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11 January 2023
Baton Rouge Man Sentenced to 132 Months in Federal Prison for Fraud Scheme and Money Laundering Relating to Financial Aid and COVID FraudRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Elliott Sterling, age 34, of Baton Rouge, Louisiana, to 132 months in federal prison following his convictions for wire fraud, financial aid fraud, and engaging in monetary transactions involving property derived from specified unlawful activity. The Court further sentenced Sterling to serve three years of supervised release following his term of imprisonment and ordered him to pay restitution in the amounts of $2,760,422 to the U.S. Department of Education and $90,000 to the Small Business Administration.
After an eight-day trial, the jury unanimously convicted Sterling of five counts of wire fraud involving a scheme to defraud the Department of Education federal student aid program, two counts of financial aid fraud, and two counts of wire fraud involving the Small Business Administration Economic Injury Disaster Loan program, which was designed to aid businesses during the Covid-19 pandemic. Sterling was also convicted of six counts of money laundering involving the proceeds of his two wire fraud schemes. The jury further ordered the forfeiture of $422,632.38 in fraud proceeds that the FBI had seized in the case.
As the evidence at trial demonstrated, with respect to the Department of Education wire fraud and financial aid fraud counts, Sterling received $1,468,239 in federal student aid loans and grants that were associated with 180 Baton Rouge Community College (BRCC) students into his personal bank account and the business bank account of his company, Sterling Educational Consulting, LLC. The evidence presented at trial showed that Sterling used the personal identifying information of his purported students to electronically fill out and submit their Free Applications for Federal Student Aid (FAFSAs), sign master promissory notes on their behalf, enroll them into classes at BRCC, and create and manage the student BankMobile accounts that received federal student loans. Through Sterling’s control of the students’ accounts, he directed Department of Education monies to be paid directly into his own bank accounts.
In order to circumvent Department of Education controls designed to inform students about the financial obligations of student loans, Sterling concealed his role as the preparer of the FAFSAs and pretended to be the students when he logged on with their credentials, clicked through the loan counseling in less than three minutes, and signed promissory notes in their names. Typically, the students did not have access to the email addresses or login information that Sterling created on their behalf and did not have access to their own FAFSA, BRCC, or BankMobile accounts.
In addition, Sterling falsified the academic qualifications for 168 students to the Department of Education, and 145 of these students lacked even a high school diploma or equivalent (e.g. a GED). A witness at trial also testified that Sterling had paid him $5,000 to produce 42 diplomas with fictional grades. These diplomas were then provided to BRCC after BRCC requested verification of the students’ academic credentials. None of the 180 students for whom Sterling received money progressed academically at BRCC, and 172 failed or withdrew from every class they were enrolled in. Some students were incarcerated when their FAFSAs were submitted, promissory notes signed, or federal student aid disbursed into Sterling’s bank accounts.
Instead of directing the funds he received to the students, Sterling kept over 60% for himself, and for 25 students, Sterling kept 100% of the loan proceeds. Among the students who received money from Sterling’s scheme, most were unaware they had signed up for student loans and that Sterling had signed master promissory notes in their names obligating them to repay the full amount. The students were also unaware of the true amount of refunds awarded in their names, and the true amount Sterling retained as his portion.
With respect to the SBA wire fraud, Sterling submitted a loan application on behalf of his business, Sterling Educational Consulting, LLC, that falsified the business’s revenues and costs and concealed his prior guilty plea to felony theft. As a result of these false statements, the SBA loaned Sterling $90,000 in order for him to pay the operating costs of his business during the Covid-19 pandemic. Sterling promptly withdrew $75,000 in cash. During the course of his schemes, Sterling also spent more than $253,000 at casinos in Louisiana, Nevada, and Pennsylvania.
Louisiana Inspector General Stephen Street commented, “Elliott Sterling put a great deal of time and effort into his calculated scheme to steal millions of financial aid dollars from the U.S. Government and the taxpayers. He shamelessly broke the law out of pure personal greed. We were very pleased when a criminal jury found Sterling guilty on all charged counts, and even more so with the 11-year prison sentence imposed by the Court. This significant prison sentence was entirely appropriate given the brazen nature of the fraud and will hopefully send a strong message of zero tolerance. The Louisiana Inspector General remains committed to rooting out this corruption wherever it may be found.” Street added, “I want to thank United States Attorney Ron Gathe and his staff for their usual outstanding work, as well as our partners at the FBI and the US Department of Education OIG for another successful outcome.”
This case was investigated by the FBI, the Louisiana Office of Inspector General, and the U.S. Department of Education – Office of Inspector General. This case was prosecuted by Deputy Criminal Chief Elizabeth E. White and Asset Forfeiture Chief Brad Casey.
Baltimore fentanyl organizations shut down by federal indictmentsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Baltimore-based drug trafficking organizations that supplied large amounts of fentanyl to West Virginia and caused at least two deaths have been dismantled by separate federal indictments that were unsealed today.
Thirty-four people from Maryland, Virginia, and West Virginia were indicted on charges related to the sale of fentanyl, heroin and other drugs in Hampshire County and Mineral County. The drugs distributed led to a spike in overdoses in the region, both fatal and non-fatal. Much of the fentanyl had high levels of purity and had a purple tint to distinguish it from drugs sold by competitors.
In the first indictment, Kentrel Anthony Rollins, also known as “T-Rock,” age 30, of Baltimore, Maryland is alleged to be the leader of a fentanyl distribution operation in Hampshire County and elsewhere from January 2020 to October 2021. Court documents show that in addition to the sale of drugs, there was firearms trafficking and the trading of guns for drugs. Many of the firearms were acquired by a straw purchaser on behalf of the organization. Twelve people are charged in this matter, which also includes the alleged trafficking of heroin, methamphetamine and cocaine.
In the second indictment, Sean Jarred Davis, age 31, also of Baltimore, is alleged to be the leader of a conspiracy to distribute more than 40 grams of fentanyl, as well as heroin, in Hampshire County and elsewhere from February 2021 to January 2023. A total of twenty-two individuals are charged in the case.
