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17 January 2023
Sioux City Woman Pleads Guilty to Meth ConspiracyRead the Press Release
Kailey Olson, 30, from Sioux City, Iowa, pled guilty January 12, 2023, in federal court in Sioux City, to conspiracy to distribute methamphetamine.
At the plea hearing, Olson admitted that from December 2020 through April 2021, she and others distributed more than 12 kilograms of methamphetamine in the Sioux City area. Olson was an interstate transporter of substantial quantities of methamphetamine and cash in a Texas-based methamphetamine distribution conspiracy. The conspiracy included the importation of liquid (for lab-based methamphetamine conversion) plus traditional vehicle transport of drugs from Texas to Iowa and bulk transport of money to Texas in payment for the drugs.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Olson remains in custody of the United States Marshal pending sentencing. Olson faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4067. Follow us on Twitter @USAO_NDIA.
San Antonio Man Sentenced on Multiple Counts Related to Child PornographyRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced in federal court last week to 17 years in prison for cyberstalking, extortion and distribution of child pornography.
According to court documents, Jaycob Andrew Bustamante, 21, had distributed sexually explicit images of a minor. Between January 2021 and September 2021, he created multiple social media accounts posing as the victim, through which he posted the sexually explicit images and sent the child pornography to her friends and family. Over the course of Bustamante’s constant harassment, he repeatedly threatened and stalked the victim through social media, placing her and her family in fear of violence, while demanding more sexually explicit images.
“The defendant in this case extorted and harassed a victim to the point she genuinely felt her life was threatened,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “Cyberstalking and online extortion of children and adults is one of the fastest growing crimes. We and our partners are committed to holding accountable anyone who uses the internet and social media to terrorize, extort and stalk their victims.”
“The significant sentence imposed on Jaycob Andrew Bustamante sends a clear message that there are serious consequences for those who exploit children. Bustamante will serve the next 17 years in federal prison for his incomprehensible acts,” said Acting Special Agent in Charge Craig Larrabee of the HSI San Antonio Division. “We remain committed to working with our law enforcement partners to aggressively pursue those who victimize the most vulnerable members of our society, our children.”
HSI and the Texas Office of Attorney General investigated the case.
Assistant U.S. Attorney Bettina Richardson 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 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.
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Salem Man Pleads Guilty to Unlawful Possession of MachinegunsRead the Press Release
CONCORD – Kyle Morris, 23, of Salem, pleaded guilty in federal court today to the unlawful possession of machineguns, United States Attorney Jane E. Young announced.
According to court documents and statements made in court, on February 16, 2022, law enforcement agents executed a search warrant at Morris’ home in Salem. During the search, agents seized multiple firearms, including a Palmetto State Armory rifle and a Brownells Inc. rifle. Both firearms had been converted into machineguns. Evidence obtained during the investigation, including from a search of the defendant’s cellphone, showed that Morris had researched how to convert firearms into machineguns.
Morris is scheduled to be sentenced on April 6, 2023.
The case was investigated by the Federal Bureau of Investigation and New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Anna Z. Krasinski.
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Ravenna Man Sentenced to Prison for Cyberstalking, Sextortion, and Attempted Sexual Exploitation of a ChildRead the Press Release
AKRON – A Ravenna man was sentenced today to more than 12 years – or 151 months – in prison and 15 years of supervised release by U.S. District Judge John R. Adams after he pleaded guilty to cyberstalking, attempted sexual exploitation of a child, and interstate communication with intent to extort.
“It takes great courage for victims to come forward and report coercive behavior and predatory tactics to law enforcement,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Because these victims came forward, this defendant was brought to justice, a minor was prevented from further harm, and our communities and children are now safer.”
“This defendant used deceptive tactics to extort and blackmail numerous victims throughout Northeast Ohio and sexually exploited a minor,” said FBI Special Agent in Charge Gregory Nelsen. “The investigative work of the FBI underscores our duty to protect children from monstrous individuals’ determined to control others through manipulation and cyber stalking. We will continue to work closely with our federal, state, and local partners to find, identify, and investigate predatory behavior and bring justice to the victims of these horrendous crimes.”
According to court documents, from November 2019 through September 2021, Andrew John Drabic, 33, of Ravenna, Ohio, gained unauthorized access to the personal social media accounts of several victims in Northeast Ohio, stole images, and blackmailed victims. Court documents describe a deceptive scheme that Drabic used, known as “social engineering,” to gain unauthorized access to his victim's social media accounts and phone numbers.
After gaining access, court documents show that Drabic would then obtain non-public images, written communications, and other sensitive materials. As part of the scheme, Drabic used the images and files he obtained to intimidate victims by threatening to release the sensitive materials publicly. Court documents state that, in some instances, Drabic did follow through on his threats and released the materials.
On January 12, 2022, law enforcement authorities executed a search warrant at Drabic’s address in Ravenna following an investigation into the matter. During the execution of the warrant, numerous computer systems, cell phones, storage accessories, and other electronic devices were seized.
Authorities examined Drabic’s electronic devices and observed multiple sexually explicit messages between Drabic and a minor victim. In these messages, Drabic directed the minor to perform sexual acts and send sexually explicit photographs.
This case was investigated by the Cleveland FBI and the Cleveland, Cuyahoga Falls, Kent, Kent State University, Stow and Tallmadge Police Departments. Investigative assistance was provided by the Akron Police Department, Ravenna Police Department, Cedar Point Police Department, Portage County Sheriff’s Office, and the United States Secret Service.
This case was prosecuted by Assistant U.S. Attorney Christopher J. Joyce.
Pomona Man Who Worked at Group Homes Sentenced to Life in Prison for Producing Sexually Explicit Material of Disabled ChildrenRead the Press Release
SANTA ANA, California – A certified nursing assistant who worked at a Southern California group home for severely disabled patients has been sentenced to life in federal prison for committing multiple child exploitation crimes, including filming himself sexually abusing several severely disabled children at the group home facility, while he was working as their nighttime caretaker, the Justice Department announced today.
Steve Jackson Rodriguez, 38, of Pomona, was sentenced late Friday afternoon by United States District Judge John W. Holcomb, who said at the hearing that Rodriguez’s crimes constituted “unspeakable acts.” Judge Holcomb scheduled a restitution hearing in this case for March 10.
Rodriguez pleaded guilty in September 2022 to two counts of obtaining custody of a minor for the purposes of producing child pornography, five counts of production of child pornography, and one count of enticement of a minor to engage in criminal sexual activity.
From January 2016 to May 2020, Rodriguez produced sexually explicit images and videos with four minor victims, three of whom were severely disabled patients being housed at an Inland Empire group home that employed Rodriguez. One of the disabled victims was 8 years old when Rodriguez began filming his illegal sexual conduct – two years after he began abusing this victim.
“Rodriguez had a duty as medical caregiver was to keep his victims safe and alive, but he instead violated that trust in the most despicable way,” said United States Attorney Martin Estrada. “His abhorrent abuse of disabled children was intolerable and properly sanctioned by the court. This result underscores our office’s determination to zealously prosecute those who commit these sorts of horrific crimes against children.”
“Rodriguez took advantage of our most vulnerable population. The horror he inflicted upon these children was unconscionable. Homeland Security Investigations will stop at nothing, in order to bring people like Rodriguez to justice,” said Eddy Wang Acting Special Agent in Charge Homeland Security Investigations Los Angeles.
In a related matter, during a five-day trial in November 2022, co-defendants Cyr Dino Banguguilan, 36, of Azusa, and Miguel Bocardo, 23, of Baldwin Park, to whom Rodriguez sent the sexually explicit material he made with his victims, each was found guilty of one count of receipt of child pornography and one count of possession of child pornography.
Judge Holcomb scheduled a February 24 sentencing hearing, at which time Banguguilan and Bocardo will face a mandatory minimum of five years in federal prison and a statutory maximum of 20 years in federal prison.
Homeland Security Investigations investigated this matter as part of the Los Angeles Internet Crimes Against Children Task Force. The United States Postal Inspection Service; the FBI; the Baldwin Park Police Department; the Los Angeles County Sheriff’s Department; the Los Angeles Police Department; the Pomona Police Department; and the Burbank Police Department provided assistance.
Assistant United States Attorneys Scott M. Lara and Catharine A. Richmond of the Violent and Organized Crime Section are prosecuting this case.
Pittsburgh Man Admits Robbing Local BanksRead the Press Release
PITTSBURGH - A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to bank robbery charges, United States Attorney Cindy K. Chung announced today.
Calvin Leavy, 68, pleaded guilty to three counts before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on Jan. 31, 2022, Leavy entered the First National Bank located at 3721 Forbes Avenue, Pittsburgh, PA 15213, approached the bank employee and attempted to rob the bank, requesting the bank employee provide him with all of the money. Leavy left the bank, however, without receiving any money. Approximately 12 minutes later, Leavy entered the PNC Bank located at 4600 Fifth Ave, Pittsburgh, PA 15213, wearing the exact same clothing and matching the description of the individual that had attempted to rob the First National Bank. Leavy informed the bank employee, “I have a gun. Give me the money.” Leavy took approximately $1,338 from the PNC.
Then, on Feb. 8, 2022, Leavy entered the First National Bank, located at 307 4th Avenue, Pittsburgh, PA 15222, approached the bank employee and stated he had a gun and demanded money. Leavy took approximately $1,238 from the First National Bank.
With the assistance of surveillance footage, investigators determined that Leavy used a Port Authority bus to travel to and from each of the bank robberies and used his bus card to pay for the fare. After tracking Leavy’s movements, investigators located Leavy, wearing the same clothing that he wore for the robbery, and arrested him.Judge Cercone scheduled sentencing for May 16, 2023, at 11:00 AM. The law provides for a total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, Calvin Leavy remains in custody.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation and City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Calvin Leavy.
Physician Convicted for Misappropriating Approximately $250,000 from COVID-19 Relief ProgramsRead the Press Release
A federal jury convicted a Colorado physician on Friday for misappropriating approximately $250,000 from two separate COVID-19 relief programs.
According to court documents and evidence presented at trial, Dr. Francis F. Joseph, 57, of Highlands Ranch, received government funds for COVID-19 relief from the Accelerated and Advance Payment Program and the Paycheck Protection Program. Each program was designed to provide emergency financial assistance to medical providers and small businesses who were suffering the economic effects resulting from the COVID-19 pandemic. In all, Joseph received approximately $250,000 from these funds and fraudulently used the money to pay for his own personal expenses, and not in accordance with the terms of the relief programs.
Joseph was convicted in the District of Colorado of theft in connection with healthcare and wire fraud. The jury acquitted Joseph of theft of government property related to a separate Covid-relief payment. He faces a maximum penalty of 20 years in prison on the wire-fraud count. A sentencing date has not yet been set.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Curt Muller of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Kansas City Region; and Special Agent in Charge Weston King of the U.S. Small Business Administration Office of Inspector General (SBA-OIG), Western Region made the announcement.
The HHS-OIG and SBA-OIG investigated the case.
