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24 January 2023
Former Energy Company Executive Sentenced for $15 Million Investment FraudRead the Press Release
A California man was sentenced today to five years in prison for defrauding investors of more than $15 million in connection with a scheme to misappropriate investor funds for his own personal use.
Joey Stanton Dodson, 58, formerly of Indio, pleaded guilty in the Northern District of California to one count of wire fraud on June 14, 2022.
According to court documents, between November 2012 and May 2015, Dodson engaged in a scheme to defraud investors while serving as the executive chairman and managing partner of Citadel Energy (Citadel), which purported to provide fluid-management services to oil and gas companies. In his role, Dodson was responsible for raising funds, controlling the bank accounts, and disseminating financial information to investors for three limited partnerships affiliated with Citadel. As part of the scheme, Dodson made materially false and misleading representations and omissions to prospective and existing investors about the intended use of investor funds, the status of a potential acquisition by a private-equity firm, and Dodson’s own compensation.
After inducing victims to invest, Dodson pooled the funds from the limited partnerships and conducted multiple transfers between Citadel-related accounts in order to divert investor funds for his own benefit and to conceal his actions. In total, Dodson fraudulently raised over $15.6 million from more than 50 investors and misappropriated $1.3 million in investor funds, which he used to pay for his personal expenses and to repay earlier investors in unrelated entities known collectively as Duke Equity. After Dodson’s misappropriation was discovered, the limited partnerships were placed into bankruptcy and the investors suffered a total loss of their investments.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Stephanie M. Hinds for the Northern District of California, and Special Agent in Charge Robert R. Tripp of the FBI San Francisco Field Office made the announcement.
The FBI San Francisco Field Office investigated the case.
Trial Attorney Theodore M. Kneller of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Sarah Griswold and Marissa Harris for the Northern District of California prosecuted the case.
Former Energy Company Executive Sentenced to Five Years in Prison for $15 Million Investment FraudRead the Press Release
SAN JOSE – Joey Stanton Dodson was sentenced today to five years in prison for defrauding investors of more than $15 million in connection with a scheme to misappropriate investor funds for his own personal use. The sentence was handed down by the Hon. Beth Labson Freeman, U.S. District Judge.
Dodson, 58, formerly of Indio, pleaded guilty to one count of wire fraud on June 14, 2022. According to court documents, Dodson engaged in a scheme between November 2012 and May 2015 to defraud investors while serving as the executive chairman and managing partner of Citadel Energy Partners, which purported to provide fluid-management services to oil and gas companies. In his role, Dodson was responsible for raising funds, controlling the bank accounts, and disseminating financial information to investors for three limited partnerships: Fort Berthold Water Partners L.P., Citadel Watford City Disposal Partners L.P., and H20 Partners L.P. As part of the scheme, Dodson made materially false and misleading representations and omissions to prospective and existing investors about the intended use of investor funds, the status of a potential acquisition by a private-equity firm, and Dodson’s own compensation.
After inducing victims to invest, Dodson pooled the funds from the limited partnerships and conducted multiple transfers between Citadel-related accounts to divert investor funds for his own benefit and conceal his actions. In total, Dodson fraudulently raised over $15.6 million from more than 50 investors and misappropriated $1.3 million in investor funds, which he used to pay for his personal expenses and to repay earlier investors in an unrelated entity known as Duke Equity. After Dodson’s misappropriation was discovered, the limited partnerships were placed into bankruptcy and the investors suffered a total loss of their investments.
In addition to the prison term, Judge Freeman also ordered Dodson to serve three years supervised release and to pay restitution in the amount of $15,636,392.
U.S. Attorney for the Northern District of California Stephanie M. Hinds, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, and Special Agent in Charge Robert R. Tripp of the FBI San Francisco Field Office made the announcement.The FBI San Francisco Field Office investigated the case.
Assistant U.S. Attorneys Sarah Griswold and Marissa Harris for the Northern District of California and Trial Attorney Theodore M. Kneller of the Criminal Division’s Fraud Section prosecuted the case.
Former DeSales University Priest SentencedRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today that William McCandless, age 59, of Elkton, Maryland, a former DeSales University priest, was sentenced to 37 months’ imprisonment followed by 15 years of supervised release. He is also required to register pursuant to the Sexual Offender Registration and Notification Act.
On May 27, 2022, McCandless pleaded guilty to access and attempted access with intent to view child pornography. In 2017, McCandless searched for images of young boys and accessed over 3000 web pages depicting and offering child sex abuse images. He also accessed dozens of stories which graphically detailed and described the sexual torture of young boys.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
“Those in positions of power and trust should never put the safety of our children in peril,” said U.S. Attorney Romero. “The actions taken by the defendants in Project Safe Childhood cases cause trauma and heartache for the victims and their families. Our office will continue pursuing these cases to help ensure our communities are safe.”
“For a priest and university faculty member to violate his position of trust by engaging in the depraved activity for which he previously pled guilty is reprehensible,” said William S. Walker, Special Agent in Charge for HSI Philadelphia. “Homeland Security Investigations and our law enforcement partners around the world will continue to coordinate closely to ensure our communities are protected from child predators who exploit vulnerable victims.”
The case was investigated by Homeland Security Investigations and the High Technology Investigative Unit of the Department of Justice’s Child Exploitation and Obscenity Section and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
Former CEO of Email Security Company Sentenced to Five Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ROBERT BERNARDI, the founder and former Chief Executive Officer of the Virginia-based email security company GigaMedia Access Corporation, d/b/a GigaTrust (“GigaTrust”), was sentenced to five years in prison by United States District Judge Paul G. Gardephe. BERNARDI was sentenced for orchestrating a scheme to defraud investors and lenders of millions of dollars through false and misleading misrepresentations, including fabricated bank statements and audit reports, and by impersonating a purported customer, auditor, and GigaTrust lawyer.
U.S. Attorney Damian Williams said: “Robert Bernardi repeatedly lied and impersonated others in order to convince investors and lenders to fund his failing company. Rather than admit that GigaTrust was underperforming, Bernardi concocted multiple schemes to keep the company afloat, defrauding investors and lenders out of millions. Today’s sentence is a just consequence of Bernardi’s fraudulent actions”
According to the allegations in the Indictment and other filings and statements made in court:[1]
From in or about 2016 through at least in or about 2019, GigaTrust was a private company headquartered in Virginia that purported to be a market-leading provider of cloud-based content security solutions. BERNARDI founded GigaTrust and served as its CEO. BERNARDI, along with two co-defendants, NIHAT CARDAK and SUNIL CHANDRA, devised a scheme to defraud investors and lenders by (i) fabricating and disseminating false and misleading bank account statements that overstated GigaTrust’s cash deposits; (ii) fabricating and disseminating false and misleading audit materials that purported to have been issued by GigaTrust’s auditors and overstated GigaTrust’s performance; (iii) forging and disseminating a false and misleading letter purporting to be from GigaTrust’s New York-based counsel; and (iv) impersonating or causing others to impersonate a purported customer and auditor of GigaTrust on telephone calls with a prospective lender.
Specifically, BERNARDI sent fabricated audit materials to a New York-based investment firm, and BERNARDI and CARDAK used fabricated bank statements to obtain multiple rounds of loans and investments for GigaTrust worth millions of dollars. After a New York-based bank (“Bank-1”), which had loaned GigaTrust $25 million, declared that GigaTrust had defaulted on the terms of its loan agreement, BERNARDI and CARDAK induced additional investments in GigaTrust through, among other things, forging a letter purporting to be from GigaTrust’s New-York based counsel. Shortly thereafter, while negotiating another $25 million deal with a lender (“Lender-1”), BERNARDI and CARDAK devised a scheme to impersonate a GigaTrust customer and auditor on requested diligence calls, which induced Lender-1 to make a $25 million loan to GigaTrust. BERNARDI recruited CHANDRA to pose as one of GigaTrust’s alleged customers on a call with Lender-1. BERNARDI and CARDAK also fabricated bank statements and sent them to Lender-1 right before closing the $25 million deal.
GigaTrust filed for Chapter 7 bankruptcy protection in the District of Delaware on or about November 27, 2019.
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In addition to his prison term, BERNARDI, 68, of McLean, Virginia, was sentenced to three years of supervised release and ordered to forfeit $3,442,264 and to pay restitution to his victims.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation in this case. Mr. Williams further thanked the Securities and Exchange Commission, which has separately filed a civil enforcement action against the defendants, for its assistance in the investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Peter J. Davis and Emily A. Johnson are in charge of the prosecution.
NIHAT CARDAK pled guilty on January 12, 2023, and is scheduled to be sentenced on May 16, 2023. The charges contained in the Indictment are merely accusations as to SUNIL CHANDRA, and CHANDRA is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Former Beaverton Mayor Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
PORTLAND, Ore.—Dennis “Denny” Doyle, the former mayor of Beaverton, Oregon, was sentenced to federal prison today for illegally possessing child pornography.
Doyle, 74, a Beaverton resident, was sentenced to six months in federal prison and five years’ supervised release. Doyle was also ordered to pay $22,000 in restitution to his victims.
According to court documents, in late January 2022, the Beaverton Police Department was notified by a local business that a USB thumb drive containing possible child pornography had been found. The business provided the thumb drive to law enforcement, and it was determined that did indeed contain child pornography. Additionally, the drive contained personal photographs that appeared to belong to Doyle. Law enforcement also determined the images of child pornography were downloaded onto the thumb drive between November 2014 and December 2015, while Doyle was serving as the Beaverton mayor.
After the Beaverton Police Department referred the case to the FBI, special agents from FBI Portland’s Child Exploitation Task Force (CETF) contacted Doyle at his home. Doyle was immediately truthful with the agents, admitting the drive was his and that he had personally downloaded child pornography from his home computer. No further evidence of child pornography was located on Doyle’s digital devices.
On March 3, 2022, Doyle was charged by criminal information with one count of possession of child pornography and, on October 11, 2022, pleaded guilty to the single charge.
This case was investigated by FBI Portland’s CETF with assistance from the Beaverton Police Department. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. Child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document victims’ exploitation and abuse, but when shared across the internet, child victims suffer re-victimization each time the image of their abuse is viewed. To learn more, please visit the NCMEC’s website at www.missingkids.org.
FBI Portland’s CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Five-Time Felon Sentenced to Prison for Role in Fentanyl Trafficking ConspiracyRead the Press Release
LAS VEGAS – A five-time convicted felon was sentenced yesterday by U.S. District Judge Jennifer A. Dorsey to 10 years in prison followed by four years of supervised release for his role in a conspiracy with his brother to sell large amounts of fentanyl.
According to court documents, Robert Dillon (46) agreed with his brother Melvin Dillon and others to distribute 40 grams or more of fentanyl, a Schedule II controlled substance. In May 2019, Dillon possessed a .380 caliber pistol during a drug sale.
Robert Dillon pleaded guilty in July 2022 to conspiracy to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime. Melvin Dillon (49), a nine-time convicted felon, pleaded guilty to conspiracy to distribute a controlled substance, and was sentenced to 128 months in prison.
U.S. Attorney Jason M. Frierson for the District of Nevada, Acting Special Agent in Charge Joshua Jackson for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Assistant Special Agent in Charge Kevin Adams for the Drug Enforcement Administration (DEA) Las Vegas District Office made the announcement.
The ATF and DEA Las Vegas District Office investigated the case.