“Fentanyl continues to be the number one threat to public safety in the region and much of it flows here from Baltimore,” said United States Attorney William Ihlenfeld. “The investigators are to be commended for their outstanding work in identifying the sources of supply and halting their operations.”
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, led the investigations. The Task Force consists of members from the Federal Bureau of Investigation, the Drug Enforcement Administration, the West Virginia State Police, the Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Hardy County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department. The Hampshire County Prosecutor’s Office assisted.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the cases on behalf of the government.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
List of defendants
Baltimore Man Sentenced to 35 Years in Federal Prison for Murder-For-HireRead the Press Release
Baltimore, Maryland – U.S. District Judge Julie R. Rubin today sentenced Daquante Thomas, a/k/a “Glock,” age 20, of Baltimore, Maryland, to 35 years in federal prison, followed by five years of supervised release, for discharge of a firearm during a crime of violence resulting in death, in connection with a murder-for-hire conspiracy.
The sentence 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; Chief Gregory Der of the Howard County Police Department; and Howard County State’s Attorney Rich Gibson.
“This case is a tragedy for the victim and the affected families. I am hopeful that our reenergized law enforcement and community partnerships will help break this cycle of violence,” said United States Attorney Erek L. Barron.
“Today’s sentencing is another example of the successful partnership that exists between our office and our law enforcement partners on the local, state, and federal level,” said Howard County State’s Attorney Rich Gibson. “We are committed to working in a collaborative manner to solve cases, make arrests, and hold criminals, such as Daquante Thomas, accountable for their actions.”
“The prioritizing of money over humanity in this case shows just how little this defendant values the lives of others,” said ATF Baltimore Special Agent in Charge Toni M. Crosby. “We cannot allow individuals like this to walk freely in our communities, willing to murder citizens for the right price. ATF is proud to work alongside our local, state, and federal partners every day to identify and investigate the people responsible for committing acts of violence in Maryland.”
According to the plea agreement, on October 4, 2020, Howard County Police responded to a shooting in the area of Basket Ring Road in Columbia. Victim Juan Ross was found shot and killed at the scene, sustaining multiple gunshot wounds to the head. Investigation identified Daquante Thomas as one of the shooters. As detailed in the guilty plea, co-conspirator 1 accused the victim, Juan Ross, age 23, of Columbia, Maryland, of cooperating with law enforcement, including on a live social media conversation on September 9, 2020, and in text message. Thomas admitted that co-conspirator 1 solicited him and another conspirator to kill Juan Ross and that he accepted payment to commit the murder.
According to the plea agreement, on October 3, 2020, Thomas and co-conspirator 2 texted each other about the address where they could find the victim. The next day Thomas, co-conspirator 2 and co-conspirator 3 drove to the area of Basket Ring Road in Columbia to locate Juan Ross, then drove to a drug store nearby so that co-conspirator 2 could purchase an Uber card and leave the area. A short time later, Thomas and co-conspirator 3 returned to the area of Basket Ring Road, shot and killed Juan Ross, then drove away together.
Two co-defendants, Jourdain Larose, a/k/a “JBlacc,” age 27, of Ellicott City, Maryland, and Tyrik Braxton, a/k/a “Son-Son,” age 26, of Baltimore, Maryland, are charged with a federal murder-for-hire conspiracy, use of interstate commerce facilities in the commission of a murder-for hire, and use and discharge of a firearm during a crime of violence resulting in death. They remain detained while they await their trial. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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. Project Safe Neighborhoods (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.
United States Attorney Erek L. Barron commended the ATF, the Howard County Police Department, and the Howard County State’s Attorney’s Office for their work in the investigation and prosecution and thanked the FBI, the Maryland State Police, the Anne Arundel County Police Department, the Baltimore County Police Department, and the Baltimore Police Department for their assistance. Mr. Barron thanked Assistant U.S. Attorney Kim Y. Oldham, who is 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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Armed Indianapolis Drug Dealer Sentenced to over 15 Years in Federal Prison for Trafficking 3 Kilograms of Fentanyl and Other Controlled SubstancesRead the Press Release
INDIANAPOLIS- Frank Nelson, 45, of Indianapolis, Indiana, was sentenced to 188 months in federal prison for possession with intent to distribute fentanyl.
According to court documents, on August 24, 2021, Drug Enforcement Administration (DEA) officials executed a search warrant at Frank Nelson’s Indianapolis residence for financial documents in connection to an ongoing drug trafficking and money laundering investigation. Nelson was taken into custody upon opening the door for investigators.
During a search of Nelson’s home, officers located a black Puma backpack in the laundry room that contained several clear plastic bags of white powder and brown chunky substances. Shortly after this discovery, law enforcement officers obtained a second search warrant for the same residence to search for narcotics and other instrumentalities. The Puma backpack was searched and found to contain approximately 3 kilograms of fentanyl, 1.6 kilograms of cocaine, and half a kilogram of heroin. According to the DEA, as little as two milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people.
In searching Nelson’s master bedroom, agents located a 9mm semiautomatic pistol in a nightstand and a semiautomatic rifle under the bed. Agents also located $90,310 in United States currency. Inside Nelson’s bedroom closet, agents located a black Nike duffle bag containing 16 taped, brick-shaped objects (approximately 1 kilogram each) filled with cocaine.
In his guilty plea, Nelson admitted that the seized substances contained fentanyl, heroin, and cocaine, and that he possessed the drugs with the intent to sell them.
At the time of his arrest, Nelson was on bond after being charged in 2020 with dealing cocaine in Hendricks County, Indiana.
“We may never know exactly how many lives this defendant is responsible for ruining to satisfy his greed,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Substance abuse disorders take lives and devastate families in all zip codes and of all walks of life. We are grateful to our partners at the DEA and IMPD for investigating this case and taking many kilograms of dangerous drugs off of our streets.”
“The sentence imposed on Mr. Nelson was justified,” said Michael Gannon, Assistant Special Agent in Charge. “Despite being out on bond for a drug offense, Mr. Nelson continued to distribute kilogram quantities of lethal fentanyl, heroin, and cocaine while possessing firearms to facilitate his drug trafficking activities. The DEA remains committed to working hand in hand with our state, local, and federal partners in order to keep our communities safe. The DEA commends the outstanding work by the Indianapolis Metropolitan Police Department and the United States Attorney’s Office.”
