Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 30 November 2022
Eastern District of Texas Announces Multi-Year Investigation into Transnational Cryptocurrency Money Laundering NetworksRead the Press Release
TYLER, Texas – According to court documents unsealed today, 21 individuals have been charged for their roles in transnational money laundering networks, including those that laundered millions of dollars stolen from United States fraud victims through romance scams, business email compromises, technical support schemes, and other fraud schemes.
U.S. Attorney Brit Featherston of the Eastern District of Texas, William Smarr, Special Agent in Charge of the U.S. Secret Service’s (USSS) Dallas Field Office, and Inspector in Charge Thomas Noyes of the U.S. Postal Inspection Service announced Operation Crypto Runner, an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation into transnational cryptocurrency money laundering networks that facilitate the movement of fraud proceeds from victims in the United States to foreign criminal organizations.
“These defendants orchestrated highly organized and sophisticated schemes to launder fraud proceeds through cryptocurrency,” said U.S. Attorney Brit Featherston. “Today’s announcement sends a clear message that money laundering networks that service fraud schemes targeting American victims, especially the elderly, will not be tolerated, and those operating such networks will be held accountable. By acting as domestic money launderers for foreign co-conspirators, these defendants played indispensable roles that allowed foreign actors to reach from overseas to target victims in communities across the United States.”
“Today’s announcement demonstrates the investigative capabilities of the Secret Service and highlights the success of our collaborative efforts through Operation Crypto Runner to dismantle and disrupt transnational money laundering networks,” said William Smarr, Special Agent in Charge of the U.S. Secret Service’s Dallas Field Office. “These arrests are just the beginning. We are committed to bringing each of the remaining perpetrators to justice.”
“These cases stem from a multi-year operation initiated in the Eastern District of Texas by Postal Inspectors and the Secret Service,” said Thomas Noyes, Inspector in Charge of the Postal Inspection Service’s Fort Worth Division. “Cybercrime has become an all-too-common way for foreign criminal actors to prey on Americans. Interagency cooperation is essential to be effective in disrupting organized crime. I commend the exceptional work of our law enforcement partners and emphasize our agency’s ongoing commitment to combatting fraud and money laundering schemes.”
To date, the Operation has disrupted more than $300 million in annual money laundering transactions, seized and forfeited millions in cash and cryptocurrency, and identified thousands of victims.
Some of the schemes alleged in the indictments include the following:
- U.S. v. Zenobia Walker, 6:20-CR-91-JCB/KNM (11/19/2020)
Zenobia Walker, 65, of Temple Hills, Maryland, pleaded guilty on January 6, 2022, to conspiracy to operate an unlicensed money transmitting business and was sentenced to 18 months in federal prison on November 2, 2022. Walker was involved in a scheme in which she received cash by mail, money orders, wire transfers, and cashier’s checks obtained from victims of romance scams and from victims of other fraud schemes. The funds were deposited into Walker’s personal bank accounts and withdrawn and deposited into other bank accounts in order to exchange the funds for cryptocurrency. Between December 2019 and September 2020, Walker exchanged $308,800.00 for cryptocurrency on behalf of her foreign co-conspirators.
- U.S. v. Tulasidas Konda, 6:20-CR-31-JDK/JDL (4/23/2021)
Tulasidas Konda, 57, of Amelia Court House, Virginia, pleaded guilty on May 5, 2021, to conspiracy to commit money laundering. Konda led and organized a multi-year money laundering conspiracy involving the laundering of criminal proceeds derived from various scams. Konda’s organization opened bank accounts and mailboxes that were used to receive and transact victim funds, received the victim funds, engaged in subsequent financial transactions, routinely structured in amounts under $10,000 in an effort to evade reporting requirements and to conceal the nature and source of the criminal proceeds, and moved the criminal proceeds to foreign co-conspirators. Konda’s organization routinely exchanged the criminal proceeds for cryptocurrency and directed the cryptocurrency to wallets under the control of their foreign co-conspirators. In the course of the operation, Konda was personally responsible for laundering $4,172,061.58 in criminal proceeds.
- U.S. v. Deependra Bhusal, 6:21-CR-32-JDK/JDL (4/23/2021)
Deependra Bhusal, 46, of Irving, Texas, pleaded guilty on April 30, 2021, to conspiracy to commit money laundering and was sentenced to 46 months in federal prison on April 6, 2022. Bhusal was a key member of the Konda Organization. In the course of the operation, Bhusal was personally responsible for laundering $1,437,358.99 in criminal proceeds.
- U.S. v. Lois Boyd, et al., 6:21-CR-43-JDK/KNM (6/16/2021)
Lois Boyd, 76, of Amelia Court House, Virginia, pleaded guilty on June 14, 2022, to a violation of the Travel Act. Boyd, also a member of the Konda Organization, is alleged to have conspired with others to receive victim money derived from a variety of fraud schemes and launder the proceeds through cryptocurrency. Boyd routinely structured deposits in order to avoid transaction reporting requirements and to conceal the nature and source of the criminal proceeds. Boyd and others in the Konda Organization exchanged the criminal proceeds for cryptocurrency and directed the cryptocurrency to wallets under the control of their foreign co-conspirators. In August 2020, Boyd and others traveled to Longview, Texas, where they attempted to exchange more than $450,000 for Bitcoin.
- U.S. v. John Khuu, 6:22-CR-62-JCB/JDL (5/18/2022)
John Khuu, 27, of San Francisco, California was named in an indictment returned by a federal grand jury charging him in a money laundering conspiracy. According to the indictment, Khuu is alleged to have conspired with others to launder the proceeds of his drug trafficking organization through cryptocurrency. The defendant allegedly distributed counterfeit pharmaceutical pills and other controlled substances on dark web markets to customers across the United States. Customers paid for their purchases by transferring cryptocurrency, usually Bitcoin, from their dark web market customer accounts to one of Khuu’s vendor accounts. Khuu and his co-conspirators traded the Bitcoin for U.S. currency and laundered the proceeds through hundreds of transactions and dozens of financial accounts. During the course of the conspiracy, Khuu and his co-conspirators allegedly laundered more than $5,350,000.00. On August 17, 2022, Khuu was also charged by a federal grand jury in the Northern District of California in a two-count indictment charging him with unlawful importation of a controlled substance.
- U.S. v. Randall V. Rule, et al., 6:22-CR-64-JDK/KNM (5/18/2022)
Randall V. Rule, 71, of Reno, Nevada, and Gregory C. Nysewander, 64, formerly of Irmo, South Carolina, were named in an indictment returned by a federal grand jury charging them with money laundering conspiracy, money laundering, and a conspiracy to violate the Bank Secrecy Act. According to the indictment, Rule and Nysewander are alleged to have conspired with others to launder the proceeds of wire fraud and mail fraud schemes through cryptocurrency. The defendants converted funds from romance scams, business email compromises, and real estate scams, and other fraudulent schemes into cryptocurrency and sent the cryptocurrency to accounts controlled by foreign and domestic co-conspirators. The defendants and their co-conspirators made false representations and concealed material facts, in order to avoid discovery of the fraudulent nature of deposits, wires, and transfers, such as providing instructions to co-conspirators and victims to label wire transfers as “loan repayments” and “advertising.” The defendants also made false representations and concealed material facts when completing account opening documents and when communicating with financial institutions and cryptocurrency exchanges. During the course of the conspiracy, Rule, Nysewander, and their co-conspirators allegedly laundered more than $2.4 million. Rule and Nysewander are also charged with willfully violating the money services business requirements of the Bank Secrecy Act.
- U.S. v. Sharena Seay, 6:22-CR-110-JDK/JDL (8/17/2022)
Sharena Seay, 37, of Jacksonville, Florida, was named in an indictment returned by a federal grand jury charging her with money laundering. According to the indictment, Seay is alleged to have laundered the proceeds of her drug trafficking operations through cryptocurrency. The defendant allegedly supplied alpha-Pyrrolidinopentiophenone (alpha-PVP), which is often called “flakka,” and similar synthetic cathinones, such as Eutylone or alpha-PiHP. Seay distributed alpha-PVP and other controlled substances to various customers across the United States. Customers who purchased controlled substances from Seay paid for their purchases with cash. Seay laundered the cash proceeds through cryptocurrency in order to purchase more controlled substances on the dark web and to conceal her criminal activity. During the course of the conspiracy, Seay allegedly laundered more than $1.2 million.
- U.S. v. Fnu Ankush, et al., 6:22-CR-111-JCB/KNM (8/17/2022)
Fnu Ankush, 35, of Fishers, Indiana, Jenisha Katuwal, 40, of Fishers, Indiana, Sukhwinder Sandhu, 44, of Philadelphia, Pennsylvania, Inder Singh, 37, of Philadelphia, Pennsylvania, Mukul Khanna, 37, of Philadelphia, Pennsylvania, Satinder Singh, 36, of Philadelphia, Pennsylvania, Ramneek Singh, 28, of Levittown, New York, Muninder Singh, 52, of Fairfax, Virginia, Sandeep Heir, 43, of Fresno, California, and Rachel Mullins, 36, of Jacksonville, Florida, were named in an indictment returned by a federal grand jury charging them in a wire and mail fraud conspiracy. According to the indictment, the defendants facilitated technical support schemes by creating a financial infrastructure in the United States that involved establishing shell companies with names intended to resemble names of legitimate companies. The defendants opened and controlled business bank accounts in the names of the shell companies in order to facilitate the computer tech scheme. The defendants also established websites for many of the shell companies in order to make the shell companies appear legitimate. Then, through false and fraudulent pretenses, representations, and promises, and concealment of material facts, the defendants and their co-conspirators persuaded victims to deposit, wire, or transfer funds into designated bank accounts or to mail funds to designated addresses.
These efforts are part of Operation Crypto Runner, an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In October 2017, the Elder Abuse Prevention and Prosecution Act (EAPPA) was signed into law. The EAPPA’s purpose is to increase the federal government’s focus on preventing elder abuse and exploitation. Subsequently, the Department of Justice launched the Elder Justice Initiative (EJI). Through the EJI, the Department has participated in hundreds of criminal and civil enforcement actions involving misconduct that targeted vulnerable seniors. The Department has conducted hundreds of trainings and outreach sessions across the country. The EJI website contains useful information, including educational resources about prevalent financial scams so you can guard against them.
In August 2020, the Eastern District of Texas announced its own initiative, in partnership with law enforcement and private financial institutions, to identify and prosecute transnational elder fraud. This EDTX initiative is designed to combat these criminal organizations, both foreign and domestic, as well their networks of associates and money mules who launder the stolen funds.
The investigations arising from the operation are being conducted by the U.S. Secret Service and the U.S. Postal Inspection Service and are being led and prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr., with assistance from the Criminal Division’s Fraud Section and Computer Crime and Intellectual Property Section and the Department’s Office of International Affairs.
###
District of Columbia Man Sentenced to Eight Years in Prison for Burglaries in Northwest WashingtonRead the Press Release
WASHINGTON – Rayshonne Marbley, 48, of Washington, D.C., was sentenced today to an eight-year prison term on charges stemming from a series of break-ins and thefts in Northwest Washington in June 2022.
The announcement was made by U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Marbley pleaded guilty in October 2022, in the Superior Court of the District of Columbia, to two counts of second-degree burglary. The Honorable Michael O’Keefe sentenced Marbley today to an aggregate term of eight years’ imprisonment. Following his prison term, Marbley will be placed on three years of supervised release.
According to the government’s evidence, on June 6, 2022, shortly after 3:00 p.m., Marbley entered an occupied home in the 3000 block of 11th Street NW. The resident’s child was awoken to the sound of her bedroom doorknob being turned and observed Marbley looking at her from another bedroom door. Marbley took various electronics before leaving the house. Marbley then entered another occupied home in the area before being chased out by the resident. Marbley again took various electronics on his way out of the house. A short time later, police were able to locate and apprehend Marbley. In his possession were various electronics taken from the two residences.
In announcing the sentence, U.S. Attorney Graves and Chief Contee expressed appreciation for the work of those investigating the cases from MPD. They also acknowledged the efforts of those working on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson and Victim Advocate Latrice Washington-Williams.
Finally, they commended the work of Assistant U.S. Attorney Shalin Nohria, who investigated and prosecuted the cases.