Fentanyl is a synthetic opioid that is 50 times more potent than heroin. Just two milligrams of fentanyl, or the amount that could fit on the tip of a pencil, is considered a potentially lethal dose. In 2021, a record number of Americans – 107,622 – died from a drug poisoning or overdose. Sixty-six percent of those deaths can be attributed to synthetic opioids such as fentanyl.
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Federal Judge Sentences Man to Nearly Eight Years in Prison for Illegally Possessing Loaded Handgun in ChicagoRead the Press Release
CHICAGO — A man has been sentenced to nearly eight years in federal prison for illegally possessing a loaded semiautomatic handgun and resisting police during a traffic stop in Chicago.
DEONTA CARSON, 26, of Chicago, illegally possessed the gun on the afternoon of March 2, 2020, in the Englewood neighborhood on Chicago’s South Side. Chicago Police officers pulled over Carson’s vehicle for having a broken taillight near the intersection of West 71st Street and South Morgan Street. Carson resisted officers’ commands to get out of the car, and then struggled with the officers when they tried to remove him. As one of the officers pulled Carson from the vehicle, the gun fell to the ground.
Carson had previously been convicted in state court of multiple felonies and was not legally allowed to possess a gun. He was on parole for a vehicular hijacking conviction at the time of the federal offense.
Carson pleaded guilty in the federal case to a charge of illegal firearm possession. U.S. District Judge Ronald A. Guzman imposed a prison sentence of seven years and eleven months after a hearing Jan. 19, 2023, in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.
“It is not acceptable for felons to carry guns under any circumstances,” Assistant U.S. Attorney Charles W. Mulaney argued in the government’s sentencing memorandum. “Had the officers not been so experienced or skilled, the struggle could have resulted in much greater harm to themselves or defendant.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Federal Inmate Indicted on Drug ChargesRead the Press Release
RALEIGH, N.C. – A federal grand jury returned an indictment Friday charging a Florida man, currently a federal inmate serving a sentence, with possession of contraband (Buprenorphine) in prison, and possession with intent to distribute Buprenorphine.
According to the indictment, Juan Martir, a federal inmate serving his sentence at the Federal Correctional Complex in Butner, North Carolina (“FCC Butner”) had 45 individually wrapped pieces of Buprenorphine, a schedule III-controlled substance. Also found with Martir were numerous books of stamps, individual stamps, and a notebook with names of fellow inmates. If convicted, he faces a maximum penalty of 20 years for each count.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Prisons is investigating the case and Special Assistant United States Attorney Mallory Brooks Storus is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
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Eagle Butte Man Indicted for Assault Resulting in Serious Bodily InjuryRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury and Assault with a Dangerous Weapon.
Taten Joseph Ducheneaux, age 34, was indicted in January of 2023. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 20, 2023, and pleaded not guilty.
The maximum penalty upon conviction for Assault Resulting in Serious Bodily Injury or Assault with a Dangerous Weapon is 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges Ducheneaux assaulted another person on August 13, 2022, with shod feet and a bat, resulting in serious bodily injury. This conduct occurred in Ziebach County, South Dakota.
These charges are merely accusations and Ducheneaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carl Thunem is prosecuting the case.
Ducheneaux has been remanded to the custody of the U.S. Marshals Service pending further hearings.
Eagle Butte Man Indicted for Assault Resulting in Serious Bodily InjuryRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury and Assault with a Dangerous Weapon.
Taryn Joseph Ducheneaux, age 34, was indicted in January of 2023. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 23, 2023, and pleaded not guilty.
The maximum penalty upon conviction for Assault Resulting in Serious Bodily Injury or Assault with a Dangerous Weapon is 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges Ducheneaux assaulted another person on August 13, 2022, with shod feet and a bat, resulting in serious bodily injury. This conduct occurred in Ziebach County, South Dakota.
These charges are merely accusations and Ducheneaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carl Thunem is prosecuting the case.
Ducheneaux has been remanded to the custody of the U.S. Marshals Service pending further hearings.
Dover Man Sentenced to 11 Years for Sex Trafficking of a MinorRead the Press Release
CONCORD –Tyler Townsend, 28, of Dover was sentenced to 11 years in federal prison today for one count of sex trafficking of a minor, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, in 2017 Townsend posted online advertisements offering a minor female for commercial sex acts on a now-defunct website. The online account used to post the advertisements was linked to Townsend through email and phone records. Townsend often dealt directly with prospective individuals who responded to the advertisements, negotiating terms and discussing prices. He also frequently accompanied the minor female and collected the money that was paid by the individuals in exchange for sex with the minor female.
“Preying on our community’s most vulnerable members—our children—is a horrific crime that we will not tolerate,” said U.S. Attorney Young. “Our office will devote every available resource to stopping the sexual exploitation of children and pursuing justice on behalf of victims.”
“Townsend trafficked a minor, turning a profit on the exploitation of a young life. He orchestrated meetings with strangers for commercial sex, placing her in incredibly dangerous situations for his own monetary enrichment without concern for her welfare,” said Matthew Millhollin, Special Agent in Charge Homeland Security Investigations in New England. “HSI continues in our commitment to pursue human traffickers and to connect survivors with the services they deserve. This outcome could not be achieved without the New Hampshire Human Trafficking Task Force and partnerships of the New Hampshire Division of Child, Youth and Family Services and the Manchester Police Department.”
The case was investigated by Homeland Security Investigations in collaboration with the New Hampshire Human Trafficking Collaborative Task Force, the New Hampshire Internet Crimes Against Children Task Force, the Manchester Police Department and the Dover Police Department. It was prosecuted by Assistant U.S. Attorneys Kasey Weiland and Anna Dronzek.
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Detroit Man Sentenced to Life in Prison for Production of Child Pornography and Sex Trafficking MinorsRead the Press Release
DETROIT –A Detroit man who photographed his sexual assaults of a young child and forced an adult to engage in prostitution was sentenced to life in prison, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Angie M. Salazar, Special Agent in Charge of Homeland Security Investigations, Detroit Field Division, and Michael Patton, Chief of West Bloomfield Township Police Department.
Ryon Travis, 39, was convicted of production of child pornography and sex trafficking after a jury trial in July 2022. Travis was sentenced today by United States District Court Judge Bernard A. Friedman.
Police began investigating Travis in connection with identity theft. When detectives searched Travis’s cell phone for evidence of fraud, they found something far more alarming: explicit photographs of child sexual abuse depicting the penetration of a prepubescent child. And when law enforcement returned to Travis’s home a second time to gather additional evidence related to child pornography, they found an adult woman chained at the neck to a pole in the living room. Investigators learned that multiple women lived in Travis’s home, and he considered all of them his “wives.” Travis arranged commercial sex dates for all of the women. When one of the women tried to leave, Travis forced her to continue engaging in prostitution by placing a chain around her neck.
“Child sexual abuse leaves an indelible mark on victims. The documentation of the abuse makes this crime even more egregious. This defendant also forced an adult woman to engage in prostitution by physically restraining her with a chain. The public needs to be protected from Ryon Travis, and this lengthy sentence helps to do just that,” U.S. Attorney Ison said.
“Predators like Travis tear at the very foundation of our communities, not only victimizing children but subjecting multiple women to sex trafficking” said Angie Salazar, HSI Detroit Special Agent in Charge. “It is my hope that this sentence brings some measure of peace to the survivors, knowing that he will remain behind bars.”
This case was investigated by the West Bloomfield Township Police Department, and Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorneys Sara Woodward and Andrea Hutting.
Cumberland County Man Sentenced Today to 114 Months in Prison on Drug ChargesRead the Press Release
A Cumberland County, New Jersey, man was sentenced today to 114 months in prison and six years of supervised release for conspiring with others to obtain and distribute several kilograms of cocaine and violating the conditions of his supervised release from a prior conviction for conspiring to distribute cocaine. Lavinston Lamar, 40, of Bridgeton, New Jersey, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court on May 5, 2022.
Convicted Felon Indicted for Attempting to Illegally Buy A FirearmRead the Press Release
Jacksonville, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Byron Jones, Jr. (34, Jacksonville) with making a false statement to a federally licensed firearms dealer during the attempted purchase of a firearm. If convicted, he faces up to five years in federal prison.
According to the indictment, Jones completed an ATF Form 4473 during the attempted purchase of a firearm from a federally licensed firearms dealer. Jones indicated on the required paperwork that he was not a convicted felon. This was a false statement since Jones has three prior felony convictions, from 2015 and 2018, including a conviction for carrying a concealed firearm.
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 is another case uncovered through the FBI’s National Instant Criminal Background Check System (NICS). All NICS denials are reported to federal law enforcement and are reviewed daily for potential criminal prosecution. Federal law makes it a felony offense to make a false statement to a firearms dealer when trying to purchase a firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Frank Talbot.
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.
Connecticut Company Pays over $475K to Resolve False Claims Act AllegationsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that Triumph Actuation Systems – Connecticut, LLC (“Triumph”) has entered into a civil settlement agreement with the United States and has paid $478,586.49 to resolve allegations that it violated the False Claims Act by inflating rates charged to and paid by the government on defense contracts.
Triumph is a limited liability company located in Windsor, Connecticut, that designs and manufactures mechanical and actuation components for commercial and U.S. military aircraft and military systems. The government contends that, between April 1, 2014 and March 31, 2020, Triumph inflated the general and administrative (“G&A”) rates charged to and paid by the government and higher tier contractors on government contracts by including certain labor costs in those rates when, in fact, those same costs had already been directly charged to and paid by others. As a result of Triumph’s inflated G&A rates, Triumph was paid twice for the same costs.
“Federal contractors who falsely and fraudulently overbill the government, including defense contractors, will be held accountable,” said U.S. Attorney Avery. “We thank the relator for coming forward to report the fraudulent conduct, and DCIS, Army CID, NCIS and DCAA for thoroughly investigating this matter.”
“Investigating allegations of cost mischarging on Department of Defense (DoD) contracts is a top priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DoD Office of Inspector General,” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “The DCIS is committed to working with its law enforcement partners and the U.S. Attorney’s Office to ensure the integrity of the DoD procurement process. The Defense Contract Audit Agency’s Operations Investigative Support Division provided valuable assistance in this matter.”
“We are very pleased with today's announcement,” said Special Agent in Charge L. Scott Moreland of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office. “This is a true testament to our continued commitment to work closely and seamlessly with our fellow law enforcement agencies to protect the financial interests of the United States Army and the United States Government as a whole.”
“Procurement fraud wastes taxpayer dollars, damages the integrity of the Department of the Navy procurement process, and ultimately threatens Navy and Marine Corps readiness,” said Special Agent in Charge Michael T. Wiest of the NCIS Northeast Field Office. “NCIS and our federal partners remain committed to ensuring the good stewardship of taxpayer dollars and the safety of Department of the Navy warfighters by fully investigating all allegations of procurement fraud.”
The False Claims Act allegations resolved by the settlement were originally brought in a lawsuit filed by a whistleblower under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The relator (whistleblower), a former employee of Triumph, will receive $90,931.43 as his share of the recovery.
This investigation was conducted by the Defense Criminal Investigative Service, the Department of the Army Criminal Investigative Division, the Naval Criminal Investigative Service, and the Defense Contract Audit Agency Operations Investigative Support Division. This matter was handled by Assistant U.S. Attorney Sarah Gruber, with the assistance of Auditor Susan N. Spiegel.
The case resolved by this settlement was captioned U.S. ex rel. Balestrieri v. Triumph Actuation Systems – Connecticut, LLC and Triumph Group, Inc. (Docket No. 17-cv-1945).
Colorado Businessman Pleads Guilty to Tax EvasionRead the Press Release
A Colorado man pleaded guilty today to attempting to evade the payment of more than $700,000 in employment taxes owed to the IRS.