The DEA and IMPD Drug Task Force investigated this case. The sentence was imposed by U.S. District Court Judge James R. Sweeney. Judge Sweeney also ordered that Nelson be supervised by the U.S. Probation Office for 5 years following his release from federal prison.
U.S Attorney Myers thanked Assistant United States Attorney Jayson W. McGrath who prosecuted the case.
One Pill Can Kill: Avoid pills bought on the street because One Pill Can Kill. Fentanyl is a highly potent opioid that drug dealers dilute with cutting agents to make counterfeit prescription pills that appear to be Oxycodone, Percocet, Xanax, and other drugs. Fentanyl is used because it’s cheap. Small variations in the quantity or quality of fentanyl in a fake prescription pill can accidentally create a lethal dosage. Fentanyl has now become the leading cause of drug poisoning deaths in the United States. Fake prescription pills laced with fentanyl are usually shaped and colored to look like pills sold at pharmacies, like Percocet and Xanax. For example, fake prescription pills known as “M30s” imitate Oxycodone obtained from a pharmacy, but when sold on the street the pills routinely contain fentanyl. These particular pills are usually round tablets and often light blue in color, though they may be in different shapes and a rainbow of colors. They often have “M” and “30” imprinted on opposite sides of the pill. Do not take these or any other pills bought on the street – they are routinely fake and poisonous, and you won’t know until it’s too late.
Alabama Company Pleads Guilty in Worker Death CaseRead the Press Release
ABC Polymer Industries LLC pleaded guilty yesterday to a willful violation of an Occupational Safety and Health Administration (OSHA) standard that caused a worker’s death. The charge involves an Aug. 16, 2017, incident at the Helena, Alabama, plant owned by ABC Polymer Industries LLC, in which a worker was pulled into a cluster of unguarded moving rollers and killed. U.S. District Judge Annemarie Carney Axon for the Northern District of Alabama accepted the plea.
According to court documents, ABC Polymer operated multiple plastic extrusion lines at its facility, which molded raw materials into flat rectangular plastic sheets. The machinery pulled the sheets through a series of rollers arranged in clusters before cutting them into plastic threads or tapes, which were sold for use in various products. According to court documents filed in connection with the case, the machine at issue in the worker’s death was equipped with a “cage” or barrier guard that could be pulled down over one of the exposed sides of the rollers. OSHA standards require moving machinery such as this to be guarded while the machine is energized.
However, ABC Polymer was aware that its employees routinely raised the guard on its machines to cut tangled plastic off the rollers, thereby operating the machines without the required guarding. ABC Polymer also trained its employees to cut tangled plastic off the rollers while the rollers were in operation. ABC Polymer admitted that it knew or should have known that these practices exposed employees to a risk of injuries and death in violation of federal law.
“This victim’s tragic death was entirely preventable,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Employers who willfully violate OSHA standards are gambling with their employees’ health and lives. We will continue to hold accountable those who fail to follow these critical safety rules.”
“This tragic loss of life could have been avoided by following federal safety standards,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “We are grateful for the work of our OSHA partners in holding employers accountable for the safety of their employees. My office will use the tools available to us to protect Alabama workers and prosecute employers who willfully violate federal safety laws.”
Federal law makes it a class B misdemeanor to willfully fail to follow an OSHA safety standard, where the failure causes the death of an employee. The class B misdemeanor is the only federal criminal charge covering such workplace safety violations. The count of conviction carries a maximum sentence of a $500,000 fine, or twice the financial gain to the defendant or twice the financial loss to another, whichever is greater, and restitution to the victim. Judge Axon scheduled sentencing for Jan. 24 where she will determine the sentence after considering the relevant statutory factors.
This case was investigated by the Occupational Safety and Health Administration of the U.S. Department of Labor.
Trial Attorneys Ethan Eddy and William Shapiro of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorneys Robert Posey and Ryan Rummage for the Northern District of Alabama are prosecuting the case.
Alabama Company Pleads Guilty in Worker Death CaseRead the Press Release
BIRMINGHAM, Ala. – ABC Polymer Industries LLC pleaded guilty yesterday to a willful violation of an Occupational Safety and Health Administration (OSHA) standard that caused a worker’s death. The charge involves an Aug. 16, 2017, incident at the Helena, Alabama, plant owned by ABC Polymer Industries LLC, in which a worker was pulled into a cluster of unguarded moving rollers and killed. U.S. District Judge Annemarie Carney Axon accepted the plea.
According to court documents, ABC Polymer operated multiple plastic extrusion lines at its facility, which molded raw materials into flat rectangular plastic sheets. The machinery pulled the sheets through a series of rollers arranged in clusters before cutting them into plastic threads or tapes, which were sold for use in various products. According to court documents filed in connection with the case, the machine at issue in the worker’s death was equipped with a “cage” or barrier guard that could be pulled down over one of the exposed sides of the rollers. OSHA standards require moving machinery such as this to be guarded while the machine is energized.
However, ABC Polymer was aware that its employees routinely raised the guard on its machines to cut tangled plastic off the rollers, thereby operating the machines without the required guarding. ABC Polymer also trained its employees to cut tangled plastic off the rollers while the rollers were in operation. ABC Polymer admitted that it knew or should have known that these practices exposed employees to a risk of injuries and death in violation of federal law.
“This victim’s tragic death was entirely preventable,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Employers who willfully violate OSHA standards are gambling with their employees’ health and lives. We will continue to hold accountable those who fail to follow these critical safety rules.”
“This tragic loss of life could have been avoided by following federal safety standards,” said U.S. Attorney Escalona. “We are grateful for the work of our OSHA partners in holding employers accountable for the safety of their employees. My office will use the tools available to us to protect Alabama workers and prosecute employers who willfully violate federal safety laws.”