Trial Attorneys Jennifer Bilinkas and John J. Liolos of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat fraud related to the COVID-19 pandemic, particularly with respect to the resources made available by Congress through the Coronavirus Aid, Relief, and Economic Security (CARES) Act for programs including the Paycheck Protection Program, the Economic Injury Disaster Loan program, and the Provider Relief Fund. Since the CARES Act passed, Fraud Section attorneys have prosecuted more than 200 defendants in more than 130 criminal cases related to CARES Act programs and funds. The Fraud Section has also seized more than $80 million in cash proceeds derived from CARES Act-related fraud schemes, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/cares-act-fraud.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Organizer of Home-Invasion Robbery Crew Sentenced to 96 Months in PrisonRead the Press Release
Defendant’s Co-Conspirators Sexually Assaulted One Victim Inside Her Home
Earlier today, at the federal courthouse in Brooklyn, Lamonte Johnson was sentenced by United States District Judge Raymond J. Dearie to 96 months’ imprisonment for conspiring to commit robbery and using force and threats in furtherance of robbery, in his role as lead organizer of a home-invasion crew. The sentence will run consecutive to Johnson’s two 20 years-to-life state prison sentences that he was already serving following his conviction for a 1986 double homicide. Johnson was convicted of the federal robbery charges following a one-week jury trial in May 2022. Johnson’s four co-conspirators previously pleaded guilty to related offenses.
Breon Peace, United States Attorney for the Eastern District of New York announced the sentence.
“Lamonte Johnson was not deterred by prison walls from organizing armed home-invasion robberies, but today’s sentence ensures he has been held accountable for these vicious crimes, and that there is justice for his victims,” stated United States Attorney Peace.
Mr. Peace thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the New York City Police Department for their work leading the investigation.
As proven at trial and detailed in public filings, in March 2019 Johnson was serving consecutive 20 years-to life sentences for two murders in state prison when he organized a robbery crew with the goal of targeting Chinese American victims. Johnson connected his half-brother John Martin with Shi Zhen Lin, a former inmate who Johnson knew from prison. Lin’s role in the conspiracy was to identify Chinese American targets for the crew to rob. Martin recruited other members to join the crew and together they committed or attempted to commit multiple robberies in Queens, Long Island and New Jersey. In May 2019, Corey Mobley, Brandon Daniels, and Martin committed a home-invasion robbery in Little Neck, Queens. During the robbery, Mobley and Daniels held at gunpoint a group of women and children and sexually assaulted one of the victims.
Johnson’s co-conspirators have been sentenced to terms of imprisonment ranging from seven years, for Lin, to 19 years for Mobley.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jonathan Siegel and Michael W. Gibaldi are in charge of the prosecution, with assistance from Paralegal Specialist Brittany Wissel.
The Defendant:
Lamonte johnson
Age: 54
Auburn, New YorkDefendants Previously Sentenced
JOHN MARTIN (also known as “Lil John” and “LJ”)
Age: 50
Brooklyn, New YorkBRANDON DANIELS
Age: 28
Brooklyn, New YorkSHI ZHEN LIN (also known as “Kevin Lin” and “Kev”)
Age: 31
Maspeth, New YorkCOREY MOBLEY
Age: 52
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-221 (S-3)
Omak Man Sentenced to 96 Months in Federal Prison for Shooting on the Colville Indian ReservationRead the Press Release
Spokane, Washington – United States District Court Judge Thomas O. Rice sentenced Chance
The Wind Smith, age 32, of Omak, Washington, to 96 months in federal prison for a violent shooting that took place on the Colville Indian Reservation in September 2021. Judge Rice also imposed three years of federal supervision upon Smith’s release from custody. Smith pled guilty to charges of Assault with a Dangerous Weapon in Indian Country and Theft in Indian Country in August 2022.In announcing the sentence, Judge Rice varied upward from the advisory United States
Sentencing Guidelines range and adopted the United States’ recommendation of 96 months in federal custody. Judge Rice specifically noted the effects of Smith’s conduct on his victims and the seriousness of the offense, including that the shooting took place in the presence of small children.According to court documents and proceedings, on the night of September 11, 2021, Colville
Tribal Police and emergency medical technicians responded to a shooting in Omak, Washington.
A victim had a gunshot wound to his abdomen from a .357 caliber Sig Sauer handgun. The victim was rushed to the local hospital and had to be life-flighted to Harborview Medical Center in Seattle for life-saving measures. Several eyewitnesses reported that Smith, who had fled the scene, shot the victim in the stomach and stole the victim’s Dodge Charger. As Smith was driving away in the stolen car, he almost ran over a five-year old child. An audio and video recording of the incident demonstrated that Smith physically assaulted a female witness just seconds before the shooting and the theft of the victim’s car. Fortunately, the victim survived, and he continues to recover from the injuries sustained during the shooting.“My office is committed to prosecuting those who commit violence in Indian country,” U.S.
Attorney Vanessa R. Waldref stated. “I’m grateful for all victims and witnesses who come forward to report crime. When we build trust between law enforcement and members of our community, we make Eastern Washington safer and stronger.” U.S. Attorney Waldref continued, “Native Americans experience some of the highest rates of violence in the country, a situation that is all the more tragic in light of the generations of trauma already suffered by Indigenous people. The Colville Tribal Police and the FBI did an incredible job of investigating this tragic crime. We are grateful for the tremendous partnership between the FBI and Tribal law enforcement, which helped achieve justice for the victim and his family.”“Violence on our state’s Indian Reservations is at an intolerable level,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “When you consider the impact Mr.
Smith’s crimes had on children, who were innocent witnesses, this significant sentence is warranted. I am grateful for the professionalism of our investigators and partners who work these difficult cases.”The case was investigated by the Colville Tribal Police Department and the Federal Bureau of
Investigation. This case was prosecuted by Richard R. Barker, Assistant United States Attorney for the Eastern District of Washington.2:21CR00146-TOR-1
Omaha Man Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Steven Russell announced that James Finley, 38, of Omaha, Nebraska, was sentenced Friday, January 13, 2023, in federal court in Omaha for conspiracy to distribute and possess with intent to distribute methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Finley to a term of imprisonment of 220 months. There is no parole in the federal system. After his release from prison, he will begin a 10-year term of supervised release.
In September 2020, the Omaha Police Department began investigating Carla Colliers for distributing methamphetamine in the Omaha-Metro area. On November 12, 2020, a search warrant was executed on Colliers’s residence and officers located approximately 900 grams of methamphetamine. During the execution of the search warrant, Finley arrived at the residence with a bookbag containing 642 grams of pure methamphetamine.
Colliers was sentenced on March 25, 2022, to 186 months’ imprisonment and 10 years of supervised release.
This case was investigated primarily by the Omaha Police Department.
Omaha Man Sentenced for Firearm and Drug Trafficking CrimesRead the Press Release
United States Attorney Steven Russell announced that Gary Ross, 24, of Omaha, Nebraska, was sentenced on January 13, 2023, in federal court in Omaha for possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Ross to 61 months of imprisonment. There is no parole in the federal system. After his release from prison, he will begin a three-year term of supervised release.
On August 28, 2020, officers conducted a search warrant at Ross’s Omaha apartment. Officers located approximately three pounds of marijuana, a 9 mm handgun, a scale, and approximately $15,300. The firearm was in Ross’s bedroom and the marijuana was near it in a duffel bag. Per the plea agreement, the $15,300 was forfeited.
This case was investigated by the Federal Bureau of Investigation, Safe Streets Task Force, Omaha Police Department.
Ohio Man Pleads Guilty to Trafficking Cocaine from a Butler ApartmentRead the Press Release
PITTSBURGH, PA -- A former resident of Columbus, Ohio, pleaded guilty in federal court to charges of violating federal narcotic laws, United States Attorney Cindy K. Chung announced today.
Keith Massey, age 40, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that between May 2018 and December 2018, the Pennsylvania Office of Attorney General and Butler County Drug Task Force conducted an investigation into Keith Massey and Marshall Grimes, a known drug dealer from Columbus, Ohio, who was operating in Butler, Pennsylvania. Throughout the investigation, law enforcement conducted several controlled purchase operations from Massey out of an apartment in Butler. On Dec. 11, 2018, law enforcement recovered approximately 200 grams of cocaine, digital scales, and indicia for Massey in the apartment.
Judge Cercone scheduled sentencing for May 23, 2023, at 11:00 am. The law provides for a term of imprisonment not more than 20 years, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Massey on bond.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Pennsylvania Office of the Attorney General and Butler County Anti-Drug Task Force conducted the investigation that led to the prosecution of Massey.
Ohio Man Pleads Guilty to Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Timothy Edwin Payne Jr., 41, of Belpre, Ohio, pleaded guilty today to conspiracy to possess with intent to distribute 100 grams or more of a fentanyl analogue.
According to court documents and statements made in court, on April 4, 2022, Payne arranged for a package containing approximately 1 kilogram of a fentanyl analogue to be shipped through the United States Mail from California to an apartment in Parkersburg, West Virginia. Payne paid the apartment’s resident more than $1,000 to receive and hold the package for Payne.
Law enforcement officers intercepted the package before it arrived at the apartment, and replaced the fentanyl with a sham substance and a tracking device before the package was delivered to the apartment. Payne tracked the package’s delivery using his mobile phone, and went to the apartment when the package arrived there on April 8, 2022. When Payne opened the package, law enforcement officers knocked on the apartment door. Payne attempted to flee but was arrested.
Payne is scheduled to be sentenced on May 9, 2023, and faces a mandatory minimum of 15 years and up to life in prison, 10 years and up to a lifetime of supervised release, and a $20 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Postal Inspection Service, the Drug Enforcement Administration (DEA), the Parkersburg Narcotics Task Force, and the Parkersburg Police Department.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorneys Jeremy B. Wolfe and Andrew D. Isabell are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-108.
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Oakland Man Sentenced to 16 Months in Prison for Multi-Million Dollar Fraud Targeting Foreign InvestorsRead the Press Release
OAKLAND - Thomas Henderson was sentenced today to 16 months in prison for making a false statement to the U.S. Citizenship and Immigration Services (USCIS) and for his role in a conspiracy to defraud foreign investors who were investing in Oakland-based businesses as a means to obtain permanent U.S. residency announced United States Attorney Stephanie M. Hinds; U.S. Department of State’s Diplomatic Security Service (DSS) Special Agent in Charge William Chang; Homeland Security Investigations Special Agent in Charge Tatum King; and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by Chief United States District Judge Richard Seeborg.
Henderson, 72, of Oakland, pleaded guilty to the charges on July 21, 2021. According to his plea agreement, Henderson admitted he formed the San Francisco Regional Center, LLC (SFRC) in 2010 to raise money from foreign investors through the “EB-5” visa program, a job-creation and immigration program administered by U.S. Citizenship and Immigration Services (USCIS). Under the USCIS program, foreign nationals may obtain permanent United States residency, commonly known as a Green Card, by investing in qualifying U.S. businesses and creating jobs for U.S. citizens and residents. To receive a two-year grant of conditional permanent residency status, foreign investors must meet certain requirements for an entry visa, comply with program requirements and make an investment of a minimum of $1 million, or $500,000 if the investment is made in certain areas of high unemployment. After two years, the foreign investor and immediate family can petition for permanent residency after meeting program requirements, including the creation of at least 10 jobs for United States citizens and residents through the business funded by the investment.
From 2011 to 2017, SFRC raised more than $100 million from foreign investors for seven commercial enterprises approved under the EB-5 program. In his plea agreement, Henderson admitted that he conspired with his business associate, Cooper Lee, and others to defraud investors who sought to avail themselves of the EB-5 program. Specifically, Henderson admitted that by at least the middle of 2014, SFRC began using investor funds for purposes and projects other than the specific enterprise corresponding to the investment, and that investors were not specifically told that their investment funds would be or were used for those purposes. For example, Henderson admitted that funds raised from 42 investors for the enterprise North America 3PL LP were used for other projects and businesses, including to fund the operation of earlier struggling projects. Henderson also admitted that he made false statements to USCIS when he submitted a declaration to the agency regarding the use of North America 3PL investor funds.
