from over two million dollars in “kickback” payments from the use of coin-operated amusement machines in his service stations and convenience stores.
“Ajmal exploited his relatives in his plan to cheat the IRS out of hundreds of thousands of dollars,” said U.S. Attorney Ryan K. Buchanan. “Ajmal is now headed to federal prison and will be required to pay full restitution as part of his sentence.”
“Consumed by greed, Mohammed Ajmal utilized his family members to hide income generated from kickbacks and filed a false tax return because he failed to report the income,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation will continue to pursue anyone who commits tax fraud. Those harboring ideas on cheating the tax system, take note that prison time is a consequence for such actions.”
“The GBI Commercial Gambling Unit investigated this case along with federal and local partners. This defendant seeking to defraud the government by evading taxes is being held accountable,” said Michael J. Register, Director, the Georgia Bureau of Investigation.
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Ajmal owned several gas stations and convenience stores in the Cartersville, Georgia, area through various corporations. Many of the stores contained coin-operated amusement machines, known as “COAMs.” COAMs are regulated by the Georgia Lottery Corporation.
Between 2013 and 2015, the Georgia Lottery Corporation issued administrative regulations under Georgia law, which resulted in Ajmal receiving less revenue from the COAMs. In response, Ajmal contacted the company holding the master license for the COAMs and conveyed that the company must pay him additional money, or kickbacks, if the company wished to continue operating COAMs on Ajmal’s properties.
To disguise the kickback payments, Ajmal told the company to write checks to his relatives. Ajmal then used the monies for his own benefit, including to build a new home. From 2015 through 2018, the amount of the kickbacks totaled $2,292,847. Ajmal did not report any of this income on his tax returns for 2015 through 2017. So Ajmal paid less federal tax than he actually owed for those years.
Mohammed Ajmal, 49, of Cartersville, Georgia, has been sentenced to two years in prison to be followed by one year of supervised release and ordered to pay restitution in the amount of $734,232.05. Ajmal was convicted of making and subscribing a false tax return on July 12, 2022, after he pleaded guilty.
This case was investigated by Internal Revenue Service Criminal Investigation and the Georgia Bureau of Investigation, with valuable assistance provided by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Cartersville Police Department, Bartow County Sheriff’s Office, and the Georgia Lottery Corporation.
Assistant U.S. Attorneys Alana Black and Michael Herskowitz prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Carriere Woman Sentenced to Prison for Possession of a Firearm with an Obliterated Serial NumberRead the Press Release
Gulfport, Miss. – A Carriere, Mississippi woman was sentenced to 48 months in federal prison for possession of a firearm with an obliterated serial number, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Sonya Bradstreet, 47, was sentenced today in U.S. District Court in Gulfport.
According to court documents, in January of 2022, DEA task force officers were called to a residence in Lumberton, Mississippi, due to a suspected overdose death. An investigation into the death revealed that the decedent had recently purchased narcotics. A search warrant was obtained for the home of Sonya Bradstreet and three firearms were recovered as part of the search. One of the firearms was located in plain view in the laundry room of the home and it had an obliterated serial number.
Bradstreet was indicted by a federal grand jury on February 23, 2022. She pled guilty on August 17, 2022, to possession of a firearm with an obliterated serial number.
The case was investigated by the Drug Enforcement Agency.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Canadian Father and Son Indicted for Fraudulently Obtaining over $8 Million in COVID-19 Relief FundsRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the unsealing of a six-count indictment charging Evan Edwards (64, New Smyrna Beach) and Joshua Edwards (30, New Smyrna Beach) with federal offenses related to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act and visa fraud. Specifically, Evan and Joshua Edwards are each charged with conspiracy to commit bank fraud, bank fraud, and visa fraud. Joshua Edwards is also charged with making a false statement to a lending institution. If convicted on the conspiracy to commit bank fraud and bank fraud charges, each faces a maximum penalty of 30 years in federal prison on each count. If convicted on the visa fraud charges, each faces a maximum penalty of 10 years in federal prison per count. Joshua Edwards also faces a maximum penalty of 30 years’ imprisonment on the false statement offense. The indictment also notifies the defendants that the United States intends to forfeit any property constituting, or derived from, proceeds obtained directly or indirectly as a result of these violations. The United States previously obtained seizure warrants and recovered more than $8 million in proceeds from the charged criminal conduct.
According to the indictment, beginning approximately April 3, 2020, and continuing through about September 17, 2020, Evan and Joshua Edwards conspired to commit bank fraud and committed bank fraud by submitting a fraudulent Paycheck Protection Program (“PPP”) loan application to an FDIC insured lending institution on behalf of Aslan International Ministry, Inc. (“Aslan”) – a not-for-profit corporation that purportedly provided religious services. In the loan application, the defendants significantly overstated the number of employees and average monthly payroll for Aslan, claiming that it had almost 500 employees and over $2 million in average monthly payroll expenses. They also falsely certified in the loan application that the PPP funds would be used to maintain payroll and for other authorized purposes. Based on the false representations made in the loan application, the defendants received into their bank account approximately $8,417,200 in PPP loan funds, a portion of which they used to make a down payment for the attempted purchase of a multi-million-dollar residence for themselves.
Additionally, in June 2022, Evan and Joshua Edwards each made a materially false statement in certain immigration documents, including their Form I-485 Applications to Register as Permanent Resident or Adjust Status.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the U.S. Secret Service, U.S. Customs and Border Protection, the Volusia County Sheriff’s Office, and the New Smyrna Beach Police Department. It is being prosecuted by Assistant United States Attorney Kara M. Wick.
This case is being prosecuted as part the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act relief programs. The CARES Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of the PPP program, which was administered by the Small Business Administration (the “SBA”). The purpose of PPP loans was to help small businesses that were suffering from economic downturn to continue to pay salary or wages to their employees. The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the crisis.
Buffalo Man Pleads Guilty to Cocaine and Gun ChargesRead 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 Luis Miguel Cruz Del Moral, 38, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute cocaine and being a felon in possession of firearms and ammunition. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Meghan E. Leydecker, who is handling the case, stated that in October 2004, Cruz Del Moral was convicted of Attempted Robbery in Puerto Rico and is legally prohibited from possession firearms and ammunition. On September 17, 2021, investigators executed a search warrant at Cruz Del Moral’s Ontario Street residence. During the search, they recovered five firearms and ammunition, and drug paraphernalia. At the same time, a search warrant was also executed at a residence on South Lane in Buffalo, where SWAT Team members encountered Cruz Del Moral. During that search, they recovered a ripped-open plastic bag from a toilet and observed the toilet bowl lined with suspected cocaine. Investigators also recovered a loaded firearm, a quantity of cocaine, two cocaine presses, a digital scale, and $7,111 in U.S. currency. Law enforcement then search Cruz Del Moral’s vehicle and found another firearm, ammunition, and glassine envelopes.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division; the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Acting Special Agent-in-Charge Michael Stansbury; and the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia.
Sentencing is scheduled for May 22, 2023, at 11:30 a.m. before Judge Arcara.
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Bronx Man Sentenced to 15 Years in Prison for Using Illegal Gun to Shoot Two VictimsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that BATISE BOYCE was sentenced to 15 years in prison by U.S. District Judge Lewis J. Liman. BOYCE pled guilty on September 8, 2022, to one count of possessing a firearm after having previously been convicted of a felony and one count of possessing a firearm in a school zone.
U.S. Attorney Damian Williams said: “Today’s sentence demonstrates the importance and success of the Triggerlock program in bringing together state, local, and federal law enforcement to ensure that repeat firearm offenders receive appropriate sentences for their crimes. I greatly appreciate our law enforcement partners as they work with us to ensure that deadly firearms and violent offenders stay off the streets of our communities.”
According to the allegations in the Indictment and statements made during court proceedings and filings:
BOYCE, 45, of the Bronx, New York, possessed an illegal semiautomatic handgun from at least August 2, 2020, until November 6, 2020, when he was arrested with the gun by officers of the New York City Police Department. Prior to possessing the gun, BOYCE had been convicted of at least six prior felonies, including robbery, an assault with a firearm, and a slashing attack with a knife. On August 2, 2020, BOYCE used the gun to shoot a victim in the head, although the victim fortunately survived. The next night, during an argument, BOYCE struck a second victim in the face with the gun, causing him to bleed, then shot the victim in the back as he attempted to walk away. One of the victim’s legs was amputated as a result.
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Mr. Williams praised the outstanding work of the New York City Police Department.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Hagan Scotten is in charge of the prosecution.
Birmingham Business Owner Pleads Guilty to Tax FraudRead the Press Release
BIRMINGHAM, Ala. – The owner of a Birmingham business pleaded guilty today to tax fraud for failing to pay employment taxes to the Internal Revenue Service that he withheld from employees’ wages over a number of years, announced U.S. Attorney Prim Escalona and Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office James E. Dorsey.
JAMES MARK BURKETT, 65, of Birmingham, pleaded guilty before U.S. District Judge Anna Manasco to one count of failure to account for and pay over trust fund taxes to the IRS. As part of his plea, he agreed to pay restitution in the amount of $1,592,746.92. Burkett is scheduled for sentencing on April 23, 2023.
“Burkett willfully disregarded his tax obligation,” U.S. Attorney Escalona said. “Payroll taxes fund Social Security and Medicare and are a large source of revenue for the federal government. My office will hold accountable anyone who fails to comply with their tax obligations.”
“Employers have a known legal duty to collect and turn over employment taxes from their employees to the IRS,” SAC Dorsey said. “James Burkett’s guilty plea today should be a warning to employers who willfully fail to comply with their tax responsibilities.”
According to the plea agreement, Burkett is the owner of Superior Coil Service, Inc., a company that manufactures coils for the electric motor repair industry. The IRS reviewed eight quarters for tax years 2016 and 2017. During that time, Superior Coil Service, Inc. paid wages of $1,411,677.23 to employees. From these wages, Burkett withheld federal income, Social Security, and Medicare taxes totaling $273,342.28—none of which were paid to the IRS on behalf of the company or its employees. Burkett also failed to file required forms 941, W-2, W-3, or Transmittal of Wage and Tax statements for the quarters under review.
The maximum penalty for tax fraud is five years in prison.