Connecticut Man Admits to Attempting to Travel to the Middle East to Join and Fight for ISISRead the Press Release
Ahmad Khalil Elshazly, 25, of West Haven, Connecticut, pleaded guilty today in Bridgeport federal court to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
According to court documents and statements made in court, beginning in approximately September 2018, Elshazly, a U.S. citizen, expressed a desire to travel to Syria and the surrounding area to fight on behalf of ISIS. In numerous conversations online and in person, he pledged allegiance to ISIS and its leader, Abu Bakr Al-Baghdadi. For example, in October 2019, Elshazly sent a message pledging allegiance (bayat) to the new leader of ISIS, saying “I pledge my allegiance...to the Khilafah (the successor of the leadership) of the Muslims Abu Ibrahim Al Husseini Al Hashami Al Qurashi…” (after Abu Bakr Al-Baghdadi’s death).
On Dec.14, 2019, Elshazly paid $500 to a person he believed was an ISIS facilitator who would be able to smuggle him out of the U.S. to Turkey. He further believed that travelling to Turkey would enable him to connect with ISIS members overseas who, in turn, would assist him with traveling to ISIS within Syria. On Dec. 15, 2019, Elshazly was arrested after he arrived in Stonington, Connecticut, where he expected to board a boat to begin his trip.
Elshazly has been detained since his arrest. The charge of conspiring to provide material support to a designated foreign terrorist organization carries a maximum term of imprisonment of 20 years. A sentencing date is not scheduled.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Vanessa Roberts Avery for the District of Connecticut and Special Agent in Charge David Sundberg of the FBI New Haven Field Office made the announcement.
This matter has been investigated by the FBI’s Joint Terrorism Task Force (JTTF) with the assistance of the Stonington Police Department, New Haven Police Department and Connecticut State Police. The FBI’s JTTF includes participants from the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), IRS – Criminal Investigation, Naval Criminal Investigative Service, U.S. Marshals Service, U.S. Citizenship and Immigration Services, Connecticut State Police, Connecticut Department of Correction, Metropolitan Transportation Authority Police Department, Norwich Police Department, Hartford Police Department, Stamford Police Department, Norwalk Police Department, Town of Groton Police Department, UConn Police Department, Yale Police Department and New York Police Department.
Assistant U.S. Attorney Margaret M. Donovan for the District of Connecticut and Trial Attorneys Justin Sher and Daniel Gardner of the National Security Division’s Counterterrorism Section are prosecuting the case.
Colorado Springs Woman Pleads Guilty in Teenager’s Fentanyl DeathRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Alexis Nicole Wilkins, age 27, of Colorado Springs pleaded guilty today to distribution of fentanyl, resulting in death.
According to the plea agreement, on December 3, 2021, a juvenile overdosed during class at Mitchell High School in Colorado Springs. First responders attempted life-saving measures, and transported the juvenile to a local hospital, where she was pronounced dead. The El Paso County Coroner determined the cause of death was “fentanyl intoxication.” Investigators spoke with two juvenile witnesses who were with the victim in a school restroom that morning. One juvenile witness provided statements that she and the victim used ”Percocet” in the bathroom that morning. Investigators were able to track where the juveniles got the pill through Facebook messages with the defendant, including a conversation which appears to be the one arranging the sale of a pill at the Citadel Mall in Colorado Springs the night before the victim’s death. One of the juvenile witnesses said she was introduced to the defendant by a Denver gang member in February 2021, and had been purchasing “percs” from the defendant. One witness noted the pill they purchased on December 2, 2021, looked different and was a lighter blue color than what they had received previously. Other Facebook messages indicate the defendant knew the pills she was selling were not made by a pharmaceutical company. On March 15, 2022, the Federal Bureau of Investigation (FBI) and the Colorado Springs Police Department executed a federal search warrant on the defendant’s home on West Portal Drive in Colorado Springs. Officers located and seized over 100 blue pills marked with “M” and “30,” which contained fentanyl. Investigators believe some of the pills were packaged for distribution.
Judge Christine M. Arguello presided over the change of plea hearing on November 30, 2022. Wilkins will be sentenced on March 14, 2023. Distribution of fentanyl, a Schedule II controlled substance, resulting in death carries a potential penalty of no less than 20 years and up to life in prison, a fine of no more than $1,000,000, and no less than three years of supervised release.
The Federal Bureau of Investigation (FBI) Denver Division, the Colorado Springs Police Department Metro, Vice, Narcotics, and Intelligence (MVNI) Unit, the El Paso County Sheriff’s Office, and the 4th Judicial District Attorney’s Office participated in the investigation. The prosecution is being handled by Assistant United States Attorneys Peter McNeilly and Alyssa Mance.
CASE NUMBER: 22-cr-101-CMA.
Career Drug Dealer Sentenced to over 17 Years in Federal Prison for Armed Trafficking of Fentanyl While on Community CorrectionsRead the Press Release
INDIANAPOLIS – Kevin Noel, 40, of Indianapolis, was sentenced to 210 months in federal prison after pleading guilty to possession with intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, on January 29, 2021, Indianapolis Metropolitan Police Department officers went to Noel’s residence on North King Avenue, in Indianapolis, to assist Marion County Community Corrections with a check to ensure Noel was complying with the conditions of his home detention. The officers encountered common tools used by drug traffickers and evidence of recent illegal drug use during the compliance check and obtained a warrant to search Noel’s residence and truck.
The officers executed the search warrant and seized evidence of drug trafficking and illegal guns including approximately 226 counterfeit pills containing Fentanyl (totaling 24 grams), approximately 460 grams of heroin or cocaine mixed with Fentanyl powder, approximately 75 grams of crack cocaine, approximately 27 grams of powder cocaine, approximately 24 grams of methamphetamine, three semi-automatic handguns, and over $24,000 in cash drug proceeds. Noel admitted that he possessed the illegal drugs with the intent to distribute them and illegally possessed the firearms in furtherance of his drug dealing.
Officers seized approximately 692 grams of Fentanyl or substances mixed with Fentanyl during the search. According to the Drug Enforcement Administration, as little as 2 milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people.
Noel has four prior felony convictions in state court related to possession of and dealing drugs. Noel is prohibited from possessing firearms under federal law due to these felonies.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office; Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division; and Randal Taylor, Police Chief of the Indianapolis Metropolitan Police Department; made the announcement.
DEA investigated the case in conjunction with ATF and IMPD. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Stinson ordered that Noel be supervised by the U.S. Probation Office for four years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Jayson W. McGrath who prosecuted this 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.
California meth trafficker sentenced to six years in prisonRead the Press Release
BILLINGS — A California man who admitted to trafficking methamphetamine after law enforcement found about a pound of the drug in his vehicle in Livingston was sentenced today to six years in prison, to be followed by four years of supervised release, U.S. Attorney Jesse Laslovich said.
Michael Romie Cervantes, 48, of Fresno, California, pleaded guilty in July to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that on March 25, 2021 in Livingston, a Montana Highway Patrol trooper conducted a traffic stop of a vehicle Cervantes was driving. The trooper developed reasonable suspicion that Cervantes and his passenger were involved in criminal activity. Upon execution of a search warrant, the officer found about one pound of meth in a backpack in the vehicle. One pound of meth is the equivalent of 3,624 doses,
Assistant U.S. Attorney Julie R. Patten prosecuted the case, which was investigated by the Drug Enforcement Administration and Montana Highway Patrol.
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.
XXX
Boston Man Pleads Guilty to Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Boston man has pleaded guilty to conspiracy to distribute fentanyl, cocaine and cocaine base (crack cocaine).
Josiah Watkins, 26, pleaded guilty on Nov. 28, 2022 to one count of conspiracy to distribute, and possess with intent to distribute, 40 grams or more of fentanyl, 28 grams or more of cocaine base and cocaine. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for March 28, 2023. Watkins was arrested and charged in April 2021.
In February 2021, law enforcement opened an investigation into drug trafficking activities conducted by Watkins and, allegedly, his co-defendant London Lee. The investigation revealed that Watkins and his co-defendant were actively selling cocaine, crack cocaine and fentanyl in the Boston area. Between February and April 2021, Watkins sold or arranged the sale of crack cocaine and fentanyl in at least 10 separate controlled purchases. His co-defendant has pleaded not guilty and is pending trial.
The charge of conspiracy to distribution of 40 grams or more of fentanyl, and conspiracy to distribute 28 grams or more of cocaine base provide for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. 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 Boston Police Commissioner Michael Cox made the announcement. Assistant U.S. Attorney John T. Dawley, Jr. of the Organized Crime & Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bluffton Man Sentenced to 104 Months in PrisonRead the Press Release
FORT WAYNE – Yancie Hunter, 34 years old, of Bluffton, Indiana, was sentenced by United States District Court Judge Holly A. Brady after his guilty plea to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Hunter was sentenced to 104 months in prison followed by 2 years of supervised release.
According to documents in the case, in May 2020, Hunter possessed a .380 caliber firearm after being convicted of three separate felony offenses for robbery in both Indiana and Kentucky. Hunter’s prior felony convictions prohibit him from possessing the firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Stacey Speith.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
###
Berryville Man Sentenced to over 6 Years in Federal Prison for Receipt of Child PornRead the Press Release
FORT SMITH – A Berryville man was sentenced yesterday to 75 months in prison followed by five years of supervised release on one count of Receipt of Child Pornography. The Honorable Judge P.K. Holmes, III presided over the sentencing hearing in the U.S. District Court in Fort Smith.
According to court documents, in January of 2022, Homeland Security Investigations (HSI) Fayetteville, received a Cyber Tip from the National Center for Missing and Exploited Children which reported that an unknown person was utilizing an account on the Kik Messenger application to upload media files including child pornography. An investigation into the IP addresses and the Kik account information revealed the account owner to be Andrew Cruz Tovar-Reyes, age 20, of Berryville, Arkansas. Tovar-Reyes admitted to receiving child pornography using his Kik account through his cellphone. Berryville Police Department arrested Tovar-Reyes on February 15, 2022.
Tovar-Reyes was indicted by a Grand Jury in April 2022 and pled guilty in June 2022.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
Homeland Security Investigations Fayetteville, the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force and the Berryville Police Department investigated the case.
Assistant U.S. Attorneys Carly Marshall and Kyra Jenner prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Atlanta Sex Trafficker Sentenced to 25 Years in Prison for Offenses During Super Bowl LIV in MiamiRead the Press Release
MIAMI – An Atlanta sex trafficker has been sentenced to 25 years in prison for forcing a young woman and a girl into selling themselves for sex.
Anthony Bernard Carter was convicted in July by a federal jury in Miami of sex trafficking by force, fraud, and coercion; transporting a person to engage in sexual activity; sex trafficking of a minor; and transporting a minor to engage in sexual activity.
Evidence showed during trial that Carter trafficked the Adult Victim and Minor Victim for commercial sex in Atlanta before driving them in January 2020 to Miami, which was hosting Super Bowl LIV, to continue engaging in commercial sex. While in Miami, Carter advertised the victims for commercial sex in online advertisements and both engaged in commercial sex at his direction.
Carter came to the attention of law enforcement after taking the Minor Victim to a hotel to meet with a client who was actually an undercover officer from the Miami Beach Police Department. When law enforcement attempted to apprehend Carter upon his return to the hotel, he fled from law enforcement, nearly striking multiple pedestrians with the vehicle he was driving before abandoning it. Law enforcement subsequently arrested Carter in Atlanta.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; acting Special Agent in Charge Robert M. DeWitt, Federal Bureau of Investigation (FBI), Miami Field Office; and Miami Beach Police Department Chief Richard Clements announced the sentence.
FBI, Miami Field Office, and Miami Beach Police Department investigated the case. Assistant U.S. Attorneys Lacee Elizabeth Monk and Jessica Kahn Obenauf prosecuted it.
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 and led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), it 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.projectsafechildhood.gov.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
Visit www.humantraffickinghotline.org to learn more about the National Resource Hotline. Visit www.justice.gov/humantrafficking to learn more about the U.S. Department of Justice’s efforts to combat human trafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case no. 21-cr-20052.
Tuesday 29 November 2022
Woodstock Man Pleads Guilty to Tax FraudRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, announced that MARIUSZ KALINOWSKI, 47, of Woodstock, waived his right to be indicted and pleaded guilty today in New Haven federal court to a tax fraud offense
According to court documents and statements made in court, Kalinowski owns and operates Kalinowski General Construction, Inc., based in Webster, Massachusetts, which provides residential and commercial construction services in Connecticut and Massachusetts. For the 2010 through 2013 tax years, Kalinowski failed to report on his personal federal tax returns $927,828 in income from his business and, as a result, failed to pay approximately $174,746 in taxes on that income.
Kalinowski pleaded guilty to one count of filing a false tax return, an offense that carries a maximum term of imprisonment of three years. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on February 22, 2023, in Hartford.