Lee also pleaded guilty to participating in the conspiracy. According to Lee’s plea agreement, from about August 2016 to January 2017, Lee conspired with Henderson to divert some funds raised for the EB-5 enterprise operating as California Gold Medal LP to other EB-5 enterprises and businesses controlled by Henderson. Lee admitted that he transferred funds and prepared documents to make it appear that the transfers were for legitimate business transactions.
On August 15, 2019, a federal grand jury indicted Henderson and Lee, charging both with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349. In addition, Henderson was charged with 12 counts of wire fraud, in violation of 18 U.S.C. § 1343; conspiracy to commit offenses against the United States, in violation of 18 U.S.C. § 371; making a false statement to a government agency, in violation of 18 U.S.C. § 1001(a)(2); and making false writings to a government agency, in violation of 18 U.S.C. § 1001(a)(3). Lee, in addition to being charges with conspiracy, also was charged with six counts of wire fraud.
Pursuant to Henderson’s plea agreement, he pleaded guilty to the conspiracy to commit wire fraud count and the false statements count. The remaining counts against Henderson were dismissed at sentencing. In addition to the prison term, Judge Seeborg also ordered Henderson to serve three years on supervised release. Restitution will be determined at a later date.
On July 21, 2021, Lee pleaded guilty to the conspiracy count and on April 26, 2022, Judge Seeborg sentenced Lee to serve three years’ probation and to pay $20,000 restitution to a receiver appointed by the court in a separate action to recover assets for the victim investors. The remaining counts against Lee were dismissed.
Assistant U.S. Attorneys Lloyd Farnham is prosecuting the case, with the assistance of Patricia Mahoney. The prosecution was the result of an investigation led by the U.S. Department of State Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF), overseen by the HSI, with the participation of the Federal Bureau of Investigation. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation. Additional assistance was provided by the San Francisco Regional Office of the Securities and Exchange Commission.
New Hampshire Man Pleads Guilty to Using Stolen Identities to Fraudulently Purchase VehiclesRead the Press Release
BOSTON – A New Hampshire man has pleaded guilty to his role in a scheme to use the stolen identities of United States citizens from Puerto Rico to fraudulently purchase vehicles and other merchandise and apply for and utilize bank accounts and credit cards.
Ricardo Acevedo, 34, of Manchester, N.H., pleaded guilty on Jan. 13, 2023 to conspiracy to commit wire fraud, wire fraud, aggravated identity theft and false representation of a Social Security number. U.S. District Court Judge Patti B. Saris scheduled sentencing for April 27, 2023.
The defendant and multiple co-defendants were charged by criminal complaint in September 2020 and subsequently indicted by a federal grand jury in October 2020. In a coordinated multi-jurisdictional effort, the defendant was also charged in the State of New Jersey, and others involved in the scheme were also charged there, in the District of New Jersey, the Northern District of Ohio, and the Eastern District of Pennsylvania.
According to charging documents, between October 2017 and January 2019, Acevedo visited Massachusetts car dealerships to purchase late-model vehicles and applied for 100% financing. In support of the applications, Acevedo provided stolen biographical information of real United States citizens, fraudulent Puerto Rico driver’s licenses and Social Security cards in those identities, as proof of identification. Acevedo used the stolen identities to illegally open bank accounts and credit cards and to purchase vehicles, many of which were exported out of the United States. In total, Acevedo used stolen identities to obtain car loans and purchase three cars worth $90,582, collectively.
The charges of wire fraud and conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Acting Special Agent in Charge of Homeland Security Investigations in New England; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Brockton Police Chief Brenda Perez made the announcement today. Assistance was provided by the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna Nuzum and Adam Deitch of Rollins’ Criminal Division are prosecuting the case. The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nashua Man Sentenced to 72 Months for Possession of Methamphetamine and Fentanyl with Intent to Distribute and Carrying a Firearm While Dealing DrugsRead the Press Release
CONCORD – David Lamoureux, 34, of Nashua was sentenced today to 72 months in federal prison for two counts of possession with intent to distribute methamphetamine and fentanyl, and for possessing a firearm in furtherance of drug trafficking, United States Attorney Jane E. Young announced.
According to court documents and statements made in court, on May 18, 2021, Hudson Police Detectives initiated a vehicle stop to execute an arrest warrant for Mr. Lamoureux. Upon interacting with officers, Mr. Lamoureux continuously placed his hand in a front pocket despite repeated orders not to do so. When he removed his hand, it was covered in powder. Mr. Lamoureaux admitted the powder was “dope.” During the booking process, detectives preserved the drugs by cutting the pocket from his pants. A search of Lamoureux’s person also revealed baggies of powder stuffed in his socks. A lab test confirmed the drugs to be fentanyl. A subsequent search of his car yielded scales, and roughly 20 grams of methamphetamine and additional fentanyl. A search of his cell phone revealed various texts evidencing his drug trafficking.
Later, on October 6, 2021, Nashua Police Detectives conducting surveillance observed Mr. Lamoureux ride into a parking lot on a motorcycle, approach a building known for drug activity, and return to the lot accompanied by two known drug users. Law enforcement officers detained Mr. Lamoureux and searched him, whereupon they discovered three baggies of methamphetamine, two baggies of fentanyl, a digital scale, $362 in cash, and a stolen firearm in his backpack. Evidence from his phone revealed he had been involved in dealing drugs for months.
“Criminals who carry guns and deal drugs pose a dual threat to the safety of our communities: with the deadly drugs they traffic coupled with the actual threatened violence they use in conducting drug deals,” said U.S. Attorney Young. “Due to the efforts of the Nashua and Hudson Police Departments, the defendant was stopped in his tracks attempting to distribute dangerous narcotics while carrying a stolen gun. His conduct certainly warrants the significant sentence imposed by the court.”
This matter was investigated by the Hudson and Nashua Police Departments. The case was prosecuted by Assistant U.S. Attorney Aaron Gingrande.
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Military Contractor Pleads Guilty to Bid RiggingRead the Press Release
A Texas military contractor pleaded guilty on Jan. 12 to rigging bids on public military contracts in the state of Texas.
According to court documents, Aaron Stephens, 53, conspired with others to rig bids on certain government contracts from May 2013 to January 2018 in order to give the false impression of competition and to secure government payments in excess of $17.2 million. The plea agreement detailed six contracting bids that Stephens and his co-conspirators rigged, which included work performed for the Red River Army Depot in Texarkana, Texas. The projects included heavy military equipment work such as refurbishing armor kits for military trucks and turrets for Humvees. One of Stephens’s co-conspirators, John “Mark” Leveritt, pleaded guilty in July 2022.
Stephens pleaded guilty to a violation of Section 1 of the Sherman Act. He faces a maximum penalty of 10 years in prison and a $1 million criminal fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other relevant factors.
The Antitrust Division’s Washington Criminal II Section is prosecuting the case, which was investigated with the assistance of the U.S. Attorney’s Office for the Eastern District of Texas, the U.S. Army Criminal Investigation Division’s Dallas Fraud Resident Agency, and the FBI’s Dallas Field Office.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government – federal, state and local. For more information, visit https://www.justice.gov/procurement-collusion-strike-force.
Middle District of Florida Task Force Continues to Combat COVID-19 FraudRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the results achieved by the Middle District of Florida’s efforts to combat fraud related to COVID-19. Those efforts have included complementary actions by the Criminal, Asset Recovery, and Civil Divisions, along with federal, state, and local law enforcement agencies.
“The Middle District of Florida United States Attorney’s Office remains committed to protecting the integrity of government programs established to provide relief for those impacted by the COVID-19 pandemic,” said U.S. Attorney Handberg. “These cases should serve as a warning to those who might have engaged in similar fraudulent activity that holding those accountable for these crimes remains a high priority for federal authorities.”
On the criminal enforcement front, the United States Attorney’s Office and federal, state, and local law enforcement agencies joined together in March 2020 to form the Middle District of Florida COVID-19 Fraud Task Force to identify, investigate, and prosecute fraud related to the ongoing COVID-19 pandemic. Since its inception, the task force has prosecuted 52 individuals for fraud schemes designed to exploit federal programs created or expanded to address the COVID-19 pandemic, including the Paycheck Protection Program (“PPP”), Economic Injury Disaster Loans (“EIDL”), Unemployment Insurance (“UI”), the Main Street Lending Program (“MSLP”), and the Emergency Rental Assistance Program (“ERAP”). These individuals collectively sought to defraud the United States of more than $57 million. Thirty-seven of those defendants have been found guilty, while prosecution remains pending against fifteen others. (See chart for criminal case details.)
In one example, U.S. District Judge Wendy W. Berger sentenced Don V. Cisternino (47, Chuluota) to eight years and six months in federal prison for wire fraud, aggravated identity theft, and illegal monetary transaction related to Cisternino’s obtaining more than $7.2 million in emergency funds through a PPP loan to which he was not entitled. Cisternino pleaded guilty on September 20, 2022, after being extradited from Croatia.
In December 2022, U.S. Attorney Handberg announced the unsealing of a six-count indictment charging Canadian citizens Evan Edwards (64, New Smyrna Beach) and Joshua Edwards (30, New Smyrna Beach) with federal offenses related to the CARES Act and visa fraud. According to the indictment, Evan and Joshua Edwards conspired to commit bank fraud and committed bank fraud by submitting a fraudulent PPP loan on behalf of Aslan International Ministry, Inc. (“Aslan”)—a not-for-profit corporation that purportedly provided religious services. In the loan application, the pair significantly overstated the number of employees and average monthly payroll for Aslan, claiming that it had almost 500 employees and over $2 million in average monthly payroll expenses. They also falsely certified in the loan application that the PPP funds would be used to maintain payroll and for other authorized purposes. Based on the false representations made in the loan application, Evan and Joshua Edwards received into their bank account approximately $8,417,200 in PPP loan funds, a portion of which they used to make a down payment for the attempted purchase of a multi-million-dollar residence for themselves.
Further, the Asset Recovery Division and federal seizing agencies have completed the forfeiture of more than $16.8 million of EIDL, UI, and PPP funds that were fraudulently obtained, depriving the fraudsters of their ill-gotten gains and recovering the proceeds for the victims. More than $9.8 million in additional pandemic fraud proceeds have been seized and are pending civil or criminal forfeiture.
The Attorney General has established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Through the PPP, the federal government authorized over $600 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. The EIDL program provides economic relief to small businesses that are currently experiencing a temporary loss of revenue. The MSLP provided support to small and medium-sized businesses and their employees across the United States during the COVID-19 pandemic. UI programs provided unemployment benefits to eligible workers who became unemployed through no fault of their own.