According to court documents, Frank Stevens, of Bow Mar, co-owned restaurants and an oil production business, which had employees from whose paychecks he withheld income taxes and Social Security and Medicare taxes. From at least 2002 and continuing for many years, Stevens did not pay over the withheld payroll taxes to the IRS or file the required payroll tax returns for his businesses. In an effort to prevent the IRS from collecting the taxes he owed through bank levies, Stevens kept the balances of his personal and business bank accounts low, often leaving them with only $0.01. To do so, Stevens, or an employee acting at his direction, transferred just enough funds to cover expenses and then transferred any remaining money to a bank account not subject to IRS levy. In total, the defendant caused a tax loss of approximately $737,128.
Stevens is scheduled to be sentenced on June 13, 2023, and faces a maximum penalty of five years in prison. Defendant also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Peter J. Anthony and Julia M. Rugg of the Justice Department’s Tax Division are prosecuting the case.
City and County of Honolulu Agree to Improve Paratransit for People with DisabilitiesRead the Press Release
The Justice Department announced today that it entered into a settlement agreement with the City and County of Honolulu (Honolulu) under Title II of the Americans with Disabilities Act (ADA) to improve its paratransit.
Title II of the ADA requires that cities and counties, including Honolulu, that provide bus or rail service, also provide paratransit. Paratransit is a public service where individuals who are unable to use the regular bus or rail transit system because of a physical or mental impairment schedule a trip to be picked up (at home, for example) and dropped off at their destination. Reserving rides is a key aspect to paratransit.
“Ensuring easy access to booking paratransit is required by the Americans with Disabilities Act,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement will allow users to reserve and use paratransit in Honolulu. The Justice Department is committed to ending discriminatory practices in paratransit, because accessible transportation is critical to independence and engagement in civic life.”
The agreement resolves complaints that customers of Honolulu’s paratransit service, TheHandi-Van, who called to make or change reservations for rides, had very long telephone hold times or did not have their calls answered. Under the agreement, Honolulu will take immediate steps to lessen hold times and within three years will answer 95% of calls to TheHandi-Van within three minutes and 99% of calls within five minutes. Honolulu will also provide regular reports to the department on its progress under the agreement.
This matter was prosecuted by the Civil Rights Division’s Disability Rights Section.
The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit the ADA website at http://www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
Canton Man Pleads Guilty to Attempted Transfer of Obscene Material to a MinorRead the Press Release
PORTLAND, Maine: A Canton man pleaded guilty in U.S. District Court in Portland today to attempting to transfer obscene material to a minor.
According to court records, in September 2019, Dale Carr, 51, began chatting online with an undercover FBI agent posing as a 13-year-old girl. Over the course of the next several weeks, Carr repeatedly asked the agent, who he believed was an underage girl, for sexually explicit photos and videos and expressed an interest in having sex with them. In October 2019, he sent the agent a close-up photograph of his penis.
Carr faces a maximum of 10 years in prison, a $250,000 fine and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case.
Online enticement is increasing: The National Center for Missing & Exploited Children (NCMEC) reported an alarming 97.5% increase in online enticement reports between 2019 and 2020. “Online enticement” involves an individual communicating with someone believed to be a child via the internet with the intent to commit a sexual offense or abduction. This type of victimization takes place across every platform, including social media, messaging apps, gaming platforms, etc. Learn more about online enticement, including red flags and risk factors, at www.missingkids.org/theissues/onlineenticement.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
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California Man Pleads Guilty to Attempted Possession of CocaineRead the Press Release
PITTSBURGH, PA -- A resident of Covina, California, pleaded guilty in federal court to a charge of violating federal narcotic laws, United States Attorney Cindy K. Chung announced today.
Kenneth Kim Parks, age 60, pleaded guilty to one count of attempt to possess with intent to distribute a quantity of cocaine before United States District Judge W. Scott Hardy.
In connection with the guilty plea, the court was advised that on March 19, 2021, the United States Postal Service executed a federal search warrant on a parcel sent from Puerto Rico after a drug K-9 alerted to the presence of a controlled substance. A Pennsylvania State Police laboratory confirmed that the parcel contained over 500 grams of cocaine, a Schedule II controlled substance. Subsequently, law enforcement replaced the cocaine with sham, a substance designed to look like cocaine. Law enforcement then prepared for a controlled delivery operation at the residence where the parcel was to be delivered in Troy Hill, Pennsylvania.
Prior to the controlled delivery, law enforcement placed physical surveillance at the Troy Hill residence. Surveillance observed Kenneth Kim Parks, a resident of California, exit his rental vehicle, knock on the door of the residence, and interact with his cellular phone. After no one answered, Parks returned to his vehicle, which was parked in front of the residence.
Thereafter, an undercover postal inspector executed the controlled delivery of the parcel, leaving the parcel on the porch of the residence. Immediately after the undercover departed, Parks exited his vehicle, retrieved the parcel, and returned to his vehicle. Surveillance observed Parks place the parcel behind the driver’s seat. Law enforcement then converged on Parks. Upon seeing law enforcement, Parks stated, “I did nothing wrong, just take me to jail.” The unopened parcel was located behind Parks, and he had three cellular phones on the center console. A phone contained texts with an individual from Puerto Rico, from where the parcel was sent. One of the texts notified Parks of the address where the controlled delivery operation occurred.
Judge Hardy scheduled sentencing for May 25, 2023, at 9:30 am. The law provides for a term of imprisonment not more than 20 years, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Parks on bond.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Parks.
CEO Sentenced to Prison and Ordered to Repay Millions for Defrauding the United States in Connection with Military and Humanitarian Projects in AfricaRead the Press Release
For Further Information, Contact: Assistant U. S. Attorneys Mark W. Pletcher (619) 546-9714 and Eric R. Olah (619) 546-7540
SAN DIEGO – Micheline Pollock, a citizen of Canada and resident of the United Kingdom, was sentenced in federal court today to time served, which amounts to approximately a 30-month term of imprisonment, for her role in a conspiracy to defraud the United States Army Corps of Engineers (USACE) and the U.S. Navy Facilities Engineering Command (NAVFAC) in connection with military and humanitarian construction projects across Africa. Chief U.S. District Judge Dana M. Sabraw also ordered Pollock to pay more than $7 million in restitution.
As charged in a 98-count indictment, Pollock was the chief executive officer of Dover Vantage, a U.S. construction firm that had its primary office in Dubai and specialized in expeditionary projects in Africa. Between 2011 and 2018, Dover Vantage won construction contracts for USACE and NAVFAC projects in Africa, including a maternity ward and a school for the deaf in Togo, and a military aircraft hangar in Niger.
Pollock was arrested on September 22, 2020, in Tbilisi, Georgia by Georgian authorities based on a provisional arrest warrant issued at the request of the United States. Pollock was in custody for approximately nine-months before she was extradited to the United States on June 18, 2021. For their efforts in this case, the U.S. Attorney’s Office for the Southern District of California specially acknowledges the assistance provided by our international partners in Georgia, including the Office of the Prosecutor General of Georgia, Georgia Border Police, Isani Police Department, and the Isani Prosecutor’s Office.
Upon her extradition to the United States, Pollock entered a guilty plea to conspiring with others at Dover Vantage to defraud the United States. Pollock admitted in her plea agreement that she and her co-conspirators fraudulently represented that they had quality control plans and inspections, that they met these supposed quality control standards, and subsequently they falsely represented that work was done according to design specifications. As a result of the fraudulent conduct, many of the structures built by Dover Vantage were so poorly constructed that they collapsed, including an aircraft hangar in Niger and a training facility in Senegal.
"We will continue to combat fraud and corruption as the United States expends military and humanitarian resources across Africa,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“The special agents of the DoD Office of Inspector General's Defense Criminal Investigative Service (DCIS) will traverse the globe to bring individuals who threaten our nation's military readiness to justice,” said Stanley A. Newell, Special Agent-in-Charge of DCIS’s Transnational Operations Field Office. “DCIS and our partner agencies will continue to leverage a vast international law enforcement network to protect the integrity of the DoD procurement system.”
“Today's sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in their pursuit and capture of those who choose to defraud the United States Government anywhere in the world,” said Special Agent in Charge L. Scott Moreland of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office.
This case arises out of the U.S. Attorney’s Office Africa Strike Force initiative, developed to combat fraud and corruption as the United States expends military and humanitarian resources across Africa. For information about the second case prosecuted as a result of the initiative, please see https://www.justice.gov/usao-sdca/pr/us-navy-concrete-contractor-djibouti-admits-fraudulent-conduct-and-will-pay-more-125.
The case is being investigated by the Defense Criminal Investigative Service, European Post of Duty in Germany, and the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit, European Fraud Resident Agency. Additional investigative assistance was provided domestically and internationally by the Naval Criminal Investigative Service. Substantial ongoing assistance in prosecuting this case has been provided by the Department of Justice’s Office of International Affairs.
DEFENDANT Case Number 20-CR-3167-DMS
Micheline Pollock Age: 52 Dubai, United Arab Emirates
SUMMARY OF CHARGE
Conspiracy to Defraud the United States – Title 18, U.S.C., Section 371
AGENCIES
Department of Defense, Defense Criminal Investigative Service
Department of the Army, Criminal Investigative Command
Department of the Navy, Naval Investigative Service
Brooklyn Park Man Pleads Guilty to His Role in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – Liban Yasin Alishire has pleaded guilty to his role in the $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic, announced U.S. Attorney Andrew M. Luger.
According to court documents, Alishire, 43, of Brooklyn Park, enrolled Community Enhancement Services and Lake Street Kitchen, organizations he helped operate, in the Federal Child Nutrition Program as purported sites providing meals to underprivileged children under the sponsorship of Feeding Our Future.
Alishire admits that after enrolling in the Federal Child Nutrition Program, he began submitting fraudulent claims for reimbursement for serving meals to hundreds or thousands of children a day. Alishire falsified invoices to document the purchase of food, and the preparation and submitting of falsified attendance rosters purporting to document the names of children who received meals. Alishire also operated a distribution company, Ace Distribution Services, that purported to provide meals to be served to children at the Community Enhancement Services site.
In total, Community Enhancement Services claimed to have served over 800,000 meals between February and October 2021, and Lake Street Kitchen claimed to have served over 70,000 meals between December 2020 and April 2021. In reality, Community Enhancement Services and Lake Street Kitchen served a fraction of the meal amounts claimed.
Based on the fraudulent claims, Community Enhancement Services and Lake Street Kitchen received more than a million dollars in Federal Child Nutrition Program funds from their sponsor entity, Feeding Our Future. Alishire caused the transfer of much of this money to himself and others via shell companies used to receive and launder the proceeds of the fraud scheme.
According to court documents, Hoodo Properties was one such shell company Alishire controlled and used to launder proceeds from the fraud scheme. On or about November 22, 2021, Alishire conducted a wire transfer of $216,300 from Hoodo Properties to Jaafar Jelle & Co. towards the purchase of the Karibu Palms Resort in Diani Beach, Kenya.
In total, Alishire fraudulently claimed approximately $2,427,576.17 in Federal Child Nutrition Program funds, of which Feeding Our Future paid out $1,783,786.45 to the defendant and his co-conspirators. In all, Alishire obtained $712,084.00 in fraud proceeds for himself and entities he controlled.