Kalinowski has agreed to pay the IRS $174,746, plus penalties and interest that have accrued on his unpaid taxes.
This investigation has been conducted by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Wisconsin Man Indicted for $35 Million Bank Fraud SchemeRead the Press Release
MINNEAPOLIS – A Wisconsin man has been indicted for orchestrating a $35 million bank fraud scheme, announced U.S. Attorney Andrew M. Luger.
According to court documents, between 2020 and August 2022, Matthew Thomas Onofrio, 31, of Eau Claire, devised and executed a scheme to defraud multiple federally-insured banks including MidCountry Bank headquartered in Bloomington. As part of his scheme, Onofrio operated a business entity called Northwoods Management LLC which he used to market a real estate investing program for investors to acquire commercial properties. Onofrio allegedly engaged in several fraudulent acts as part of the scheme, including causing false information to be submitted to lenders financing investors’ real estate purchases and altering purchase agreements to support higher appraisals of the properties. According to the indictment, Onofrio withheld information from the lenders, including the fact that he was lending money to the investors to help them purchase the properties and would temporarily wire funds to investors’ accounts to create the appearance that they had more available assets than they in fact had. The charges seek forfeiture of more than $35 million seized in the investigation.
Onofrio is charged with three counts of bank fraud. On November 23, 2022, Onofrio made his initial appearance in U.S. District Court before Magistrate Judge Tony N. Leung.
This case is the result of an investigation conducted by the FBI, the IRS, and the Federal Deposit Insurance Corporation – Office of Inspector General.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Lewis.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
West Georgia Resident Guilty of Distributing 380,000 Fentanyl Doses Sentenced to PrisonRead the Press Release
COLUMBUS, Ga. – A Columbus resident with a lengthy criminal history who admitted to distributing nearly 500 grams of fentanyl and 265 grams of a fentanyl analogue—which amounts to approximately 380,000 doses—was sentenced to federal prison today.
Michael Schlarman, aka White Mike, 32, was sentenced to serve 156 months in prison to be followed by five years of supervised release by U.S. District Judge Clay Land today after he previously pleaded guilty to possession of fentanyl with intent to distribute. There is no parole in the federal system.
“Individuals caught distributing fentanyl into our communities will be held accountable for a crime which is profiting from the death of people, including many first-time users,” said U.S. Attorney Peter D. Leary. “In 2021, overdose deaths from fentanyl hit an all-time high: A single dose can kill. Our office and our law enforcement partners are working to combat the spread of fentanyl – and save lives – in every community across the Middle District of Georgia.”
“While in the midst of this country’s opioid epidemic, deadly drugs like fentanyl continue to ravage many communities,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Consequently, DEA and its law enforcement partners will relentlessly pursue drug dealers like Michael Schlarman who choose to ‘push’ poison in the community for consumption. This defendant will now spend time in federal prison.”
According to court documents and other evidence, members of the Muscogee County Sheriff’s Office (MCSO), Drug Enforcement Administration (DEA), Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF) and FBI executed a search warrant at Schlarman’s residence on Wagner Drive in Columbus on Jan. 26. Schlarman fled from the rear of the house but was later arrested with the help of DEA Air Support and escorted back to the house without incident. Inside the defendant’s residence, law enforcement found 496.4 grams of fentanyl and 265.5 grams of p-Fluorofentanyl (a fentanyl analogue), plus a Glock 9mm with an extended magazine and a Taurus 9mm with magazine and ammunition. In addition, agents found multiple jars of a cutting agent for drugs, digital scales, a 20-ton hydraulic press, a variety of drug paraphernalia and cash. Schlarman has a lengthy criminal history, including three prior burglary convictions in Muscogee County, Georgia, Superior Court.
The case was investigated by the Muscogee County Sheriff’s Office, DEA, ATF, and FBI.
Assistant U.S. Attorney Christopher Williams prosecuted the case for the Government.
Virginia man pleads guilty to defrauding the United StatesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Jerry Shrock, 47, of Meadowview, Virginia, pleaded guilty on Nov. 28 to conspiracy to defraud the United States. Shrock will remain on conditions of release pending sentencing, which has not been scheduled.
According to court records, beginning in January 2005, David Wellington, 62, of Albuquerque, and his business partner Stacy Underwood, 51, of Albuquerque, operated National Business Services, which promoted, sold and created Limited Liability Companies (LLCs) under New Mexico State Law. For many clients, National Business Services would open bank accounts under the names and IRS employer identification numbers (EINs) of the LLCs, and the clients – whose names were not associated with the bank accounts - would have access to the funds in those accounts. Clients received debit cards, online bank access information and pre-signed checks with Underwood’s signature, which clients could use to access the money despite the bank never associating the client with the account.
In his plea agreement, Shrock admitted that he contacted National Business Services in 2006 for help avoiding federal taxes by incorporating a business in New Mexico. Shrock spoke with Underwood and Wellington, and became a client of National Business Services.
Wellington and Underwood created three LLCs in New Mexico for Shrock: White Top Enterprise LLC; Poultry Enterprises LLC; and TALC Properties LLC. Shrock was not listed on the Articles of Organization. Instead, Underwood was listed as the “Organizer,” and National Business Services was the initial registered agent for each of the three LLCs.
On May 9, 2011, Underwood opened a bank account in the business name of White Top Enterprise, LLC, utilizing the company EIN. Shrock’s name was not on the signature card for the account. Underwood provided Shrock with online access to the bank account and a book of pre-signed checks with her signature. Between May 9, 2011, and June 30, 2015, Shrock caused approximately $4,875,940 to be deposited into the White Top Enterprise LLC bank account, and over the same time period, Shrock and his wife withdrew or caused the withdrawal of approximately $4,875,940. Among the withdrawals was a wire transfer of approximately $352,216 for the purchase of a home.
Prior to his indictment in this case on June 23, 2021, Shrock did not file a personal or business tax return with the IRS reporting the White Top Enterprises LLC income. At the time of the deposits and withdrawals, Shrock had a large outstanding IRS assessment for unpaid taxes, penalties and interest. Because it was not opened in his personal name, the White Top Enterprises LLC bank account enabled Shrock to generate and deposit income while evading the outstanding assessment and avoiding personal and business taxes on the income.
Wellington was arraigned on July 9, 2021, charged with conspiracy to defraud the United States and operation of an unlicensed money transmitting business. Wellington remains on conditions of release pending trial, which is scheduled for June 12, 2023. If convicted, Wellington faces up to 10 years in prison.
On Oct. 23, Underwood pleaded guilty to conspiracy to defraud the United States. Underwood is scheduled for sentencing on Jan. 30, 2023.
Underwood and Shrock face up to five years in prison.
IRS Criminal Investigation investigated this case. Assistant United States Attorney Jeremy Peña is prosecuting the case.
# # #
Utah Man Admits to Using Kik to Distribute Child PornographyRead the Press Release
CHARLOTTESVILLE, Va. – A Utah man, who communicated via the instant messaging application Kik with an undercover employee working for the I-81 Human Trafficking and Crimes Against Child Task Force, pled guilty today to a pair of federal crimes.
Brent Walter Murie, 67, pled guilty today to two counts of distribution of child pornography. Each count calls for a mandatory minimum sentence of five years in prison and requires Murie to register as a convicted sex offender upon his release from prison as well as pay restitution to his victims.
“Our children’s world is online more than ever before and we, as a law enforcement community, must rise to the challenge of keeping them from becoming victims of sexual abusers,” United States Attorney Christopher R. Kavanaugh said today. “My Office will continue to work with our federal, state, and local law enforcement partners to protect the most vulnerable among us, our children, from sexual exploitation. I am thankful to the FBI and all those who worked to bring this matter to justice.”
“Brent Walter Murie admitted today to sexually exploiting children by distributing and exchanging their images online,” said FBI Richmond Special Agent in Charge Stanley M. Meador. “I want to thank the I-81 Human Trafficking and Crimes Against Child Task Force and our partners for their work on this case. We will never stop fighting to protect children and making sure their abusers are held accountable.”
According to court documents, an online covert employee (OCE) used a social media account on Kik to target individuals engaged in child exploitation activities. The OCE setup an account posing as an adult who had access to a 9-year-old daughter and 11-year-old son.
On September 9, 2021, an account linked to Murie began messaging the OCE account through a public chat room about incestuous family relationships. The chat between the two lasted from September 2021 through March 2022.
Topics of their conversations ranged from work, family, used cars, and the weather. However, Murie constantly returned the conversation back to ways the OCE could molest his fictional 9-year-old daughter. Murie repeatedly provided the OCE instructions on grooming and molestation, such as drugging the daughter or lowering her inhibitions by showing her child pornography.
In addition, Murie offered tips on how to conceal sexual abuse, such as using tickle fights as an excuse to sexually abuse a minor child.
During the conversations, Murie also spontaneously sent the OCE child pornography, including videos of infants and prepubescent children engaged in sexual activity with adults.
The case was investigated by the Federal Bureau of Investigation and was part of an undercover operation by the I-81 Human Trafficking and Crimes Against Children Task Force (I-81 HTTF). The I-81 HTTF is a collaborative effort of law enforcement and community partners focused on identifying instances of human trafficking along the I-81 corridor in the northern Shenandoah Valley of Virginia, West Virginia, and Maryland, prosecuting those responsible, and providing assistance to the victims impacted by these crimes. The I-81 HTTF includes law enforcement officers from the counties of Frederick, Clarke, and Shenandoah as well as the cities and towns of Front Royal, Hagerstown, and Frederick, Maryland, and Lord Fairfax Community College.
Assistant U.S. Attorney Heather L. Carlton is prosecuting the case.
United States Files Complaint and Reaches Agreement on Proposal with City of Jackson and State of Mississippi on Interim Solution to the Jackson Water CrisisRead the Press Release
Today, the United States filed a proposal in federal court that — if approved by the court — would appoint an Interim Third Party Manager to stabilize the city of Jackson, Mississippi’s public drinking water system, and build confidence in the system’s ability to supply safe drinking water to the system’s customers. The city and the Mississippi State Department of Health (MSDH) have signed this order and agreed to its terms. At the same time, the Justice Department, on behalf of U.S. Environmental Protection Agency (EPA), filed a complaint against the city alleging that the city has failed to provide drinking water that is reliably compliant with the Safe Drinking Water Act (SDWA) to the system’s customers.
The proposal, which was called a “proposed stipulated order” in court filings, is meant to serve as an interim measure while the United States, the city, and MSDH attempt to negotiate a judicially enforceable consent decree to achieve long-term sustainability of the system and the city’s compliance with the SDWA and other relevant laws.
“Today the Justice Department is taking action in federal court to address long-standing failures in the city of Jackson’s public drinking water system,” said Attorney General Merrick B. Garland. “The Department of Justice takes seriously its responsibility to keep the American people safe and to protect their civil rights. Together with our partners at EPA, we will continue to seek justice for the residents of Jackson, Mississippi. And we will continue to prioritize cases in the communities most burdened by environmental harm.”
“Over the past year, I’ve had the privilege to spend time with people on the ground in Jackson – many who’ve struggled with access to safe and reliable water for years," said EPA Administrator Michael S. Regan. “I pledged that EPA would do everything in its power to ensure the people of Jackson have clean and dependable water, now and into the future. While there is much more work ahead, the Justice Department’s action marks a critical moment on the path to securing clean, safe water for Jackson residents. I’m grateful to the Attorney General for his partnership and commitment to this shared vision.”
“Every American — regardless of where they live, their income, or the color of their skin — deserves access to safe, reliable drinking water,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “For many years now, the people of Jackson have lived in uncertainty — uncertainty about whether, on any given day, the water that flows from their taps will be safe to drink. With our court filings today, we have taken an important step towards finally giving the people of Jackson the relief they so desperately deserve.”
“It is vital that providers of drinking water comply with federal and state laws designed to ensure the safety of the water,” said U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi. “Through this litigation, we will act to ensure that the city of Jackson’s water system will be compliant with the Safe Drinking Water Act and other state and local regulations so that those serviced by the system can have confidence that the water they are consuming is safe. The proposed agreed interim order is a critical first step.”
The proposal seeks the court’s appointment of an Interim Third Party Manager that would have the authority to, among other things:
- Operate and maintain the city’s public drinking water system in compliance with SDWA, the Mississippi Safe Drinking Water Act, and related regulations;
- Take charge of the Water Sewer Business Administration, the arm of the city responsible for billing water users;
- Implement capital improvements to the city’s public drinking water system, in particular, a set of priority projects meant to improve the system’s near-term stability, including a winterization project meant to make the system less vulnerable to winter storms; and
- Correct conditions within the city’s public drinking water system that present, or may present, an imminent and substantial endangerment to the health of the city’s residents.