The IRS-CI investigated the case. Assistant United States Attorney Catherine Crosby is prosecuting the case.
Berkeley County man admits to role in drug trafficking conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Eliseo Jerome Rozas, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Rozas, 44, pleaded guilty today to one count of “Unlawful Use of Communication Device.” Rozas admitted to using a phone to help distribute cocaine base in November 2020 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Albuquerque man charged in drug, firearms investigationRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Gerardo Rafael Lara-Yanez was charged in federal court with intent to distribute 400 grams and more of fentanyl, possession with intent to distribute 50 grams and more of a mixture and substance containing methamphetamine, conspiracy, being a felon in possession of a firearm, being an unlawful drug user in possession of a firearm, and possession of firearm in furtherance of a drug trafficking crime. Lara-Yanez, 24, of Albuquerque, will remain in custody pending trial, which has not been scheduled.
According to the complaint, in October the FBI Violent Gangs Task Force (VGTF) were investigating Jeffrey Alan Chavez, 35, of Albuquerque, for overseeing drug sales from at least three drug houses in southeast Albuquerque. Chavez allegedly employed Lara-Yanez to run one of the drug houses. In November, an FBI undercover employee (UCE) made contact with Lara-Yanez and Chavez, and Chavez allegedly indicated he could supply methamphetamine and fentanyl. The UCE met Lara-Yanez and Chavez at a drug house, where they allegedly provided 141.4 grams of methamphetamine and 550.1 grams of fentanyl pills in exchange for $9,250. During the transaction, Lara-Yanez allegedly handled multiple firearms, including a short-barreled shotgun and multiple pistols.
Lara-Yanez was arrested on Dec. 12. A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Lara-Yanez faces a minimum of ten years and up to life in prison.
Chavez is charged with possession with intent to distribute 400 grams and more of fentanyl, possession with intent to distribute 50 grams and more of a mixture and substance containing methamphetamine, conspiracy, being a felon in possession of a firearm and ammunition, being an unlawful drug user in possession of a firearm, and possession of firearm in furtherance of a drug trafficking crime. Chavez will remain in custody pending trial, which has not been scheduled.
Assistant United States Attorney Paul J. Mysliwiec is prosecuting the case.
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Adair Chief of Police Charged with Getting Machine Guns Through False Statements to the ATFRead the Press Release
DES MOINES, IA – A federal grand jury in Des Moines returned an indictment on December 14, 2022, charging Adair Chief of Police Bradley Wendt with unlawfully obtaining and possessing machine guns.
According to unsealed court documents, Wendt, age 46, exploited his position as the Adair Chief of Police to acquire 10 machine guns purportedly for the official duties and responsibilities of the Adair Police Department, but later resold several of those machine guns at a significant profit. Wendt also acquired 13 machine guns for his Denison-based gun store, BW Outfitters, through false statements to the ATF that the machine guns were being demonstrated for future potential purchase by the Adair Police Department.
Wendt also exploited his position as the Chief of Police to obtain 10 machine guns for Williams Contracting LLC, a federal firearms licensee operated by his friend, Robert Williams, age 46, of Manning. Williams solicited false documentation from Wendt indicating the Adair Police Department wanted a demonstration of each of the machine guns for future potential purchase by the Adair Police Department.
Between July 2018 and August 2022, Wendt sought to demonstrate or purchase approximately 90 machine guns for the Adair Police Department, which serves a town of less than 800 people. Wendt and Williams hosted public machine gun shoots, where they charged patrons money to shoot machine guns registered to their gun stores and the Adair Police Department. Wendt and Williams intended to stockpile machine guns to later sell at a personal profit.
FBI Omaha Special Agent in Charge Eugene Kowel said “Brad Wendt is charged with exploiting his position as chief of police to unlawfully obtain and sell guns for his own personal profit. The FBI is committed to working with our law enforcement partners to investigate and hold accountable those who violate their oath of office to enrich themselves.”
“This case demonstrates the importance of ATF’s vigilance in regulating federal firearms licensees and bringing to justice those who willfully circumvent federal law in favor of personal profit and abuse public trust. Today’s indictment is the result of seamless collaboration by ATF and our law enforcement partners,” said Fred Winston, Special Agent in Charge, ATF - Kansas City Field Division.
Both defendants are charged with conspiracy to make false statements and defraud the ATF. Wendt is charged with 18 counts of making a false statement to the ATF and one count of illegal possession of a machine gun. Williams is charged with three counts of making a false statement and aiding and abetting a false statement to the ATF. The Indictment is attached below.
If convicted, Wendt faces a maximum term of imprisonment of ten years. Williams faces a maximum term of imprisonment of five years.
The prosecution is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Federal Bureau of Investigation (FBI). The investigation remains ongoing.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. Assistant U.S. Attorneys Mikaela Shotwell and Ryan Leemkuil are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Wednesday 14 December 2022
中华人民共和国公民因跟踪缠扰行为被捕Read the Press Release
波士顿 – 伯克利音乐学院的一名中国留学生因涉嫌威胁和骚扰一名张贴支持中国民主传单的人而被逮捕并指控。
25岁的吴啸雷被指控一项跟踪缠扰罪，将于今天下午在波士顿联邦法院首次出庭。吴在伯克利音乐学院进修期间居于波士顿，今天下午三点将到联邦法院出庭。
起诉书指出，2022年10月22日，有人在伯克利音乐学院波士顿校园或附近张贴写着“与中国人民站在一起”、“我们要自由”和“我们要民主”的传单。据称，大约在2022年10月22日至2022年10月24日期间，吴通过微信、电邮和Instagram给发布传单的受害者发送了一系列信息，其中包括“再贴给你丫手剁了。”吴还告诉受害者，他已向中国公安机关举报了受害者的行为，中国公安机关将会“问候”受害者的家人。 吴还被指控招揽其他人查明受害者的住处，并公开发布受害者的电邮地址，希望其他人在网上骚扰受害者。
“司法部会永远捍卫言论自由和政治表达的权利。我们认为吴先生的威胁和骚扰行为并不是言论自由，相反，这些行为是企图压制和恐吓异议人士表达与中国不同的观点。”联邦检察官蕾切尔·罗林斯(Rachael S. Rollins) 表示。“我们不会容忍针对那些和平宣传想法、从事工作或表达意见的人士的威胁，骚扰或其他任何的镇压行为或企图。言论自由是美国的宪法权利，我们会不惜一切代价保护和捍卫这项权利。”
“今天，美国联邦调查局逮捕了吴啸雷,因为他屡次威胁和侵犯一名公开反对中国执政共产党的人士的权利。我们认为吴先生跟踪和骚扰受害者、并向中国执法部门举报受害者对民主自由的支持，可能导致受害者及其家人受到调查。被控的行为令人极其不安，同时亦完全违背了我们国家的民主价值观。”联邦调查局波士顿分局局长约瑟夫·博纳沃隆塔(Joseph R. Bonavolonta)声称。“此案还突出表明了联邦调查局一直致力于保护所有公民行使言论自由的权利。我们也努力将任何企图侵犯这项权利的人绳之以法。”
跟踪缠扰罪最高可判处五年监禁、三年监管释放，以及最高25万美元的罚款。判决由联邦地区法院法官依据美国管辖刑事案件的判决准则和法规作出。
美国检察官罗林斯和联邦调查局分局局长博纳沃隆塔(Bonavolonta)今天发布此公告。罗林斯下属国家安全科的美国助理检察官蒂蒙席·吉斯特纳（Timothy H. Kistner）负责起诉此案。
指控文件中的细节仅为指控，被告推定为无罪, 除非并直到在法庭上排除合理怀疑被证明有罪。
Young Laredoan admits to transporting fentanyl disguised as oxycodoneRead the Press Release
LAREDO, Texas – A 19 year-old Laredo resident has entered a guilty plea to transporting approximately 1.42 kilograms of fentanyl, announced U.S. Attorney Alamdar S. Hamdani.
Ivan Eleodoro Garcia admitted that on Sept. 29, he was driving a 2014 Ford Taurus sedan and stopped for an immigration inspection at the I-35 Border Patrol checkpoint north of Laredo. There, a K-9 positively indicated to concealed humans or narcotics in the rear of the vehicle.
Further investigation led to the discovery of a custom installed hidden compartment between the trunk and passenger area of the sedan where authorities found 13 bags containing 1.42 kg. of blue pills. They initially believed the pills were oxycodone hydrocholoride due to an embossed “M” on each pill. However, a field test later revealed the pills were counterfeit and contained fentanyl.
Garcia has been and will remain in custody pending his sentencing at a later date before U.S. District Judge Diana Saldana. At that time, Garcia faces a minimum of 10 years and up life in prison as well as a possible $10 million maximum fine.
The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
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Woman Pleads Guilty to $2.6 Million Commodity Futures Trading SchemeRead the Press Release
A Southern California woman pleaded guilty yesterday to her involvement in an investment fraud scheme that caused more than $2.6 million in losses to investors.
According to court documents, Sharief Deona McDowell, 57, of Loma Linda, defrauded at least 28 investors by falsely representing that she would invest their money in commodity futures and options contracts. In actuality, McDowell did not trade with the investors’ money and instead misappropriated the funds for her personal use. McDowell also provided investors with fabricated trade confirmations and account statements to falsely indicate that their investments were generating returns. In addition, McDowell used money provided by new investors to repay earlier investors – a tactic often used to conceal and prolong Ponzi and other investment fraud schemes. McDowell had a history of defrauding investors and committed this fraud in violation of a prior judicial order.
McDowell pleaded guilty to one count of wire fraud. She is scheduled to be sentenced on March 10, 2023, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Martin Estrada for the Central District of California, and Assistant Director in Charge Don Alway of the FBI Los Angeles Field Office made the announcement.
The FBI is investigating the case.
Trial Attorney Lauren Archer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Byron Tuyay for the Central District of California are prosecuting the case.
Williamsburg Woman Sentenced for Social Security FraudRead the Press Release
LONDON, Ky. – A Williamsburg, Ky., woman, Jennifer Lee West, 60, was sentenced Tuesday to 4 months in federal prison, by U.S. District Judge Robert Wier, for committing Social Security fraud.