Alishire pleaded guilty today in U.S. District Court before Judge Nancy E. Brasel to one count of wire fraud and one count of money laundering. As part of his plea agreement, Alishire will forfeit a boat and trailer, a Ford F150 pickup truck, an apartment unit in Nairobi, Kenya, and the Karibu Palms Resort on the Indian Ocean in Kenya. Alishire also agreed to a $712,084.00 forfeiture money judgment. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.
This case is being prosecuted by Assistant U.S. Attorneys Joseph S. Teirab, Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, and Chelsea A. Walcker. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
Brooklyn Man Sentenced for ObstructionRead the Press Release
ALBANY, NEW YORK – Jacques Laventure, age 36, of Brooklyn, New York, was sentenced today to 10 months in jail for obstructing an official proceeding by selling a mansion and estate that the U.S. Attorney’s Office was seeking to forfeit as part of a criminal case against his brother.
United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Laventure is the brother of Jean Lavanture, of Saugerties, New York. Jean Lavanture was indicted in October 2020 for fraudulently obtaining nearly $5 million in Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDLs) intended to help legitimate businesses during the pandemic. As part of that prosecution, the U.S. Attorney’s Office sought to forfeit a mansion and estate in Byram Township, New Jersey, that Jean Lavanture bought with approximately $850,000 in fraud proceeds.
In previously pleading guilty, Jacques Laventure admitted that between January and March 2021, he schemed to sell the Byram Township property, knowing that the U.S. Attorney’s Office sought to forfeit it. He also admitted that on March 10, 2021, he completed the sale of the property for $443,920 net of fees, and knew that by selling the property to a third party, he was preventing its forfeiture in the criminal case brought against his brother.
United States District Judge Glenn T. Suddaby ordered Laventure to forfeit $443,920 already seized by the Government, and to pay $331,080 in restitution. Judge Suddaby also imposed a 2-year term of post-imprisonment supervised release.
The FBI investigated this case. Assistant U.S. Attorneys Michael Barnett and Joshua R. Rosenthal prosecuted this case.
Brooklyn Man Indicted for Interstate Transportation of Stolen GoodsRead the Press Release
NEWARK, N.J. – A federal grand jury indicted a Brooklyn, New York, man for transporting stolen jewelry across state lines, U.S. Attorney Philip R. Sellinger announced today.
Tony Newton, 63, of Brooklyn, New York, is charged by indictment with two counts of interstate transportation of stolen goods. Newton was charged by criminal complaint in July 2022 for transporting stolen jewelry from a store located in a shopping center in Edison, New Jersey, to Brooklyn, and is detained.
According to documents filed in this case and statements made in court:
On June 1, 2022, and July 16, 2022, Newton transported stolen jewelry across state lines from Middlesex County, New Jersey, and Union County, New Jersey, respectively, to New York.
Each count of interstate transportation of stolen goods is punishable by a maximum penalty of 10 years in prison and $250,000 fine.
U.S. Attorney Sellinger credited FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Union County Prosecutor's Office, under the direction of Prosecutor William Daniel, officers of the Edison Police Department, under the direction of Chief of Police Tom Bryan; and officers of the Elizabeth Police Department, under the direction of Director Earl Graves and Chief Giacomo Sacca, with the investigation leading to the charges. He also thanked officers of the Suffolk County, New York, Police Department and the Milford, Connecticut, Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the General Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Brockton Man Sentenced to over Six Years in Federal Prison for Assaulting Officer with VehicleRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for assaulting, resisting or impeding an officer while fleeing a motor vehicle stop.
Tykeam Jackson, 27, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 77 months in prison and three years of supervised release. In April 2022, Jackson pleaded guilty to one count of assaulting, resisting or impeding certain officers.
On July 27, 2020, a deputized federal law enforcement officer stopped Jackson in Avon, Mass. for speeding and instructed him to exit his vehicle. Instead, Jackson accelerated the vehicle with such force that the officer was dragged for several feet and thrown to the ground. Jackson then sped away, drove in and out of a public parking lot where he swerved around pedestrians and other vehicles, ignored traffic signals and drove into oncoming traffic, eventually travelling at a speed of approximately 100 miles per hour in the breakdown lane of Route 24. After attempting to cross all three travel lanes, Jackson lost control of the vehicle and crashed head-on into the guardrail. He exited the vehicle, ran across Route 24 and was subsequently found running into and obstructing traffic on a nearby roadway.
At the time of the offense, Jackson was on state probation resulting from an armed robbery conviction in Suffolk County Superior Court.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Norfolk County District Attorney Michael W. Morrissey made the announcement. Assistant U.S. Attorney Sarah B. Hoefle of Rollins’ Organized Crime & Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Boston Man Pleads Guilty to Concealing Income and Filing False Tax ReturnsRead the Press Release
BOSTON – A Boston man pleaded guilty today to concealing business income and filing multiple false tax returns.
Albert Casiello, 56, pleaded guilty to three counts of filing false tax returns before U.S. District Court Judge Rya W. Zobel who scheduled sentencing for April 12, 2023. Casiello was charged on Jan. 11, 2023.
Between 2013 and 2015, Casiello was the president, sole shareholder and primary operator of Cassco Development Group, Inc., a Massachusetts construction business. For each of the tax years 2013, 2014 and 2015, Casiello concealed his business income by depositing customer payments in bank accounts held in the names of other entities. Casiello then filed false tax returns for the years 2013, 2014 and 2015, resulting in a tax loss of $315,856.
The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release, a fine of up to $100,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Blue Springs Man Indicted for Fentanyl Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Blue Springs, Mo., man was indicted by a federal grand jury today for his role in a conspiracy to distribute fentanyl.
Alan J. Flamenco, also known as “Pablo,” 23, was charged in an eight-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Flamenco participated in a conspiracy to distribute fentanyl in Jackson County, Mo., from May 5 to Nov. 21, 2022. Flamenco is also charged with four counts of distributing fentanyl and one count of possessing fentanyl with the intent to distribute.
The federal indictment also charges Flamenco with one count of possessing a firearm in furtherance of a drug-trafficking crime. Flamenco allegedly was in possession of a Glock 9mm semi-automatic handgun on May 5, 2022.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Brandon Gibson, who is a cross-designated prosecutor from the Missouri Attorney General’s office as part of the Safer Streets Initiative to combat violent crime. It was investigated by the Jackson County Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Belleville Man Pleads Guilty to Stealing Government Benefits from Deceased In-LawRead the Press Release
EAST ST. LOUIS, Ill. – A man from Belleville admitted to stealing more than $17,000 in Government benefits from a deceased in-law in a U.S. District Court on Tuesday.
Scott C. Gunnarson, 47, pled guilty to one count of Theft of Government Funds.
“By failing to notify the Government of a loved one’s passing and continuing to collect their benefits, individuals commit felony theft,” said U.S. Attorney Rachelle Aud Crowe. “Defrauding benefit agencies is a serious offense, and relatives tempted to swindle funds face going to federal prison.”
“This plea demonstrates that stealing Social Security benefits designated for another individual is a federal crime,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I want to thank OPM for working with us to investigate this crime and the U.S. Attorney’s Office for prosecuting this case.”
“OPM OIG is committed to protecting federal funds from fraud,” said Conrad J. Quarles, Deputy Assistant Inspector General for Investigations, OPM OIG. “I applaud the hard work of our investigators and our partners in recovering these misspent funds.”
According to court documents, Gunnarson’s in-law received monthly payments via direct deposit from the Social Security Administration and the Office of Personnel Management’s Civil Service Retirement and Disability Fund as the beneficiary of her deceased spouse. The in-law passed away in April 2018, but neither the SSA nor the OPM were notified.
Gunnarson had access to the in-law’s bank account since July 2019, when his wife passed away. Since then, more than $17,000 has been withdrew from the in-law’s bank account, as stated in bank records.
The defendant’s sentencing is scheduled for 10:30 a.m. on May 2, 2023.
The SSA – Office of the Inspector General and the OPM – Office of the Inspector General contributed to the investigation. Assistant U.S. Attorney Peter Reed is prosecuting the case.
Aryan Brotherhood Member Sentenced to Nearly 20 Years in Federal Prison for Armed Methamphetamine Trafficking and Illegally Possessing 40 FirearmsRead the Press Release
INDIANAPOLIS- Jared Mashburn, 40, of Indianapolis, Indiana was sentenced to 235 months in federal prison after pleading guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to court documents, on December 14, 2020, Mashburn was arrested in Indianapolis by Indiana State Police Troopers on an outstanding Putnam County warrant. Mashburn was wanted for unlawful possession of a firearm by a serious violent felon, resisting law enforcement, and possessing methamphetamine. At the time of his arrest, troopers searched Mashburn’s person and located two loaded handguns, approximately 22 grams of methamphetamine packaged in bags for resale, and approximately $12,000 in cash.
Later that same day, troopers executed a warrant to search Mashburn’s residence. Investigators located and seized 38 firearms, approximately 2.8 kilograms of methamphetamine, digital scales, a vacuum sealer, and a drug ledger. Investigators also seized items associated with the Aryan Brotherhood, of which Mashburn was a known member, including a jersey with Aryan Brotherhood insignia and a Nazi flag, uniform, and other Nazi paraphernalia. The Aryan Brotherhood is a notorious white supremacist group with affiliated gangs in many prisons.
At the time of this arrest, Mashburn had been previously convicted of manufacturing methamphetamine and having an illegal drug lab. Mashburn was prohibited from owning firearms under federal law due to his previous felony convictions.
“This heavily armed meth dealer and gang member is exactly the sort of dangerous criminal we must prioritize for federal prosecution,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Repeat felons who menace the public with illegal guns and poison our families with deadly drugs will face the sorts of serious consequences imposed by the court today. I commend the efforts of the FBI and Indiana State Police to protect the public by ensuring that the defendant will spend years in federal prison and off our streets.”
“The sentence imposed today clearly demonstrates that those who use firearms in furtherance of their illegal activities will be held accountable and removed from our communities so they can no longer pose a risk,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “We will continue to work closely with our law enforcement partners to stop the flow of drugs into our neighborhoods and keep firearms out of the hands of those prohibited from being able to possess them.”
The Indiana State Police and Federal Bureau of Investigations investigated the case. The sentence was imposed by U.S. District Court Judge Jane Magnus Stinson. Judge Stinson also ordered that Mashburn be supervised by the U.S. Probation Office for 5 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney, Pamela S. Domash, who prosecuted this case.
Army Reservist Pleads Guilty to Defrauding the Department of DefenseRead the Press Release
BIRMINGHAM, Ala. – A Nauvoo resident and enlisted Army Reservist pleaded guilty yesterday to stealing more than $53,000 from the Department of Defense, announced U.S. Attorney Prim F. Escalona and Department of Army Criminal Investigation Division, Redstone Resident Unit, Supervisory Special Agent Chase Wilkerson.
Jared Romine Barton, 39, pleaded guilty before U.S. District Court Judge Annemarie Carney Axon to one count of theft of government funds.
According to the plea agreement, between 2016 and 2020, while both an active Army Reservist and Army civilian employee at the Army Reserve’s Deployment Support Command in Birmingham, AL, Sergeant First Class Barton submitted false travel claims and associated timecards to be reimbursed for official travel he did not undertake.
“The defendant defrauded the Department of Defense while wearing the uniform of the country,” said Escalona. “My office is committed to investigating and prosecuting white-collar crime in all its forms, but it is particularly insidious that a member of the United States Armed Forces would steal from the government he was sworn to defend.”
“The Department of the Army Criminal Investigation Division is committed to ensuring that these types of schemes are investigated aggressively,” said Supervisory Special Agent Chase D. Wilkerson of the Department of the Army Criminal Investigation Division’s Redstone Resident Unit. “It is imperative that we continue to pursue economic fraud in every form to protect our military.”