This court filing marks the latest efforts to address Jackson’s drinking water crisis, but there is much work still to be done to solve the myriad problems plaguing Jackson’s public drinking water system. On July 29, MSDH issued a boil-water notice for Jackson’s public drinking water system. The next month, the city proclaimed an emergency after excessive rainfall and extreme flooding prevented the system from delivering any water to the approximately 160,000 persons living within the city and in certain areas of nearby Hinds County who rely on the system. That meant that many of those residents had no running water to drink, or to use for basic hygiene and safety purposes like washing hands, showering, flushing toilets, fighting fires, or washing dishes. The water pressure was not restored until Sept. 6, and the boil-water notice remained in effect until Sept. 15.
Learn more information about EPA’s efforts in Jackson to date here.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more here.
Two Owners of New Jersey Pharmaceutical Marketing Company Admit Role in $38 Million Compounding Fraud SchemeRead the Press Release
NEWARK, N.J. – Two owners of a New Jersey pharmaceutical marketing company admitted their roles in a $38 million compounded medication health care fraud scheme, U.S. Attorney Philip R. Sellinger announced.
Samantha Zaretzky, 42, of Wayne, New Jersey, and Lee Nichols, 43, of Fair Haven, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to separate informations charging each with one count of conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Through their company, Synergy Medical LLC, Zaretzky and Nichols exploited the manner in which health insurance plans processed, screened, and paid for customized drugs known as “compounded medications,” causing tens of millions of dollars of losses to several health insurance plans over two years. Zaretzky and Nichols pocketed millions of dollars through this compounding fraud scheme.
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a medical professional determines that an FDA-approved medication does not meet the health needs of a particular patient.
From April 2014 to June 2016, Zaretzky and Nichols used Synergy as a platform through which they could market prescription-based compounded medications without regard to whether a health insurance beneficiary actually needed such a medication or whether an FDA-approved medication would have been appropriate and sufficient.
Zaretzky and Nichols and their conspirators determined which combination of compounded ingredients was most financially lucrative. Through their sales representatives, they recruited health insurance beneficiaries who were willing to obtain these expensive, but medically unnecessary, compounded medications before a medical professional had evaluated the beneficiaries’ unique and individualized need for the medications. After convincing the beneficiaries to obtain a pre-formulated compounded medication, in many cases, Zaretzky, Nichols, and their sales representatives steered beneficiaries to a medical professional with whom the beneficiaries had no prior doctor-patient relationship, such as a telemedicine company. Although the beneficiaries did not have a prior relationship with the telemedicine doctors, Zaretzky and Nichols paid that company for consulting with the beneficiaries. On at least one occasion, Zaretzky and Nichols paid an advanced practice nurse, whose license was inactive, to write prescriptions in exchange for cash. Once those medical professionals issued the prescriptions, Zaretzky and Nichols ensured that the prescriptions were steered to compounding pharmacies that paid them a kickback.
The health care fraud conspiracy charge carries a statutory maximum prison sentence of 10 years and a fine of $250,000 or twice the gross gain or loss from the scheme, whichever is greatest. Sentencing is scheduled for April 23, 2023.
U.S. Attorney Sellinger credited special agents and an analyst of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney George L. Brandley of the Health Care Fraud Unit in Newark.
Two Men Plead Guilty to Their Roles in Local Dogfighting ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man pleaded guilty to conspiring to engage in dogfighting, and a Camp Springs, Maryland, man pleaded guilty today to advertising a dogfight on the internet.
According to court documents, from at least May 2015 through August 2020, Derek Garcia, 41, Ricardo Thorne, 52, and other conspirators from Virginia, D.C., and Maryland, used a messaging app private group, which they generally referred to as "The DMV Board" or "The Board," as a place where they and their associates could discuss training fighting dogs, exchange videos about dogfighting, and arrange and coordinate dog fights, away from the view of law enforcement authorities. Members of The DMV Board also used the messaging app to compare methods of killing dogs that lost fights, as well as to circulate media reports about conspirators who had been caught by law enforcement and discuss methods to minimize the likelihood that they would be caught themselves.
According to court documents, in November 2015, Thorne told another conspirator that Thorne made a lot of money from charging admission to dog fights that he held for years at a warehouse off Kenilworth Avenue in the District of Columbia. Thorne further said that he had a fighting dog that killed six other dogs in less than a year.
Further, according to court documents, in December 2016, Garcia sold a fighting dog to another individual involved in dogfighting for $1700. In March 2017, upon the arrest of another individual involved in the fights, Garcia instructed one of his co-conspirators on how to delete the messages on the DMV Board without deleting the group from the messaging app.
In June 2017, Thorne posted to the DMV Board that the most he had ever won in one fight was $15,000. In January 2019, Thorne posted to the DMV Board that his “Darkside Kennels” had been around for over 20 years. On July 30, 2019, Thorne possessed at his residence dogfighting paraphernalia and nine pitbull-type dogs, many with scarring patterns and lacerations consistent with dogfighting. When questioned by law enforcement agents, Thorne denied any involvement ever in dogfighting, and said that he did not know that there were nine dogs tied up in his backyard.
According to court documents, on or about June 28, 2020, Garcia posted on the DMV Board a narrative of a fight between dogs, one of which was conditioned and handled by Garcia himself. Garcia notified the DMV Board that his dog was the winner, after his opponent’s dog stopped moving at 32 minutes into the fight.
In August, Garcia, Thorne, and four others were indicted for a dogfighting conspiracy involving the “DMV Board.” Earlier this month, three other conspirators pleaded guilty to the same dogfighting conspiracy. Garcia and Thorne are each scheduled to be sentenced on March 7, 2023. Each faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorneys Gordon Kromberg and Cristina Stam are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-154.
Troy Man Sentenced for Possessing Firearms as a FelonRead the Press Release
ALBANY, NEW YORK – Justin Smith, age 22, of Troy, New York, was sentenced today to 21 months in prison for possessing firearms as a previously convicted felon. The announcement was made by 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).
As part of his prior guilty plea, Smith admitted that on March 4, 2021, he possessed a Smith & Wesson M&P 9 mm pistol and an HS Produkt 40 caliber pistol that were recovered after a search warrant was executed at a residence in Troy. Smith had posted, to SnapChat, photos and videos of himself handling the firearms the night before they were recovered. Smith was prohibited from possessing the firearms due to a previous felony conviction involving a firearm.
Senior United States District Judge Gary L. Sharpe also imposed a 3-year term of supervised release, which will start after Smith is released from prison.
The case was investigated by the FBI and the Troy Police Department, and was prosecuted by Assistant U.S. Attorney Dustin Segovia.
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.
Thai Woman Pleads Guilty to Her Role in International Sex Trafficking ConspiracyRead the Press Release
ST. PAUL, Minn. – Sumalee Intarathong has pleaded guilty to her role in a large-scale international Thai sex trafficking organization, announced United States Attorney Andrew M. Luger.
“Today’s guilty plea marks the final conviction in a years-long international sex trafficking prosecution resulting in 37 convictions,” said U.S. Attorney Andrew M. Luger. “Ms. Intarathong, worked directly with others at the highest levels in the organization to victimize hundreds of vulnerable women for her own financial gain.”
According to court documents, the criminal organization conspired to make money by compelling hundreds of women from Bangkok, Thailand, to engage in commercial sex acts in various cities across the United States. Before her arrest in Belgium on August 5, 2016, Intarathong, 61, served as a boss/trafficker for the organization. Each trafficked victim was “owned” by Intarathong or another boss/trafficker, until the victim could repay an exorbitant “bondage debt” of between $40,000 and $60,000. Intarathong and other co-conspirators arranged for victims to travel from Thailand to the United States and placed the victims in a house of prostitution somewhere in the United States.
According to court documents, Intarathong and other co-conspirators in the organization engaged in widespread visa fraud to facilitate the international transportation of the victims. Members of the criminal organization assisted the victims in obtaining fraudulent visas and travel documents. As a part of obtaining visa documents, members of the criminal conspiracy gathered personal information from the victims, including the location of the victims’ families in Thailand. This information was later used to threaten victims who became non-compliant or tried to flee the organization in the United States.
According to court documents, the organization dealt primarily in cash and engaged in rampant and sophisticated money laundering in order to promote and conceal illegal profits. Throughout the course of the conspiracy the criminal organization has moved tens of millions of dollars in illegal proceeds from the United States to Thailand and elsewhere.
“I’m proud of the HSI agents and law enforcement partners who helped bring Intarathong to justice,” said HSI Saint Paul Special Agent in Charge Jamie Holt. “Intarathong’s heinous acts victimized countless individuals and their families. HSI will continue the work necessary to dismantle and destroy these human trafficking organizations while providing care and support to the victims.”
“For more than seven years, Ms. Intarathong had been responsible for sex trafficking across the nation,” said Justin Campbell, IRS CI Special Agent in Charge, Chicago Field Office. “And like many criminals she tried to hide her ill-gotten gains through legitimate purchases – such as vehicles and real estate. Fortunately for American taxpayers, IRS Criminal Investigation special agents are uniquely qualified to follow complex financial transactions and uncover the source of the illegal funds.”
Intarathong was arrested in Belgium in August 2016 and remained in custody until she was extradited to the United States in February 2021. Intarathong pleaded guilty earlier today before Senior Judge Donovan W. Frank to one count of conspiracy to commit sex trafficking and one count of conspiracy to engage in money laundering. A sentencing hearing has not yet been scheduled.
This case is the result of an investigation conducted by Homeland Security Investigations, Criminal Investigation Division of the IRS, Diplomatic Security Service, St. Paul Police Department, Anoka County Sheriff’s Office, and Cook County (Illinois) Sheriff’s Office, with the support of the International Organized Crime Intelligence and Operations Center (IOC-2). The Justice Department’s Office of International Affairs provided critical assistance in securing the defendant’s extradition from Belgium.
Assistant U.S. Attorneys Melinda A. Williams and Laura M. Provinzino are prosecuting the case with the assistance of the DOJ Civil Rights Division’s Human Trafficking Prosecution Unit and the Money Laundering and Asset Recovery Section.
Texas woman sentenced for role in drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Leslie O’Quinn, of Houston, Texas, was sentenced today to 100 months of incarceration for her role in methamphetamine, crack cocaine, fentanyl, and heroin drug distribution operation, United States Attorney William Ihlenfeld announced.
O’Quinn, age 32, pleaded guilty in July 2022 to one count of “Conspiracy to Distribute Controlled Substances.” O’Quinn admitted to working with others to distribute methamphetamine, cocaine base, cocaine hydrochloride, and fentanyl from the Spring of 2018 until October 2020.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner prosecuted the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office; the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and the FBI and DEA in Los Angeles, California.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Chief U.S. District Judge Thomas S. Kleeh presided.
Related case here: https://www.justice.gov/usao-ndwv/pr/25-people-indicted-drug-trafficking-operation-spanned-several-states
Texan indicted for producing pornography of 16-year-oldRead the Press Release
McALLEN, Texas – A 26-year-old man residing in Hidalgo is set to appear in federal court on charges of coercion of a minor and production of child pornography, announced U.S. Attorney Jennifer B. Lowery.
Rogelio Pruneda III is set to appear before U.S. Magistrate Judge Juan F. Alanis at 2 p.m.
Originally charged by criminal complaint, a federal grand jury returned the two-count indictment Nov. 15.
According to the charges, Pruneda began communicating via social media with a minor female, offering money and THC vape cartridges in exchange for sexual acts. Pruneda allegedly convinced the minor female to meet locally, at which time Pruneda created two videos of the minor female performing oral sex on him.
The charges allege Pruneda exchanged messages recognizing the minor female’s age and discussed sexual activity with the minor female. Pruneda allegedly met up with the female on two more occasions at a family-owned auto shop and a residence where he engaged in sexual intercourse with the minor. In one instance Pruneda brought THC cartridges in exchange for sex, according to the charges.
Shortly thereafter, law enforcement took Pruneda into custody.
At the time of his detention hearing, the court found him to be a danger to community and ordered held in custody pending future criminal proceedings.
The FBI conducted the investigation.
Assistant U.S. Attorney Peter I. Brostowin is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Ten Associated with Nuestra Familia Plead Guilty to Drug Trafficking Offenses in Kings and Tulare CountiesRead the Press Release
FRESNO, Calif. — Ten defendants arrested as part of Operation Red Reaper have pleaded guilty today to drug trafficking offenses, U.S. Attorney Phillip A. Talbert announced.