According to court documents, in December 2005, West requested to be the representative payee for a “Lorene Bryant,” who was receiving SSI benefits through the Social Security Administration. However, that person did not exist; this was actually a false alternative identity of the defendant’s mother. The defendant, with knowledge that this was not a real person, was fraudulently approved as the representative payee and falsely represented herself to be the child of the false identity. From 2006 through 2020, the Defendant perpetuated the fraud, by annually completing false Representative Payee Reports. The total loss of taxpayer funds from the fraud was $117,615.
West was also ordered to pay $117,615 in restitution.
Following her release from prison, West will be under the supervision of the U.S. Probation Office for two years. Her supervised release conditions also include two months of home detention and 40 hours of community service per year.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky, and Marvin D. Mauldin, Resident Agent-in-Charge, SSA Office of the Inspector General, jointly announced the sentence.
The investigation was conducted by SSA-OIG. The United States was represented by Special Assistant U.S. Attorney James Chapman.
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Wilkes-Barre Man Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ernesto Richards, age 36, formerly of Wilkes-Barre, Pennsylvania, was charged yesterday by a federal grand jury with narcotics trafficking, firearms, and false statement offenses.
According to United States Attorney Gerard M. Karam, the indictment alleges that Richards conspired to distribute cocaine and crack cocaine in Luzerne County between February and September 2022. During that time, it is alleged that Richards also conspired to import cocaine from foreign countries, and possessed firearms, including a stolen firearm, in relation to his drug trafficking activities. In addition to being charged with a narcotics conspiracy, Richards also was charged with three counts of distributing and possessing with intent to distribute cocaine and crack cocaine. Richards further was charged with possessing firearms in furtherance of his drug trafficking activities, and with possessing firearms and ammunition despite being prohibited as a convicted felon. Richards was also charged with lying to federal agents about his drug trafficking activities.
The case was investigated by Homeland Security Investigations and the Pennsylvania State Police. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting 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.
The penalties under federal law for the most serious narcotics charges are a minimum of five years and maximum 40-year term of imprisonment, a term of supervised release following imprisonment, and a fine. The most serious firearms charge carries a mandatory five-year term of imprisonment and maximum term of life, to run consecutive to any other term of imprisonment imposed, a term of supervised release following imprisonment, and a fine. The false statement charges carry up to a five-year term of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Wildlife Trafficker Sentenced to 57 Months for Large-Scale Trafficking of Rhinoceros Horns and Elephant IvoryRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that AMARA CHERIF, a/k/a “Bamba Issiaka,” a citizen of Guinea, was sentenced to 57 months for conspiring to traffic in millions of dollars in rhinoceros horns and elephant ivory, both endangered wildlife species, which involved the illegal poaching of more than approximately 35 rhinoceros and more than 100 elephants. The sentence was imposed by U.S. District Judge Gregory H. Woods. CHERIF’s co-conspirators, MOAZU KROMAH, a/k/a “Ayoub,” a/k/a “Ayuba,” a/k/a “Kampala Man,” a citizen of Liberia, and MANSUR MOHAMED SURUR, a/k/a “Mansour,” a citizen of Kenya, were previously sentenced to prison terms of 63 months and 54 months, respectively, by Judge Woods.
U.S. Attorney Damian Williams said: “Amara Cherif, Moazu Kromah, and Mansur Mohamed Surur decided that their profit was more important than the protected wildlife and natural resources that they chose to traffic, and two endangered species suffered because of that repugnant decision. These sentences show that this Office takes seriously our responsibility to use every tool at our disposal to do our part in reducing threats to the survival of endangered animals by bringing their poachers and traffickers to justice.”
According to the charging and other documents filed in the case, as well as statements made in court proceedings:
KROMAH, CHERIF, and SURUR were members of a transnational criminal enterprise (the “Enterprise”) based in Uganda and surrounding countries that was engaged in the large-scale trafficking and smuggling of rhinoceros horns and elephant ivory, both protected wildlife species. Trade involving endangered or threatened species violates several U.S. laws, as well as international treaties implemented by certain U.S. laws.
From at least in or about December 2012 through at least in or about May 2019, KROMAH, CHERIF, and SURUR conspired to transport, distribute, sell, and smuggle at least approximately 190 kilograms of rhinoceros horns and at least approximately 10 tons of elephant ivory from or involving various countries in East Africa, including Uganda, the Democratic Republic of the Congo, Guinea, Kenya, Mozambique, Senegal, and Tanzania, to buyers located in the United States and countries in Southeast Asia. Such weights of rhinoceros horn and elephant ivory are estimated to have involved the illegal poaching of more than approximately 35 rhinoceros and more than approximately 100 elephants. In total, the estimated average retail value of the rhinoceros horn involved in the conspiracy was at least approximately $3.4 million, and the estimated average retail value of the elephant ivory involved in the conspiracy was at least approximately $4 million.
Typically, the defendants exported and agreed to export the rhinoceros horns and elephant ivory for delivery to foreign buyers, including a buyer represented to be in Manhattan, in packaging that concealed the rhinoceros horns and elephant ivory in, among other things, pieces of art such as African masks and statues. The defendants received and deposited payments from foreign customers that were sent in the form of international wire transfers, some of which were sent through U.S. financial institutions, and paid in cash.
On or about March 16, 2018, law enforcement agents intercepted a package containing a black rhinoceros horn sold by the defendants that was intended for a buyer represented to be in Manhattan. From in or about March 2018 through in or about May 2018, the defendants offered to sell additional rhinoceros horns of varying weights, including horns weighing up to approximately seven kilograms. On or about July 17, 2018, law enforcement agents intercepted a package containing two rhinoceros horns weighing over five kilograms sold by the defendants that were intended for a buyer represented to be in Manhattan.
Separately, from at least in or about August 2018 through at least in or about May 2019, SURUR conspired with others to distribute and possess with intent to distribute a large quantity of heroin to a buyer represented to be located in New York.
KROMAH was arrested in Uganda on June 12, 2019, and expelled to the United States on June 13, 2019. CHERIF was arrested in Senegal on June 7, 2019, and extradited to the United States on April 2, 2020. SURUR was arrested in Kenya on July 29, 2020, and extradited to the United States on January 25, 2021. The defendants have been detained since their arrest and arrival in this country.
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KROMAH, 52, of Liberia; CHERIF, 57, of Guinea; and SURUR, 62, of Kenya, each pled guilty to one count of conspiracy to commit wildlife trafficking. In addition, KROMAH and CHERIF both pled guilty to two counts of wildlife trafficking, and SURUR also pled guilty to one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin.
Mr. Williams praised the outstanding investigative work of the U.S. Fish and Wildlife Service and the U.S. Drug Enforcement Administration, and he thanked law enforcement authorities and conservation partners in Uganda and Kenya, including the Uganda Wildlife Authority, the Uganda Office of the Director of Public Prosecution, the Uganda Police Force, the Kenya Directorate of Criminal Investigations, and the Kenyan Office of the Director of Public Prosecutions, for their assistance in this investigation. Mr. Williams also thanked the U.S. Department of State and the U.S. Department of Justice’s Office of International Affairs for their assistance.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sagar K. Ravi and Jarrod L. Schaeffer are in charge of the prosecution.
Washington Man Charged with Hate Crimes for Arsons of Jehovah’s Witness Kingdom HallsRead the Press Release
A Washington man was indicted by a federal grand jury in Seattle in connection with three arsons that damaged or destroyed Jehovah’s Witness Kingdom Halls.
Mikey Diamond Starrett, aka Michael Jason Layes, 50, of Olympia, Washington, was charged in a superseding indictment with three counts of damage to religious property, including the use of fire, and three counts of using fire to commit a federal felony. The defendant was previously charged with one count of damage to religious property, including the use of a dangerous weapon, and one count of use of a firearm during and in relation to a crime of violence, in connection with a shooting that damaged a separate Jehovah’s Witness Kingdom Hall. The defendant was also previously charged with one count of unlawful possession of an unregistered firearm.
According to the superseding indictment, the defendant set fire to three Jehovah’s Witness Kingdom Halls: the Kingdom Hall of Tumwater, Washington on March 19, 2018; the Kingdom Hall of Olympia, Washington on March 19, 2018; and the Kingdom Hall of Olympia, Washington, on July 3, 2018. The superseding indictment alleges the defendant defaced, damaged and destroyed religious real property at the Kingdom Halls because of the religious character of the properties.
If convicted, Starrett faces a sentence of up to 20 years in prison on each charge of damage to religious property. Starrett faces up to 10 years in prison if convicted on the unlawful possession of an unregistered firearm charge. If convicted, Starrett faces a mandatory minimum of 10 years in prison to run consecutive to any sentence imposed for each of the remaining offenses.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Nick Brown for the Western District of Washington made the announcement.
The ATF Seattle Field Division, the FBI Seattle Field Office, the Tumwater, Washington Police Department, and the Olympia Police Department investigated the matter. Trial Attorney Matthew Tannenbaum of the Civil Rights Division’s Section and Assistant U.S. Attorney Rebecca S. Cohen for the Western District of Washington are prosecuting the case.
For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law
Violent felon sentenced for illegal firearms conviction following shootingRead the Press Release
CORPUS CHRISTI, Texas – A 48-year-old Aransas Pass resident has been ordered to federal prison for possessing a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Kenny Don Jones pleaded guilty Sept. 21.
Today, U.S. District Judge Drew B. Tipton handed Jones a sentence of 90 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Jones changed his story with investigators about the shooting over the course of two interviews. In handing down the sentence, the court noted his significant criminal history, including a previous murder conviction and convictions for shooting two other individuals.
On July 20, 2021, authorities learned of a suspicious death. They traveled to the scene and met with the property owner where they found a deceased male subject on the property with a single casing from a discharged round near him in a milk crate.
Jones was also present and eventually reported that the firearm was his and that the deceased male had taken the firearm from his bag and pointed it at him. Jones claimed he he wrestled the firearm away from him and took a step back with the gun in hand. According to Jones, the victim lunged at him and Jones fired a round that struck the victim in between the eyes.
Following the shooting, Jones drove to Rockport where he threw the .9mm Smith & Wesson pistol out of his vehicle. He said he knew he was not supposed to have guns.
Law enforcement later obtained the gun Jones described.