Federal law makes it a class B misdemeanor to willfully fail to follow an OSHA safety standard, where the failure causes the death of an employee. The class B misdemeanor is the only federal criminal charge covering such workplace safety violations. The count of conviction carries a maximum sentence of a $500,000 fine, or twice the financial gain to the defendant or twice the financial loss to another, whichever is greater, and restitution to the victim. Judge Axon will hold a sentencing hearing at a later date, where she will determine the sentence after considering the relevant statutory factors.
This case was investigated by the OSHA of the U.S. Department of Labor.
Assistant U.S. Attorneys Robert Posey and Ryan Rummage for the Northern District of Alabama and Trial Attorneys Ethan Eddy and William Shapiro of the Environment and Natural Resources Division’s Environmental Crimes Section are prosecuting the case.
10 January 2023
Windsor Resident Sentenced to 33 Months in Prison for Defrauding Employer and its Lender of More than $700KRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MARGARET BOISTURE, 51, of Windsor, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 33 months of imprisonment, followed by two years of supervised release, for defrauding her former employer and one of its lenders of more than $700,000. Judge Williams also ordered Boisture to pay a $7,100 fine and to make full restitution.
According to court documents and statements made in court, Boisture functioned as the chief financial employee of ZoneFlow Reactor Technologies, a pre-revenue company in the business of developing and commercializing a new technology that improves the efficiency of the production of hydrogen. PayPal marketed and serviced commercial loans from WebBank, a third-party lender. Between approximately October 2016 and February 2020, Boisture defrauded ZoneFlow, PayPal and WebBank by diverting ZoneFlow money to herself; taking unauthorized loans that caused ZoneFlow to pay additional interest expense; and making misrepresentations to PayPal and WebBank to induce them to make unauthorized loans to ZoneFlow that expanded the pool of money from which Boisture could take.
In total, Boisture’s criminal conduct caused losses of $632,159.78 to ZoneFlow and $78,088.76 to PayPal and WebBank.
On July 19, 2022, Boisture pleaded guilty to one count of wire fraud affecting a financial institution.
Boisture, who is released on a $500,000 bond, is required to report to prison on March 13.
This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney David E. Novick.
Warwick Man Convicted on Drug Trafficking, Firearm Charges as Federal Jury Trial is Set to BeginRead the Press Release
PROVIDENCE – Jose Manuel Rosario-Mella, a/k/a Luis Cortes, 55, of Warwick, arrested in August 2020 by Rhode Island DEA Drug Task Force agents following a month-long investigation into his drug trafficking activities, pleaded guilty in federal court today to possession with intent to distribute 100 grams or more of heroin and being a felon in possession of a firearm, announced United States Attorney Zachary A. Cunha.
Rosario-Mella’s guilty plea was entered as his federal jury trial was scheduled to begin.
On August 12, 2022, DEA agents and Warwick Police detectives executed a court-authorized search of Rosario-Mella’s residence and seized a 1,002-gram brick of heroin from a closet shelf; a loaded 9mm Glock pistol and ammunition in a compartment in the master bedroom; $337,600 in cash; three kilogram presses used to compress heroin into bricks for transportation and sale; and assorted items used in the preparation and distribution of heroin.
Present in the residence at the time of the search was the defendant’s girlfriend and her two minor daughters.
Rosario-Mella is scheduled to be sentenced on April 13, 2023. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney’s Paul F. Daly, Jr., and Zechariah Chafee.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; Rhode Island State Police; and the Central Falls, East Providence, Cranston, Coventry, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick, Woonsocket and Amtrak Police Departments.
Additionally, United States Attorney Cunha thanks ATF for their assistance in the investigation.
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Utah Tax Preparer Sentenced to Prison for Tax Scheme and Obstructing IRSRead the Press Release
A Utah professional tax preparer was sentenced yesterday to 37 months in prison for tax evasion, conspiring to defraud the United States and obstructing the IRS’s efforts to collect his tax debt, which exceeded $1.1 million.
According to court documents and statements made in court, Sergio Sosa, of Orem, owned and operated Sergio Central Latino, a tax preparation business. From approximately 2004 to 2020, Sosa conspired to defraud the United States by concealing his assets and income from the IRS. From 2003 through 2017, Sosa also did not timely file his own tax returns or pay the taxes he owed for these years. After the IRS audited Sosa and began efforts to collect his tax debt – which at the time amounted to more than $750,000 – he obstructed those efforts by using nominees to open business bank accounts, renaming his business and placing it in his children’s names, and making false statements to the IRS. Sosa also directed one of his children to make mortgage payments on his personal residence using funds he provided.
In addition to the term of imprisonment, U.S. District Judge David Sam ordered Sosa to serve 36 months of supervised release and to pay $1,104,737 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Ahmed Almudallal of the Tax Division and Assistant U.S. Attorney Ruth Hackford-Peer for the District of Utah prosecuted the case.
Utah Tax Preparer Sentenced to Prison for Tax Scheme and Obstructing IRSRead the Press Release
WASHINGTON – A Utah professional tax preparer was sentenced yesterday to 37 months in prison for tax evasion, conspiring to defraud the United States and obstructing the IRS’s efforts to collect his tax debt, which exceeded $1.1 million.
According to court documents and statements made in court, Sergio Sosa, of Orem, owned and operated Sergio Central Latino, a tax preparation business. From approximately 2004 to 2020, Sosa conspired to defraud the United States by concealing his assets and income from the IRS. From 2003 through 2017, Sosa also did not timely file his own tax returns or pay the taxes he owed for these years. After the IRS audited Sosa and began efforts to collect his tax debt – which at the time amounted to more than $750,000 – he obstructed those efforts by using nominees to open business bank accounts, renaming his business and placing it in his children’s names, and making false statements to the IRS. Sosa also directed one of his children to make mortgage payments on his personal residence using funds he provided.
In addition to the term of imprisonment, U.S. District Judge David Sam ordered Sosa to serve 36 months of supervised release and to pay $1,104,737 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Ahmed Almudallal of the Tax Division and Assistant U.S. Attorney Ruth Hackford-Peer for the District of Utah prosecuted the case.