Barton faces a maximum term of up to ten years in prison and a fine of $250,000.
The Department of the Army’s Criminal Investigative Division investigated the case with assistance from the FBI. Assistant U.S. Attorney Jonathan “Jack” Harrington prosecuted the case.
Armed South Florida Fentanyl Dealer Arrested on Federal ChargesRead the Press Release
MIAMI –James Nevin Moorman, 62, of Coral Springs, Fla., has been charged with possession with intent to distribute a controlled substance, distributing a controlled substance, and possession of a firearm in furtherance of a drug trafficking crime. He faces a minimum sentence of 15 years in prison and a maximum one of life in prison.
According to the indictment, in August 2022 law enforcement conducted two controlled buys with Moorman where he sold approximately 100 grams of fentanyl to a confidential source.
The following month the confidential source and an undercover officer successfully purchased 266 grams of fentanyl from Moorman on a single occasion, said the indictment. In January 2023 law enforcement executed a search warrant on Moorman’s storage unit and seized over one kilogram of fentanyl, more than 500 grams of cocaine, an assortment of pills, and two AR-style rifles—one of which was a machine gun.
U.S. Attorney for the Southern Disrtict of Florida Markenzy Lapointe and Special Agent in Charge Christopher A. Robinson, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, made the announcement.
ATF, Miami Field Division, is investigating the case with assistance from Broward Sheriff’s Office. Assistant U.S. Attorney M. Catherine Koontz is prosecuting it.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 23-MJ-06017.
Arizona man pleads guilty to solar power tax fraud schemeRead the Press Release
Seattle – A 56-year-old Paradise Valley, Arizona man pleaded guilty today in U.S. District Court in Seattle to a seven-year tax fraud scheme that resulted in more than $50 million in illegal tax refunds, announced U.S. Attorney Nick Brown. Kirkland pled guilty to three counts of aiding or assisting the filing of fraudulent tax documents.
Charles St. George Kirkland falsely claimed in tax filings that he had lost more than $135 million by investing in solar equipment. Kirkland then ‘sold’ those losses through a network of tax preparers, telling the preparers that their clients could use the losses to claim refunds on their tax returns. In all, the scheme resulted in a loss to the U.S. Treasury of over $50 million. Kirkland collected $45 million from the sale of the fake losses.
“Mr. Kirkland capitalized on our need and drive for clean energy, cloaking his fraud scheme in the solar energy space,” said U.S. Attorney Brown. “He vastly inflated his investments in solar, and then sold that fiction to taxpayers. The taxpayers got big refunds, but then paid 90% of the refund back to Mr. Kirkland.”
According to the plea agreement, Kirkland used a web of limited liability entities he controlled to claim both net operating losses and investment tax credits based on fake investments in solar equipment.
For example, in 2013 alone, Kirkland claimed his businesses lost more than $40 million through investments in solar equipment. In fact, the businesses spent only about $150,000 on solar equipment that year. From 2012 to 2018, Kirkland’s companies claimed to have lost more than $135 million on investments in solar equipment. The companies spent less than $6 million on solar equipment over that period.
Kirkland reached out to a network of tax preparers and claimed that he could transfer the tax benefits of his losses to their clients. Kirkland provided participating taxpayers with fraudulent tax documents stating that the taxpayers were partners in Kirkland’s business and therefore entitled to the tax benefits of the business’s losses. Under Kirkland’s program, the taxpayers would amend their returns for prior years to claim they were entitled to a refund for those years because the losses from Kirkland’s companies offset their income and reduced their tax obligations. The taxpayers agreed that, upon receiving a refund from the IRS, they would pay 90% of the refund to Kirkland. Approximately 1,500 taxpayers participated in the program, filing nearly 3,200 tax returns.
Some of the taxpayers who participated in the program were Washington residents. For example, one Maple Valley, Washington couple claimed to be partners in Kirkland’s Solar Farm entity and amended their 2015 tax return to claim a net operating loss of $347,893. The couple got a tax refund of $17,759. In 2018, a Seattle couple claimed a 2017 tax loss from Solar Farm of $22,870 so that they could claim a refund of $28,180. In 2019, Grapeview, Washington resident claimed a 2018 solar energy credit of $10,341 so she could claim a refund of $10,704.
Under the terms of the plea agreement, Kirkland owes $51,615,484 in restitution. Sentencing in front of U.S. District Judge John H. Chun is scheduled for April 17, 2023.
Each count of aiding and assisting the filing of false tax returns is punishable by up to three years in prison and a fine of $250,000 or twice the tax gain or loss resulting from the crime. Kirkland pled guilty to three counts.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).
The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
Alabama Company Sentenced in Worker Death CaseRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced ABC Polymer Industries LLC for a willful violation of an Occupational Safety and Health Administration (OSHA) standard that caused a worker’s death. The charge involves an Aug. 16, 2017, incident at the Helena, Alabama, plant owned by ABC Polymer Industries LLC, in which a worker was pulled into a cluster of unguarded moving rollers and killed.
U.S. District Judge Annemarie Carney Axon for the Northern District of Alabama ordered ABC Polymer to pay $242,928 in restitution to the family of the deceased worker, a fine of $167,928, and ordered the company to serve two years on probation under conditions of a safety compliance plan.
According to court documents, ABC Polymer operated multiple plastic extrusion lines at its facility, which molded raw materials into flat rectangular plastic sheets. The machinery pulled the sheets through a series of rollers arranged in clusters before cutting them into plastic threads or tapes, which were sold for use in various products. According to court documents filed in connection with the case, the machine at issue in the worker’s death was equipped with a “cage” or barrier guard that could be pulled down over one of the exposed sides of the rollers. OSHA standards require moving machinery such as this to be guarded while the machine is energized.
However, ABC Polymer was aware that its employees routinely raised the guard on its machines to cut tangled plastic off the rollers, thereby operating the machines without the required guarding. ABC Polymer also trained its employees to cut tangled plastic off the rollers while the rollers were in operation. ABC Polymer admitted that it knew or should have known that these practices exposed employees to a risk of injuries and death in violation of federal law.
Federal law makes it a class B misdemeanor to willfully fail to follow an OSHA safety standard, where the failure causes the death of an employee. The class B misdemeanor is the only federal criminal charge covering such workplace safety violations.
This case was investigated by the OSHA of the U.S. Department of Labor.
Assistant U.S. Attorneys Robert Posey and Ryan Rummage for the Northern District of Alabama and Trial Attorneys Ethan Eddy and William Shapiro of the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case.
34-Year-Old Omaha Man Sentenced in Nearly $1 Million Bank Robbery ConspiracyRead the Press Release
United States Attorney Steven Russell announced that Kevin L. Brown, 34, of Omaha, Nebraska, was sentenced today in federal court in Omaha for one count of Conspiracy to Interfere with Interstate Commerce by way of Robbery and one count of brandishing a firearm in furtherance of a crime of violence. Brown was previously convicted in federal court for one of the robberies that was part of this conspiracy.
United States District Judge John M. Gerrard sentenced Brown to a term of 161 months of imprisonment, five years of supervised release, and a $200 special assessment. Brown received credit for his prior term of imprisonment of 33 months, for a remaining sentence of 128 months. There is no parole in the federal system.
Brown’s co-defendant, Charles Ware, was sentenced in federal court on December 15, 2022, to a term of 170 months in federal prison, followed by a term of five years of supervised release. Brown and Ware were part of a conspiracy to rob federally insured banks across Nebraska. Brown was responsible for 10 armed bank robberies and Ware was responsible for 9 armed bank robberies. The evidence showed that the defendants purchased a high quality “old man mask,” that gave them the appearance of being an elderly Caucasian male when first entering the banks. After the initial robber would enter the bank in the mask, then co-conspirators would rush into the bank after the decoy robber in the mask took initial control of the bank employees. Once inside the bank, one of the defendants would jump the teller counter in a “takeover”-style bank robbery and proceed to the bank vaults. The defendants typically used stolen vehicles to drive to the bank robberies to help disassociate themselves from the robberies and evade law enforcement detection. Ultimately, the defendants robbed Nebraska banks of $959,147.68 combined between June 1, 2015 and June 22, 2018. Restitution for the bank victims will be determined at a future hearing.
This case was investigated by the Federal Bureau of Investigation, the Omaha Police Department, and the Lincoln Police Department.
23 January 2023
“Coyote” Sentenced to 12 Months in Prison for Transportation of Noncitizens and Refusal to Release Passengers After Demanding More PaymentRead the Press Release
SACRAMENTO, Calif. — A human smuggler (also known as a “coyote”) was sentenced today to 12 months in prison for unlawful transportation of noncitizens without status in the United States, U.S. Attorney Phillip A. Talbert announced.
On Sept. 28, 2022, Mateo Gomez Gonzalez, 29, of Mexico, was arrested at a gas station near Dunnigan, California, and has been held in federal custody in Sacramento. He pleaded guilty on Oct. 24, 2022.
According to court documents, on Sept. 28, 2022, a concerned resident of Sacramento called law enforcement to report that his relative and a friend were being held over a payment dispute in a human smuggling operation. The driver of a vehicle involved in the transport of Mexican citizens to the United States was threatening to drop the relative and family friend at an unknown stash house rather than to the awaiting family members if additional payment was not made. Acting on the tip, law enforcement met the vehicle at a gas station, discovered four passengers in the vehicle who did not have lawful status in the United States, and arrested the driver, Gomez.
This case was the product of an investigation by the Homeland Security Investigations. Assistant U.S. Attorneys Audrey B. Hemesath and Denise Yasinow prosecuted the case.
Venezuelan Man Sentenced for Document FraudRead the Press Release
A man who possessed a false identification document bearing someone else’s name and social security number was sentenced today to more than two months in federal prison.
Franklin Sosa-Jimenez, age 33, a citizen of Venezuela illegally present in the United States and residing in West Liberty, Iowa, received the prison term after a November 23, 2022, guilty plea to one count of unlawful possession of an identification document.
At the guilty plea, Sosa-Jimenez admitted he knowingly possessed a fraudulent Social Security card. When Sosa-Jimenez was encountered by the United States Border Patrol in Texas on April 24, 2022, after illegally entering the United States, he was told to report to an Immigration Office near to his final destination. When Sosa-Jimenez reported to the ICE office in Cedar Rapids on October 26, 2022, Sosa-Jimenez had his Venezuelan identification card bearing his true name and picture. He also possessed a fraudulent Social Security Card and a fraudulent California identification card bearing someone else’s name. These are the types of documents required to show authorization to work in the United States. Illegal aliens are not authorized to work in the United States. The social security card contained a social security number that was assigned to the name on the card, a real person. The California identification card and an employee identification card for an Iowa business each bore Sosa-Jimenez’s picture. Sosa-Jimenez also had partially completed employment paperwork including an Immigration Form I-9 Employment Eligibility Verification form and state and federal W-4 tax forms, all in someone else’s name.
Sosa-Jimenez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Sosa-Jimenez was sentenced to 78 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Sosa-Jimenez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-0089.
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U.S. Marshals Arrested More Than 75,000 Fugitives in 2022Read the Press Release
The U.S. Marshals Service (USMS) arrested 75,846 fugitives (28,324 on federal and 47,522 on state and local warrants) in Fiscal Year 2022. On average, the agency arrested 303 fugitives per day (based on 250 operational days).