Jones has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol Tobacco Firearms & Explosives conducted the investigation with the assistance of the Aransas Pass Police Department. Assistant U.S. Attorney Joel Dunn prosecuted the case.
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Violent drug trafficker and debt collector sentenced to 11 years in prisonRead the Press Release
Seattle – 26-year-old Kent, Washington man was sentenced today in U.S. District Court in Seattle to 11 years in prison for his role as a drug trafficker and debt collector for a cartel-connected drug distribution ring, announced U.S. Attorney Nick Brown. Jorge Mondragon pleaded guilty in July 2022 to conspiracy to distribute controlled substances and being a felon in possession of a firearm. At the sentencing hearing U.S. District Judge John C. Coughenour said, the sentence was driven by Mondragon’s involvement with “firearms and threats of violence.”
“Not only did Mr. Mondragon deal large amounts of meth and heroin, he also used violence and threats of violence on behalf of the drug ring,” said U.S. Attorney Brown. “These drugs not only destroy the lives of those who use them, they also destroy the lives of the users’ families and friends who are forced to watch the toll these drugs take on their son, their daughter, their mother, their father, their friend.”
As early as 2020, investigators repeatedly intercepted calls and surveilled Mondragon dealing in large quantities of methamphetamine and heroin. They also intercepted Mondragon in multiple conversations about the possession and sale of firearms and engaging in acts of violent debt collection on behalf of the drug trafficking organization. At one point, investigators heard Mondragon plotting with others to kidnap another dealer.
“The efforts by all our partners in this investigation show our collective commitment to keep our communities free of illegal controlled substances and safe by preventing violent individuals like Mr. Mondragon from carrying out the acts he planned and conspired to commit,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division.
In asking for an eleven-year prison sentence prosecutors wrote to the court, “Mondragon’s extensive involvement in gun possession and violence places him among the most violent individuals in this conspiracy. During the four months that law enforcement intercepted Mondragon’s activities, he engaged in multiple plots to kidnap and otherwise harm debtors, procured a seemingly endless supply of firearms for himself and organization leaders, was arrested three times for crimes (all of which involved gun possession), and agreed to “wheelchair” an individual for money – a plan he appeared intent on executing when he was intercepted by law enforcement with a loaded gun on his way to do the job.”
Mondragon will be on supervised release for five years following his prison term.
This prosecution is 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 www.justice.gov/OCDETF
The investigation was conducted by the U.S. Drug Enforcement Administration’s (DEA) Tacoma Resident Office in partnership with Tahoma Narcotics Enforcement Team (TNET), Kent Police Department, Homeland Security Investigations, SeaTac Police Department, Thurston County Narcotics Team (TNT), the Federal Bureau of Investigation, and the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF).
The case is being prosecuted by Assistant United States Attorneys Amy Jaquette and C. Andrew Colasurdo.
Venezuelan Man Pleads Guilty to Cocaine PossessionRead the Press Release
St. Thomas – United States Attorney Delia L. Smith announced today that Erickson Bolivar, 32, of Venezuela, pleaded guilty before Magistrate Judge Ruth Miller to Conspiracy to Possess with Intent to Distribute Cocaine. Bolivar was one of three men charged with smuggling 41 kilograms of cocaine into the Territory.
According to court documents, on November 21, 2021, at approximately 4:37 a.m., Customs and Boarder Protection Air and Marine and Homeland Security Investigations agents detected a vessel on the northwest coast of St. Thomas, VI. The agents launched their interceptor vessel and later stopped the target vessel traveling west towards Puerto Rico without navigation lights. Onboard were Bolivar, the captain of the vessel, and two other occupants. Bolivar told agents that they were going fishing, but agents only found two fishing rods without any bait or lures. The vessel and its occupants were transported to Fajardo, PR, for further investigation. There, agents discovered brick-shaped objects containing a powder substance concealed in a hidden compartment in the stern of the vessel. A Drug Enforcement Administration laboratory analysis confirmed that the power substance was cocaine weighing approximately 41 kilograms.
The case was investigated by Homeland Security Investigations, Customs and Border Protection and Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Kyle Payne. This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCEDTF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transactional 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.
Venezuelan Boat Captain Apprehended Near St. Croix Sentenced in Conspiracy to Possess Cocaine on Board a Vessel CaseRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Vicent Mata Anyelo a/k/a Vicent Mata, age 33, the captain and last to be sentenced of eleven Venezuelan nationals apprehended at sea off the coast of St. Croix, was sentenced on December 13, 2022 to 65 months imprisonment followed by 2 years supervised release by U.S. Judge Wilma Lewis on the charge of conspiracy to possess with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States. In addition, he must pay a $100 special assessment fee and is subject to deportation.
According to court documents, on the evening of September 25, 2019, the United States Coast Guard (USCG) Cutter Donald Horsley intercepted a suspicious 55-foot vessel named La Gran Tormenta displaying Venezuelan nationality indicia approximately 38 nautical miles south of St. Croix. Occupants of the La Gran Tormenta failed to respond to USCG’s efforts to engage in questioning of the crew, and upon detection, the La Gran Tormenta changed course and began jettisoning packages. Crew members from the USCG Cutter Donald Horsley subsequently retrieved two bales from the water. The two jettisoned bales contained packages with brick-shaped objects which were subsequently laboratory tested and found to contain approximately 49 kilograms of cocaine hydrocholoride (powder cocaine).
After requesting and receiving permission to stop the vessel from Venezuela, the flag state, USCG personnel attempted a right-of-visit boarding which was ineffective because crew on the La Gran Tormenta disregarded the USCG’s instructions. Eventually, USCG personnel obtained control of the La Gran Tormenta through use of an entanglement tactic which stopped the vessel’s engine. A USCG counter-drug boarding team later encountered 11 persons, including the defendant.
The case was investigated by the U.S. Coast Guard, U.S. Drug Enforcement Administration, and Customs and Border Protection. It is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz. 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.Unlicensed Firearms Dealer Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Today, Desmon Taylor Moore, 24, of Charlotte, was sentenced to 37 months in prison followed by three years of supervised release on multiple firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, between 2021 and March 2022, Moore engaged in the manufacturing and sale of firearms without a license. ATF agents investigating Moore determined that Moore illegally sold conversion devices (commonly known as “Glock switches”) which enable a semi-automatic handgun to function as an automatic.
Moore also engaged in the sale of multiple firearms and privately-made firearms (or “Ghost guns”), some of which had been converted into machineguns using the illegal conversion devices. Federal law prohibits the possession of machineguns and defines “machinegun” to include parts designed or intended for use in converting a weapon into a machinegun. According to court records, two undercover ATF agents also attended a class Moore taught on how to build privately-made firearms and install Glock switches.
On July 26, 2022, Moore pleaded guilty to multiple firearms offenses, including dealing and manufacturing firearms without a license, and possession and transfer of machineguns. Moore is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons.
In making today’s announcement, U.S. Attorney King thanked the ATF for their investigation of the case.
Assistant U.S. Attorney David Kelly, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
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U.S. Navy Veteran Indicted for Allegedly Swindling Navy Members in Investment Fraud SchemeRead the Press Release
CHICAGO — A United States Navy veteran has been indicted on federal criminal charges for allegedly swindling retired and active-duty Navy members in an investment fraud scheme.
ROBERT L. MURRAY, JR, 43, of Chicago, was charged with four counts of wire fraud in an indictment returned Monday in U.S. District Court in Chicago. Arraignment is set for Dec. 16, 2022, at 11:30 a.m. before U.S. District Judge Manish S. Shah.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Securities and Exchange Commission. The government is represented by Assistant U.S. Attorney Brian Havey.
The indictment alleges that after retiring from the Navy, Murray occasionally traded securities online from his residence. He later founded an investment fund called Deep Dive Strategies LLC, which purported to invest in publicly traded securities. Murray solicited investors, including retired and active-duty Navy members, by portraying himself on social media as a skilled and successful options trader with an effective algorithm for trading securities, the indictment states.
The indictment alleges that Murray failed to invest or trade with all of the money provided to him by investors, instead using a portion of their funds to pay his personal expenses, including shopping, restaurant, and travel expenses. With the investor funds that Murray did use to conduct trades, he lost most of those funds by placing a highly risky bet on the “meme stock” GameStop, the indictment alleges. When investors later requested an accounting of their funds, Murray disregarded or refused their requests, the indictment states.
As a result of the scheme, investors lost all of the funds they entrusted to Murray to invest on their behalf, an amount totaling more than $342,000, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
U.S. Attorney Announces Fraud and Money Laundering Charges Against the Founders and Promoters of Two Cryptocurrency Ponzi SchemesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of the Department of Homeland Security (“HSI”), announced charges in two separate Indictments against the founders and promoters of two cryptocurrency Ponzi schemes known as IcomTech and Forcount (and later known as Weltsys). United States v. David Carmona, et al., 22 Cr. 551 (JLR), charges DAVID CARMONA, MARCO RUIZ OCHOA, MOSES VALDEZ, JUAN ARELLANO, DAVID BREND, and GUSTAVO RODRIGUEZ with conspiracy to commit wire fraud based on their involvement with IcomTech from in or about mid-2018 until in or about the end of 2019. United States v. Francisley da Silva, et al., S1 22 Cr. 622 (AT), charges FRANCISLEY DA SILVA, JUAN TACURI, and ANTONIA PEREZ HERNANDEZ with conspiracy to commit wire fraud and wire fraud based on their involvement with Forcount from in or about mid-2017 until at least in or about the end of 2021. SILVA and TACURI are also charged with conspiracy to commit money laundering, and HERNANDEZ is also charged with making false statements.
U.S. Attorney Damian Williams said: “With these two indictments, this Office is sending a message to all cryptocurrency scammers: We are coming for you. Stealing is stealing, even when dressed up in the jargon of cryptocurrency. Thanks to the efforts of federal, state, and international law enforcement, IcomTech and Forcount’s founders and promoters are being held to account.”
HSI Special Agent in Charge Ivan J. Arvelo said: “The excitement around cryptocurrency and the potential to make huge profits attracted would-be investors to the alleged schemes run by the individuals indicted today. With high end clothes and cars, these individuals are alleged to have presented a life of luxury to potential investors, but instead of a lucrative investment opportunity, the victims were fleeced of their savings and left with nothing to show for it. Homeland Security Investigations works tirelessly to uncover financial crimes and bring perpetrators to justice.”