The criminal cases charged by the Middle District of Florida COVID-19 Fraud Task Force have been investigated by the Federal Bureau of Investigation, the U.S. Secret Service, the Internal Revenue Service—Criminal Investigation, the Department of Labor—Office of Inspector General, the U.S. Postal Service, the Federal Housing Finance Agency, the Small Business Administration, the Federal Deposit Insurance Corporation—Office of Inspector General, Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Special Inspector General for Pandemic Recovery, the Federal Reserve Board – Office of Inspector General, the Metropolitan Bureau of Investigation, the Tampa Police Department, the Orlando Police Department, the Manatee County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Sarasota County Sheriff’s Office, the Winter Park Police Department, the Osceola County Sheriff’s Office, the Seminole County Sheriff’s Office, and the Orange County Sheriff’s Office. The cases are being prosecuted by Assistant United States Attorneys throughout the Middle District of Florida.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
MDFL COVID Fraud Criminal Cases
Charged Cases
Defendant(s) (Age)
Charge(s)
Max. Imprisonment
Type of Fraud*
Intended Loss
Amount
Tampa Division
Joseph Abdo (39)
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$500k
Alexander Leszczynski (22)
Wire fraud
Maximum Prison Term: 20 Years
Bank fraud
Maximum Prison Term: 30 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$200k
Charles Cunningham (72)
Bank fraud
Maximum Prison Term: 30 years
PPP
$800k
Ellyn Pinkney (60)
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$14M
Kieanna Garrett
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$40k
Nicole Bramble-King
Wire fraud
Maximum Prison Term: 20 Years
PPP
$40k
These COVID Fraud cases from the Tampa Division are being handled by AUSAs Rachel Jones, Greg Pizzo, Candace Rich, and Jennifer Peresie
Orlando Division
Evan Edwards (64)
Joshua Edwards (30)
Conspiracy to commit bank fraud
Maximum Prison Term: 30 years
Bank fraud
Maximum Prison Term: 30 years
Visa fraud
Maximum Prison Term: 10 years
False statements
Maximum Prison Term: 30 years
PPP
$8M
Emmet Bowens (53)
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$740k
Keith Ingersoll
Conspiracy to commit wire fraud
Maximum Prison Term: 5 Years
Wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
EIDL
$66k
Jaheim Davis
Access device fraud
Maximum Prison Term: 10 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
UI
$219k
These COVID Fraud cases from the Orlando Division are being handled by AUSAs Kara Wick, Chauncy Bratt, Shannon Laurie, and Amanda Daniels
Jacksonville Division
Jacob Byrd
Wire fraud
Maximum Prison Term: 20 Years
PPP
$20k
Desmond Williams
Wire fraud conspiracy
Maximum Prison Term: 20 Years
Wire fraud
Maximum Prison Term: 20 Years
PPP
$40k
These COVID Fraud cases from the Jacksonville Division are being handled by AUSA Kevin Frein
Fort Myers Division
Venera Price (45)
Mail fraud
Maximum Prison Term: 20 Years
ERAP
$82k
This COVID Fraud case from the Fort Myers Division is being handled by AUSA Yolande Viacava
Ocala Division
Lavelle Harris (36)
Wire Fraud
Maximum Prison Term: 20 Years
PPP
$1.2M
Henry Wade
Wire Fraud
Maximum Prison Term: 20 Years
EIDL
$500k
These COVID Fraud cases from the Ocala Division are being handled by AUSA Hannah Nowalk
Adjudicated Cases
Tampa Division
Jorge Gutierrez Echeverria (33)
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$150k
Keaujay Hornsby (26)
Racketeering conspiracy
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$3M
Kareem Spann (27)
Racketeering conspiracy
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$3M
Richard Simpkins (47)
Conspiracy to commit bank fraud
Maximum Prison Term: 30 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$1.9M
Steve Moodie (33)
Conspiracy to commit wire fraud
Maximum Prison Term: 5 Years
Wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
UI
$1.5M
Marqus Willard Johnson
Bank fraud
Maximum Prison Term: 30 Years
Money laundering
Maximum Prison Term: 20 Years
PPP
$500k
Omar Esquivel Bello
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$242k
These COVID Fraud cases from the Tampa Division are being handled by AUSAs Rachel Jones, Diego Novaes, Tiffany Fields, Jennifer Peresie, and Greg Pizzo, and DOJ Trial Attorney John Scanlon
Orlando Division
Brian Blake (30)
Possession of device-making equipment
Maximum Prison Term: 15 Years
Access device fraud
Maximum Prison Term: 10 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
PPP/UI
$832k
Daniel Johnson (34)
Conspiracy to commit wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Unlawful transfer of firearm
Maximum Prison Term: 5 Years
UI
$2.3M
Teresa McIntyre (55)
Conspiracy to commit wire fraud and other offenses
Maximum Prison Term: 5 Years
EIDL
$730k
This COVID Fraud case from the Orlando Division is being handled by AUSAs Chauncey Bratt, Amanda Daniels, Jennifer Harrington, and Dana Hill, and U.S. Attorney Roger Handberg
Fort Myers Division
Daniel Joseph Tisone (34)
Wire fraud
Maximum Prison Term: 20 Years
Bank fraud
Maximum Prison Term: 30 Years
Money laundering
Maximum Prison Term: 10 Years
Aggravated Identity Theft
Maximum Prison Term: 2 Years Consecutive
Possession of Ammunition by a Prohibited Person
Maximum Prison Term: 10 Years
PPP/EIDL/MSLP
$2.6M
Liliana Gonzalez (31)
Wire fraud
Maximum Prison Term: 20 Years
PPP
$169k
These COVID Fraud cases from the Fort Myers Division are being handled by AUSAs Trent Reichling and Jesus M. Casas
Sentenced Cases
Tampa Division
Louis Thornton, III (63)
Wire Fraud
Sentence Imposed: 42 months in federal prison
EIDL/PPP
$815k
Kary Stevenson (48)
Corey Quinn (35)
Conspiracy to commit access device fraud and aggravated identity theft
Sentence Imposed: 5 years, 10 months in federal prison (Stevenson)
Sentence Imposed:7 years in federal prison (Quinn)
UI
$1M
Bridgitte Keim (52)
Bank fraud
Sentence Imposed: 2 years in federal prison
PPP
$588k
Wayne Ganaway (47)
Conspiracy to commit wire fraud
Sentence Imposed: 4 years in federal prison
EIDL
$300k
Eriaius Bentley (29)
Racketeering conspiracy, aggravated identity theft, access device fraud
Sentence Imposed: One year in federal prison
UI
$3M
Rolanda Wingfield (39)
Access device fraud, Aggravated identity theft
Sentenced Imposed: 3 years in federal prison
UI
$135k
Tywon Spann (25)
Racketeering conspiracy, aggravated identity theft, access device fraud
Sentence Imposed: 6 years and 9 months in federal prison
UI
$3M
Randy Jones (34)
Wire fraud, aggravated identity theft
Sentence Imposed: 5 years and 1 month in federal prison
EIDL/UI
$250k
Julio Lugo (45)
Conspiracy to commit money laundering
Sentence Imposed: 7 years and 6 months in federal prison
EIDL/PPP
$4.4M
Keith Nicoletta (49)
Conspiracy to commit money laundering
Sentence Imposed: 24 months in federal prison
PPP
$1.9M
Rosenide Venant (37)
Conspiracy to commit money laundering
Sentence Imposed: 5 years in federal prison
EIDL/PPP
$413k
Melinda Hernandez (33)
Conspiracy to commit wire fraud
Wire fraud and aggravated identity theft
Sentence imposed: Three years and six months in federal prison
UI
$1.5M
Briantina Mills
Wire fraud and theft of government funds
Sentence imposed: 15 months in federal prison
These COVID Fraud cases from the Tampa Division were handled by AUSAs Rachel Jones, Greg Pizzo, Tiffany Fields, Diego Novaes, and SAUSA Chris Poor
Orlando Division
Jacquavius Smith (21)
Possession of short-barreled rifle; felon in possession of firearm; and aggravated identity theft
Sentence Imposed: 7 years, 1 month in federal prison
PPP
$10k
Johnson Eustache (40)
Wire fraud
Sentence Imposed: 5 years in federal prison
EIDL/PPP
$2.2M
Joseph Harrison (43)
Conspiracy to commit wire fraud
Sentence Imposed: 12 months in federal prison
UI
$2.1M
Tomas Ziupsnys (39)
Conspiracy to commit bank fraud; bank fraud; aggravated identity theft
Sentence Imposed: 5 years in federal prison
PPP
$2M
Holly Urban (36)
Conspiracy to commit bank fraud
Sentence Imposed: 30 months in federal prison
PPP
$1.5M
Joel Greenberg (37)
Conspiracy to commit wire fraud and other offenses while on pretrial release
Sentence Imposed: 11 years in federal prison
EIDL
$430k
Don Cisternino (46)
Wire fraud, illegal monetary transactions, and aggravated identity theft
Sentence Imposed: 8 and one half years in federal prison
PPP
$7.2M
These COVID Fraud cases from the Orlando Division were handled by AUSAs John Gardella, Amanda Daniels, Chauncey Bratt, Emily Chang, and Jennifer Harrington, and U.S. Attorney Roger Handberg
Fort Myers Division
Casey Crowther (36)
Bank fraud, false statement to a financial institution, illegal monetary transaction
Sentence Imposed: 3 years, 1 month in federal prison
PPP
$2.7M
Anthony Bruey (36)
Amber Bruey (35)
Conspiracy to commit wire fraud, wire fraud, Conspiracy to commit money laundering, Illegal monetary transactions
Sentence Imposed:
Anthony Bruey: 4 years, 3 months in federal prison
Amber Bruey: 4 years in federal prison
PPP/EIDL
$881k
Edrica Leann Watson (30)
False statement to a lending institution
Sentence Imposed: 15 months in federal prison
PPP
$392k
These COVID Fraud cases from the Fort Myers Division were handled by AUSA Trent Reichling and AUSA Jesus M. Casas
Types of Fraud*
Economic Injury Disaster Loan (EIDL)
Paycheck Protection Program (PPP)
Unemployment Insurance (UI)
Main Street Lending Program (MSLP)
Emergency Rental Assistance Program (ERAP)
Mexican women sent to prison for smuggling heroin balls in potato chip bagsRead the Press Release
LAREDO, Texas – Two women residing in Monterrey, Mexico, have been ordered to federal prison for their roles in importing nearly 1000 grams of heroin, announced U.S. Attorney Alamdar S. Hamdani.
Maria Luisa Hernandez-Alanis, 41, and Tania Melissa Coutino-Hernandez, 40, pleaded guilty Nov. 1, 2022.
Today, U.S. District Judge Marina Garcia Marmolejo imposed a 36-month term of imprisonment for both women. Not U.S. citizens, they will be expected to face removal proceedings following their sentences. At the hearing, the court heard additional evidence regarding their roles in the crime, determining that they each agreed equally to participate in the scheme. In handing down the prison terms, Judge Marmolejo noted heroin is a very serious problem in the United States, resulting in thousands of overdose deaths every year.
At the time of their pleas, they admitted that on Sept. 4, 2022, they arrived at the Juarez-Lincoln Bridge Port of Entry in Laredo in a vehicle. They applied for entry into the United States by presenting B1/B2 tourist visas.
At secondary inspection, law enforcement discovered two yellow bags of potato chips inside of Coutino-Hernandez’s purse. The bags appeared to be sealed and unopened. However, the contents felt like a heavy ball. Further inspection revealed the bags contained heroin bundles weighing 983.9 grams.
The investigation revealed the pair were both aware of the drugs and were going to be paid $300 each to cross into the country with them. The co-conspirators planned on returning to Mexico with a large amount of cash.
Both have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul A. Harrison prosecuted the case.
Leader of Trenton Drug Trafficking Conspiracy Sentenced to 19 Years in PrisonRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 228 months in prison for his role as the leader of a significant drug trafficking conspiracy that distributed more than one kilogram of heroin in Trenton and the surrounding area, U.S. Attorney Philip R. Sellinger announced.
Jakir Taylor, aka “Jak,” 32, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to Counts One and Seven of the first superseding indictment charging him with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and possessing a firearm in furtherance of a drug trafficking crime. Chief Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From October 2017 to October 2018, Taylor and others engaged in a large narcotics conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. Taylor and conspirator Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from conspirator David Antonio, whom they referred to as “Papi.” Taylor and Roberts agreed to obtain from Antonio a “motherlode” supply of as many as 1,500 bricks – approximately 1.5 kilograms of heroin – in a single delivery. Taylor said that he intended to “flood the streets” of Trenton with this large supply. Taylor also admitted that he and his conspirators possessed at least one firearm to assist his drug trafficking operations, and on multiple occasions during the conspiracy Taylor actively sought to obtain additional firearms from other sources. During coordinated arrests on Oct. 25, 2018, law enforcement arrested Taylor, Roberts, Antonio, and other defendants, and recovered more than 1.4 kilograms of heroin from Antonio’s residence.