That number breaks down as follows:
- Sex offenders – 9,911 (Sex offenses include sexual assault, failure to register/noncompliance with the national sex offender registry and other offenses.)
- Gang members – 5,189
- Homicide suspects – 5,759
- International/foreign fugitives – 1,496 (A foreign fugitive is wanted by a foreign nation and believed to be in the United States.)
- Organized Crime Drug Enforcement Task Forces Program fugitives – 986 (OCDETF cases combine the resources and expertise of numerous federal agencies to target drug trafficking and money laundering organizations.)
- Adam Walsh Child Protection and Safety Act violations – 248 (AWA categorizes sex offenders into a three-tiered system based on the crime committed and requires offenders to maintain their registration information accordingly. For example, Tier 3 offenders – the most serious – must update their whereabouts every three months with lifetime registration requirements.)
- “15 Most Wanted” fugitives – 2
Additionally, the USMS seized more than 6,200 firearms during numerous violence reduction and counter gang operations in FY22.
In July 2022, USMS conducted a fugitive apprehension initiative aimed at combating violent crime in 10 cities with a significant number of homicides and shootings. Using its broad arrest authority and network of partners, USMS focused on the most dangerous criminals causing the most harm in those cities. This 30-day initiative, called Operation North Star, resulted in the arrest of 1,501 individuals, including 230 wanted for homicide and 131 for sexual assault, in Baltimore, Chicago, Houston, Indianapolis, Los Angeles, Memphis, New Orleans, New York City, Philadelphia and Washington, D.C. These efforts have contributed to the notable violence reduction accomplishments of our local law enforcement partners and communities in the 10 cities.
“Across the country, neighborhoods are safer because the U.S. Marshals Service apprehended 300 dangerous fugitives nearly every day in 2022,” said Deputy Attorney General Lisa O. Monaco. “Together with our state and local law enforcement partners, U.S. Marshals upheld the rule of law.”
“I wish to thank the extraordinary women and men of the U.S. Marshals Service, as well as our state and local partners for their tireless work to make our communities safe,” said U.S. Marshals Service Director Ronald Davis. “The impact of these arrests goes beyond contributing to statistics. Every fugitive arrested for a violent offense, helps support violence reduction and brings justice to families impacted by that violence.”
Total fugitives cleared: 95,425
- State and local warrants – 61,161
- Federal warrants – 34,264
The number of warrants cleared nearly always exceeds the number of arrests in a given year because fugitives are often wanted on numerous warrants, and a single arrest can clear them all at once.
The USMS has a long history of providing assistance and expertise to other federal, state and local law enforcement agencies in support of their fugitive investigations. The USMS leads 56 fugitive task forces (representing more than 1,500 law enforcement agencies) throughout the United States and eight regional fugitive task forces. Staffed by federal, state and local law enforcement agencies, USMS-led task forces target the most dangerous fugitives.
Notable Arrests in FY2022
On Feb. 23, 2022, the USMS Florida Caribbean Regional Fugitive Task Force arrested 15 Most Wanted fugitive Nyjell Outler, alleged to have shot one man and killed another while attending a gender reveal party March 20, 2021, in Washington, D.C. At the time of the shooting, Outler wore an ankle monitor and was on pre-trial release for a gun charge involving an AK-47 style rifle.
On May 9, 2022, a multi-state, USMS-led manhunt for escaped Alabama prisoner Casey White and his alleged accomplice Vicky White culminated in his arrest in Indiana. USMS investigators used their network of state and local partnerships and expertise to track the couple and bring the fugitive to justice once again. The 11-day ordeal garnered significant national media coverage and highlighted the fugitive investigative prowess of USMS.
On Aug. 30, 2022, USMS 15 Most Wanted fugitive Raymond McLeod, 37, wanted by the San Diego Police Department for the 2016 murder of 30-year-old Krystal Mitchell, was taken into custody by El Salvadoran law enforcement authorities without incident. McLeod confirmed his identity to members of the U.S. Marshals team and members of the U.S. Embassy, who were on the ground with the El Salvadoran local and national police when they took him into custody. Authorities had received a tip that McLeod had been teaching English at a school in Sonsonate.
Finding Missing Children
In May 2015, the Justice for Victims of Trafficking Act was passed and clarified the USMS’ discretionary authority to support law enforcement requests for assistance on any missing child cases. As such, the USMS assists state, local and other federal law enforcement agencies, upon request, in locating and recovering missing children, while focusing agency resources on “critically missing child” cases – those that involve a suspected crime of violence or where factors are identified by law enforcement that indicates an elevated risk to a missing child. In FY 2022, the USMS assisted in the location or recovery of 424 missing children. Since the passage of the JVTA, the USMS has contributed to the location or recovery of more than 2,700 missing children.
U.S. Attorney’s Office Highlights Efforts to Combat Human Trafficking in Recognition of National Human Trafficking Awareness MonthRead the Press Release
COLUMBIA, SOUTH CAROLINA — In recognition of National Human Trafficking Awareness Month, the United States Attorney’s Office for the District of South Carolina affirms its continued commitment to work with federal, state, and local partners to combat human trafficking in all its forms.
“Human trafficking is an assault on the dignity and freedom of the men, women, and children who fall victim to it,” said United States Attorney Adair F. Boroughs. “The U.S. Attorney’s Office – along with our federal, state, and local partners – remains committed to making our state a more dangerous place for traffickers to operate and a safer place for trafficking survivors. We thank the law enforcement agencies and service providers who partner with us, and we look forward to continuing in this work.”
In the past year, the United States Attorney’s Office, with the assistance of its law enforcement partners, prosecuted the following noteworthy cases:
United States v. Robinson, Crim. No. 2:21-cr-211-RMG. Brian Lydell Robinson, from Charleston, was convicted of extorting a victim for money and sex and for impersonating a federal law enforcement officer. He was sentenced to 10 years in federal prison to be followed by 3 years of court-ordered supervision. According to evidence presented in court, Robinson threatened the victim by telling her that she would be prosecuted, which would ruin her reputation, unless she assisted in an undercover operation against an alleged sex trafficker who was, in fact, Robinson. In truth there was no investigation, and Robinson used the scheme to extort money and sex from his victim by posing as the trafficker under investigation, the investigator, and a defense lawyer.
United States v. Watson et. al. , Crim. No 3:20-cr-492-JFA. Brian Leroy Watson, a/k/a “Lil B,” of Blythewood, was convicted of attempted sex trafficking of a minor and possession with intent to distribute and distribution of heroin. Numerous witnesses told the FBI that Watson manipulated the withdrawal symptoms and drug dependence of women to obtain commercial sex for his financial gain. When a victim disclosed to law enforcement that Watson sexually assaulted her, he denied it, and instead said he was prostituting her. Advertisements linked to Watson’s phone provided evidence that he was advertising the victim while she was a minor. Evidence demonstrated Watson knew the victim was a minor. Watson’s sentencing is pending and he faces up to Life in prison. His co-defendant, Ryan Darian Grover, was convicted of human trafficking conspiracy and is awaiting sentencing.
United States v. Grow et. al. , Crim. No. 4:21-cr-173-SAL. In this multi-defendant case that stretched across multiple states, four defendants were convicted of sex trafficking of minors and related offenses. The defendants included three from the Myrtle Beach area. According to evidence presented in court, the lead defendant, Hart William Grow, communicated with at least 23 minors in this scheme where he gained the trust of minor victims online by purporting to be interested in a relationship. Grow forced minor victims to produce sexually explicit photos and videos with adult men, after which Grow would collect the files. His victims were in Columbia and Myrtle Beach, along with others in South Carolina and across the country. Grow was sentenced to 27 years in federal prison and co-defendant Theodore Woolings Bye received a sentence of 24 years, both to be followed by lifetime supervision by the federal court.
United States v. Thomas, Crim. No. 4:21-cr-554-SAL. Johnny Ricardo Thomas, from North Carolina, was convicted of coercing 15- and 16-year-old minors to engage in prostitution in the Myrtle Beach area. According to evidence presented, Thomas knew his victims were minors, and he would threaten one minor victim that he would sell her, slice off her toes, or something worse if she did not participate in commercial sex. Thomas was sentenced to more than 21 years in federal prison to be followed by lifetime supervision.
United States v. Garland et al., Crim. No. 8:20-cr-0452-SAL. Following the conviction of eight defendants on sex trafficking and sexual exploitation of a minor charges – two lead defendants and six customers – Gary Garland and Shannon Garland, a husband and wife from Anderson, were sentenced to 35 years and 26.5 years in federal prison respectively, to be followed by lifetime supervision. The lead defendants forced two minor victims to participate in more than 300 commercial sex encounters, provided illegal drugs to the minor victims, and made their victims completely dependent on the Garlands for survival. Other participants in the sex trafficking conspiracy were also sentenced to prison time.
United States v. Balcazar et al., Crim. No. 3:21-cr-834-SAL. In this labor trafficking case, a father, daughter, and their labor contracting business, all from Lexington, were convicted of forced labor, fraud in foreign labor trafficking, and confiscation of passports related to labor trafficking. According to evidence presented in court, the defendants enticed seasonal agricultural workers from Mexico to work on South Carolina farms through false and fraudulent pretenses. Once the victim employees arrived in South Carolina, they were subject to high levels of control, passport confiscation, underpayment, and inadequate housing conditions. The defendants are awaiting sentencing.
United States v. Jones, et. al. , Crim. No. 3:22-cr-726-SAL. A federal grand jury in Columbia indicted Eric Rashun Jones, a/k/a “E Dolla,” a/k/a “E,” from Newberry, and Brittany Danielle Cromer, from Greenville, on multiple sex trafficking charges involving numerous victims. The grand jury also charged defendants with human trafficking conspiracy, being a felon in possession of a firearm, and witness tampering for interference in the human trafficking investigation. Jones is detained pending the outcome of the case, and both defendants face up to life in prison. All charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
To report a tip or ask for help, please call the National Human Trafficking Hotline at 1-888-373-7888.
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Two Men Sentenced to Prison for Armed Carjacking in Mall Parking LotRead the Press Release
ST. PAUL, Minn. – Two men have been sentenced to prison for the armed carjacking of a woman in a mall parking lot, announced United States Attorney Andrew M. Luger.
Leon Kismit Bell, 49, and Jack Mitchell Piche, 23, both pleaded guilty to aiding and abetting carjacking and were sentenced January 20, 2023, in U.S. District Court before Judge Wilhelmina M. Wright. Bell received 120 months in prison followed by three years of supervised release. Piche was sentenced to 40 months in prison followed by three years of supervised release.
According to court documents, On February 16, 2022, Piche and Bell intentionally took a car by means of force from a victim in the parking lot of the Rosedale Mall in Roseville. As the victim drove around the parking lot looking for a place to park, Piche and Bell followed the victim’s car. Piche and Bell waited for the victim to get out of the car and then approached. As Piche was watching out, Bell went up to the victim, brandished a gun, and demanded her car keys. After the victim said that her car keys were in her purse, Bell took her purse, which also contained her cell phone and wallet. Piche and Bell then fled from the mall parking lot before law enforcement arrived. Further investigation led law enforcement to a location in south Minneapolis where Piche was taken into custody. The stolen vehicle was found a few blocks away from where Piche was arrested. On May 3, 2022, law enforcement located and arrested Bell.
This case is the result of an investigation conducted by the FBI, the Roseville Police Department, and the Minneapolis Police Department.
This case was prosecuted by Assistant U.S. Attorney Harry M. Jacobs.