As alleged in the Indictments:[1]
IcomTech and Forcount were both purported cryptocurrency mining and trading companies that promised to earn their respective victim-investors (“Victims”) profits in exchange for their purchase of purported cryptocurrency-related investment products. The founders and promoters of each scheme falsely promised their respective Victims, among other things, that profits from the companies’ cryptocurrency trading and mining would result in guaranteed daily returns on Victims’ investments and the doubling of those investments within six months. In reality, neither company was engaging in cryptocurrency trading or mining, and the founders and promoters of both schemes were using Victim funds to pay other Victims, to further promote the schemes, and to enrich themselves.
Both the IcomTech and Forcount defendants fraudulently induced their victims to invest in sham cryptocurrency activities using similar methods. The founders and promoters of the two schemes traveled throughout the United States and internationally where they hosted lavish expos and small community presentations aimed at luring Victims to invest in the schemes, including in the Southern District of New York. During larger-scale events, the schemes’ promoters would present the schemes’ investment products and compensation plan, encourage Victims to invest as a means of achieving financial freedom, and boast about the amount of money they were earning. The schemes’ promoters often showed up at larger-scale events in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from the schemes. The atmosphere of these events was festive and designed to generate excitement about the schemes.
Victims invested in the IcomTech and Forcount schemes by purchasing investment products from promoters using cash, checks, wire transfers, and actual cryptocurrency. Following a Victim’s investment, they would be provided with access to an online portal where they could monitor their purported returns. While Victims saw “profits” accumulate on the schemes’ respective online portals, most Victims were unable to withdraw any of these so-called profits and ultimately lost their entire investments. By contrast, IcomTech and Forcount’s promoters siphoned off, in some cases, hundreds of thousands of dollars in Victim funds, which they withdrew as cash, spent on promotional expenses for the schemes, and used for personal expenditures such as luxury goods and real estate.
At least as early as August 2018 with respect to the IcomTech scheme, and in or about April 2018 with respect to the Forcount scheme, Victims who attempted to withdraw money from their online portal accounts had difficulty doing so and, when they complained to promoters, they were met with excuses, delays, and hidden fees, if they were able to make any withdrawals at all. Despite these complaints, IcomTech and Forcount’s promoters, including the defendants, continued to promote their respective fraudulent schemes and accept Victims’ investments. As complaints mounted in both schemes, IcomTech and Forcount both began offering proprietary crypto-tokens for sale as a means of injecting liquidity into the schemes. Promoters of the schemes claimed that these tokens, known as “Icoms” in the IcomTech scheme and “Mindexcoin” in the Forcount scheme, would eventually be worth a significant amount of money when they were accepted by companies for payment for goods and services. This was false. In reality, they were essentially worthless and resulted in further financial loss to Victims. By in or about the end of 2019 with respect to IcomTech, and in or about 2021 with respect to Forcount, the schemes had stopped making payments to Victims and their chief promoters, including the defendants, stopped promoting the schemes, and, in some instances, stopped responding to Victims’ complaints altogether.
In addition to promoting the Forcount scheme, SILVA and TACURI also sought to conceal their fraud by laundering Victim funds through shell companies and making large personal expenditures on things like real estate and bulk cellphone purchases. On or about June 27, 2022, law enforcement officers with HSI stopped and interviewed HERNANDEZ as she was returning to the United States from Mexico. During the interview, HERNANDEZ falsely denied, among other things, being a Forcount promoter, recruiting investors, and taking money from them.
On November 8, 2022, United States v. David Carmona, et al., 22 Cr. 551 (JLR), was unsealed. As alleged in the Carmona indictment, CARMONA was the founder of IcomTech; OCHOA, VALDEZ, ARELLANO, and BREND were promoters of the scheme; and RODRIGUEZ was hired by CARMONA to build and maintain IcomTech’s website and online portal. On November 8, 2022, CARMONA was arrested in Queens, New York, and presented before United States Magistrate Judge Sarah L. Cave of the Southern District of New York; OCHOA was arrested in the District of New Hampshire; VALDEZ, ARELLANO, and RODRIGUEZ were arrested in the Central District of California; and BREND was arrested in the Middle District of Florida. The Carmona matter has been assigned to United States District Judge Jennifer L. Rochon.
On December 14, 2022, United States v. Francisley da Silva, et al., S1 Cr. 622 (AT), was unsealed. As alleged in the Silva indictment, SILVA was the founder of Forcount and TACURI and HERNANDEZ were promoters of the scheme. On December 14, 2022, TACURI was arrested in the Southern District of Florida. SILVA, a Brazilian national, has been in custody in Brazil since on or about November 3, 2022. HERNANDEZ remains at large. The Silva matter has been assigned to United States District Judge Analisa Torres.
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A chart containing the names of the defendants who were charged today and the charges and maximum penalties they face is attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of HSI, particularly HSI New York El Dorado Task Force/Securities Investigations Group, HSI Brasilia, HSI Tampa, and HSI Orlando; the New York City Police Department; the New York City Sheriff’s Office; the Bureau of Insurance Fraud, Property, and Casualty in the Division of Investigative and Forensic Services of the Florida Department of Financial Services; and the Florida Office of Financial Regulation. Mr. Williams also thanked the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Brazilian Federal Police for their assistance.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Benjamin A. Gianforti and Cecilia Vogel are in charge of the prosecution of the Carmona matter. AUSA Gianforti is also in charge of the prosecution of the Silva matter.
The charges contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The United States Attorney’s Office for the Southern District of New York is committed to protecting the rights of crime victims. If you believe you are a victim of the IcomTech and/or Forcount schemes, our Victim/Witness Unit can make sure that you are notified of important stages of these cases to help you exercise your rights. In addition, our Victim/Witness Unit is available to answer questions you might have about these cases and can refer you to available resources.
Wendy Olsen Clancy
Victim/Witness Coordinator
United States Attorney’s Office
One St. Andrew’s Plaza
New York, New York 10007
(866) 874-8900
United States v. David Carmona, et al., 22 Cr. 551 (JLR)
Defendant
Age
Charges
Maximum Penalties
DAVID CARMONA,
Queens, NY
39
Count 1: Conspiracy to commit wire fraud
20 years in prison
MARCO RUIZ OCHOA,
Nashua, NH
34
Count 1: Conspiracy to commit wire fraud
20 years in prison
MOSES VALDEZ,
Hesperia, CA
26
Count 1: Conspiracy to commit wire fraud
20 years in prison
JUAN ARELLANO,
Chino, CA
46
Count 1: Conspiracy to commit wire fraud
20 years in prison
DAVID BREND,
Tampa, FL
48
Count 1: Conspiracy to commit wire fraud
20 years in prison
GUSTAVO RODRIGUEZ,
North Hollywood, CA
46
Count 1: Conspiracy to commit wire fraud
20 years in prison
United States v. Francisley da Silva, et al., S1 22 Cr. 622 (AT)
FRANCISLEY DA SILVA, Curitiba, Brazil
37
Count 1: Conspiracy to commit wire fraud
Count 2: Wire fraud
Count 3: Conspiracy to commit money laundering
20 years in prison
20 years in prison
20 years in prison
JUAN TACURI,
Orlando, FL
44
Count 1: Conspiracy to commit wire fraud
Count 2: Wire fraud
Count 3: Conspiracy to commit money laundering
20 years in prison
20 years in prison
20 years in prison
ANTONIA PEREZ HERNANDEZ,
Tampa, FL
47
Count 1: Conspiracy to commit wire fraud
Count 2: Wire fraud
Count 4: False statements
20 years in prison
20 years in prison
Five years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two Defendants Sentenced to Federal Prison for Possessing Illegal Narcotics and FirearmsRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that two defendants who were found guilty of trafficking narcotics in the Shreveport/Bossier City area have been sentenced by United States District Judge S. Maurice Hicks, Jr.
Timothy DeWayne Vasher, 20, of Shreveport, Louisiana, was sentenced today to 120 months (10 years) in prison, followed by 3 years of supervised release, for possession with intent to distribute marijuana and possession of firearms during a drug trafficking offense. On August 11, 2021, deputies with the Desoto Parish Sheriff’s Office conducted a traffic stop of a vehicle and made contact with the driver who was Vasher. Law enforcement agents detected an odor of marijuana coming from inside the vehicle and conducted a probable cause search. Inside the center console, deputies found baggies containing between 3-5 grams of marijuana and a loaded Glock Model 21 .45 pistol. Inside the trunk, deputies found a loaded Smith & Wesson Model M&P AR-15 pistol with a 50-round drum. The AR-15 had a barrel length of 8 7/8 inches and an overall length of 23 7/8 inches which had not been registered with the National Firearm Registration and Transfer Records (NFRTR). Agents with the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) determined that the firearms were in working order and that the AR-15 was stolen. The narcotics were tested by the North Louisiana Crime Lab and confirmed to be marijuana.
This case was investigated by the ATF and Desoto Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
Misty Michell Moran a/k/a Misty Ott, 46, of Shreveport, Louisiana, was also sentenced today to 120 months (10 years) in prison, followed by 3 years supervised release, for possession with intent to distribute methamphetamine. In January 2022, agents with the U.S. Drug Enforcement Administration (DEA) received information that Moran was transporting large amounts of methamphetamine from the Dallas, Texas area to the Shreveport area. Through their investigation, agents learned that Moran was frequently making these trips. On February 21, 2022, troopers with the Louisiana State Police conducted a traffic stop of Moran’s vehicle for a speeding violation in Shreveport. Law enforcement officers found suspected methamphetamine inside a plastic bowl on the passenger seat of the vehicle, a SCCY Model CPX-2 9mm handgun attached to the front dashboard, and over $2,000 in cash. The narcotics were sent to the DEA Crime Lab and it was confirmed that the seized narcotics contained 998 grams of pure methamphetamine.