United States Attorney Will Thompson to Help Mark National Human Trafficking Awareness DayRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson will join with officials from the Charleston YWCA and other key stakeholders on Wednesday, January 11, 2023, at 11:30 a.m. for National Human Trafficking Awareness Day.
The press conference will include a “Red Sand” event, a visibility initiative to bring attention to the vulnerabilities that can lead to human trafficking and exploitation. The day is part of National Human Trafficking Prevention Month.
WHAT: National Human Trafficking Awareness Day Press Conference
WHEN: Wednesday, January 11, 2023, at 11:30 a.m.
WHERE: Steps of Kanawha County Courthouse, 409 Virginia Street East, Charleston
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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United States Attorney Will Thompson to Address West Virginia Board of EducationRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson will appear before the West Virginia Board of Education during its 9 a.m. meeting on Wednesday, January 11, 2023, to promote career technical education law and public safety programs.
WHAT: Presentation on Career Technical Education Law and Public Safety Programs
WHEN: Wednesday, January 11, 2023. The meeting begins at 9 a.m.
WHERE: West Virginia Board of Education, West Virginia Capitol Complex, Building 6, Suite 600, 1900 Kanawha Boulevard, East, Charleston
Audio of the meeting was live-streamed. Meeting minutes are available here: https://wvde.us/events/2023/1/january-2023-board-meeting.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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U.S. Attorney’s Office for the District of Utah Collects More than $10 Million in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
SALT LAKE CITY, Utah – U.S. Attorney Trina A. Higgins announced today that the District of Utah collected $10,690,252.06 in criminal and civil actions in Fiscal Year 2022. Of this amount, $5,550,041.48 was collected in criminal actions and $5,140,210.58 was collected in civil actions.
Additionally, the District of Utah worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,863,335.61 in cases pursued jointly by these offices. Of this amount, $11,775.00 was collected in criminal actions and $1,851,560.61 was collected in civil actions.
For example, in February 2022, the District of Utah recovered $265,455.45 as part of the settlement in the U.S.A v. Ryan Richard West case where West and his co-defendant Gary Alan Gygi were sentenced separately for defrauding numerous individuals in business venture investment schemes. For more information on this case, see original press release https://www.justice.gov/usao-ut/pr/logan-man-sentenced-five-years-federal-prison-defrauding-investors-his-fraudulent
“The United States Attorney’s Office is committed to the prosecution of crimes involving financial fraud and seeking recovery for victims in these cases,” said U.S. Attorney Trina A. Higgins for the District of Utah.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
U.S. Attorney’s Office Collects $2,088,622.73 in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
HONOLULU – U.S. Attorney Clare E. Connors announced today that the United States Attorney’s Office for the District of Hawaii collected $2,088,622.73 in criminal and civil actions in Fiscal Year 2022. Of this amount, $1,534,259.15 was collected in criminal actions and $554,363.58 was collected in civil actions.
Additionally, the Hawaii U.S. Attorney’s Office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $7,991,796.46 in civil cases pursued jointly by these offices.
“Recouping money owed to the United States, as well as obtaining financial recoveries from those who violate the law, are critical aspects of our system of justice,” said U.S. Attorney Clare E. Connors. “We will vigorously pursue economic sanctions and collections on behalf of our community.”
In August 2022, the District of Hawaii recovered $75,000 from the former Majority Leader of the State of Hawaii Senate, Jamie Kalani English, in partial payment of the $100,000 fine imposed for honest services wire fraud. Over $7.5 million of the amount recovered from cases jointly worked, resulted from a consent decree in an environmental action the United States brought for reimbursement of costs and compensation for natural resource damages associated with the release or threatened release of hazardous substances at the former Oahu Sugar pesticide-mixing area within the Pearl Harbor Superfund Site.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in Hawaii, working with partner agencies and divisions, collected $1,063,208 in asset forfeiture actions in FY 2021. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney Announces Federal Charges Against Man Who Carried Out Machete Attack in Times Square on New Year’s EveRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Merrick B. Garland, the Attorney General of the United States, Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”), Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the FBI, and Keechant L. Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced today that TREVOR THOMAS BICKFORD has been charged with federal crimes in connection with BICKFORD’s efforts to wage jihad by killing U.S. Government officials and his knife attack on three NYPD officers in Times Square on New Year’s Eve. BICKFORD was charged by Complaint with attempting to kill officers and employees of the U.S. Government and persons assisting them. BICKFORD is currently in state custody and will be transported to and presented in Manhattan federal court at a later date to face the federal charges filed in the Southern District of New York.
U.S. Attorney Damian Williams said: “On this past New Year’s Eve, revelers flocked to Times Square to ring in the New Year with friends and family. But Trevor Bickford allegedly targeted the iconic yearly celebration to carry out a brazen act of violence and hatred in the name of jihad. Bickford’s alleged attack in one of the most visited destinations in the world on its busiest night of the year ironically only served to spotlight the coordination, resolve, and dedication of American law enforcement to guard the wellbeing of the public. We sincerely thank our law enforcement partners for their outstanding work and bravery, and especially wish a full and speedy recovery to the officers injured in this senseless attack.”
Attorney General Merrick B. Garland said: “As detailed in today’s complaint, we allege that the defendant plotted a jihad-inspired attack targeting U.S. government officials, and on December 31st, 2022, attacked three NYPD officers who were part of the joint federal-state law enforcement operation protecting the Times Square New Year’s Eve celebration. We are deeply grateful for the bravery of the officers who were injured in this horrible attack and who put their lives on the line every day to serve their communities. Together with our law enforcement partners at every level of government, the Justice Department will continue to work to disrupt, investigate, and prosecute those who target and attack law enforcement and endanger the American people.”
FBI Director Christopher A. Wray said: “As alleged, three New York City Police Department officers were brutally assaulted in a jihad-inspired attack on New Year’s Eve while they were performing their duties to protect their city and those out celebrating the holiday. Being a law enforcement officer requires brave individuals willing to put their lives on the line every day to keep others safe. We are committed to holding those who would target law enforcement with violence fully accountable.”