In addition to the prison term, Chief Judge Wolfson sentenced Taylor to five years of supervised release.
In October 2018, Taylor, and 25 other individuals were charged by criminal complaint with conspiracy to distribute heroin. On Apr. 11, 2019, a grand jury returned a nine-count superseding indictment charging Taylor and eight other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearm offenses. Twenty-three of the 26 defendants charged in the complaint have pleaded guilty. The remaining three were convicted after trial in October 2021.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Division, Trenton Field Office, under the direction of Acting Special Agent in Charge Bryan Miller; officers of the Trenton Police Department, under the direction of Acting Police Director Steve Wilson; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor LaChia L. Bradshaw, with the investigation leading to today’s sentencing.
He also thanked officers of the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the N.J. State Board of Parole for their assistance in the case.
The government is represented by Assistant U.S. Attorneys J. Brendan Day and Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
This case 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 charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Las Vegas Man Sentenced to More than 14 Years in Prison for Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Raymond Jaquette Howard, 34, of Las Vegas, Nevada, was sentenced today to 14 years and eight months in prison, to be followed by five years of supervised release, for conspiracy to distribute 400 grams or more of fentanyl.
According to court documents and statements made in court, Howard admitted to selling approximately 1.01 grams of fentanyl to a confidential informant at a Huntington motel on September 22, 2021. On November 16, 2021, law enforcement officers searched Howard’s motel room and found approximately 4.6 pounds of fentanyl and a loaded Glock 43x pistol hidden in the ceiling. Howard admitted that he intended to sell the fentanyl.
Howard further admitted to directing co-defendant David Anthony Wellman to sell quantities of fentanyl between September 2021 and December 2021. Wellman pleaded guilty to distribution of fentanyl on September 28, 2022.
On December 24, 2021, law enforcement officers conducted a traffic stop of a vehicle in which Howard was a passenger. Officers searched the vehicle and found approximately 399.6 grams of fentanyl in a backpack. Howard admitted that he intended to sell the fentanyl or direct others to sell the fentanyl on his behalf.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA), the Violent Crime and Drug Task Force West, and the West Virginia State Police.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
This case was prosecuted as part of Operation Synthetic Opioid Surge (SOS), an enforcement surge that has sought to reduce the supply of deadly synthetic opioids in high impact areas.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-102.
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Kissimmee Man Sentenced to 10 Years in Prison for Possessing Ricin in Plot to Kill Former PartnerRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Kevin Deane Jones (50, Kissimmee) to 10 years in federal prison for unlawfully possessing ricin, a biological toxin, and for possessing two firearms as a convicted felon. Jones was also ordered to forfeit the two firearms. Jones had pleaded guilty on May 10, 2022.
According to court documents and evidence presented during the sentencing hearing, on December 6, 2021, the FBI received a complaint that Jones had manufactured ricin intending to use it to kill his former partner. Law enforcement officers then learned that Jones had ordered numerous items from the internet to produce ricin, had reportedly tested water guns to see which ones leaked, and had said that he would go on vacation immediately after spraying his former partner in the face with the ricin, so that he would have an alibi when she died.
On December 17, 2021, law enforcement officers learned that Jones intended to travel to another state, where his former partner lived. Officers stopped Jones, and he admitted to manufacturing ricin. Officers found a plastic water gun in Jones’s truck, as well as five tubes filled with liquids that later tested positive for ricin. A search of Jones’s residence revealed additional tubes containing ricin, along with castor beans, documents pertaining to ricin, and approximately 200 rounds of various types of ammunition.
Additional investigation revealed that on December 6, 2021, Jones, a convicted felon who is prohibited from possessing firearms, was questioned by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) regarding his possession of weapons. Following the ATF visit, Jones removed multiple firearms and ammunition and took them to a storage unit rented in his name. Law enforcement later searched the storage unit and found a rifle, handgun, silencer, and approximately 3,000 rounds of various types of ammunition.
“This investigation demonstrates the strength of our law enforcement partnerships and the determination of the special agents and officers who risk their lives every day to rid our communities of dangerous individuals like Mr. Jones,” said FBI Tampa Division Special Agent in Charge David Walker.
“We appreciate the efforts of our partners in federal law enforcement for helping to bring Mr. Jones to justice,” said Sheriff Marcos Lopez. “He is a dangerous individual who put not only the victim, but the community at risk. He deserves to be in prison for a long time.”
This case was investigated by the Federal Bureau of Investigation, with assistance from the Osceola County Sheriff’s Office, the Orange County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Jennifer M. Harrington.
Kenmore Man Pleads Guilty to Mail Fraud and Tax EvasionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney Trini E. Ross announced today that Michael MacPherson, 56, of Kenmore, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to mail fraud and tax evasion. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that in January 2017, MacPherson solicited an individual from Kansas to invest in a bulk cigarette deal, telling the individual that he had an agreement with a Native American tribe in New York State to purchase cigarettes at a discounted rate and resell them at a significant markup. MacPherson claimed that, in exchange for a $75,000 investment, the individual would receive a 15-20% return within 90 to 120 days. The individual sent MacPherson a check made payable to Paget Trust, LLC, the company through which MacPherson primarily operated his business activities. MacPherson, however, did not buy cigarettes, instead spending the money on payments to the Niagara Falls Country Club and Canisius High School, airline flights, hotels, car rental, utilities, retail purchases, gas, clothing, groceries, restaurants, and other merchants.
In December 2017, MacPherson contacted the individual again to solicit a $20,000 investment for the purchase of carbon fiber, representing that the individual would receive his principal investment, in addition to a 30% return, within 180 days. The individual sent MacPherson a check for $20,000, made payable once again to Paget Trust, LLC. Once again, MacPherson did not use the money as stated, instead using it to pay a defaulted business loan, cash withdrawals, airline flights, car rental, utilities, retail purchases, gas, groceries, restaurants, hockey tickets, and other merchants.
In addition, between 2015 and April 15, 2019, MacPherson attempted to evade income taxes for calendar years 2015 and 2017. For tax year 2015, he failed to file a federal income tax return despite receiving gross income totaling approximately $265,254, including approximately $232,500 from a second individual. Once again, MacPherson used the money on personal expenses. For the 2017 tax year, MacPherson omitted approximately $80,156 in gross business receipts. The amount of tax loss to the United States is $93,815.00.
The plea is the result of an investigation by the U.S. Postal Inspection Service Boston Division, under the direction of Inspector in Charge Ketty Larco-Ward, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Thomas Fattorusso.
Sentencing is scheduled for May 25, 2023, before Judge Arcara.
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Kansas Man Charged with Smuggling Firearms into MexicoRead the Press Release
DEL RIO, Texas – A federal grand jury in Del Rio returned an indictment last week charging a Kansas man with smuggling firearms, ammunition and other firearm accessories from the United States into Mexico.
According to court documents, Customs and Border Protection (CBP) officers conducting outbound inspections at the Eagle Pass Camino Real Bridge II on Dec. 16, 2022, searched a pickup and utility trailer operated by Jose Guadalupe Martinez-Ortiz, 28, of Garden City, Kansas. CBP officers found three handguns, four magazines, three gun scopes, and more than 1,000 rounds of ammunition. Martinez-Ortiz appeared before U.S. Magistrate Judge Victor R. Garcia of the U.S. District Court for the Western District of Texas on Dec. 19, 2022.
The one-count indictment charges Martinez-Ortiz with smuggling goods from the United States. If convicted, he faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Acting Special Agent in Charge Craig Larrabee of the Department of Homeland Security Investigations (HSI) San Antonio Division made the announcement.
HSI and CBP are investigating the case.
Assistant U.S. Attorney Alexander Brown is prosecuting it.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Huntington Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Shawn Anthony Graves, 29, of Huntington, was sentenced today to one year and one day in prison, to be followed by three years of supervised release, for possession with intent to distribute cocaine and cocaine base, also known as “crack.”
According to court documents and statements made in court, Graves admitted to possessing approximately 15.4 grams of crack and 4.5 grams of cocaine found by law enforcement officers when they executed a search warrant at a 14th Street residence on November 7, 2019. Graves admitted he intended to distribute the controlled substances, and further admitted to selling additional quantities of crack at the 14th Street residence on September 26, 2019 and October 28, 2019, each time to a confidential informant.
During the November 7, 2019, search of the 14th Street residence, officers also found three loaded firearms: an Eagle Arms AR15 .223-caliber rifle; a Springfield XDS 9mm pistol; and a Taurus Judge Public Defender, .45/.410-caliber pistol. Co-defendant Marshall Lee Graves II was sentenced to six years and four months in prison for being a felon in possession of a firearm on August 24, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Huntington Violent Crime and Drug Task Force, and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-181.
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Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Kameron I. Ziegler, 23, of Huntington, pleaded guilty today to aiding and abetting the distribution of 5 grams or more of methamphetamine.
According to court documents and statements made in court, on May 6, 2022, Kilan Nicks, also known as “Low,” sold approximately 29 grams of methamphetamine and 3 grams of fentanyl to a confidential informant at a Roby Road residence in Huntington. Ziegler admitted to being at the residence and providing the methamphetamine to Nicks in advance of the sale to the informant.
Ziegler is scheduled to be sentenced on April 17, 2023, and faces a mandatory minimum of five years and up to 40 year in prison, four years of supervised release, and a $5 million fine.
Nicks pleaded guilty on November 21, 2021, to distribution of 5 grams or more of methamphetamine and a quantity of fentanyl and to possession of a firearm in furtherance of a drug trafficking crime. Nicks is scheduled to be sentenced on March 6, 2023, and faces a mandatory minimum of 10 years and up to life in prison, five years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Office.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-118.
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Hilton Man Going to Prison for CyberstalkingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that David Guest, 25, of Hilton, NY, who was convicted of cyberstalking, was sentenced to 27 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that in 2019, Guest began threatening and harassing an acquaintance (victim) through various social media accounts. Guest posted nude photographs of the victim to various porn websites with the victim’s full name and sent nude photographs of the victim to the victim’s family members, colleagues, former classmates, and friends. Guest also used fake online accounts in an attempt to extort the victim into producing additional sexually explicit content. As a result of Guest’s conduct, the victim suffered extreme emotional distress.
The sentencing is the result of an investigation by the Rochester Office of the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Darren Cox.# # # #
Hawaii Couple Charged with Fraud and Money Laundering for Selling Counterfeit ArtRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced the unsealing of an indictment charging Earl Marshawn Washington, age 60, and his wife, Zsanett Nagy, age 31, both residents of Honolulu, HI, with conspiracy to commit wire fraud, mail fraud, and money laundering, and charging Washington separately with bank fraud and conspiracy to commit bank fraud.
According to United States Attorney Gerard M. Karam, the indictment alleges that from 2018 to 2021, Washington and Nagy sold counterfeit artistic goods known as “woodblocks” or “woodcuts” to various buyers and then laundered the proceeds from the sale of those goods. According to the indictment, xylography is the art of making “woodcuts,” or engravings made from wooden blocks, especially for printing using historical techniques. In traditional xylography, an artist uses a sharpened tool to carve a design into the surface of a woodblock. The raised areas that remain after the block has been cut are inked and printed, while the recessed areas that are cut away do not retain ink and will remain blank in the final print. Woodblock images can be printed onto paper, fabrics, textiles, or other materials. The technique has been used in different geographic regions at different times. One woodblock tradition stems from Germany starting around the 14th century and continuing for several hundred years thereafter.