The case was investigated by the DEA and Louisiana State Police and prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
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Two Defendants Plead Guilty to COVID-19 FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that TATIANA BENJAMIN and HEAVEN WEST pled guilty to defrauding New York City’s COVID-19 Hotel Room Isolation Program. BENJAMIN pled guilty yesterday to conspiracy to commit wire fraud, while WEST pled guilty today to wire fraud. Both defendants pled guilty before United States Magistrate Judge James L. Cott. Both defendants’ case is assigned to United States District Judge Lewis A. Kaplan.
U.S. Attorney Damian Williams said: “As they admitted today, the defendants abused a program designed to provide shelter to the sick and needy during the height of the COVID-19 pandemic. In connection with the fraud, Tatiana Benjamin even purchased the personal identifying information of several medical professionals. For their brazen misconduct, the defendants now face possible prison time.”
According to the allegations contained in the Indictment, court filings, and statements made during plea proceedings:
From approximately April 2020 through July 2020, the defendants defrauded the COVID-19 Hotel Room Isolation Program (the “Program”). In response to the COVID-19 pandemic, New York City created the Program. Funded by New York City and the Federal Emergency Management Agency, the Program provided free hotel rooms for qualifying individuals throughout New York City. The Program was open to (a) healthcare workers who needed to isolate because of exposure to COVID-19; (b) patients who had tested positive for COVID-19; (c) individuals who believed, based on their symptoms, that they were infected with COVID-19; and (d) individuals who lived with someone who contracted COVID-19. As stated on the City’s website describing the Program, such individuals “may qualify to self-isolate in a hotel, free of charge, for up to 14 days if you do not have a safe place to self-isolate.” Those who wished to book a hotel room through the Program could either call a phone number or use an online hotel booking platform.
BENJAMIN and WEST defrauded the Program in several respects. First, BENJAMIN and WEST each secured free Program hotel rooms for themselves by falsely claiming to be a respiratory therapist and a hospital employee, respectively. Second, BENJAMIN and WEST each sold fraudulently obtained hotel rooms to customers who were ineligible for the Program. Third, BENJAMIN purchased inside information from co-defendant Chanette Lewis, who worked at a call center that handled phone calls and certain reservations for the Program for several months in 2020. Lewis was hired specifically for the Program, which gave her access to legitimate healthcare workers’ identifying information. Lewis sold BENJAMIN, for $800, personal identifying information of at least five healthcare professionals, as well as certain “codes” to use when booking hotel reservations through the Program, such as an employee ID number and license number.
BENJAMIN and WEST used Facebook to advertise the sale of fraudulently obtained Program hotel rooms and to communicate directly with customers. For example, BENJAMIN told a Facebook user, “Friend at 311 gave me the juice for the hotel so I been booking ppl rooms,” and when WEST was asked whether she had “rooms” available, she replied, “Nah I dead don’t bro / All essential hotels are clipped” and added, “They finding out we was scamming the system lol.”
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BENJAMIN, 28, of Brooklyn, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. Under the terms of her plea agreement, BENJAMIN has agreed to forfeit $51,088 and to pay restitution of $294,624.
WEST, 22, of Atlanta, Georgia, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. Under the terms of her plea agreement, WEST has agreed to forfeit $23,684 and to pay restitution of $59,644.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. The defendants are both scheduled to be sentenced by Judge Kaplan on May 18, 2023, at 3:00 p.m.
Two co-defendants previously pled guilty: Tatiana Daniel previously pled guilty to conspiracy to commit wire fraud and is scheduled to be sentenced by Judge Kaplan on March 29, 2023, at 2:30 p.m. Chanette Lewis previously pled guilty to two counts of conspiracy to commit wire fraud and is scheduled to be sentenced by Judge Kaplan on May 18, 2023, at 3:00 p.m.
Mr. Williams praised the outstanding efforts of agents, investigators, and analysts from the New York City Department of Investigation (“DOI”), DOI - NYCHA Office of the Inspector General, the New York Regional Office of the U.S. Department of Labor – Office of Inspector General (“DOL-OIG”), and the U.S. Attorney’s Office for the Southern District of New York. Mr. Williams also thanked the New York/New Jersey High Intensity Drug Trafficking Area Intelligence Analysts for their support and assistance in this investigation. He also expressed gratitude to the New York City Police Department, the New York State Department of Labor, and the DOL-OIG Atlanta Regional Office for their assistance.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Michael D. Neff is in charge of the prosecution.
Trafficker sentenced for distributing more than 500 grams of methRead the Press Release
CORPUS CHRISTI, Texas – A 40-year-old Three Rivers resident has been ordered to federal prison for distributing more than 500 grams of methamphetamine announced U.S. Attorney Alamdar S. Hamdani.
Roger Lee Martinez pleaded guilty June 1.
Today, U.S. District Judge Drew B. Tipton ordered him to serve 120 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, the court noted Martinez had waived his right to appeal.
The investigation revealed that Martinez had distributed sold varying amounts of meth between Jan. 1, 2018, and July 29, 2020. On some of those occasions, he conducted his criminal activity from a hotel room in Three Rivers.
On Aug. 11, 2020, law enforcement conducted a search at that location which resulted in the discovery of 141.5 grams of meth in a neighboring room inside an air conditioner frame.
Following his arrest, Martinez admitted he had sold up to 45 ounces of meth per month beginning in 2018.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prison facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration, Texas Department of Public Safety and the Live Oak County Sheriff’s Office. Assistant U.S. Attorney Amanda L. Gould prosecuted the case.
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Trafficker of Multiple Kilograms of Methamphetamine Is Sentenced to More Than 21 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Miguel Angel Lopez-Resendiz, 28, a Mexican national residing in Charlotte, was sentenced to 262 months in prison followed by three years of supervised release today for trafficking over six kilograms of methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, Chief Johnny Jennings of the Charlotte Mecklenburg Police Department, and Chief Joseph Hatley of the Mint Hill Police Department join U.S. Attorney King in making today’s announcement.
According to court records and court proceedings, from June to September 2021, Lopez-Resendiz trafficked a substantial amount of methamphetamine in and around Mecklenburg County. Court records show that, on at least two occasions, Lopez-Resendiz sold methamphetamine to an undercover agent. On one such occasion, on September 9, 2021, Lopez-Resendiz met with the undercover agent in the parking lot of a restaurant, where he sold the agent nearly one kilogram of methamphetamine. On September 23, 2021, Lopez-Resendiz arranged another drug transaction with the undercover agent. When Lopez-Resendiz arrived to complete the transaction, law enforcement attempted to arrest him. Lopez-Resendiz fled, and law enforcement arrested him after a short foot chase. Law enforcement searched Lopez-Resendiz’s vehicle. In the trunk, law enforcement found nearly two kilograms of methamphetamine and a semiautomatic assault rifle loaded with a high capacity drum magazine capable of holding more than 100 rounds of ammunition. As part of the law enforcement operation, investigators also executed a search warrant at Lopez-Resendiz’s drug stash house, from which they seized over three additional kilograms of methamphetamine. Over the course of the investigation into Lopez-Resendiz, law enforcement determined that he had trafficked more than six kilograms of methamphetamine.
On June 24, 2022, Lopez-Resendiz pleaded guilty to possession with intent to distribute methamphetamine. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons.
In making today’s announcement, U.S. Attorney King commended the DEA, CMPD and the Mint Hill Police Department for their investigation of the case.
Assistant U.S. Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Tohatchi man appears in court on federal assault chargesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Eric Chandler Watson made an initial appearance in federal court on a criminal complaint charging him with assault with a dangerous weapon and assault resulting in serious bodily injury in Indian Country. Watson, 21, of Tohatchi, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending a preliminary and detention hearing scheduled for Dec. 16.
According to the complaint, on Dec. 9, Watson allegedly was involved in argument with his grandfather at a residence in Tohatchi, on the Navajo Nation. After Watson allegedly pushed his grandfather in the chest, Watson’s uncle, identified as John Doe, attempted to intervene, and Watson and John Doe began to fight. When Watson’s grandparents attempted to break up the fight, Watson’s grandmother was knocked to the ground.
John Doe went inside the residence to get Watson’s Play Station gaming console. When Watson’s grandparents attempted to stop John Doe and take the Play Station, Watson allegedly began stabbing John Doe in the back with a pocketknife. The grandparents called the Navajo Police Department and Navajo Nation EMS. EMS assessed John Doe, and John Doe was transported to Gallup Indian Medical Center for care. In addition to multiple stab wounds, John Doe suffered a collapsed lung as a result of the assault.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Watson faces up to 10 years in prison.
The Navajo Department of Criminal Investigation and the FBI investigated this case with assistance from the Navajo Police Department. Special Assistant United States Attorney Mark Probasco is prosecuting the case.
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Titusville Woman Sentenced to 10 Years for Role in Meth ConspiracyRead the Press Release
ERIE, Pa. - A former resident of Titusville, Pennsylvania, has been sentenced in federal court to 120 months in jail on her conviction of violating federal drug laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Sarah Umanita Bloom, 31.
According to information presented to the court, from in and around June 2018, to on or about February 28, 2020, Bloom conspired with co-defendants to possess with intent to distribute and distributed five hundred grams or more of a mixture or substance containing a detectable amount of methamphetamine as they participated in a methamphetamine distribution network that trafficked methamphetamine from Akron, Ohio and Erie, Pennsylvania into Crawford, Venango and Warren Counties.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
United States Attorney Chung commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, Troop E, Vice Unit, the Titusville Police Department, the Warren County Drug Task Force, the Warren County Sherriff’s Office and the Crawford County Sherriff’s Office for the investigation leading to the successful prosecution of Bloom.
Texas Woman Sentenced for Courier Role in Return to Sender OCDETF InvestigationRead the Press Release
PITTSBURGH, PA – A resident of Highlands, Texas has been sentenced in federal court to 18 months of incarceration followed by four years of supervised release on a conviction of federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on Isniel Cantu, age 48. Cantu was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
According to information presented to the court, investigators seized approximately ten kilograms of pure methamphetamine from Cantu and her boyfriend, David Smallwood at a hotel in Clearfield County, Pennsylvania. Investigators determined that Cantu and Smallwood were couriers who previously transported approximately 20 kilograms of methamphetamine from Houston, Texas to a location in Clearfield County, Pennsylvania during two prior trips.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball prosecuted this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Service - Criminal Investigation, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Tampa Man Sentenced to 10 Years in Federal Prison for Shooting at Vehicle with Child InsideRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Deron Lamar Foster (35, Tampa) to 10 years in federal prison for being a felon in possession of a firearm and ammunition. The court also ordered Foster to forfeit the firearm and ammunition used in the commission of the offense. Foster had pleaded guilty on August 31, 2022.