FBI Assistant Director Michael J. Driscoll said: “As we allege today, Bickford deliberately planned and executed his violent attack against New York City Police Officers who were simply doing their job protecting the public. Only the quick action of these brave officers prevented further harm. The FBI's New York Joint Terrorism Task Force is unwavering in its mission to combat terrorism to keep our city safe, and we will bring any radicalized individual willing to commit violence to justice.”
NYPD Commissioner Keechant L. Sewell said: “An attack against New York City police officers is an attack against all of us – and today’s charges make it clear that such violence will be prosecuted to the fullest extent of the law. Our NYPD family is thankful our heroic officers survived this premeditated ambush, and the entire city commends them for preventing further bloodshed during one of our nation’s largest public events. Clearly, the threat of jihadist terrorism remains very real, and our country’s security begins with the dedicated local, state, and federal law enforcement officers who are committed to keeping us safe. I applaud our NYPD investigators, our partners on the FBI’s New York Joint Terrorism Task Force, and the prosecutors in the U.S. Attorney’s Office for the Southern District of New York for their combined efforts on this important case.”
According to the allegations contained in the Complaint charging the defendant:[1]
In the summer of 2022, BICKFORD, a 19-year-old U.S. citizen and resident of Maine, began accessing and consuming materials espousing radical Islamic ideology, including materials promoting the Taliban and reflecting the teachings of Abu Muhammad al-Maqdisi, a prominent radical Islamic cleric who was a spiritual mentor of al Qaeda. Over the ensuing months, BICKFORD radicalized, devoting himself to violent Islamic extremism and waging jihad.
By November 2022, BICKFORD was interested in traveling to the Middle East to support the Taliban and took steps towards traveling to Afghanistan to ally himself with the Taliban and work with the Taliban to fight against governments that, in BICKFORD’s view, oppress Muslims. BICKFORD dedicated himself to the mission of waging jihad against officials of governments that he believes are anti-Muslim, including the U.S. Government. BICKFORD told a family member that he wanted to travel to the Middle East so that he could be a suicide bomber for his religion. BICKFORD ultimately decided that he would not travel overseas, and instead would wage jihad against the U.S. Government within the United States.
To carry out his jihadist mission, BICKFORD traveled from Maine to New York City in late December. On New Year’s Eve, BICKFORD went to Times Square for the purpose of killing U.S. Government officials, armed with a large, curved knife similar to a machete, known as a kukri, with a blade over one foot long.
Protecting the civilians who attend the annual New Year’s Eve celebration in Times Square requires and involves the coordination, collaboration, and mutual assistance of multiple federal and state law enforcement agencies, including the FBI and NYPD. During this special event, the FBI and NYPD work together and assist each other in the performance of their respective duties, in a collective effort to ensure a safe Times Square New Year’s Eve celebration.
At approximately 10:10 p.m., at 52nd Street and Eighth Avenue, blocks away from the New Year’s Eve celebration in Times Square, BICKFORD attacked three NYPD officers, who were detailed to the joint federal-state law enforcement operation to protect the New Year’s Eve celebration. The location of 52nd Street and Eighth Avenue was an access checkpoint at which spectators could gain entry to the events in Times Square, and both FBI and NYPD personnel were deployed in the area of the checkpoint, including the three officers whom BICKFORD attacked. BICKFORD approached the NYPD officers, declared “Allahu Akbar” — an Arabic phrase meaning “God is great,” which other radical Islamic extremists have similarly proclaimed while carrying out terrorist attacks — and stabbed and struck the officers in the head with his kukri. Before BICKFORD could attack more targets, one of the victim officers shot BICKFORD in the shoulder, stopping the attack, and he was taken into state custody. BICKFORD wounded all three officers, who suffered lacerations and other injuries, and each officer had to be taken to a hospital for treatment.
A bag that BICKFORD brought with him to the Times Square area was subsequently recovered by law enforcement from the scene of the attack. BICKFORD’s bag contained, among other things, a book by al-Maqdisi promoting jihad and BICKFORD’s journal. The al-Maqdisi book encourages followers, among other things, to wage jihad against disbelievers and governments ruled by disbelievers, and to use swords on the heads of disbelievers. An entry in BICKFORD’s journal from December 31, 2022 — that is, the day of his attack — states that “this will likely be my last entry” and that BICKFORD believed his brother, a soldier in the U.S. military, had “joined the ranks of my enemy.” A second bag that BICKFORD was carrying, also recovered by law enforcement near Times Square, contained a book espousing violent Islamic extremism, with certain portions highlighted, including the following: “Fight in the Name of Allah and in the Cause of Allah. Fight against those who do not believe in Allah. Wage a holy war.”
The kukri that BICKFORD used in the attack, depicted below, was recovered by law enforcement from the scene of the attack:
After being treated at a local hospital, during a subsequent Mirandized interview, BICKFORD stated, among other things, the following:
- BICKFORD decided not to travel overseas to wage jihad as originally planned, and instead to commit jihad in New York City. In the days leading up to his New Year’s Eve attack, BICKFORD traveled from Maine to New York City.
- On New Year’s Eve, BICKFORD went to Times Square and walked around the area “trying to figure out the right time to kill.” BICKFORD started reciting verses from the Quran in his head to “hype himself up” for his attack.
- BICKFORD identified an NYPD officer who was isolated from civilians and other officers, took out the kukri from his backpack, declared “Allahu Akbar,” and attacked the officer.
- After attacking that officer, BICKFORD charged at another officer and tried but failed to remove that officer’s firearm from the officer’s holster. One of the officer victims then shot BICKFORD in the shoulder, stopping his attack.
- When asked why he conducted the attack, BICKFORD stated that the officer was a man in uniform who had a weapon; all men of military age were his targets; no one can work for the U.S. Government and be a true Muslim because the U.S. Government supports Israel; and he wanted to kill as many of these targets as he could.
- BICKFORD intended to die in the attack, in an effort to achieve martyrdom. BICKFORD believed his attack was unsuccessful, because he did not kill any officers, and he did not die himself.
* * *
BICKFORD, 19, of Wells, Maine, is charged in the Complaint with four counts of attempted murder of officers and employees of the U.S. Government and persons assisting them, each of which carries a maximum sentence of 20 years in prison. The charges carry an aggregate potential sentence of 80 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies.