The indictment also alleges that Washington and Nagy sold inauthentic woodblocks and prints made from woodblocks that they advertised as being from between the 15th and early 20th centuries. The buyers included a pair of woodblock collectors residing in France, as well as a buyer of a woodblock print who then resided in Hummelstown, PA. The buyers of the woodblocks in France allegedly made $84,350.91in PayPal payments to Nagy before learning that the woodblocks they purchased were not from the 15th and 16th centuries, as advertised. According to the indictment, Nagy received these payments through PayPal, moved the proceeds to a bank account in her name, and then quickly converted the proceeds to cash through withdrawals of several thousand dollars at a time. It is alleged that Washington admitted to one of the French buyers as being the creator of the woodblocks sold to the French buyers.
Washington is also charged with defrauding a collector of woodblocks from York, PA. The indictment alleges that this collector paid Washington, who used the alias “River Seine,” and his then girlfriend, $118,810 from 2013 to 2016 in exchange for approximately 130 woodblocks, again advertised as being several centuries old. The indictment alleges that at least some of these woodblocks were, in fact, made in the second half of the twentieth century.
“If you promise people one thing and sell them another, that’s fraud, plain and simple,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Here we had collectors paying for what they believed were old, rare, and valuable woodblocks and prints, but what they allegedly received were none of the above. The FBI’s Art Crime Team is uniquely positioned to investigate matters like this and committed to holding art fraudsters accountable.”
The indictment contains forfeiture allegations seeking over $200,000 from Washington and Nagy collectively, which is allegedly the amount they received from buyers of their counterfeit artistic goods.
This case was investigated by members of the FBI's Art Crime Team assigned to the Philadelphia Division. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
The maximum penalty under federal law for conspiracy to commit wire fraud, mail fraud, and money laundering is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty under federal law for wire fraud is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. In addition, Washington faces a maximum penalty under federal law for conspiracy to commit bank fraud and bank fraud of 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Grand Jury Returns Indictment Charging Two Michigan Men with Stealing Vehicles from Butler County DealershipsRead the Press Release
PITTSBURGH, PA - A federal grand jury returned a superseding indictment charging two residents of Michigan with Conspiracy and Interstate Transportation of Stolen Motor Vehicles, United States Attorney Cindy K. Chung announced today.
The three-count Superseding Indictment named Dorale Leshawn Doyle, age 40, of Southfield, MI 40833, and Ladon Richard Rogers, age 39, of Allen Park, MI 48101, as defendants.
According to the Superseding Indictment, from Nov 1, 2021, to Aug. 3, 2022, Doyle and Rogers engaged in a scheme in which they would travel from Michigan to various locations in the Western District of Pennsylvania to steal Dodge Challenger Hellcats. Two of the victim dealerships were located in Butler County, Pennsylvania.
The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Western Regional Auto Theft Task Force, the Federal Bureau of Investigation, Butler Township Police, Southfield Michigan Police Department, Livingston County Michigan Sheriff’s Office, Michigan State Police and DEA Detroit Group 15 conducted the investigation leading to the Superseding Indictment in this case.
A Superseding Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fugitive in Fraud Conspiracy Extradited from FranceRead the Press Release
Memphis, TN – A former Memphis resident, Ocho Edi Monso, 59, charged in a fraud conspiracy was recently arrested in France and extradited to Memphis. In September 2016, Monso was charged in a three-count indictment. United States Attorney Kevin G. Ritz announced the charges and extradition today.
According to the indictment, between July 2013 and January 2014, Monso conspired with Dasse Romain
Yobo and other persons to defraud Regions Bank and other financial institutions. The indictment alleges the conspiracy was carried out in some instances by obtaining customer account information and causing fraudulent transfers to be made from customer accounts to accounts controlled by the conspirators. In other instances, the indictment alleges that the conspirators carried out the scheme by depositing altered or counterfeit checks to accounts they opened at financial institutions and then withdrawing or transferring funds from the account of deposit to accounts they controlled at other financial institutions.In December 2013, Monso provided co-conspirator Yobo with fraudulent identification to open an account at Regions Bank under the name KEM Construction. On December 30, 2013, the indictment alleges that a check payable in the amount of $130,949.96 with an altered payee name was deposited to the account. On January 9, 2014, the conspirators requested that $77,023.83 be wire-transferred from the KEM Construction account to an account styled "Peniel Energy" in Lawrenceville, GA. Monso was also charged in two other counts with possession of 15 or more counterfeit and unauthorized access devices and device-making equipment with intent to defraud.
Monso was arrested in France in early December 2021, where he had been awaiting extradition. Monso made his initial appearance in the Western District of Tennessee on January 17, 2023, before United
States Magistrate Judge Annie T. Christoff, who ordered him temporarily detained pending a detention hearing currently set for 10:00 a.m. on Friday, January 20, 2023.Monso faces a maximum sentence of 30 years’ imprisonment, $1,000,000 fine and five years’ supervised release on the conspiracy charge and ten years imprisonment, $250,000 fine and three years’ supervised release on the access device fraud charge and 15 years’ imprisonment, $250,000 fine, and three years’ supervised release for possession of access device making equipment. Each charge also carries a $100.00 mandatory assessment.
The case was investigated by the United States Postal Inspection Service and the United States
Secret Service. The United States Department of Justice Office of International Affairs assisted in the extradition proceedings and the U.S. Marshals Service carried out the extradition of Monso from
France.An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Attorney Kevin Ritz thanked Assistant United States Attorney Carroll Andre’, who prosecuted this case, as well as the law enforcement partners who investigated the case, including the U.S. Marshals who carried out the extradition.
###For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.
Fresno Man Sentenced to over 5 Years in Prison for Illegal Firearm PossessionRead the Press Release
FRESNO, Calif. — Edward Page, 33, of Fresno, was sentenced today to five years and three months in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 24, 2021, law enforcement officers were dispatched to a Holiday Inn Express in Fresno, regarding an armed subject. Responding officers located a car in which Page and co-defendant Trayvon Smith, 32, of Fresno, were seated. Smith exited and fled on foot and was detained after a foot chase. Page attempted to flee but was held at gunpoint and complied. Officers searched the car and found two loaded, semi-automatic firearms, one of which had a corresponding a high-capacity magazine attached. Both Page and Smith are convicted felons who are prohibited from possessing firearms.
Smith is scheduled to be sentenced by U.S. District Judge Ana de Alba on Feb. 27, 2023.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio 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 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.
Former FedStar Federal Credit Union CEO Pleads Guilty to Federal ChargeRead the Press Release
ROANOKE, Va. – The former CEO of the FedStar Federal Credit Union, which operated branches in both Roanoke and Salem, Virginia, pled guilty last week in federal court to charges related to her use of credit union funds for personal purchases from 2018 and 2020.
Kelly Givens, 37, of Salem, Virginia, waived her right to be indicted and pled guilty last week to a one-count Information charging her with misapplication of credit union funds in excess of $1,000.
According to court documents, Givens was the CEO of FedStar beginning in 2016. Between 2018 and 2020 she used the FedStar credit card and FedStar business Amazon account for personal purchases totaling more than $12,000. Givens purchased running shoes, hiking shoes, tickets for sporting events, and electronic devices, among other personal purchases.
As part of an effort to conceal her theft, Givens provided false information to FedStar’s Board of Directors and the National Credit Union Administration.
At sentencing, Givens faces a maximum, statutory penalty of 30 years in prison and/or a fine of up to $250,000.
United States Attorney Christopher R. Kavanaugh and Special Agent in Charge of the FBI Richmond Division, Stanley M. Meador made the announcement today.
The investigation of the case was conducted by Federal Bureau of Investigation, the Virginia State Police, and the National Credit Union Administration – Office of the Inspector General.
Assistant United States Attorneys Kristin B. Johnson and Michael Baudinet are prosecuting the case for the United States.
Former CEO of Los Angeles-Based Anti-Poverty Nonprofit Agrees to Plead Guilty to Embezzling and Misusing Funds and Tax OffenseRead the Press Release
LOS ANGELES – The former president and CEO of a Hollywood-based anti-poverty nonprofit agency has agreed to plead guilty to federal criminal charges for embezzling money from the nonprofit for his personal benefit and intentionally misapplying more than $600,000 in grant money to pay for unauthorized expenses and lying on his tax returns, the Justice Department announced today.
Howard Dixon Slingerland, 53, of Studio City, has agreed to plead guilty to a two-count information charging him with conversion and intentional misapplication of funds from an organization receiving federal money, and subscribing to a false federal income tax return.
Both the information and plea agreement were filed today in United States District Court. Slingerland is expected to make his initial court appearance in the coming weeks.
According to his plea agreement, from 1996 until he was fired in September 2019, Slingerland was the president and CEO of Youth Policy Institute Inc. (YPI), a Hollywood-based nonprofit agency that worked to eradicate poverty in some of the highest needs neighborhoods in Los Angeles with a comprehensive approach addressing education, youth development, safety, job training, and health and wellness. In these roles, Slingerland had check-signing authority over YPI’s bank accounts and was the personal guarantor of YPI’s credit card.
From January 2015 to February 2019, Slingerland caused at least $71,533 of YPI funds to be spent on unauthorized expenditures, including Slingerland’s personal property tax bill that exceeded $14,000, more than $6,000 for a family dinner at a New York City restaurant, nearly $11,000 for a family member’s tutoring, and nearly $2,000 on a home computer and software.
In July 2019, Slingerland caused approximately $401,561 in funds YPI had received from a federal grant to be used for the unauthorized payment of YPI payroll. That same month, he also caused approximately $201,466 in federal grant money to be illegally used to pay off YPI’s credit card bill, including for expenses Slingerland had incurred.
Slingerland further admitted in his plea agreement that he underreported on his individual federal income tax returns more than $100,000 in income each year for the tax years 2015 through 2018 by not reporting money he obtained from YPI including through the embezzlement. Slingerland admitted to owing the United States Treasury a total of approximately $147,398 in unpaid taxes – not including penalties and interest – for these years.
After Slingerland enters his guilty plea, he will face a statutory maximum sentence of 10 years in federal prison on the conversion count and three years in federal prison on the tax count.
IRS Criminal Investigation; the FBI; the United States Department of Labor Office of Inspector General; the United States Department of Education Office of Inspector General; the United States Department of Justice Office of Inspector General; and the Los Angeles Unified School District investigated this matter. The Office of the United States Trustee provided substantial assistance.
Assistant United States Attorney Ranee A. Katzenstein, Chief of the Major Frauds Section, is prosecuting this case.
Former Bangor Resident Faces up to 20 Years for Role in Penobscot and Aroostook County Drug TraffickingRead the Press Release
BANGOR, Maine: A former Bangor resident pleaded guilty today in U.S. District Court in Bangor to conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl.
According to court records, between January 2018 and December 2021, Shelby Loring, 27, along with others, trafficked methamphetamine and fentanyl in Penobscot and Aroostook counties. Loring’s participation in the conspiracy resulted in contacts with local law enforcement that led to the seizure of drugs, firearms, drug paraphernalia, and other items.
Loring faces up to 20 years imprisonment. She 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.
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Fentanyl traffickers admit guilt, forfeit more than $200,000Read the Press Release
WHEELING, WEST VIRGINIA - A Cleveland man and a Wheeling woman pled guilty today to fentanyl trafficking charges, admitting that they conspired to distribute significant quantities of the lethal drug.