In 2019, Operation Red Reaper was a federal, state, and local law enforcement operation that targeted the criminal activities of the Nuestra Familia Prison Gang in the counties of Kings and Tulare. At the conclusion of the operation, federal charges were brought against 23 of those defendants, with the remaining being charged by the Kings County District Attorney’s Office.
Pleading guilty today are Raymond Lopez, 35, of Pleasant Valley State Prison; Jesse Juarez, 32, of Visalia; Daniel Juarez, 30, of Visalia; Michael Rocha, 40, of Visalia; Angel Montes, 26, of Visalia; Rafael Lopez, 41, of Visalia; Manuel Barrera, 28, of Kettleman City; Joann Bernal, 36, of Armona; Ramon Amador, 33, of Riverdale; and Raul Lopez Jr., 51, of Visalia.
Two co-defendants have been sentenced after pleading guilty. On May 24, 2021, Salvador Castro Jr., 52, of Fresno, was sentenced to 17 years and six months in prison, and on July 11, 2022, Manuel Garcia, 36, of Armona, was sentenced to 15 years in prison.
According to court documents, in March 2019, various agencies partnered in an investigation into the Nuestra Familia prison gang and the Norteño street gang in Kings County. The investigation uncovered that the Nuestra Familia was responsible for large-scale trafficking of methamphetamine and cocaine, as well as various firearms offenses and other violent crimes.
According to court documents, high-ranking Nuestra Familia members Salvador Castro Jr. and Raymond Lopez used contraband cellphones from inside Fresno County’s Pleasant Valley State Prison to arrange the transport of illicit narcotics from drug sources in California and Mexico to a stash house in Kings County. From that stash house, gang members outside of the prison coordinated the preparation and delivery of the drugs to distributors throughout Kings and Tulare Counties.
This case is the product of an investigation by the Federal Bureau of Investigation, the Kings County Gang Task Force, the Special Operations Unit of the California Department of Justice and the California Highway Patrol, the California Department of Corrections and Rehabilitation, and the Kings County District Attorney's Office. Assistant U.S. Attorneys Justin J. Gilio, Kimberly A. Sanchez, and Jessica A. Massey are prosecuting the case.
Barrera, Amador, Montes, and Raul Lopez are scheduled to be sentenced by U.S. District Judge Ana de Alba on March 6, 2023, and the remaining defendants are scheduled to be sentenced by Judge de Alba on March 20, 2023. They face a range of mandatory minimum sentences from between five to 15 years in prison and a range of maximum sentences, including up to life in prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges are pending against the remaining defendants. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Tax service owner pleads guilty to preparing false joint income tax returnsRead the Press Release
HOUSTON – A tax preparer has admitted to willfully preparing a false joint 2017 individual income tax return, announced U.S. Attorney Jennifer B. Lowery.
As part of his plea, Fabrice Mahinga admitted that from 2016 to 2018, he operated Kennedy Tax Service located in Houston. He admitted that he often claimed fake Schedule C items, education and fuel tax credits on the returns he prepared.
In 2019, he assisted with the preparation of a tax return that should have resulted in a tax owed of $42. Mahinga added to the return a false Schedule C and false credits that resulted in a false claim for an income tax refund of $4,257 from the IRS. A copy of the return reflected a false income tax refund of a lesser refund - $3,259 - when the refund claimed on the return filed with the IRS was $4,257.
Mahinga took responsibility of $270,612 of loss to the IRS. He has agreed to pay $182,212 in restitution.
U.S. District Judge Keith P. Ellison will impose sentencing Feb. 17. At that time, Mahinga faces up to three years in federal prison and a possible $250,000 maximum fine.
IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
St. Louis Market's Security Guard Faces Gun ChargesRead the Press Release
ST. LOUIS – A St. Louis market's security guard appeared in federal court Tuesday to answer charges accusing him of illegally possessing firearms, including during a shootout in St. Louis in October.
Dwayne A. Kimmins, 49, was indicted November 16 on two felony counts of being a felon in possession of a firearm. The indictment says Kimmins had a gun on October 3 and again five days later.
A motion seeking to have Kimmins held in jail until trial says that on October 3, Kimmins, who was working at the Salamas market and gas station on North 13th Street, approached someone suspected of stealing beer. Kimmins, who was armed with a handgun, patted the person down and the two then got into an altercation. At some point, the suspect began firing at Kimmins, and Kimmins took cover behind a gas pump and returned fire, the motion says. Kimmins admitted firing a shotgun in the air to scare the suspect, the motion says. Five days later Kimmins was found in possession of another firearm when officers returned to the store to conduct additional investigation into the shooting, the motion says.
Kimmins was found in possession of a third firearm and loose ammunition on November 29, when he was arrested, according to statements at Tuesday's hearing.
Kimmins pleaded not guilty Tuesday to the charges.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kourtney Bell is prosecuting the case.
St. Louis County Man Indicted, Accused of Shooting at Federal Task Force OfficersRead the Press Release
ST. LOUIS – A man from St. Louis County has been indicted and accused of shooting at three federal task force officers during a 2021 standoff.
Derek D. Brown, 49, of Jennings, appeared in court Tuesday and pleaded not guilty to three counts of assault on a federal officer, three counts of discharging a firearm during a crime of violence and one count of being a felon in possession of a firearm. He was originally indicted Oct. 13, 2021.
The indictment says Brown fired at the officers on March 18, 2021.
A detention motion says the shooting followed a domestic dispute. Brown was armed with a machete and a hammer and had kicked down the door of his wife’s daughter’s house while trying to confront his wife, the motion says. The daughter, afraid for the safety of herself and her children, retrieved her .45 caliber pistol but Brown was able to wrestle it away, the motion says.
Brown left and went to his sister’s house, where he fired at officers, including federal task force officers, outside the house, through a screen door and then through the closed front door, the motion says. He eventually surrendered.
The assault charge carries a potential penalty of up to 20 years in prison, a $250,000 fine, or both. The discharge of a firearm charges carry a penalty of at least 10 years in prison, consecutive to any other charges. The felon in possession charge carries a penalty of up to 10 years in prison.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Brown has been held on state charges since the shooting.
The case was investigated by the St. Louis County Police Department. Assistant U.S. Attorney Donald Boyce is prosecuting the case.
Sioux Falls Man Sentenced for Receipt and Distribution of Child PornographyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that a Sioux Falls, South Dakota, man convicted of Receipt and Distribution of Child Pornography was sentenced on November 28, 2022, by U.S. District Judge Karen E. Schreier.
Dylan St. Claire age 31, was sentenced to ten years and one month in federal prison, five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
St. Claire was indicted by a federal grand jury in September of 2021. He pled guilty on September 2, 2022.
The conviction stemmed from incidents between March 10, 2021, and July 21, 2021, when St. Claire knowingly received and distributed material containing child pornography. While using his KIK social media account, St. Claire engaged in chat conversations with other KIK users. During those conversations, St. Claire shared files that contained videos of child pornography, including prepubescent minors that had not attained the age of twelve years old.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
St. Claire was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Charged with Failure to Register as a Sex OffenderRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Robert Charles Black Cloud, age 67, was indicted in November of 2022. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on November 23, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to ten years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Black Cloud, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between May 29, 2022 and November 1, 2022.
The charge is merely an accusation and Black Cloud is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Black Cloud was released on bond pending trial which has been set for January 31, 2023.
Shoreline Business Owner Who Failed to Pay Taxes Sentenced to PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CHRISTOPHER JARDINE, 55, of Guilford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 15 months of imprisonment, followed by one year of supervised release, for failing to pay business and personal taxes. Judge Dooley also ordered Jardine to pay a $10,000 fine.
According to court documents and statements made in court, Jardine is a part owner of D&A Construction Management, Inc. (“D&A”), a Branford-based company in the construction business. Jardine was responsible for D&A’s financial affairs, and for collecting and paying over certain federal taxes from D&A’s employees, namely federal income taxes and Federal Insurance Contribution Act (“FICA”) taxes, which include Medicare and social security taxes. He was also responsible for ensuring that D&A, as an employer, paid its own share of FICA taxes.
An investigation revealed that although Jardine and D&A withheld employees’ federal income and FICA taxes over multiple tax periods between 2016 and 2019 and reported those withholdings to the IRS, they failed to pay over the withheld amounts, totaling approximately $868,000. Jardine also represented to the IRS that D&A lacked the ability to pay, but he used more than $1 million in company funds to pay personal expenses, including purchases of a 52-foot cigarette boat, a Range Rover, high-end clothing, and auto parts, and to make payments on behalf of Straight Jacket USA, LLC, a Guilford business controlled by Jardine.
On April 28, 2022, Jardine pleaded guilty to one count of willful failure to pay over withholding taxes. Jardine admitted that he evaded payment of the withheld employee taxes, as well as D&A’s share of FICA taxes, for multiple quarters during the 2016 through 2019 tax years, and he also acknowledged that he evaded the payment of personal income tax liabilities for multiple tax years between 2007 and 2015.
Jardine agreed to pay approximately $2,070,000 in restitution to the IRS, an amount that includes interest and penalties. To date, he has paid most of his restitution obligation.
Jardine, who is released on a $50,000 bond, is required to report to prison on February 28.
This investigation was conducted by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Conor M. Reardon.
Sex Offender Sentenced to 14 Years in Federal Prison for Obscenity OffenseRead the Press Release
GAINESVILLE, FLORIDA – Matthew Lee Ostrander, 36, of Missouri, was sentenced to fourteen years in federal prison following his conviction for possession of obscene visual depictions of minors. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“This sentence is yet another example of the unwavering commitment to the protection of our most vulnerable and should serve as a significant deterrent to those who would attempt to harm them,” said U.S. Attorney Coody. “We will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who prey upon our children.”
Ostrander was convicted by a federal jury on May 12, 2022. Evidence introduced at trial revealed that in September 2020, Ostrander was arrested in Gainesville, Florida for an outstanding warrant from Missouri. At the time of his arrest, he had also failed to register as a sex offender in the State of Florida. He knowingly possessed electronic devices that contained over three hundred computer-generated images depicting children engaged in sexual activity. The activity included sadistic and masochistic abuse and sexual intercourse with children.
According to court documents, Ostrander is a registered sex offender who was previously convicted of possession of child pornography on October 18, 2017.
“This twice-convicted sexual predator saved hundreds of heinous computer-generated images depicting children being sexually abused,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Working with our law enforcement partners, such as the Gainesville Police Department, HSI will continue to focus on identifying and prosecuting those who prey on our most vulnerable. This sentencing is another exemplary example of those efforts.”
Ostrander’s prison sentenced will be followed by lifetime supervised release. He will also be required to register as a sex offender and will be subject to all sex offender conditions.
This conviction was the result of an investigation by the Homeland Security Investigations, the Gainesville Police Department, and the United States Marshal Service. Assistant United States Attorney Frank Williams prosecuted this case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Seattle man sentenced to four years in prison for attempting to travel to the Middle East to join a foreign terrorist organizationRead the Press Release
Seattle – A 22-year-old Seattle man was sentenced today in U.S. District Court in Seattle to four years in prison with 15 years of supervised release to follow, for Providing Material Support to a Designated Foreign Terrorist Organization, announced U.S. Attorney Nick Brown. Elvin Hunter Bgorn Williams was arrested May 28, 2021, at Seattle-Tacoma International Airport on criminal charges related to his alleged efforts to join the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, to engage in violent acts of terrorism in the Middle East or the United States. At today’s sentencing hearing, U.S. District Judge John C. Coughenour said he was imposing a sentence far below the government’s request of 15 years because of Williams’ “mental health and history of mental health difficulties.”
“Mr. Williams persisted in his plans to join a terrorist organization and commit acts of violence, despite intervention from his family, his school, members of his mosque, and from the FBI,” said U.S. Attorney Nick Brown. “Indeed, he repeatedly stated his intention to commit an act of terror here at home if he could not travel overseas. Mr. Williams continues to pose a risk to the community. It will be critically important that he be closely supervised after he is released from prison.”
Williams was arrested following a lengthy investigation into his efforts to join ISIS.
“Mr. Williams proved by his actions he was willing to join the Islamic State in hopes of furthering their ideology through violence,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “He took concrete steps to fund his activities, procure equipment, and travel to the Middle East. I am grateful for how law enforcement was able to step in and stop him before he actually was able to achieve his goal.”
According to the plea agreement, in November 2020, Williams began telling family members he was a member of ISIS. Williams posted a video on Facebook in which he swore an oath of loyalty to a leader of ISIS.