Toronto Gambler Sentenced for Falsifying Income Tax ReturnsRead the Press Release
AUSTIN, Texas – A Canadian national was sentenced in federal court here Friday to serve 30 months in prison and pay $1,771,011.67 in restitution for making false statements on income tax returns.
According to court documents, William Henry Woo, 67, of Toronto submitted duplicate and inflated refund requests to the IRS Service Center in Austin as a Canadian citizen seeking automatically withheld gambling winnings. In doing so, he defrauded the U.S. Department of Treasury of nearly $1.8 million in tax refund money from 2006 to 2010. Woo pleaded guilty to two counts of the nine-count indictment brought against him in October 2022.
“Mr. Woo, who admitted his addiction to gambling, lost his biggest bet,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “He got caught on his gamble that he could cheat the U.S. government on his taxes. I appreciate the work of IRS Criminal Investigation (CI) to investigate Mr. Woo’s deceitful conduct, allowing our system to deliver justice.”
“Fraud schemes against the IRS will not be tolerated, as stealing from the Nation’s treasury is stealing from every American, and Woo’s sentencing today concretely shows the severity of his crime,” said Special Agent in Charge Ramsey E. Covington of IRS CI’s Houston Field Office. “As the 2023 filing season begins, IRS-CI Special Agents remain committed to investigating, quickly stopping, and recommending for criminal prosecution all frauds against the IRS including abusive tax schemes, return preparer fraud, and stolen identity refund fraud.”
IRS CI investigated the case.
Assistant U.S. Attorney Daniel Castillo prosecuted the case.
CI’s Houston Field Office encompasses the U.S. District Court’s Southern and Western districts of Texas. CI special agents work a variety of cases, emphasizing traditional tax-related crimes such as employment tax, corporate fraud, identity theft, unscrupulous return preparers and general fraud. The Houston Field Office also provides crucial support to task forces involving counterterrorism, public corruption, human trafficking, drugs and complex money laundering violations. Report tax fraud and learn more about CI by visiting https://www.irs.gov/criminalinvestigation
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Three More Sentenced for Conspiring to Stage Automobile Accidents in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that LUCINDA THOMAS (“THOMAS”), age 67; MARY WADE (“WADE”), age 58; and JUDY WILLIAMS (“WILLIAMS”), age 62, all of Houma, Louisiana, were sentenced on January 19, 2023 for Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans.
According to documents filed in federal court, on June 6, 2017, THOMAS, WADE, WILLIAMS, and co-defendant Dashontae Young (“Young”) drove from Houma, LA, to meet with Damian Labeaud (“Labeaud”), for the purpose of staging an automobile accident in order to obtain money through fraud. After their meeting, THOMAS, WADE, WILLIAMS, and Young agreed to allow Labeaud to drive THOMAS’ 2009 Chevrolet Avalanche vehicle. The defendants then drove around the vicinity of Chef Menteur Highway and Downman Road of New Orleans until they located a 2017 Freightliner tractor-trailer operated by an Arkansas trucking company. At approximately 12:30 P.M., Labeaud intentionally collided with the tractor-trailer. Labeaud then exited THOMAS’ vehicle and instructed THOMAS to get behind the wheel of THOMAS’ Avalanche to make it appear that THOMAS was driving the vehicle at the time of the staged accident.
THOMAS, WADE, WILLIAMS, and Young contacted the NOPD and falsely reported that THOMAS had been the driver of the Avalanche and that the tractor-trailer had struck her vehicle. Labeaud then returned to the scene and also made false statements to the NOPD that he had witnessed the accident and that the driver of the tractor-trailer had been at fault.
Before and after the staged accident, Labeaud contacted attorney Patrick Keating (“Keating”) and arranged a meeting with THOMAS, WADE, WILLIAMS, and Young at a fast food restaurant on Chef Menteur Highway. Keating then filed two lawsuits in state court that were removed to the U.S. District Court for the Eastern District of Louisiana.
THOMAS, WADE, and WILLIAMS each admitted to providing false testimony in various depositions taken in conjunction with the lawsuits filed by Keating. Ultimately, but only after a year of pursuing their fraudulent lawsuits, did THOMAS, WADE, and WILLIAMS settle their cases for $7,500.00 each.
U.S. District Judge Eldon E. Fallon sentenced THOMAS, WADE, and WILIAMS to 5 years probation, $43,000.00 in restitution, and $100.00 special assessment fee. Young is scheduled to be sentenced on February 2, 2023 and Damian Labeaud is scheduled for sentencing on May 25, 2023.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Maria Carboni; Assistant U.S. Attorney Edward Rivera; and Assistant U.S. Attorney Brandon Long.
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Three Indicted for Stealing More Than $32,000 in High-End GoodsRead the Press Release
BOSTON – Three men from the Washington, D.C., area have been indicted by a federal grand jury in Boston for stealing thousands of items from a high-end outlet store in Wrentham, Mass.
Linworth Hayes Crawford III, 28; Ronald Patterson, 32; and Nathaniel Owens, 32, were indicted on conspiracy and transporting more than $5,000 in stolen goods. They will appear in federal court in Boston at a later date. The defendants were previously charged by criminal complaint in December 2021.
On the evening of Sept. 16, 2021, Crawford III, Patterson and Owens allegedly traveled from the Washington D.C. area to the Wrentham Village Premium Outlets in Massachusetts. It is alleged that, in the early morning hours of Sept. 17, 2021, the defendants and another unidentified individual smashed the front door of the Gucci outlet store, went inside and took approximately $32,000 in high-end merchandise. The defendants then left the store and drove back to the Washington D.C. area.
According to court documents, phone records show the defendants travelling from the Washington D.C. area through Connecticut to Wrentham prior to the burglary and that they were identified on video surveillance seeking a replacement tire at a Town Fair Tire in Connecticut in the early morning hours of Sept. 16, 2021. Later that day, it is alleged that the defendants were identified on video surveillance at the Wrentham Outlets prior to the burglary in the same vehicle and in the same clothing as seen in the Town Fair Tire surveillance footage. According to court documents, police reports indicate that the vehicle was involved in a number of shopliftings in Virginia.
Additionally, on Sept. 17, 2021, Patterson allegedly posted on his Instagram account that he had Gucci bags available for sale. Images of the bags appeared to be identical to the Gucci bags stolen during the burglary earlier that day.
The charge of conspiracy provides for a sentence of up to five years in prison, at least three years of supervised release and a fine of up to $250,000. The charge of transporting more than $5,000 in stolen goods across state lines provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and the Wrentham Police Chief William R. McGrath made the announcement today. Assistant U.S. Attorney Evan Gotlob of Rollins’ Major Crimes Unit Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
St. Louis Man Sentenced to 6.5 Years in Prison for Shooting up Gas StationRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Monday sentenced a man from St. Louis, Missouri to 6 ½ years in prison for firing a shooting at a St. Louis gas station in 2021.
Jamell Sanders, 47, pleaded guilty in July to a charge of being a felon in possession of a firearm. He admitted that on Jan. 15, 2021 at the Convenience Express at 8815 North Broadway in St. Louis, he fired into the ceiling and again into bulletproof glass surrounding the register. He admitted firing the 10mm handgun again in the parking lot.
A Monday’s hearing, prosecutors said Sanders tried to get behind the counter where two employees were located, then tried to fire through the cash slot. Sanders pointed the gun at a man as Sanders left the store, then fired shots at a car outside, a sentencing memorandum says.
Police arrested Sanders when he returned to the gas station with his children. Officers recovered 12 cartridge casings at the scene.
In 1992, when he was 17 years old, an angry Sanders fired a shot that went through a bathroom window and struck a 21-month-old in the head, killing him, according to statements during Monday’s sentencing hearing. Sanders was sentenced to eight years in prison.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Still photo from a surveillance video in a sentencing memorandum from the U.S. Attorney's office.X
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Still photo from a surveillance video in a sentencing memorandum from the U.S. Attorney's office.Scranton Tax Preparer Sentenced to 46 Months in Prison for Defrauding Taxpayers of More Than $250,000Read the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on January 18, 2023, Donald Royce, age 46, of Orlando, Florida, was sentenced to 46 months in prison by U.S. District Court Judge Robert D. Mariani, for defrauding taxpayers of more than $250,000.
According to United States Attorney Gerard M. Karam, on May 16, 2017, Royce was indicted on one count of mail fraud and eight counts of filing fraudulent tax forms. Following indictment, Royce alleged he was incompetent to stand trial due to a head injury that he claimed occurred in August 2013. Between 2019 and 2021, Royce was evaluated by numerous medical professionals to assess his claims of traumatic brain injury. Evaluators reported that Royce presented with “cave-man” speech and claimed he was unable to understand his charges or assist his attorney in his defense. Following a two-year delay in the prosecution of his case, the Court held a competency hearing on November 22, 2022, where a neuropsychologist testified that there was no medical basis for Royce’s allegations. Based on the medical evidence that Royce was malingering—or faking his symptoms—Judge Mariani found Royce competent to stand trial.
Royce pleaded guilty on March 7, 2022, to one count of mail fraud charge and one count of tax fraud. In pleading guilty, Royce admitted that, as a tax preparer working in Scranton, he defrauded a number of local taxpayers in 2014. After providing the victim taxpayers with a “client copy” of their tax return that showed the correct refund amount, Royce submitted fraudulent tax returns to the IRS that inflated the refund due. After the IRS sent the refund to Royce, the defendant kept the difference between the legitimate refund amount and the higher fraudulent amount for his own personal use. In one case, Royce instructed the victim clients to provide him with their tax payment and instead forwarding the payment to the IRS, Royce kept the payment for himself. Due to Royce’s actions, his victims suffered more than $250,000 in losses.
At the time of sentencing, Judge Mariani found that Royce’s intentional actions to feign incompetency amounted to obstruction of justice which increased his sentencing guidelines exposure. In addition to the term of incarceration, Judge Mariani imposed a three-year term of supervised release to be served upon release from prison. The Court further ordered that money seized from Royce be used to pay more than $336,000 in restitution to over forty victims and the IRS, and that Royce must forfeit over $155,000 in proceeds of his crimes.
The case was investigated by the Internal Revenue Service, Criminal Investigations. Assistant United States Attorney Jenny P. Roberts prosecuted the case.
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Santee Woman Sentenced for Drug Trafficking CrimeRead the Press Release
United States Attorney Steven Russell announced that Alitia Tikluk, 29, of Santee, Nebraska, was sentenced today in federal court in Omaha for possession with intent to distribute methamphetamine. United States District Judge Brian C. Buescher sentenced Tikluk to 120 months of imprisonment. There is no parole in the federal system. After her release from prison, she will begin a 4-year term of supervised release.
On March 9, 2022, probation officers entered Tikluk’s Santee residence. She was on probation for a 2021 conviction for possession of a controlled substance. When officers entered Tikluk’s residence, they located two digital scales and methamphetamine spread among multiples baggies. Tikluk admitted it was her methamphetamine and that she sold drugs. Laboratory testing confirmed there was approximately 190 grams of actual methamphetamine and 699 grams of a mixture containing methamphetamine.
This case was investigated by the Federal Bureau of Investigation, the Knox County Sheriff’s Department, and the Santee Sioux Nation Tribal Police.
St. Croix Man Arrested on 2004 Florida WarrantRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today Edelfonso Garcia, 45, of St. Croix appeared before Magistrate Judge Emile A. Henderson, III on for his initial appearance hearing after being arrested on a 2004 firearms possession warrant from the Florida. Garcia waived his detention and preliminary hearing and agreed to be returned to Florida to face charges.