Solomon Eli Watters, 27, of Cleveland, and Chelsea Marion Banks, 26, of Wheeling, appeared in federal court today and admitted to a conspiracy to distribute fentanyl and cocaine base. According to the evidence presented, Watters was stopped by the Wheeling Police Department in February 2022 during which officers executed a search warrant on an Audi A7 that he was driving. During the search, officers located $3,556 in cash and a Walther .380 caliber pistol, which had been reported stolen. Officers then executed a search warrant at a residence shared by Watters and Banks in Wheeling wherein they located two more pistols, ammunition, digital scales, and cocaine base.
Additional search warrants were obtained for storage units located in Washington, Pennsylvania, rented by Banks. The searches yielded 1.26 kilograms of fentanyl and an additional $208,860 in cash.
“Fentanyl continues to be the greatest threat to public safety facing the Northern Panhandle,” said United States Attorney William Ihlenfeld. “By seizing such a large quantity of the drug, the officers in this case prevented potential overdoses and removed a major distributor from the supply chain.”
In addition to the firearms and ammunition, $212,416 in United States currency and the Audi A7 will be forfeited.
Watters faces a minimum of 10 years and up to life in prison. Banks faces up to 20 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Wheeling Police Department; the Ohio Valley Drug Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Pennsylvania State Police investigated.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government.
U.S. Magistrate Judge James P. Mazzone presided.
Felon and Drug User Who Threatened Bar Patrons with a Gun Sent to Federal PrisonRead the Press Release
A Sioux City man who threatened two women by pointing a loaded gun at them, thereby alarming other pub patrons, was sentenced today to more than 4 years in federal prison.
Luis Gomez, age 37, from Sioux City, Iowa, received the prison term after a September 1, 2022, change of plea hearing.
Evidence in the case revealed Gomez was a drug user and felon in unlawful possession of a firearm and ammunition on December 9, 2021. Gomez’s criminal possession of a firearm was discovered when he threatened two patrons at a Sioux City, Iowa bar by pointing a loaded gun at them, threatening to shoot them, and saying, among other things, "I'm going to air this place out." When the police were called, Gomez and another person, fled the scene at a high rate of speed.
While driving, Gomez repeatedly instructed the passenger to throw the weapon out of the window. Officers observed an object thrown out of the passenger side window during the chase. Officers deployed stop sticks which ultimately ended the pursuit. A firearm and a magazine were separately recovered from the path of the chase. The firearm contained 7 live rounds. Marijuana and other ammunition were also found in the car and/or on Gomez.
Gomez has a lengthy criminal history. He has committed over 34 offenses. His crimes include threats, weapons, drugs, violence, and other dangerous conduct.
Gomez was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 49 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Gomez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Sioux City, Iowa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-04012.
Follow us on Twitter @USAO_NDIA.
Federal Jury Finds Milwaukee Man Guilty of Bank Robberies, Illegal Firearm Possession, and Conspiracy to Retaliate Against an InformantRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on January 11, 2023, a federal jury found Antoine L. Jackson (age 29) of Milwaukee guilty of all counts with which he was charged, including conspiracy to commit bank robbery, three bank robberies, possessing a firearm as a convicted felon, and conspiracy to retaliate against an informant.
The evidence presented at trial showed that between September 15, 2021, and December 23, 2021, the defendant was part of a robbery crew that committed multiple bank robberies in Milwaukee. The defendant was directly involved in three bank robberies, all at the Wells Fargo Bank located at 7600 West Hampton Avenue. During the robberies, the defendant and his co-actors passed notes to tellers, threatening that unless they were given money, they would blow up the building or kill everyone inside the bank. Among other evidence, the government presented forensic evidence recovered from two of the crime scenes tying the defendant to the robberies.
The evidence also showed that the defendant possessed a firearm—and left his DNA on three parts of the firearm—when he was not legally allowed to possess a firearm due to having previously been convicted of a felony crime. Finally, the evidence also showed that after the defendant was arrested on January 26, 2022, he made calls from jail in which he provided instructions to have a suspected informant seriously injured.
Sentencing has been scheduled for April 13, 2023, before United States District Judge Lynn Adelman. At sentencing, Mr. Jackson faces up to 20 years in prison for each of the bank robberies, up to 20 years in prison for conspiring to retaliate against a suspected informant, up to 10 years in prison for being a felon in possession of a firearm, and up to 5 years in prison for the overall conspiracy to commit bank robberies.
This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. The case was prosecuted by Deputy Criminal Chief Margaret B. Honrath and Assistant United States Attorney Kate M. Biebel.
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Public Information Officer
414-297-1700
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Federal Jury Convicts Jacksonville Man for Distributing Child Sex Abuse MaterialsRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found James Wayne Houck (65, Jacksonville) guilty of seven counts of distributing child sex abuse materials. Houck faces a minimum mandatory penalty of 5 years, up to 20 years, in federal prison on each count and a potential life term of supervised release. He was remanded into custody pending his sentencing hearing on May 1, 2023.
According to testimony and evidence presented at trial, on June 13, 2020, a user named “jimboleg” distributed multiple images of child sex abuse materials in the group “Everything goes #yggirls” on a particular social media application. An FBI investigation into the social media app account identified Houck as the person using the “jimboleg” account. FBI agents interviewed Houck multiple times about his activity on the app and he initially admitted to having the “jimboleg” account but did not recall sharing the child sex abuse materials. However, he later admitted to sharing the child sex abuse material on the app. FBI agents attempted to review Houck’s cellphone as part of their investigation, but he turned his phone into the phone carrier service provider to obtain a new phone and provided that new phone to the FBI for review. The service provider’s records confirmed that the phone that Houck turned in was the phone he had at the time he distributed the child sex abuse materials, despite Houck telling the FBI it was a different phone.
Later in their investigation, the FBI learned from the National Center for Missing and Exploited Children that there was an investigation by another federal law enforcement agency about an upload of child sex abuse material to the social media app by user “jimleg6969” in 2019. The IP address from that investigation was the same as the one for “jimboleg.” Both social media app accounts had email addresses used by Houck.
This case was investigated by Homeland Security Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ashley Washington.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Grand Jury Indicts Thibodaux Man for Drug Trafficking OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – On January 12, 2023, a federal grand jury in New Orleans, Louisiana returned a one-count indictment, on January 12, 2023, charging a man for violations of the Federal Controlled Substances Act.
According to court documents, GREGORY ROBINSON, age 30, is charged with possession with intent to distribute a quantity of a mixture of methamphetamine, a quantity of a mixture of cocaine, and a quantity of marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), and 841(b)(1)(D).
If convicted, ROBINSON faces a mandatory minimum sentence of 10 years and up to life imprisonment, up to a $10,000,000 fine, and at least 5 years of supervised release as it relates to methamphetamine, a mandatory minimum sentence of 5 years and up to 40 years imprisonment, up to a $5,000,000 fine, and at least 4 years of supervised release as it relates to cocaine, and up to 5 years imprisonment, up to a $250,000 fine, and at least 2 years of supervised release as it relates to marijuana. Additionally, ROBINSON must pay a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Thibodaux Police Department and the Drug Enforcement Administration. The prosecution of this case is being handled by Assistant United States Attorney Lynn E. Schiffman.
Federal Agent Arrested for Receiving Gratuity and Making False StatementRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned an indictment on Friday January 13, 2023, charging Javier Delgado-Padín, a special agent of the U.S. Department of Homeland Security-Immigration and Customs Enforcement-Homeland Security Investigations, with receiving and accepting something of value in exchange for him performing his official duties and making a false statement.
According to court documents, in March of 2020, Delgado-Padín, a federal agent with approximately 19 years of service, accepted money because of his assistance with the immigration status of F.A. in the United States, who was a national of the Dominican Republic residing in the United States.
Count two of the indictment alleges that, in September of 2018, the defendant willfully and knowingly made a materially false, fictitious, and fraudulent statement in a loan application submitted to the Federal Employee Retirement Thrift Savings Plan (known as the TSP) by stating and representing he was not married in a loan application for approximately $49,140, when he knew he was legally married at the time, which required his spouse’s consent to receive a loan from his TSP account.
“Investigating and prosecuting government officials who abuse their positions of trust to receive illegal gifts and gratuities or who commit fraud will continue to be a top priority in the Justice Department and this office,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.
“DHS OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to identify and aggressively investigate allegations of corruption to protect our borders and the integrity of DHS personnel, programs, and operations,” said Dr. Joseph V. Cuffari, Inspector General of the Department of Homeland Security.
Delgado-Padín made his initial court appearance today before U.S. Magistrate Judge Giselle López-Soler of the U.S. District Court for the District of Puerto Rico. If convicted, he faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Homeland Security -- Office of Inspector General is investigating the case and the FBI, San Juan Field Office, Public Corruption Unit collaborated during the arrest.
Assistant U.S. Attorney Marie Christine Amy is 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.
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Farnhamville, Iowa Man Pleads Guilty to Possessing Child PornographyRead the Press Release
Marcus Urelius, 36, from Farnhamville, Iowa, plead guilty January 10, 2023, in federal court to Possession of Child Pornography.
In a plea agreement, Urelius admitted that between April 2021, and January 2022, he used an Internet-based, peer-to-peer (P2P) network known as “Freenet” to knowingly receive and attempt to receive visual depictions of minors engaged in sexually explicit conduct. He further admitted to using the network to share child pornography with others.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set for a later date after a presentence report is prepared. Urelius remains in the custody of the United States Marshal pending sentencing. Urelius faces a sentence of up to 20 years imprisonment without the possibility of parole, a fine of not more than $250,000, a mandatory special assessment of $100 and a term of supervised release of at least 5 years to life.
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.”
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Kraig R. Hamit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-3017. Follow us on Twitter @USAO_NDIA.
Eye Surgery Practices Agree to Pay $1 Million and End Discriminatory Policies Towards People with DisabilitiesRead the Press Release
The Justice Department announced today that it has filed a proposed consent decree with Barnet Dulaney Perkins Eye Centers (BDP) and American Vision Partners (AVP), to resolve its lawsuit alleging that the eye care practices violated the Americans with Disabilities Act. The lawsuit alleged that BDP and AVP refused to operate on certain patients who needed assistance transferring from their wheelchairs for surgery and required other such patients to pay for third-party medical transport and transfer assistance. Medical providers routinely offer this type of assistance to patients who need help transferring from a wheelchair to an examination or surgical table for surgery and exams.
“The Americans with Disabilities Act requires health care providers to offer equal access to their services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Patients with disabilities must not be denied crucial medical services or forced to pay surcharges because they need transfer assistance. The Justice Department is fully committed to protecting the civil rights of individuals with disabilities to get the medical care they need.”
“This agreement reflects an important step in obtaining equal access to health care services for Arizonans with disabilities,” said U.S. Attorney Gary Restaino for the District of Arizona. “The U.S. Attorney’s Office will continue to work closely with the Civil Rights Division to ensure that all Arizonans are afforded equal opportunity to access health care services in our state.”
Under the decree, BDP and AVP will end their policies of denying surgery and prohibiting staff from providing transfer assistance to people with mobility disabilities. BDP operates eye care facilities throughout Arizona, and AVP, one of the largest eye care practice management organizations in the country, partners with eye care providers in Arizona, New Mexico, Nevada and Texas, including BDP, Southwestern Eye Center, M & M Eye Institute, Retinol Consultants of Arizona, Abrams Eye Institute, Southwest Eye Institute, Aiello Eye Institute, Havasu Eye Center, Visage Aesthetics and Plastic Surgery and Moretsky Cassidy Vision Correction. These eye care providers will also train staff on the new policy requirements and on safe transfer techniques, and pay $950,000 to patients and prospective patients who were harmed by its policies and a civil penalty of $50,000.