Using confidential sources close to Williams, the FBI monitored his activity and became aware of his efforts to travel to the Middle East and join ISIS. Williams expressed to his associates that if he could not travel overseas, he would commit an attack in the U.S. on behalf of ISIS. Williams began communicating with those he believed were ISIS recruiters who could get him to an ISIS terror cell in the Middle East or other parts of the world.
The plea agreement contains statements Williams made about his intentions: that he sought martyrdom, had “no problem with killing,” and hoped to be involved in beheading others.
In May 2021, Williams obtained a passport and pawned a laptop computer to raise funds for his travel. In early May 2021, Williams booked an airline ticket from Seattle to Amsterdam and on to Egypt to join ISIS. On Friday May 28, 2021, he went to Sea-Tac Airport to catch the first leg of his international flight. Williams was arrested at the departure gate.
In asking the court for a 15-year sentence prosecutors wrote to the court, “Sadly, this case is far from unique. ISIS and other terrorist groups engage in the recruitment of would-be supporters using online propaganda communication tools. Far too many U.S. persons fall prey to this recruitment and attempt to travel to fight with terrorist groups overseas or seek to commit local attacks in the name of terrorist organizations.”
The case was investigated by the FBI’s Joint Terrorism Task Force in Seattle with assistance from the King County Sheriff’s Office; U.S. Customs and Border Protection; Homeland Security Investigations; Federal Air Marshals; U.S. Citizenship and Immigration Services; U.S Marshals Service; U.S. Postal Inspection Service; Transportation Security Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Naval Criminal Investigative Service; Seattle Police Department; Bellevue Police Department; and Port of Seattle Police Department.
Assistant United States Attorney Todd Greenberg of the Western District of Washington’s Terrorism and Violent Crime Unit, and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section are prosecuting the case.
San Angelo Tax Preparer Sentenced to 14 Years for Tax FraudRead the Press Release
A San Angelo tax preparer whose fraudulent tax returns cost the IRS millions of dollars was sentenced today to 14 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham. His adult son and daughter were sentenced to 66 and 80 months, respectively.
Hugo Cesar Granados, manager of Columbia Tax Service, his daughter, Blanca L. Granados, and his son, Hugo Alberto Granados, were convicted at trial in August of conspiracy to defraud the United States and multiple counts of aiding in the preparation and presentation of false documents. They were sentenced Tuesday by U.S. District Judge James Wesley Hendrix
“Columbia Tax Service doctored clients’ tax returns to inflate clients’ refunds and line the Granados’s pockets. Such blatant fraud is an affront to all conscientious taxpayers,” U.S. Attorney Chad Meacham said following the verdict. “As is their right, the Granadoses opted for a trial by jury. We are proud to have obtained a guilty verdict. I’m thankful to the IRS Criminal Investigation agents who ran this case to ground and to the members of the jury, who gave three days of their lives to bring these defendants to justice.”
“Today, justice is served - a victory for all honest tax return preparers and taxpayers. Hugo Cesar Granados, along with his daughter and son, are being held accountable for their criminal actions,” Special Agent in Charge Christopher J. Altemus, Jr., IRS Criminal Investigation of the Dallas Field Office said today. “I am extremely proud of the women and men of IRS-CI who work tirelessly each and every day to bring criminals like these individuals to justice. I also want to extend my gratitude to the US Attorney’s office and specifically the prosecution team for their relentless pursuit of justice in this case.”
At trial, prosecutors introduced evidence that the elder Mr. Granados and his co-conspirators falsified their clients’ individual income tax returns (Forms 1040) in order to inflate the clients’ tax refunds.
They routinely fabricated clients’ Schedule A, itemized deductions, and Schedule C, sole proprietorship profit and loss statements, claiming the taxpayer owned a business when no such business existed, claiming unreimbursed employee expenses such as travel and per diem, and claiming business expenses related to maintenance, utilities, supplies, insurance, and professional services that were never incurred or grossly inflated.
Testimony adduced at trial showed that Columbia Tax Service claimed more than $900,000 in income in 2015 and more than $1.3 million in income in 2016.
An employee who plead guilty prior to trial, Saul Garcia-Soto testified that in 2016, Columbia Tax employees met with Hugo C. Granados because taxpayers were not receiving their refunds from the IRS. When questioned, the elder Mr. Granados asked the employees if they thought the company was doing something illegal. Mr. Garcia-Soto said that he, Blanca Granados, and Hugo A. Granados all replied that they thought Columbia Tax was doing something illegal. In response, Hugo C. Granados just smiled and turned back to his computer.
In a Skype chat introduced at trial, Blanca Granados wrote to a co-worker: “Fraud is ridiculous here yo . . . I swear.”
Prosecutors also introduced into evidence the company’s “tax preparation manual,” a handbook that outlined exactly how to commit fraud.
In discussing preparation of Schedule C of the tax return, the manual stated: “This is where your training and knowledge of income and deductions will make a big difference in the amount of refund the taxpayer will be obtaining. A determination has to be made if the return needs additional income to generate the maximum earned income and other credits or if the return has a substantial amount of income (Adjusted Gross Income) and needs to come down to maximize the earned income and other credits.” In other words, the manual advised tax preparers to manipulate income to maximize refunds rather than referring to the law to determine whether an activity was a business for income tax purposes and whether expenses properly qualified as a business deduction.
At sentencing, experts put the estimated tax loss in excess of $11.7 million.
The Internal Revenue Service - Criminal Investigations conducted the investigation. The San Angelo Division of the Northern District of Texas, including Assistant U.S. Attorneys Jeffrey Haag, Ann Haag, Amy Burch, and Paulina Jacobo (fmr), prosecuted the case.
Sacramento Repeat Sex Offender Pleads Guilty to Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Joshua Klomp, 48, of Sacramento, pleaded guilty today to possession of child pornography following a prior sex offense conviction, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2018, during a probation visit in 2018, Klomp was found to be in possession of two cellphones that contained thousands of images and video files of thousands of images and video files of children engaging in sexually explicit conduct. At the time he possessed these images and video files, Klomp was on federal supervised release for a 2006 federal conviction for possession of child pornography. Klomp served 10 years in prison for that offense. Prior to that federal conviction, Klomp was also previously convicted in Butte County in 1995 of committing a lewd and lascivious act with a child.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Sam Stefanki is prosecuting the case.
Klomp is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Feb. 14, 2023. Klomp faces a mandatory minimum of 10 years in prison and a maximum statutory penalty of 20 years in prison, as well as a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sacramento Attorney and Filer of ADA Lawsuits Pleads Guilty to Filing False Tax ReturnRead the Press Release
SACRAMENTO, Calif. — A Sacramento attorney and filer of thousands of disability discrimination lawsuits pleaded guilty today to filing a false tax return on which he underreported the income he earned from many of those lawsuits. U.S. Attorney Phillip A. Talbert and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
According to court documents and statements made in court, Scott Norris Johnson, 60, of Carmichael, owned and operated Disabled Access Prevents Injury Inc (DAPI), a legal services corporation. First using DAPI, and later a law firm, Johnson filed more than 4,000 lawsuits in the Eastern District of California and elsewhere under the Americans with Disabilities Act of 1990 and related California statutes, naming himself as the plaintiff.
Under the Small Business Job Protection Act of 1996, payments related to lawsuit settlements or awards are taxable unless paid on account of personal physical injury or physical sickness. Johnson, who worked as an attorney at the IRS earlier in his career, was required to report the taxable portion of the lawsuit settlements and awards he received. He nonetheless intentionally underreported this income on his 2012, 2013, and 2014 tax returns. By understating the lawsuit settlements and awards, Johnson and DAPI paid little to no income tax for tax years 2012, 2013 and 2014. Johnson caused a loss to the IRS of more than $250,000.
IRS-Criminal Investigation is investigating the case. Assistant U.S. Attorney Katherine T. Lydon and Assistant Chief Matthew J. Kluge of the Tax Division are prosecuting the case.
Johnson is scheduled to be sentenced on March 7. 2023, by U.S. District Judge John A. Mendez and faces a maximum penalty of three years in prison for filing a false tax return. He 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.
Red Lake Man Sentenced to 12 Years in Prison for MurderRead the Press Release
MINNEAPOLIS – A Red Lake man has been sentenced to 144 months in prison followed by three years of supervised release for a 2020 murder that took place on the Red Lake Indian Reservation, announced United States Attorney Andrew M. Luger.
According to court documents, on September 12, 2020, Ralph Edward Cloud, Jr., 38, killed his cousin, Allen Smith, in Smith’s home. Concerned about a relationship between his wife and Smith, Cloud walked several miles to Smith’s residence and attacked him, using a metal cabinet and its drawers to beat Smith to death.
Cloud was sentenced today in U.S. District Court before Senior Judge Michael J. Davis. On July 14, 2022, Cloud pleaded guilty to one count of murder in the second degree.
This case was the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
Assistant U.S. Attorneys Emily A. Polachek and Deidre Y. Aanstad prosecuted the case.
Readout of U.S. Attorney General Merrick B. Garland’s Meeting with Dutch Minister of Justice and Security Dilan Yeşilgöz-ZegeriusRead the Press Release
U.S. Attorney General Merrick B. Garland met yesterday in Washington, D.C. with Dutch Minister of Justice and Security Dilan Yeşilgöz-Zegerius.
In the meeting, Attorney General Garland and Minister Yeşilgöz-Zegerius renewed their commitment to the close law enforcement partnership between the United States and the Netherlands. This partnership includes cooperation aimed at combating cybercrime, organized crime, drug trafficking, money laundering, and terrorism, among other law enforcement matters. Both leaders agreed that the cross-border nature of criminal organizations requires enhanced cross-border cooperation.
“Our international partnerships are force-multipliers in the Justice Department’s work to keep our country safe, defend democracy, and uphold the rule of law,” said Attorney General Garland. “We are grateful for the assistance and collaboration of our Dutch law enforcement partners, and we will continue to strengthen our shared efforts to disrupt and combat the most urgent threats facing both of our nations.”
Attorney General Garland thanked Minister Yeşilgöz-Zegerius for the Netherlands’ assistance to the United States’ efforts, through Task Force KleptoCapture, to hold accountable Russian oligarchs and others who seek to evade U.S. sanctions. They also discussed their joint commitment to uphold the rule of law and seek justice for victims of Russia’s continued aggression in Ukraine.
Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Sonny Ray Escarsega, a/k/a Sonny Ray Ruiz, age 41, was indicted in November of 2022. He appeared before U.S. Magistrate Judge Mark Moreno on November 23, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Escarsega was convicted of Aggravated Sexual Abuse in July of 2003. As a result of this conviction, he is required to register as a sex offender. It is alleged that between August 24, 2022, and October 25, 2022, Escarsega, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, failed to properly register and update his registration.
The charge is merely an accusation and Escarsega is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Escarsega was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for January 17, 2023.
Pittsburgh Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
PITTSBURGH – Daryl Williams pled guilty to possessing firearms in furtherance of drug trafficking crimes, United States Attorney Cindy K. Chung announced today.
Williams, age 24 of Pittsburgh, pled guilty before United States District Judge Cathy Bissoon. William admitted possessing a firearm in furtherance of a drug trafficking crime, once on May 6, 2018, and then again on May 29, 2018.
Judge Bissoon scheduled sentencing to occur on March 22, 2023, at 10:00 a.m. The law provides for a sentence of at least 10 years and up to life in prison and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Greentree Police Department, the Pittsburgh Bureau of Police Department, the Federal Bureau of Investigation, and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the conviction in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Pensacola Sex Offender Sentenced to Eleven Years in Federal Prison for Illegal Firearm Charges and Supervision ViolationsRead the Press Release
PENSACOLA, FLORIDA – James Leroy Smith Jr., 38, of Pensacola, Florida, was sentenced to 134 months in federal prison after pleading guilty to possession of a firearm by a convicted felon, possession of an unregistered short-barreled rifle, and multiple violations of his federal supervised release conditions. Smith was sentenced to 10 years in prison on the firearm charges, and he was sentenced to an additional 14 months for his supervision violations to run consecutively to his firearm case. The sentence was announced today by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Senseless violence by armed felons endangers the pubic and results in serious consequences,” stated U.S. Attorney Coody. “Our partners at the Escambia County Sheriff’s Office are to be commended for their swift actions in apprehending this violent felon. Due to their efforts our community is safer, and this repeat offender is exactly where he belongs – back behind bars.”