The case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Sarah L. Kushner and Kaylan E. Lasky are in charge of the prosecution with assistance from Trial Attorney D. Andrew Sigler of the Counterterrorism Section of the Department of Justice’s National Security Division.
The charges contained in the Complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations and every fact described should be treated as an allegation.
Two Men Sentenced to Prison for Distributing Controlled Substances Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Demetrius Taylor, age 30, of Patterson, New Jersey, and Joseph Decker, age 28, of Monroe County, Pennsylvania, were sentenced by U.S. District Court Judge Malachy E. Mannion for heroin/fentanyl trafficking offenses resulting in death. Taylor received a sentence of 240 months in prison and Decker was sentenced to 180 months in prison.
According to United States Attorney Gerard M. Karam, both Decker and Taylor previously pleaded guilty to distribution and possession with intent to distribute heroin and fentanyl, resulting in death. On February 21, 2020, Taylor distributed heroin and fentanyl to Decker, who subsequently distributed the heroin and fentanyl to an individual who, in turn, shared it with a 32-year-old woman. The woman overdosed and died on February 26, 2020 after ingesting the drugs.
On July 18, 2022, Taylor and Decker’s co-conspirator, Mary Keiper, age 27, of Monroe County, pleaded guilty to conspiring to distribute and possesses with intent to distribute more than 100 grams of heroin and fentanyl and is awaiting sentencing.
The charges stem from a joint investigation involving the Federal Bureau of Investigation (FBI) in Scranton, the Pennsylvania State Police, and the Pocono Mountain Regional Police Department. United States Attorney Michelle Olshefski is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and fentanyl. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Town of Greenwich Agrees to Increase Accessibility at Marina to Comply with Americans with Disabilities ActRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with the Town of Greenwich to resolve allegations that a Greenwich marina was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with disabilities alleging that Greenwich’s Byram Marina has no designated accessible boat slips and no accessible routes to the boat slips. As a result, the marina is not accessible to individuals with physical disabilities. Greenwich is in the process of making significant improvements to the Byram Marina, as required by the settlement agreement, including improving the accessibility of designated boat slips, and the routes to those slips, as well as other accommodations designed to increase accessibility.
Under federal law, public entities are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
“Among the most important protections provided by the Americans with Disabilities Act are those ensuring individuals with disabilities have access to public services, including recreational activities such as boating,” stated U.S. Attorney Avery. “Our Office is committed to enforcing the ADA, which requires public entities, including municipalities, to provide access to individuals with disabilities. We greatly appreciate the willingness of the Town of Greenwich and its leaders to work with our office collaboratively to increase the accessibility and usability of Greenwich’s facilities.”
Any member of the public who wishes to file a complaint alleging that a public entity or place of public accommodation in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney William M. Brown, Jr. of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Three U.S. Postal Service Employees Charged in Million Dollar National Coronavirus Fraud RingRead the Press Release
FLORENCE, SOUTH CAROLINA — Three defendants – all of whom were U.S. Postal Service employees during this alleged fraud scheme – have been charged in the District of South Carolina for their alleged roles in a fraud scheme related to the Coronavirus Aid, Relief, and Economic Security Act’s Paycheck Protection Program (PPP).
The scheme involved as many as 400 fraudulent PPP loan applications, the majority of which were for applicants in South Carolina. The indictment alleges the scheme resulted in more than $1 million in fraudulently obtained PPP loans, and according to evidence presented at the defendants’ bond hearing, that figure may be as high as $8 million.
The indicted defendants are:
- Tiffany McFadden, 40, a former U.S. Postal Service employee from Brooklyn, New York, and Port St. Lucie, Florida;
- Cherry Lewis, 43, a U.S. Postal Service employee from Johnsonville, South Carolina; and
- Keisha Lewis, 33, a U.S. Postal Service employee from Hemingway, South Carolina.
The indictment alleges that the defendants were part of a national scheme, led by McFadden, that fraudulently acquired PPP loans. The PPP loan program was administered by the Small Business Administration (SBA) and provided forgivable loans to small businesses for job retention and certain other expenses during, and resulting from, the COVID-19 pandemic.
McFadden, according to the indictment, created false and fraudulent PPP loan applications by obtaining the personal identifying information (PII) of putative PPP loan applicants. She used that information to create tax documents and other paperwork related to non-existent businesses. McFadden then submitted that information to SBA-approved lenders, and the loan recipients received PPP loans they were not entitled to. In exchange for her services, McFadden would receive a portion of the funds. The indictment alleges that McFadden would also assist in getting the loans forgiven through the SBA.
Cherry Lewis and Keisha Lewis, as alleged in the indictment, assisted McFadden in the scheme. They requested and received blank and fillable tax forms from McFadden, which they used to assist others in completing fraudulent PPP loan applications. The indictment further alleges that both Cherry Lewis and Keisha Lewis also personally obtained at least one fraudulently obtained PPP loan.
The defendants were arrested by the U.S. Secret Service on January 6, 2023. That same day, they were arraigned before U.S. Magistrate Judge Kaymani D. West at the federal courthouse in Florence, South Carolina, and released on bond pending trial.
“Any member of the public who has information related to this scheme is encouraged to contact the U.S. Secret Service,” said U.S. Attorney Adair F. Boroughs. “PPP loans were intended to help businesses survive unprecedented challenges. Every dollar stolen from this program was stolen from taxpayers and legitimate businesses in need of support. This office takes pandemic-related crime seriously and stands ready to prosecute such fraud in all its forms.”
Any member of the public who has information related to this scheme is encouraged to contact the Columbia, South Carolina, field office of the U.S. Secret Service at 803-772-4015.
Each defendant faces a maximum penalty of 20 years in prison, fines, and restitution.