According to court documents, Garcia was convicted in 2001 in Florida on the charge of possession of a firearm within a school zone and was placed on 5 years of probation. In 2004, an arrest warrant was issued by the Middle District of Florida, after Garcia violated the terms and conditions of his supervised release after being charged with attempted first-degree murder, aggravated battery with a deadly weapon, burglary and criminal mischief. Locally, Garcia was arrested by the Virgin Islands Police Department after they executed a search warrant in Pepper Tree Terrace and recovered live ammunition and illegal drugs.
The Virgin Island Police Department and U.S. Marshals are investigating this case, and Assistant United States Attorney Daniel H. Huston is prosecuting the case.
Retired FBI Executive Charged with Concealing $225,000 in Cash Received from Former Intelligence OfficerRead the Press Release
Charles F. McGonigal, 54, a former FBI Special Agent in Charge of the New York Field Office, has been arrested on charges relating to his receipt of $225,000 in cash from an individual who had business interests in Europe and who had been an employee of a foreign intelligence service, while McGonigal was serving as Special Agent in Charge of FBI counterintelligence efforts in the New York Office. McGonigal retired from the FBI in September of 2018.
According to the nine-count indictment, unsealed today, from August 2017 and continuing through and beyond his retirement from the FBI in September 2018, McGonigal concealed from the FBI the nature of his relationship with a former foreign security officer and businessperson who had ongoing business interests in foreign countries and before foreign governments. Specifically, McGonigal requested and received at least $225,000 in cash from the individual and traveled abroad with the individual and met with foreign nationals. The individual later served as an FBI source in a criminal investigation involving foreign political lobbying over which McGonigal had official supervisory responsibility. McGonigal is accused of engaging in other conduct in his official capacity as an FBI Special Agent in Charge that he believed would benefit the businessperson financially.
McGonigal’s initial appearance in the District of Columbia has not yet been scheduled.
McGonigal is charged with concealing material facts and with six counts of making false statements, each of which carries a maximum penalty of five years of imprisonment. McGonigal is also charged with two counts of falsification of records and documents, each of which carries a maximum penalty of 20 years of imprisonment.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Assistant Director in Charge Donald Alway of the FBI Los Angeles Field Office and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The FBI Los Angeles Field Office is investigating the case, with significant assistance provided by the FBI Washington Field Office.
Assistant U.S. Attorneys Elizabeth Aloi and Michael Friedman for the District of Columbia and Acting Deputy Chief Evan Turgeon of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance from the Justice Department’s Office of International Affairs.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Retired FBI Executive Charged with Concealing $225,000 in Cash Received from an Outside SourceRead the Press Release
Charles F. McGonigal Arrested in New York
WASHINGTON - Charles F. McGonigal, 54, a former Federal Bureau of Investigation (FBI) Special Agent in Charge of the New York Field office, has been arrested on charges relating to his receipt of $225,000 in cash from an individual who had business interests in Europe and who had been an employee of a foreign intelligence service, while McGonigal was serving as Special Agent in Charge of FBI counterintelligence efforts in the New York Office. McGonigal retired from the FBI in September of 2018.
The announcement was made by U.S. Attorney for the District of Columbia Matthew M. Graves, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Assistant Director in Charge of the FBI’s Los Angeles Field Office Donald Alway, and Assistant Director in Charge of the FBI’s Washington Field Office David Sundberg.
According to the nine-count indictment, unsealed today, from August 2017, and continuing through and beyond his retirement from the FBI in September 2018, McGonigal concealed from the FBI the nature of his relationship with a former foreign security officer and businessperson who had ongoing business interests in foreign countries and before foreign governments. Specifically, McGonigal requested and received at least $225,000 in cash from the individual and traveled abroad with the individual and met with foreign nationals. The individual later served as an FBI source in a criminal investigation involving foreign political lobbying over which McGonigal had official supervisory responsibility. McGonigal is accused of engaging in other conduct in his official capacity as an FBI Special Agent in Charge that he believed would benefit the businessperson financially.
McGonigal’s initial appearance in the United States District Court for the District of Columbia has not yet been scheduled.
“Covering up your contacts with foreign nationals and hiding your personal financial relationships is a gateway to corruption,” said U.S. Attorney Graves. “The FBI should be commended for handling the delicate and difficult task of investigating a former executive. This investigation demonstrates their commitment to act as an impartial enforcer of the law. The FBI and the Department will guard the best interests of the United States and hold to account those who make false statements and try to deceive the Bureau.”
“Mr. McGonigal betrayed his solemn oath to the United States in exchange for personal gain and at the expense of our national security,” said FBI Assistant Director in Charge Alway. “A senior FBI executive at the time, McGonigal is alleged to have committed the very violations he swore to investigate while he purported to lead a workforce of FBI employees who spend their careers protecting secrets and holding foreign adversaries accountable. Agents in my office, with the support of agents in Washington, D.C. and New York, vigorously pursued a former colleague without bias.”
“As an FBI agent, Charles McGonigal took an oath to support and defend the Constitution,” said FBI Assistant Director in Charge Sundberg. “In betrayal of that oath, McGonigal is alleged to have received money from a businessman with foreign business interests, to have concealed these payments, and to have lied about related foreign contacts and travel. Integrity is one of the FBI’s core values and we hold our own to the highest standards.”
The charge of falsification of records and documents carries a statutory maximum sentence of 20 years in prison. The charge of making false statements carries a statutory maximum sentence of five years in prison for each count. The charges also carry potential financial penalties. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the FBI’s Los Angeles and Washington Field Offices.
The case is being prosecuted by Assistant United States Attorneys Elizabeth Aloi and Michael Friedman of the U.S. Attorney’s Office for the District of Columbia, with assistance from Acting Deputy Chief Evan Turgeon of the DOJ’s National Security Division Counterintelligence and Export Control Section, and the Criminal Division’s Office of International Affairs
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Registered Sex Offender Arrested on New ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Gregory Pum, 47, of Rochester, NY, was arrested and charged by criminal complaint with receipt and possession of child pornography after having previously been convicted of a sexual offense. The charges carry a minimum penalty of 15 years in prison, a maximum of 40 years, and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that in January 2014, Pum was convicted of Possessing a Sexual Performance by a Child less than 16 Years of Age, and sentenced to 10 years’ probation. In July 2014, Pum violated his probation and was resentenced to 1 to 3 years in state prison. He was paroled in May 2015 and placed on the sex offender registry. In May 2022, the National Center for Missing and Exploited Children (NCMEC) received a CyberTipline Report that 29 files of suspected child pornography had been uploaded to an account belong to Pum. NCMEC alerted the New York State Police, who subsequently learned of seven additional CyberTips Google submitted, all of which traced back to Pum. On June 10, 2022, NYSP investigators executed a search warrant at Pum’s residence, seizing several digital devices, including cell phones and tablets. A preliminary forensic review recovered approximately 20 images and five videos containing child pornography.
The complaint is the result of an investigation by the New York State Police, under the direction of Major Brian Ratajczak, the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Darren Cox, and the National Center for Missing and Exploited Children.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Readout of Meeting between the Department of Justice and the Central Bureau of Investigation of IndiaRead the Press Release
Deputy Assistant Attorney General Arun G. Rao of the Department of Justice Civil Division’s Consumer Protection Branch, together with colleagues from the Consumer Protection Branch and the FBI, met last week with Central Bureau of Investigation (CBI) officials in New Delhi to discuss deepening and expanding efforts to combat cyber-enabled financial crimes and transnational call center fraud, a shared law enforcement priority.
In their meetings, the parties highlighted the continued strengthening of cooperation in combating these types of crimes that has occurred since their last meeting in October 2021, including successful efforts to secure the testimony of U.S. victims of call center fraud for use in enforcement proceedings against the alleged perpetrators in India, as well as the seizure of evidence and arrests of individuals in India allegedly involved in cyber-enabled financial crimes and global telemarketing frauds and identified, in part, through information provided with the assistance of U.S. law enforcement.
The parties reaffirmed their mutual commitment to continued cooperation in addressing dynamic and evolving technology-based crimes by building upon the experience gained through recent efforts and further refining processes for the exchange of information, in order to ensure the safety of citizens of both the United States and India.
Officials from the Justice Department's Civil Division, FBI, and India's Central Bureau of Investigation meet in New Dehli. Left to right: Dawn Rizzo (Assistant Legal Attaché, FBI); Richard Goldberg (Deputy Director, Department of Justice, Consumer Protection Branch); Jason Feldman (Trial Attorney, Department of Justice, Consumer Protection Branch); Kevin Gallagher (Supervisory Special Agent, FBI, Washington Field Office); Suhel Daud (Legal Attaché, FBI); CBI official; Arun Rao (Deputy Assistant Attorney General, Department of Justice, Civil Division); Rachel Yurkovich (Management and Program Analyst, FBI); Lovjit Curran (Assistant Legal Attaché, FBI); Ronald Miller (Special Agent, FBI, Washington Field Office)Readout of Deputy Attorney General Lisa Monaco’s Trip to Florida and GeorgiaRead the Press Release
Late last week, Deputy Attorney General (Deputy AG) Lisa Monaco was in Florida and Georgia to showcase how the Department of Justice is using intelligence and technology-driven methods to reduce violent crime, protect our communities, and prepare the next generation of law enforcement leaders.
In Jacksonville, Florida, the Deputy AG visited the ATF’s Crime Gun Intelligence Center (CGIC). She was accompanied by Director Steve Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for a roundtable discussion with state, local, and federal law enforcement leaders whose agencies contribute to and benefit from the CGIC’s real-time intelligence. The Jacksonville CGIC is a nationwide leader in using crime gun intelligence to identify the most violent criminals and take shooters off the streets.
While in Jacksonville, Deputy AG Monaco also visited the U.S. Attorney’s Office for the Middle District of Florida, where she met with U.S. Attorney Roger B. Handberg and his leadership team, held an “all-hands” meeting with all district personnel, and was briefed on the district’s ongoing casework and community outreach.
The Deputy AG spent Friday at the Federal Law Enforcement Training Center (FLETC) in Glynco, Georgia, visiting with new trainees for the ATF and U.S. Marshals Service (USMS). She delivered remarks to the ATF’s 238th graduating class and reiterated that “now, more than ever, the ATF represents modern policing at its best” through its innovative use of technology — such as the ATF’s newly created Emerging Threats Unit (ETU) to target new technologies that threaten public safety — and through the investments it has made in crime gun intelligence with its National Integrated Ballistic Information Network.
Before they swore their oath of office, the Deputy AG told the new Special Agents that:
“Your job is now the core mission of the Department of Justice: to keep our country safe, uphold the rule of law, and protect civil rights. The professionals of ATF come from diverse backgrounds, but you have one thing in common — you are dedicated to protecting the public.”
Deputy AG Monaco also spent time with the graduates and their families and observed demonstrations of the arson and explosives investigative techniques that ATF Special Agents learn during their specialized training.
The Deputy AG met with Deputy U.S. Marshal candidates and observed various tactical exercises, including on the use of force and firearms techniques. She saw firsthand how Deputy U.S. Marshals train to protect the judiciary and apprehend the most dangerous fugitives, all while upholding the rule of law nationwide.
Finally, the Deputy AG met with leadership from the Department of Homeland Security, which manages FLETC, to thank them for their continued commitment to excellence in law enforcement.
Law enforcement roundtable at the ATF CGIC Demonstrations of the arson and explosives investigative techniques that ATF Special Agents learn during their specialized training Deputy Attorney General Monaco meeting with Deputy U.S. Marshal candidates Observing various tactical exercises by the U.S. Marshals