Court records indicate Smith was arrested by Escambia County Sheriff’s Office deputies on April 24, 2021, after shooting a black AR-style rifle loaded with rounds in a 100-round double-drum magazine at another car while driving through a Pensacola residential area. At the time, Smith was being supervised by the U.S. Probation Office following a prison sentence imposed for failure to register as a sex offender. In addition to that federal offense, he had nine other felony convictions, including a prior conviction for possession of a firearm by a convicted felon and a conviction for sexual battery.
The sentence resulted from a joint investigation by the Escambia County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Alicia Forbes prosecuted this 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.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Penobscot County Man Faces 10 Years to Life Following Guilty Plea to Federal Drug and Gun ChargesRead the Press Release
BANGOR, Maine: A Penobscot County man pleaded guilty today in U.S. District Court in Bangor to conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl, possession with the intent to distribute methamphetamine and fentanyl, and being an unlawful user of controlled substances in possession of a firearm.
According to court records, between January 2018 and December 2021, Matthew Catalano, 33, along with others, trafficked methamphetamine and fentanyl in Penobscot County, Aroostook County and elsewhere. On February 17, 2021, Catalano was arrested by the Orono Police Department following a traffic stop during which he was found in possession of large amounts of methamphetamine and fentanyl, a loaded 9mm handgun and drug paraphernalia.
Catalano faces a minimum of ten years imprisonment and up to life imprisonment on the two drug charges and up to ten years imprisonment on the firearm charge. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistance was provided by the Orono, Bangor, Brewer, Caribou, Presque Isle, and Houlton police departments. U.S. Attorney Darcie N. McElwee also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office and the Aroostook County District Attorney’s Office.
Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
###
Pennsylvania man sentenced for sex offender registry violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Donald Edward Hunker, of East Berlin, Pennsylvania, was sentenced today to 41 months of incarceration for a sex offender registry violation, United States Attorney William Ihlenfeld announced.
Hunker, 41, pleaded guilty in March 2022 to one count of “Failure to Update Sex Offender Registration.” Hunker, who is required to register as a sex offender, failed to update is registration when he traveled from out-of-state to stay in Preston County from May to August of 2020.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The United States Marshals Service investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Owner of Trucking Companies Sentenced to 10 Years in Prison for Conspiracy in Fatal Tanker Explosion, Tax Evasion and COVID FraudRead the Press Release
LOS ANGELES – The owner of several Inland Empire-based trucking companies was sentenced today to 120 months in federal prison for ordering the illegal repair of a tanker that resulted in an explosion and the death of one his employees – the second time one of his welders was killed.
Carl Bradley Johansson, 64, of Newport Beach, was also sentenced for tax evasion and fraudulently obtaining approximately $954,417 in COVID-relief money while free on bond in the tanker explosion case.
Johansson was sentenced by United States District Judge Virginia A. Phillips, who also ordered Johansson to pay $1,252,979 in restitution to two banks and the IRS.
Johansson pleaded guilty in September 2021 to two felony counts in relation to the tank explosion – one count of conspiring to make illegal repairs on the cargo tanks and to defraud the United States Department of Transportation, and one count of welding without required certifications. He also pleaded guilty to one count of tax evasion, one count of conspiracy to commit bank fraud and one count of bank fraud. Johansson admitted that he committed the bank fraud offenses stemming from the PPP scam while he was on pretrial release in the tanker explosion case. Johansson has been in custody since his arrest on the PPP charges in July 2021.
Tanker Explosion Case
Johansson controlled and operated two Corona-based trucking companies -- National Distribution Services, Inc. (NDSI), which operated from about 2009 through 2015, and NDSI’s successor company, Wholesale Distribution, Inc. (WDI), which did business as Quality Services. Johansson established NDSI following a 15-month federal prison sentence he served after one of his welders was killed in another tanker explosion in 1993. Johansson created WDI to take over NDSI’s operations so he could continue to illegally operate cargo tanks that were ordered out of service after two more welding-caused explosions at NDSI in 2012 and 2014.
On May 6, 2014, NDSI management ordered workers to do welding work on a tanker that had not been fully cleaned of the crude oil inside of it. This resulted in an explosion that killed a company welder and severely injured a second worker.
For the next four years, Johansson and other employees of NDSI and WDI conspired to obstruct a federal investigation into the explosion by making multiple false statements to local, state and federal officials to conceal that NDSI had conducted illegal welding repairs, that Johansson controlled NDSI and WDI, and that the deceased and injured employees worked for him. For example, on the day of the fatal explosion, when investigators arrived at NDSI, Johansson identified himself as being a customer service representative with another company and said the welders were employed by an outside tank-repair company.
Johansson and NDSI submitted false statements to federal regulators to have the Federal Motor Carrier Safety Administration (FMCSA) rescind an Out-of-Service Order which prohibited the company from operating approximately 37 cargo tanks to haul gasoline or ethanol because the FMCSA had determined that those cargo tanks presented safety risks. Johansson signed, under oath, an affidavit that falsely claimed NDSI had never engaged in tank repairs and that his shop manager worked for an outside tank-repair company.
To circumvent the Out-of-Service Order, Johansson, at the end of 2014, converted NDSI to operate under the WDI name. WDI was a “reincarnated” or “chameleon” carrier – it had almost all the same employees and management as NDSI, and it operated out of the same warehouse, but with a new name to evade regulators. WDI continued to violate the Out-of-Service Order through early 2018 by using the prohibited cargo tanks to haul gasoline and ethanol.
As part of the conspiracy and to further conceal his control of NDSI and WDI, Johansson did not file income tax returns for the years 2012 through 2017. Johansson failed to report to the federal government at least $1,174,173 in income from the trucking companies. He used that income to pay for personal expenses – including renting a large home in Corona for at least $12,000 per month and using company accounts to make $200,000 in tuition payments at his children’s private high schools and universities.
In total, Johansson admitted to unlawfully avoiding the payment of at least $298,562 in federal income taxes from 2012 to 2017.
COVID-Relief Fraud
In April 2020, while free on bond in the explosion case, Johansson directed another trucking company he controlled, the Ontario-based Western Distribution LLC, to apply for a $436,390 PPP loan. After the loan was funded, Johansson directed Western Distribution in May and June of 2020 to immediately spend the PPP funds. Rather than use the funds to keep the company’s employees on staff, Johansson laid off most of the company’s employees, but rehired many of them in late 2020. To create the impression that Western Distribution had spent more of its PPP loan on its payroll than it did, in September 2020 Johansson moved 21 employees from a separate company that Johansson controlled – the Merced County-based Agri-comm Express Inc. – onto Western Distribution’s payroll, even though those employees never worked for Western Distribution.
In March 2021, Johansson caused Western Distribution to repeat the same fraudulent representations concerning its employee lists and payroll numbers when the company submitted a second PPP loan application, this time for $231,527. The second loan application was also approved.
The total loss in the COVID-relief fraud matter was approximately $954,417.
At today’s sentencing hearing, Judge Phillips also sentenced NDSI and WDI to one year of probation. Each company pleaded guilty in September 2021 to one count of conspiring to make illegal repairs on cargo tanks and defrauding the United States Department of Transportation. NDSI pleaded guilty to an additional count of welding without required certifications. Judge Phillips also sentenced Western Distribution to three years of probation and ordered it to pay $667,917 in restitution. In September 2021, Western Distribution pleaded guilty to one count of conspiracy to commit bank fraud and one count of bank fraud.
Enrique Garcia, 48, of Pomona, Johansson’s shop manager and co-defendant, pleaded guilty earlier this year to one count of welding without required certifications and was sentenced to 30 months in federal prison.
Donald Cameron Spicer, 71, of Fullerton, Johansson’s safety manager and co-defendant, pleaded guilty to conspiring to make illegal repairs on the cargo tanks and to defraud the United States Department of Transportation. He is scheduled to be sentenced on February 6, 2023.
The United States Department of Transportation Office of Inspector General and IRS Criminal Investigation investigated these matters.
Assistant United States Attorneys Matthew W. O’Brien and Joseph O. Johns of the Environmental and Community Safety Crimes Section prosecuted this case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Newport News Man Pleads Guilty to Unlawful Purchase of a Firearm Used in Three Local ShootingsRead the Press Release
NEWPORT NEWS, Va. – A Newport News man pleaded guilty yesterday to the unlawful purchase and possession of a firearm that was used in three community shootings.
According to court documents, Khalil Rashad Armstrong, 21, asked his older cousin to purchase a handgun for Armstrong. Only 20 years old at the time, Armstrong was not old enough to purchase a handgun himself. Armstrong gave his cousin the money to purchase the firearm and selected the make and model. Around February 21, 2021, Armstrong’s cousin made false oral and written statements to a local licensed firearm dealer in order to straw-purchase the firearm for Armstrong. The firearm was recovered by police on July 27, 2021, at the crime scene of a local rival gang shootout approximately 125 days after it was purchased. Forensic ballistics confirmed the firearm had been used in two other shootings, once on May 2, 2021, resulting in property damage, and once on February 21, 2021, the same day it was purchased.
On May 12, Armstrong’s cousin and co-defendant, Destiny Na’iymah Davis, 23, of Newport News, pleaded guilty to her role in the unlawful straw-purchase of the firearm. She faces a maximum of 5 years in prison when sentenced on December 5.
Armstrong pleaded guilty to aiding and abetting making a false statement during the purchase of a firearm and to being an unlawful user of a controlled substance in possession of a firearm and is scheduled to be sentenced on March 30, 2023. He faces a maximum of 10 years in prison on the first charge and a maximum of 15 years in prison on the second. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Christopher Amon, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after U.S. District Judge Elizabeth Wilson Hanes accepted the plea.
Assistant U.S. Attorney Peter Osyf is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:22-cr-12.
New Orleans Man Charged with International Parental KidnappingRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that KIDUS AWLACHEW, age 32, a resident of New Orleans, Louisiana, was charged today in a one-count bill of information with international parental kidnapping, in violation of Title 18, United States Code, Section 1204. The charge stems from AWLACHEW allegedly retaining a child in the Federal Democratic Republic of Ethiopia, with the intent to obstruct the lawful exercise of another person’s parental rights.
If convicted, AWLACHEW faces up to three years in prison, a fine of up to $250,000.00, up to one year of supervised release after imprisonment, and a mandatory $100 special assessment fee.
U. S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Minneapolis Tax Preparer Pleads Guilty to Tax CrimesRead the Press Release
MINNEAPOLIS– A Minneapolis tax preparer has pleaded guilty to federal tax violations, announced United States Attorney Andrew M. Luger.
According to court documents, Sue Yang, 48, of Circle Pines, operated a tax preparation business in Minneapolis. Yang participated in the IRS’s e-file program, a specialized program the IRS offers to qualified tax preparers, and was assigned a unique Electronic Filing Identification Number (known as an “EFIN”). In 2010, the IRS conducted a periodic suitability review of Yang and found that he failed to file a 2009 personal income tax return and that he owed substantial federal income taxes from tax years 2005 through 2008. The IRS notified Yang repeatedly that his failure to resolve his tax obligations would result in sanctions, including suspension of his EFIN or his expulsion from the IRS e-file program. In August 2012 Yang was suspended from the IRS e-file program and was no longer authorized to electronically file tax returns.
From August 2012 through April 2022, despite his suspension from the e-file program, Yang operated surreptitiously as an e-filing tax preparer. Yang disguised his unauthorized participation in the e-file program by enlisting others to obtain unique EFINs, which Yang then used to file thousands of tax returns electronically on behalf of his customers. These tax returns were electronically transmitted to the IRS purporting to have been prepared by other individuals. From 2012 through 2020, Yang impeded the IRS’s suitability review and circumvented his e-file suspension by electronically filing more than 26,000 tax returns using misappropriated EFINs.
From 2018 through 2021, Yang received approximately $765,000 in compensation from working as a tax preparer but, in order to further obscure his unauthorized conduct, he did not report any income related to his tax preparation business. Yang’s unlawful conduct resulted in a combined federal tax loss of approximately $214,297.
Yang pleaded guilty today before Judge Eric C. Tostrud to one count of filing a false federal income tax return and one count of corruptly impeding and obstructing the administration of the internal revenue laws. A sentencing hearing has not yet been scheduled.
This case was jointly investigated by IRS – Criminal Investigations and the Treasury Inspector General for Tax Administration (TIGTA).
Assistant U.S. Attorney Matthew S. Ebert is prosecuting the case.
Man Who Sexually Abused Sleeping Woman Sentenced to More than Fifteen Years in PrisonRead the Press Release
A man who sexually abused a sleeping woman was sentenced today to more than fifteen years in federal prison.