For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint.
Evergreen Man Arrested for Making Threats of Violence to Law Enforcement Agencies and a Performing Arts GroupRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Kyle William Staebell, age 33, of Evergreen, has been arrested and charged by criminal complaint with making threats to commit mass violence.
According to the criminal complaint, in the early morning hours of January 16, 2023, the defendant allegedly made threats of violence to the Federal Bureau of Investigation (FBI) office in Denver, an office of the Department of Homeland Security, and a Colorado-based performing arts group. Staebell made one such threat directly to FBI’s offices using the FBI’s National Threat Operations Center online tip line. He made another series of threats using a social media account. He also used email to make a threat of violence to the performing arts group.
The defendant made his initial appearance before Magistrate Judge James P. O’Hara on January 17, 2023.
“The U.S. Attorney’s Office takes very seriously any threat to commit mass violence. We commend our law enforcement partners for taking swift action to investigate this case. We specifically want to thank the FBI, the Denver Police Department, the Lakewood Police Department, and the Jefferson County Sheriff’s Office,” said United States Attorney Cole Finegan.
This case is being investigated by the Federal Bureau of Investigation (FBI) Denver Division. Assistant United States Attorneys Andrea Surratt and Laura Cramer-Babycz are handling the prosecution.
The charges in the complaint are allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
CASE NUMBER: 23-mj-00016
El Paso Man Pleads Guilty to Operating Ponzi Scheme Disguised as Crypto Investment FirmRead the Press Release
EL PASO, Texas – An El Paso man pleaded guilty in federal court here last week to five counts of wire fraud.
According to court documents, Abner Tinoco, 27, operated a Ponzi scheme through his business by soliciting millions of dollars of investments from clients and claiming he would invest their money into funds dealing with cryptocurrency and foreign exchange markets. Out of approximately $9 million worth of investments deposited into his business accounts, Tinoco spent more than half on personal expenses to include luxury cars, private jets, real estate and jewelry. Tinoco furthered the deception by providing some of the misappropriated funds as profits to his clients.
Tinoco faces a maximum penalty of 20 years in prison plus restitution and a maximum fine of $250,000 on each count. A sentencing date has not yet been decided. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In a separate civil case stemming from the above scheme, the Commodities Futures Trading Commission (CFTC) secured a civil consent decree against Tinoco and his business, imposing a ban relating to trading activities. The Department of Justice will work to achieve restitution for any additional victims of Tinoco’s scheme.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Jeffrey R. Downey of the FBI El Paso Field Office made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorneys Shane Romero and Chris Skillern are prosecuting the case.
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Disbarred California Attorney Sentenced to Five and A Half Years in Prison for Long-Running Multi-Million-Dollar Investment Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that DEREK JONES, a disbarred California attorney, was sentenced today to five and a half years in prison. JONES ran fraudulent investment funds, including real-estate investment firms and a venture-capital firm, through which he defrauded investors of over $8.6 million over a period of more than seven years, from at least 2012 through 2019. JONES previously pled guilty to one count of wire fraud and was sentenced today before United States District Judge Loretta A. Preska.
U.S. Attorney Damian Williams said: “When investors purchase shares in real-estate funds and other investment funds, those investors have every right to expect that the people promoting and selling those investments are treating them honestly and telling them the truth about their investments. Today, Derek Jones, a disbarred attorney, was held accountable for violating this right over an extended period of time, selling interests in real estate that he falsely claimed to own and defrauding his investors out of millions of dollars.”
According to the Indictment, statements made in court, and other publicly filed documents in this case:
From at least 2012 through at least 2019, JONES deceived his victims into investing in various companies and investment funds that he controlled, including purported real-estate development and investment firms using variations of the names “BlueRidge,” “Living City,” and “Atiswin,” and the purported venture capital firm Realize Holdings (“Realize”).
In fraudulently inducing victims to invest in his funds, JONES routinely lied to investors, including in glossy brochures and legal documents that contained misrepresentations about real estate that JONES falsely claimed was owned or otherwise controlled by BlueRidge, Living City, and Atiswin. For example, JONES falsely told investors and prospective investors that BlueRidge was developing a “resort village” on land it controlled on Semiahmoo Spit in Washington State and, separately, that BlueRidge had purchased an existing hotel in that same location, when in fact neither BlueRidge nor JONES owned or controlled any of that property. In other cases, JONES falsely claimed that his companies were under contract to purchase a ranch in Colorado and that his companies had secured long-term leases for various pieces of property slated for development, including California properties in Santa Monica, Hermosa Beach, and Los Angeles. Instead of using investors’ money as he promised, JONES misappropriated investors’ money, using much of it to make Ponzi-style payments to other investors to whom he owed money in connection with earlier transactions and for personal and family expenses, including the private-school tuition of his children.
In executing his scheme, JONES also sent falsified and counterfeit documents to investors and others. For example, on repeated occasions, JONES provided doctored bank statements showing that he had millions of dollars in various corporate accounts, when in fact he had little or no money in such accounts. On other occasions, he provided counterfeit financial statements that falsely purported to be based on internal audits of companies that he controlled. He also sent investors and others falsified contracts with key pages removed, forged land-leases, and fictional statements of asset allocation. JONES also used the names of other individuals — without those individuals’ authorization or knowledge — to communicate via email with investors and thus foster the illusion that JONES’s businesses were viable operations with real employees.
In total, JONES defrauded investors out of more than $8.6 million.
During the commission of the fraud charged in this case, JONES was suspended from the practice of law by the State Bar Court of California for earlier fraudulent conduct. JONES was ultimately disbarred in July 2022 based on findings by the State Bar Court that he had intentionally misappropriated money belonging to a client in 2011 and that he had made misrepresentations to the client, to the court, and to others.
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JONES, 48, of San Marino, California, pled guilty on November 1, 2021, to a single count of wire fraud. He was sentenced today to five and a half years in prison, three years of supervised release, forfeiture of $8,679,787.66, and restitution to his victims in an amount to be determined within the next 90 days.
Mr. Williams praised the excellent work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis and David M. Abramowicz are in charge of the prosecution.
Daphne Woman Sentenced to More Than 6 Years for Fraud Scheme and Aggravated Identity TheftRead the Press Release
MOBILE, AL – A Daphne woman was sentenced last week to 81 total months imprisonment for one count of conspiracy to commit wire fraud and aggravated identity theft, four counts of wire fraud, and three counts of aggravated identity theft.
According to court documents, Roseanna Taylor, 41, worked for a medical professional staffing company based in Mobile, Alabama from about May 2017 through January 2019. By virtue of her employment, Taylor obtained personal information, including means of identification of certain medical professionals. Beginning around 2018, Taylor began creating fake identification documents using this information, along with fraudulent documents, to be used to obtain fraudulent loans. Taylor provided both means of identification and fraudulent loan documents to other members of the conspiracy to assist them in obtaining fraudulent loans. Taylor was ordered to pay restitution to her victims in the amount of $127,663.26. Taylor was also ordered to serve a supervised release term of three years.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.The Mobile Police Department and the United States Secret Service investigated the case.
Assistant U.S. Attorneys John Bishop Ravenel and Justin D. Kopf prosecuted the case on behalf of the United States.
Curtis Bay Man Pleads Guilty to Federal Charges for Illegally Possessing a Loaded Firearm in a School ZoneRead the Press Release
Baltimore, Maryland – On January 12, 2023, Malachi Carter-Bey, age 38, of Baltimore, Maryland, pleaded guilty to federal charges of illegally possessing a loaded firearm within 1,000 feet of a school, specifically Curtis Bay Elementary-Middle School.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, in the early morning hours of December 26, 2020, a Baltimore Police officer found what he thought was an abandoned Acura SUV running at the corner of Elmtree Street and Pennington Avenue in the Curtis Bay neighborhood of Baltimore. The officer approached the car and saw that Carter-Bey and a passenger were asleep in the car. Using a flashlight, the officer saw a large black revolver entirely exposed on the driver’s seat between the driver-side door and Carter-Bey. Once back-up arrived, Carter-Bey and the passenger were removed from the car and the revolver, a .357-caliber revolver loaded with six rounds of ammunition, was also recovered.
Carter-Bey admitted that he knew that he possessed the firearm within 1,000 feet of the grounds of a school zone, specifically, Curtis Bay Elementary-Middle School.
U.S. District Judge Richard D. Bennett has scheduled sentencing for February 22, 2023 at 2:30 p.m.
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.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Special Assistant U.S. Attorney Logan Hayes and Assistant U.S. Attorney Brandon Moore, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Convicted felon imprisoned for firearms conviction after fleeing from policeRead the Press Release
CORPUS CHRISTI, Texas – A 40-year-old Falfurrias resident has been ordered to federal prison following his conviction for being a felon in possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Hector Hernandez pleaded guilty Sept. 21, 2022.
Today, U.S. District Judge Drew B. Tipton ordered him to serve 66 months in federal prison. At the hearing, the court heard additional information regarding Hernandez’s history of possessing firearms in vehicles as a convicted felon which includes two incidents in the year proceeding his arrest. The court also heard details of Hernandez’s flight from police and that the firearm he possessed was previously reported stolen.
On June 22, 2022, authorities attempted a traffic stop on a vehicle Hernandez was driving. He failed to stop and continued through several neighborhood streets at a high rate of speed. Even though two tires became disabled, he continued to drive on the rims. When the vehicle finally stopped, law enforcement discovered a firearm inside the waistband of Hernandez’s pants.
There were also two passengers in the car found to be illegally present in the United States.
Hernandez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms and Explosives and Brooks County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Liesel Roscher prosecuted the case.
Convicted Sex Offender Sentenced to More Than 27 Years for Distribution of Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – U.S. District Judge Thomas Barber has sentenced Christian Kline (32, Moore Haven) to 27 years and 3 months in federal prison, followed by a lifetime of supervised release, for distribution of child sex abuse material. The court also ordered Kline to forfeit the electronic devices used in the commission of the offense and entered an order of restitution to the victims in the amount of $24,000. Kline had pleaded guilty on August 3, 2022.
According to court documents, in 2016, Kline was convicted in the Middle District of Florida for transportation of child sex abuse material. He was sentenced to 5 years and 10 months’ imprisonment, followed by 20 years of supervised release. While on supervised release, Kline was subject to routine polygraph examinations. During one such examination with U.S. Probation, Kline revealed that he had been downloading images and videos of child sexual abuse from the dark web. Further investigation revealed that Kline possessed numerous electronic devices which contained images and videos of child sexual abuse, including images and videos that Kline had distributed to another individual.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ilyssa Spergel.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Connecticut Man Pleads Guilty to Trafficking Fentanyl on the DarknetRead the Press Release
ALEXANDRIA, Va. – A Winsted, Connecticut, man pleaded guilty today to participating in a conspiracy to distribute fentanyl over the darknet.
According to court documents, from at least April 2020 through February 2021, Colby John Kopp, 23, and his co-conspirators used darknet marketplaces to conduct drug trafficking business. Kopp created, maintained, and controlled darknet marketplace accounts to further the Connecticut-based fentanyl distribution operation. As a darknet marketplace vendor, Kopp and other members of the conspiracy used the moniker “MadHatterPharma” to engage in the sale of counterfeit pressed pills containing fentanyl that the conspirators pressed themselves and then shipped to customers all over the country, including in the Eastern District of Virginia.
Kopp is scheduled to be sentenced on April 18. He faces a mandatory minimum 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 Criminal Division, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorney Rachael Tucker 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. 1:22-cr-109.