According to court documents, Foster’s former significant other (Victim 1) and their six-year-old child (Victim 2) were victims of a shooting that occurred outside a Tampa apartment complex. Foster and Victim 1 had been arguing and were no longer living in the same residence at the time of the shooting. Victim 1 arrived at the apartment using a rideshare service. Victim 1 exited the vehicle and placed Victim 2 in the backseat of the rideshare vehicle while she went inside her apartment to retrieve a few belongings. Shortly after, the driver of the rideshare vehicle (Victim 3) heard five to six gunshots and realized someone was firing a gun at his car. Victim 3 fled from the apartment parking lot, with Victim 2 in the backseat, and flagged down an officer at a nearby pawn shop. Officers observed two bullet holes in Victim 3’s vehicle—one on the driver’s side door and one on the rear passenger door. Victim 2 had been sitting in the rear middle seat of the vehicle at the time of the shooting.
Foster fled from the area after the shooting but was arrested several days later by officers from the Tampa Police Department. At the time of his arrest, Foster was in possession of a loaded firearm. Analysis revealed it was the same firearm that had been used during the shooting at the apartment complex.
Foster had previously been convicted of multiple felonies, including child abuse and aggravated assault with a deadly weapon. As a result of his convictions, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff's Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
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.
Stonecrest’s former Senior Economic Development Manager pleads guilty to theft of COVID-19 relief fundsRead the Press Release
ATLANTA - Clarence Boone, the former Senior Economic Development Manager of Stonecrest, pleaded guilty to conspiring with his wife, Lania Boone, and the former Mayor of Stonecrest, Jason Lary, to steal pandemic relief funds intended to support small businesses in Stonecrest.
“Boone and the former Mayor conspired to fraudulently line each other’s pockets with relief funds that were desperately needed by struggling businesses in Stonecrest,” said U.S. Attorney Ryan K. Buchanan. “We will continue to uncover and prosecute those who exploit government positions and COVID relief programs to fuel their own greed.”
“CARES Act funds were intended to help people and businesses harmed by the pandemic, not to line the pockets of public officials entrusted to lead a community”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will continue to work with our local, state, and federal partners to ensure stolen relief funds are returned to the public, and individuals involved in this type of fraud are prosecuted to the fullest extent of the law.”
“Like the rest of the country, the residents and businesses of Stonecrest community looked to its government for vital assistance in response to the COVID-19 pandemic. Instead of being a trustworthy steward of CARES Act funding, Clarence Boone and his co-conspirators schemed to misappropriate those funds to enrich themselves at the expense of those less fortunate. The DeKalb County District Attorney’s Office will continue to work with its law enforcement partners to bring these bad actors to justice,” said DeKalb County District Attorney Sherry Boston.
According to U.S. Attorney Buchanan, the charges and other information presented in court: In March 2020, the President signed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act into law in response to the economic fallout of the COVID-19 pandemic. Under the CARES Act, the federal government distributed COVID-19 relief funds to individual Americans, federal agencies, and state and local governments, including $125 million to DeKalb County. DeKalb County then disbursed $6.2 million of these relief funds to Stonecrest.
In September 2020, Jason Lary, the former Mayor of Stonecrest, allocated $5 million of the relief funds to a Small Business Program which would disburse relief funds based on applications submitted by local businesses. Lary placed the defendant, Clarence Boone, who was then Senior Economic Development Manager for Stonecrest, in charge of overseeing the Small Business Program. Lary also made the defendant’s wife, Lania Boone, the bookkeeper charged with distributing relief funds. The three conspired to steal and misappropriate relief funds intended for struggling businesses in Stonecrest.
On October 28, 2020, for example, Clarence Boone and Lary circumvented the application process and directed more than $50,000 to a business that they knew was not conducting any legitimate operations, and Lania Boone ultimately wrote the check to disburse the funds. Later, in March 2021, after learning of an investigation into the city’s handling of relief funds and knowing that the business had never filed paperwork to support the grant, Clarence Boone attempted to conceal the scheme by directing the business’s owner to submit an application that contained false statements, even though the Small Business Program had already ceased operations.
Later in December 2020 and January 2021, Clarence Boone coordinated with Lary and Lania Boone to use $108,155.52 of relief funds to pay off the mortgage on Lary’s lakefront home in Macon, Georgia, and used more than $7,600 of relief funds to pay college tuition, a meal plan, books, and rent for Clarence Boone’s son.
Clarence Boone, 60, of Decatur, Georgia, pleaded guilty to conspiracy to commit federal program theft and is scheduled to be sentenced on March 13, 2023. His coconspirators previously pleaded guilty and received the following sentences:
- Jason Lary received a sentence of four years and nine months in prison to be followed by three years of supervised release and was ordered to pay restitution in the amount of $119,607.69. Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022.
- Lania Boone received a sentence of six months and one day in prison to be followed by three years of supervised release and was ordered to pay restitution in the amount of $7,657.47. Lania Boone pleaded guilty to conspiracy to commit federal program theft on February 11, 2022.
This case is being investigated by the Federal Bureau of Investigation and the DeKalb County District Attorney’s Office.
Assistant U.S. Attorney Garrett L. Bradford, Chief of Public Integrity and Civil Rights, is prosecuting the case. Former Assistant U.S. Attorney Trevor Wilmot previously prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
St. Louis County Woman Admits Armed Robbery, CarjackingRead the Press Release
ST. LOUIS – A woman from St. Louis County, Missouri on Wednesday admitted committing both an armed robbery and carjacking in 2021.
Kadijah McFadden, 29, pleaded guilty in front of U.S. District Judge Matthew T. Schelp to carjacking, discharge of a firearm in furtherance of a crime of violence, robbery, brandishing a firearm in furtherance of a crime of violence and being a felon in possession of a firearm.
McFadden admitted robbing a Boost Mobile store at 12135 Bellefontaine Road at gunpoint on Aug. 9, 2021. McFadden pointed a firearm at a store employee and said, “give me everything out the drawer right now.” She stole approximately $630 as well as multiple cell phones.
McFadden also admitted that on Sept. 5, 2021 around 9 a.m., she approached a woman in the 3600 block of Bates Street who had just parked her 2017 Jeep Cherokee and was unloading groceries. McFadden pointed a large black handgun at the victim and demanded her purse before trying to snatch it. McFadden did get the victim’s car keys. She then walked to the opposite side of the Jeep, opened the passenger side door and again demanded the purse before firing a total of four shots into the air and at the ground.
McFadden then stole the Jeep. The incident was captured on video.
About three hours later, St. Louis County police spotted the Jeep and followed it. During the pursuit, McFadden threw a black firearm out of the vehicle, but police recovered it. The Jeep eventually crashed and McFadden and her co-defendant, Damonta Jamall Bridges, were found inside.
A robbery and gun charge are pending against Bridges, 30, who has pleaded not guilty.
The case was investigated by the St. Louis Metropolitan Police Department, the St. Louis County Police Department and the FBI. Assistant U.S. Attorney Ashley Walker is prosecuting the case.
St. Francois County Man Admits Third Child Pornography OffenseRead the Press Release
ST. LOUIS – A man from St. Francois County, Missouri on Wednesday pleaded guilty to his third child pornography offense and now faces at least 15 years in federal prison.
James D. Brewer, 50, of Park Hills, pleaded guilty in front of U.S. District Judge Matthew T. Schelp to a felony charge of receiving child pornography.
As part of his plea, Brewer acknowledged that he was also convicted of distribution of child pornography in a 1997 case and possession of child pornography in a 2008 case. Brewer was sentenced to ten years in prison and a lifetime term of supervised release in the 2008 case. One of the conditions of Brewer’s supervised release is that he is subject to a search when reasonable suspicion exists that he violated a condition of supervision.
After United States probation officers received information that Brewer bought a laptop at a pawn shop, they conducted an unannounced home visit on March 1, 2022. They found the computer and also spotted a smart phone, USB drives, a smart watch and a cell phone. Brewer admitted downloading child sexual abuse material via the smart phone and storing it on one of the USB drives. Thousands of images containing child pornography were found on the phone, the USB drive and a hard drive, Brewer admitted in his plea Wednesday.
Brewer faces a mandatory minimum prison term of 15 years at his sentencing, scheduled for March 14, as well as an assessment of up to $35,000.
The case was investigated by the U.S. Probation Office in St. Louis.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Southern California Man Pleads Guilty to Cryptocurrency FraudRead the Press Release
SAN FRANCISCO – Ryan Mark Ginster pleaded guilty today in federal court to wire fraud involving an online investment website designed to defraud investors, announced United States Attorney Stephanie M. Hinds and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service-Criminal Investigation Washington D.C. Field Office.
In a written plea agreement he entered today, Ginster, 35, of Corona, California, admitted that he operated a website beginning in February 2018 called Socialprofimatic.com. He designed the website with the intent to defraud investors by making false representations about cryptocurrency investment opportunities. On Socialprofimatic.com, Ginster represented that investments with Socialprofimatic.com would receive returns of 8% a day and claimed that “This will be JOB REPLACING income, the income that will pay you every hour of every day even when your [sic] sleeping or on holiday.” He further claimed on the website that investors could “request your profits at any time you want and they’ll be INSTANTLY paid to your Bitcoin/Litecoin wallet.” Ginster admitted these and numerous other claims on his website were entirely false and intended solely to influence investors to part with their money or property. In the 38 days that the Socialprofimatic.com website was active, the website received approximately 9,026 deposits of bitcoin totaling approximately 98.12089739 BTC, valued at the time at approximately $844,667. Ginster admitted he did not invest the funds but instead deposited these funds into his own cryptocurrency wallet. That cryptocurrency is now worth over $1.6 million.
Ginster entered his guilty plea before United States District Judge Jacqueline Scott Corley, who scheduled a sentencing hearing for Ginster on March 29, 2023, at 9:00 a.m. Ginster remains out of custody pending sentencing.