Robin Roberts, age 67, from the Meskwaki Settlement, received the prison term after a June 1, 2022 jury verdict finding him guilty of sexual abuse.
The evidence at trial showed that on July 8, 2021, the victim went to Roberts’ residence. During her time at the residence, Roberts sexually abused the victim while she was sleeping.
Roberts was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Roberts was sentenced to 188 months’ imprisonment and ordered to pay a $5,000 special assessment pursuant to the Justice for Victims of Trafficking Act. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Roberts is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Lisa C. Williams and Liz Dupuich and was investigated by the Federal Bureau of Investigation and the Meskwaki Nation Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-0060.
Follow us on Twitter @USAO_NDIA.
Man Sentenced for Delaware County Murder and AssaultRead the Press Release
A Jay man was sentenced Tuesday in federal court for shooting and killing his mother and wounding a second family member.
“Christopher Weeley fatally shot his mother and seriously wounded a second family member at a home in Jay in 2021. My thoughts are with the family and the second victim as she continues her long-term recovery,” said U.S. Attorney Clint Johnson. “Weeley will serve 24 years in prison for the harm he has caused to his family. My office remains steadfast in its commitment to seek justice for victims affected by violence.”
“The outcome of this case is a direct result of the excellent partnership we have with the Delaware County Sheriff’s Office and the U.S. Attorney’s Office for the Northern District of Oklahoma,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “Today’s sentence ensures Christopher Weeley will be brought to justice for his horrific crime and hopefully begins the healing process for his grieving family.”
U.S. District Judge Gregory K. Frizzell sentenced Christopher Leo Weeley, 42, to 24 years in federal prison followed by five years of supervised release.
During sentencing, Weeley, a long time drug user, apologized to his family although they were not in attendance. He told the court that he heard drugs did horrible things to families but didn’t think it would ever happen within his own family. He called the crimes a nightmare he couldn’t take back.
Assistant U.S. Attorney Ryan Roberts shared with the court that the surviving victim continues to receive treatment for her injuries. He further relayed that she could not bring herself to come to the hearing because she felt it would harm her emotionally at this time.
Weeley, at a previous hearing, pleaded guilty to second degree murder in Indian Country and assault with intent to commit murder in Indian Country.
Weeley admitted that on March 6, 2021, he killed his mother, Annie Marie Weeley, by shooting her with a firearm. He also admitted to shooting a second family member two times during the incident.
On March 6, 2021, a Delaware County Sheriff’s deputy was dispatched to a home in Jay. While en route, he received a radio call advising him there was a report of shots fired at the home with two possible victims. When he arrived at 11:17 pm, he found Mrs. Weeley wounded and unresponsive on the floor and a second family member on the couch with gunshot wounds to her stomach and lower back.
The two victims were transported to the hospital, where the mother was pronounced dead. The second victim underwent emergency surgery.
The FBI and Delaware County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Ryan M. Roberts is prosecuting the case.
If you or someone you know is experiencing or has experienced family violence, you are not alone, and there are services available to help. The following agencies provide phone lines to victims in northeastern Oklahoma:
- Cherokee Nation One Fire, located in Tahlequah:24 hour line 918-772-4260.
-Muscogee Nation Family Violence Prevention Program, located in Okmulgee and other satellite offices: 24-hour line 918- 732-7979
-The Delaware Tribe of Indians Family and Children, located in Bartlesville: 24-Hour line: 918-331-7349
All three of the above agencies assist Indian and non-Indian victims.
-Domestic Violence Intervention Services (DVIS) located in Tulsa: 24-hour line 918.7HELP.ME (918.743.5763).
-Tulsa’s Family Safety Center also provides assistance and resources to domestic violence victims Monday-Friday from 8 am to 5 pm: (918) 742-7480. (this is NOT a 24 hour number).
-The National Domestic Violence Hotline can be reached at 800-799-7233 or text “start” to 88788.
Man Pleads Guilty to Defrauding Customers Who Bought Cryptocurrency-Mining Computers and Miner Hosting ServicesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that CHET STOJANOVICH, a/k/a “Chester J. Stojanovich,” pled guilty today to wire fraud for defrauding more than a dozen victims of more than $2 million through fraudulent misrepresentations that he would provide the victims with specialized cryptocurrency-mining computers (“Miners”) and Miner hosting services that would provide the victims with a lucrative stream of “hash power” convertible into cryptocurrency. Instead, STOJANOVICH misappropriated his victims’ money and failed to provide them with the Miners and Miner hosting services they had purchased from him. STOJANOVICH is scheduled to be sentenced on March 2, 2023, before United States District Judge Denise Cote, who presided over today’s guilty plea hearing.
U.S. Attorney Damian Williams said: “Cryptocurrency mining has generated much media attention and public excitement in the past few years, but new forms of money and investment can also generate fresh opportunities for old-fashioned fraud. Chet Stojanovich has pled guilty to using those time-worn fraud techniques on this new financial frontier as he stole millions of dollars from victims who thought they were investing in cryptocurrency mining.”
According to publicly filed documents in this case:
From at least 2019 until his arrest in April 2022, STOJANOVICH controlled various companies, including Chet Mining Co. LLC (“Chet Mining”). Starting in or about March 2019, STOJANOVICH engaged in a scheme to defraud people who were seeking to purchase Miners and Miner hosting services through which they expected to obtain “hash power” convertible into cryptocurrency and money. STOJANOVICH defrauded these victims by falsely telling them that he would purchase, and had purchased, Miners on their behalf and that he would provide them with Miner hosting services and had already obtained such Miner hosting services for them.
In total, STOJANOVICH fraudulently induced more than a dozen customer-victims to pay a total of more than $2 million to STOJANOVICH and his companies, ostensibly in return for Miners and Miner hosting services. Despite fraudulent representations to the contrary, STOJANOVICH: (1) failed to provide many of the Miners that he told customers he had acquired; (2) failed to provide the Miner hosting services and cryptocurrency hash power that he represented he would provide; (3) employed deceptive practices to create the illusion that such Miners had been acquired and were being used to provide hash power to those customers; and (4) misappropriated his customers’ funds and spent the funds on unrelated and personal expenditures, including chartered air flights, hotel rooms, limousines, and private parties.
Defrauding at Least 10 Victims in 2019
In the spring and early summer of 2019, STOJANOVICH fraudulently induced at least 10 customers to pay a total of more than $2 million to STOJANOVICH and Chet Mining in return for Miners and Miner hosting services. Based on these and other misrepresentations, STOJANOVICH issued at least 15 invoices to these 10 victims with instructions to make payment to STOJANOVICH or one of his companies. As directed by STOJANOVICH, these customers paid STOJANOVICH more than $2 million in bank wires and cryptocurrency transfers. However, STOJANOVICH failed to provide the Miners and Miner hosting services that he had agreed to provide and for which he had been paid.
Defrauding Three More Victims in 2021
In or about August and September 2021, STOJANOVICH induced at least three additional customer-victims to pay him a total of approximately $179,880 as payment for a total of 127 Miners. Ultimately, STOJANOVICH provided those customers with only three of the 127 Miners they had paid for and repaid those customers only approximately $61,000 of the $179,880 they had paid, mostly from funds misappropriated from another customer.
The March 2022 Deposition
Several of the victims of the scheme described in the Indictment brought lawsuits against STOJANOVICH in federal court in Manhattan. In one such lawsuit, Holmes et al. v. Chet Mining, Chet Stojanovich, et ano., Case No. 20 Civ. 4448 (LJL) (S.D.N.Y.), STOJANOVICH was ordered by the court to appear for a deposition on March 4, 2022. During that deposition, STOJANOVICH testified falsely on a number of subjects. For example, in response to several questions, STOJANOVICH testified that he did not know the answers without looking in his personal cellphone and falsely testified that his phone was downstairs in his rental car or in storage. The deposition was thereupon adjourned for a half-hour, and STOJANOVICH was instructed to retrieve his cellphone and return to the deposition. Instead, STOJANOVICH left the deposition and loitered in the vicinity of his car until after everyone else participating in the deposition had left. Shortly thereafter, he returned to Canada, where he resided until he was arrested on April 11, 2022, following his attempt to re-enter the United States.
* * *
STOJANOVICH, 38, previously of New York, New York, but residing in California since his release on bail in this case, pled guilty to one count of wire fraud, which carries a maximum penalty of 20 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the sentencing judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation in the investigation of this case
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis is in charge of the prosecution.
Madison County Resident Indicted for Violating U.S. Sanctions Against IranRead the Press Release
BIRMINGHAM, Ala. – An indictment was unsealed today charging Ray Hunt, 69, of Madison County, with federal offenses related to an illegal scheme to export U.S.-origin goods to Iran.
The 15-count indictment charges the defendant with conspiracy to defraud the United States, sanctions violations, smuggling goods from the United States, and submitting false or misleading export information.
According to the indictment, since at least November 2017, the defendant conspired to export U.S.-origin parts used in the oil and gas industry, including control valves and oil tubing, through his Alabama-based company, Vega Tools LLC, to customers in Iran. The defendant transshipped the goods to Iran through Turkey and the UAE to evade U.S. sanctions.
Hunt was arrested and made his initial court appearance earlier today. If convicted, Hunt faces a maximum penalty of up to 20 years in prison and up to a $1 million fine for violating U.S. trade sanctions against Iran. In addition, he faces up to five years for the conspiracy charge, 10 years for the smuggling offense, and up to five years for the false information offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Prim F. Escalona for the Northern District of Alabama and Special Agent in Charge Jonathan Carson of the U.S. Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement (OEE) Miami Office made the announcement.
The U.S. Department of Commerce’s Bureau of Industry and Security investigated the case in coordination with the FBI.
Assistant U.S. Attorneys Henry Cornelius and Jonathan “Jack” Harrington of the Northern District of Alabama and Trial Attorneys Emma Dinan Ellenrieder and Adam P. Barry of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Kensington Drug Boss Sentenced to Almost Twenty Years in Prison for Supplying Narcotics Advertised with the Label ‘Funeral’Read the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Ricardo Carrion, a.k.a. “PR,” 42, of Philadelphia, PA, was sentenced to 19 years and four months (or 232 months) in federal prison after being convicted at trial of multiple drug trafficking charges, including conspiracy to distribute controlled substances and possession with intent to distribute crack and heroin. The charges stemmed from his leadership role in supplying a drug trafficking organization operating on the 3100 block of Weymouth Street, steps from McPherson Square and just two blocks from the notorious intersection of Kensington & Allegheny Avenues in the Kensington section of Philadelphia.
This case originated from a joint investigation into the scourge of drug trafficking and overdoses in the Kensington area conducted by the U.S. Drug Enforcement Administration and the Philadelphia Police Department. After a series of search warrants were executed in 2019, the DEA developed information that the defendant was the supplier of narcotics for an organization selling heroin stamped with the word “Funeral” to advertise its potency and lethalness to addicted consumers.
Covert surveillance showed Carrion repeatedly carrying large bags into stash houses. When investigators initiated a traffic stop of a cab in which Carrion was the sole passenger, they recovered a bag containing over 3,300 flip top containers of crack cocaine. Evidence presented at the September 2021 trial showed that the defendant used code words including “lenta,” which translates to “slow” in English, and “hard cola” to discuss the heroin he ordered for street dealers. Prosecutors also presented evidence that the defendant supplied thousands and thousands of doses of heroin and crack cocaine to this city block from 2018 until the DEA and PPD dismantled his drug operation.
During the trial, Carrion threatened one of the main witnesses against him. After he was convicted and the jury was dismissed, the defendant asked the court for the personal information of the jurors, a request that was immediately denied. During the sentencing hearing, prosecutors presented evidence demonstrating the defendant’s lengthy criminal record and life of drug dealing.
“This years-long drug trafficking enterprise impacted more than just this one block in one neighborhood; it left a path of destruction across Kensington and throughout Philadelphia,” said U.S. Attorney Romero. “This sentence sends a clear message that, in order to halt the flow of deadly drugs into our communities, our Office and our law enforcement partners are committed to investigating and prosecuting prolific drug dealers pedaling poison to those suffering from addiction.”
“Carrion ran a drug-trafficking organization in the heart of Kensington, an area in Philadelphia that has been so adversely affected by the illicit drug trade. His drug-trafficking activities were so nefarious that he distributed bags of heroin stamped “Funeral,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “For his conviction on multiple federal drug charges, Carrion is rightly and deservedly spending the next 20 years of his life in a federal prison cell.”
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by Drug Enforcement Administration and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Jason D. Grenell and Derek E. Hines.