Ginster pleaded guilty to one count of wire fraud in violation of Title 18, United States Code, Section 1343, which carries a maximum sentence of 20 years in prison. Any sentence following conviction, however, would be imposed only by a court only after its consideration of the United States Sentencing Guidelines and the federal statute governing sentencing, 18 USC § 3553.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. This prosecution is the result of an investigation by the IRS-CI Washington D.C. Cyber Crimes Unit.
The Los Angeles Regional Office of the Securities and Exchange Commission also filed a civil enforcement action against Ginster in the Central District of California. That action is pending.
If you believe you have been a victim of this fraud scheme, please contact IRS-Criminal Investigation at [email protected] or go to the following website:
https://www.justice.gov/usao-ndca/us-v-ryan-mark-ginster-22-cr-00374-jsc
The criminal complaint in this matter can be viewed on PACER or by visiting the website for the U.S. Attorney’s Office for the Northern District of California at www.justice.gov/usao-ndca where press releases are posted.
South Texan sentenced for trafficking cocaineRead the Press Release
CORPUS CHRISTI, Texas – A 27-year-old Brownsville man has been ordered to prison for attempting to transport cocaine through a Border Patrol checkpoint, announced U.S. Attorney Alamdar S. Hamdani.
Jonathan Martinez pleaded guilty Oct. 6, 2021.
Today, U.S. District Judge Drew B. Tipton ordered him to serve 24 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted that Martinez “really jumped into the deep end” when he committed this offense, as he had no criminal history.
On Oct. 19, 2020, Martinez arrived at the Border Patrol checkpoint located near Sarita. A K-9 alerted to his vehicle, at which time authorities referred him to secondary inspection.
A further search of his vehicle revealed three bundles of cocaine hidden in an aftermarket metal box and the computer module. They had a combined weight of 2.98 kilograms and have an estimated street value of $75,000.
Martinez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Amanda L. Gould prosecuted the case.
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South Bend Man Convicted by Jury of Gun CrimeRead the Press Release
SOUTH BEND – Zebulon Marzette, 39 years old, of South Bend, Indiana, was found guilty following a two-day jury trial presided over by United States District Court Judge Damon R. Leichty, announced United States Attorney Clifford D. Johnson.
Marzette was found guilty of being a felon in possession of a firearm.
Marzette is scheduled for sentencing on March 23, 2023. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the South Bend Police Department. This case was prosecuted by Assistant United States Attorneys Katelan M. Doyle and Joel Gabrielse with assistance from AUSA Luke N. Reilander, and former AUSA Geovanny E. Martinez.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Seward Woman Sentenced to Five Years’ Probation and Jail Time in Tax CaseRead the Press Release
Acting United States Attorney Steven Russell announced that Melissa Grantski, 51, of Seward, Nebraska, was sentenced today in Lincoln by United States District Judge John M. Gerrard for willful failure to collect or pay over employment taxes. Grantski was sentenced to 5 years’ probation, 10 weekends of intermittent confinement, $58,403.64 in restitution, and a $100 special assessment. There is no parole in the federal system.
This case began in October of 2017 when Internal Revenue Service officers noticed that Grantski had an unpaid tax debt for failing to pay payroll taxes. Unbeknownst to investigators at the time, Grantski was already on probation for a similar conviction out of Seward County. Investigators unsuccessfully worked with Grantski to come into compliance with tax laws and pay off her tax debt.
Grantski was the president, secretary, treasurer, and owner of a trucking or hauling business in Seward. She exercised control over the business affairs, including authorizing business expenses, authorizing payment of employee paychecks, signing of employee paychecks, approval of payments made by the corporation, and approval of payment of payroll taxes to the Internal Revenue Service (IRS). Grantski was required to withhold taxes from its employees’ paychecks, including federal income taxes, and Medicare and Social Security taxes, commonly called “payroll taxes.” Grantski was required to make deposits of payroll taxes to the IRS on a periodic basis. In addition, Grantski was required to file quarterly tax returns setting forth the total amount of wages and other compensation subject to withholding, the total amount of income taxes withheld, the total amount of payroll taxes due, and the total tax deposits.
Grantski had authority required to exercise significant control over the corporate financial business affairs of the business, and had the responsibility to collect, truthfully account for, and pay over payroll taxes to the IRS. During seven quarters between 2015 and 2017, Grantski failed to pay over to the IRS payroll taxes due. Federal tax deductions were made from employees’ paychecks, but Grantski did not forward the taxes to the IRS and did not file the quarterly return. In total, Grantski failed to account for and failed to pay over approximately $58,403.64 in payroll taxes between 2015 – 2017. Prior to sentencing, Grantski paid all of this restitution to the IRS.
This case was investigated by the Internal Revenue Service – Criminal Investigation.
Seattle man who trafficked young juveniles sentenced to ten years in prisonRead the Press Release
Seattle – A 23-year-old Seattle man, was sentenced today in U.S. District Court in Seattle to ten years in prison for attempted sex trafficking of a minor, announced U.S. Attorney Nick Brown. Issac Shorack was arrested at Sea-Tac Airport in February 2022 as he drove to the arrivals area to pick up a person he believed to be a 17-year-old minor. In fact, Shorack had been communicating with an undercover agent about traveling to Seattle to work as a prostitute. Shorack first came to the attention of law enforcement in November 2021, with a tip to a National Human Trafficking hotline alleging he was trafficking juveniles. At today’s sentencing hearing, U.S. District Judge Tana Lin said Shorack preyed on “Young, confused, and impressionable girls…. You were looking for young vulnerable girls, and when they were afraid, you threatened them with violence.”
“Mr. Shorack used threats and violence to control vulnerable juveniles who he sold for sex on Aurora Avenue,” said U.S. Attorney Nick Brown. “He made hundreds of thousands of dollars by exploiting and endangering young women and used the money to fund his lavish lifestyle.”
According to records in the case, the investigation began with a call to the National Human Trafficking Hotline in November 2021. The caller reported information about minors who were being trafficked in the Seattle area – in the location known as “the track” or “the blade” on Aurora Avenue North. The FBI began an investigation and was able to trace some of the activities of Shorack and the minors he controlled for sex trafficking. Forensic examination of electronic devices revealed text messages showing Shorack in control of the minors’ activities including pricing, what sex acts they should engage in with sex buyers, the use of condoms and information about whether they were earning enough money for him. Investigators analyzed Shorack’s texts to the minors about how much money they were making and saw that they correlated with cash deposits made into his bank accounts. In his text messages, Shorack also bragged about physically assaulting another victim and threatened physical violence if the victims did not follow his orders. Shorack also admitted that he knew at least three of his victims were minors.
The FBI used an experienced undercover agent based out of state to reach out to Shorack posing as a 17-year-old minor. Shorack communicated with the “minor” via phone and text messages and attempted to entice her to travel to Seattle and work for him as a prostitute. Shorack had some of the minors under his control reach out to the undercover officer as well to try to recruit her to work for him. Shorack used various questions to try to determine whether the undercover was law enforcement. Ultimately, Shorack purchased a ticket for the “minor” to fly to Seattle and told her he would pick her up outside baggage claim. Instead, Shorack was arrested by Port of Seattle Police.
“It is deplorable that Mr. Shorack not only recruited minors from across the country, but he also demonstrated zero concern for his victims’ well-being,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field Office. “The work the FBI and our law enforcement partners are doing to combat modern-day slavery is critical in ending this dehumanizing crime.”
An analysis of Shorack’s bank accounts revealed he deposited more than $360,000 in prostitution proceeds. Today Judge Lin ordered Shorack to pay $50,000 in restitution to each of his three minor victims for a total of $150,000.
In asking for a 12-year-sentece with ten years of community supervision to follow, Assistant United States Attorney Kate Crisham wrote to the court, Shorack “is a predatory person who was willing to recruit and live off the prostitution profits of vulnerable juveniles and young women. By virtue of engaging in this conduct, he poses a very real danger to the community and has the potential to continue to sexually exploit women upon his release.”
Shorack will be on ten years of supervised release following prison, and will be required to register as a sex offender.
The National Human Trafficking Hotline is 1-888-373-7888
The case was investigated by the FBI with assistance from the Seattle Police Department and the Port of Seattle Police.
The case was prosecuted by Assistant United States Attorney Kate Crisham. Ms. Crisham is the Anti-Human Trafficking Coordinator for the Western District of Washington.
Schuylkill County Man Charged with Methamphetamine and Fentanyl TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 13, 2022, John Bartel, age 63, of Pottsville, Pennsylvania, was indicted by a federal grand jury for methamphetamine and fentanyl trafficking.
According to United States Attorney Gerard M. Karam, the indictment charges Bartel with possession with intent to distribute more than fifty grams of methamphetamine and an additional amount of fentanyl, on August 3, 2022, in Schuylkill County.
The investigation was conducted by the Pennsylvania State Police and Federal Bureau of Investigation’s Safe Streets Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case was prosecuted as part of a district wide initiative to combat the nationwide
epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit opioid trafficking offenses.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The charge carries a mandatory minimum sentence of five years in prison. The maximum sentence under federal law is up to forty years in prison, a term of supervised release and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Sanbornton Man Charged with Possession of Child Exploitation MaterialRead the Press Release
CONCORD, N.H. – Timothy Ryan, 34, of Sanbornton, New Hampshire, was charged via complaint in federal court with possession of child sexual abuse material, United States Attorney Jane E. Young announced today.
Ryan was arrested without incident on Tuesday, December 13, after investigators executed a search warrant and seized Ryan’s electronic devices. According to court documents and statements made in court, Ryan was identified as a suspect in an online investigation related to the distribution of child exploitation material on a peer-to-peer file-sharing network. Agents reviewing the contents of Ryan’s cell phone confirmed the presence of child exploitation material on his cell phone. He appeared for an initial appearance today and is temporarily detained pending a detention hearing scheduled for December 21, 2022.
This case was investigated by Homeland Security Investigations with assistance from the New Hampshire Internet Crimes Against Children Task Force, U.S. Secret Service New England Cyber Fraud Task Force, Grafton County Sheriff’s Department, Nashua Police Department and the Sanbornton Police Department. It is being prosecuted by Assistant United States Attorney Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A complaint is merely an allegation and a defendant is presumed innocent unless and until proven guilty.
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