The case was investigated by the U.S. Secret Service, with assistance from the U.S. Postal Inspection Service, the Small Business Administration, the Florence County Sheriff's Office, and the Williamsburg County Sheriff's Office. Assistant U.S. Attorneys Elliott B. Daniels and Winston Marosek, who also serves as the Office’s Coronavirus Fraud Coordinator, are prosecuting the case. A copy of the indictment is attached.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Three Plead Guilty in OCDETF Operation: Return to SenderRead the Press Release
PITTSBURGH, PA – Three Pennsylvania men have pleaded guilty in federal court to violation of federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
Jeffrey Peters, age 66, of Hyde, Pennsylvania, pleaded guilty to one count of conspiracy to distribute and possesses with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine before United States District Judge Christy Criswell Wiegand.
In connection with the guilty plea, the court was advised that Peters was a methamphetamine distributor who obtained between 500 grams and 1.5 kilograms of methamphetamine as part of a large-scale methamphetamine distribution conspiracy and redistributed it to methamphetamine users. Peters also conspired with two other individuals to retrieve parcels containing methamphetamine and marijuana that were shipped from Nevada and transported them to Derek Hillebrand, the head of the drug trafficking organization.
Terrence Dougherty, age 28, of Pittsburgh, Pennsylvania, pleaded guilty to one count of conspiracy to distribute and possesses with intent to distribute 50 grams or more of methamphetamine before Judge Wiegand.
In connection with the guilty plea, the court was advised that intercepted communications revealed that Dougherty ordered at least 60 pounds of methamphetamine from George Charlan, a methamphetamine distributor based in Oregon. Individuals working for Charlan shipped from Nevada to Dougherty, and approximately 4.5 kilograms of methamphetamine intended for Dougherty was interdicted by federal agents. Agents seized approximately half of a pound of methamphetamine, a large amount of marijuana, a firearm, and approximately $18,840 in United States currency during a search of Dougherty’s residence.
Yusuf Adekunle, age 27, of Philadelphia, Pennsylvania, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, one count of possession with intent to distribute five kilograms or more of cocaine, and one count of conspiracy to distribute a quantity of marijuana before Judge Wiegand.
In connection with the guilty plea, the court was advised that on Oct. 22, 2020, Adekunle and three other individuals chartered a private plane and transported six kilograms of cocaine from Houston to Pittsburgh International Airport. Investigators obtained a search warrant for the plane and seized the cocaine from two pieces of luggage. The court was further advised that the defendant obtained and distributed between 20 kilograms and 40 kilograms of marijuana between July of 2020 and August of 2021. Agents seized approximately 700 grams of marijuana and a firearm during a search of Adekunle’s residence.
Judge Wiegand scheduled sentencing for Peters on May 11, 2023, at 10:00 a.m.; for Judge Dougherty on May 3, 2023, at 10:00 a.m.; and for Adekunle on May 2, 2023, at 10:00 a.m. The law provides for a sentence of not less than ten years to a maximum of life in prison, a fine not to exceed $10,000,000, or both for all defendants. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant.
The court ordered that Peters and Dougherty remain on bond pending sentencing. The court ordered that Adekunle remain detained pending sentencing.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Texas Chicano Brotherhood general sent to prisonRead the Press Release
VICTORIA, Texas – A 53-year-old resident of Harlingen has been ordered to prison for his role in a cocaine conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
Tony “Klownman” Torres, a general within the Texas Chicano Brotherhood criminal organization, pleaded guilty Nov. 8 , 2022, to conspiracy to possess with intent to distribute cocaine and being a felon in possession of a firearm.
Today, Senior U.S. District Judge John D. Rainey ordered Torres to prison for 10 years to be immediately followed by five years of supervised release.
The Texas Chicano Brotherhood is a prison gang operating primarily in the Rio Grande Valley. Many members of the criminal organization have been convicted of crimes that include murders, home invasions, kidnappings and drug trafficking.
“Gangs like the Texas Chicano Brotherhood often rely on trafficking deadly narcotics to fund their operations and other illicit criminal activities,” said Assistant Special Agent in Charge Mario Trevino of Homeland Security Investigations (HSI) Corpus Christi. “By working alongside our federal, state and local law enforcement partners to disrupt their drug trafficking operations, we are able to keep these deadly poisons from destroying countless lives and prevent the gang from raising the criminal proceeds that they need to reign terror on our local communities.”
The investigation began in 2016 and revealed the drug trafficking operation involved the distribution of over five kilograms of cocaine. It led to the identities of at least 70 Texas Chicano Brotherhood members and exposed the organization’s rank and structure.
Torres was one of two generals and oversaw the groups criminal activities in the “free world” after they were released from prison. Torres was found to have distributed cocaine in the Harlingen area as his part of the overall conspiracy.
Ultimately, law enforcement conducted a search warrant at his residence which resulted in the seizure of a .357 Smith & Wesson revolver. As a convicted felon, he is prohibited per federal law of possessing a firearm or ammunition.
Torres has been and will remain in custody pending transfer to a U.S. Bureau Prisons facility to be determined in the near future.
Torres is the third high-ranking member of the gang to be sentenced in the case. In 2020, Judge Rainey sentenced Ricardo Garcia, Rio Grande City, to a 20-month-term of imprisonment, while Rafael Diaz, also of Rio Grande City, received a sentence of 145 months. Garcia and Diaz are a major and captain, respectively, in the Texas Chicano Brotherhood organization.
HSI conducted the investigation along with Texas Department of Public Safety; Bureau of Alcohol, Tobacco, Firearms and Explosives; Border Prosecution Unit from the Starr County and Hidalgo County District Attorney’s Office and Texas Office of the Attorney General. Assistant U.S. Attorneys Patti Hubert Booth and David Paxton prosecuted the case.
Stonington Man Pleads Guilty to Child Exploitation OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MATTHEW X. SMITH, 28, of Stonington, pleaded guilty before U.S. District Judge Jeffery A. Meyer in New Haven to soliciting child pornography.
According to court documents and statements made in court, on August 12, 2021, Smith, using the Kik social media application, initiated contact with an FBI Online Covert Employee (“OCE”) who was posing as a 14-year-old girl. Smith sent sexually explicit messages to the OCE, requested the OCE send him sexually explicit pictures, and discussed meeting the OCE to engage in sexual conduct. The Kik communication continued in the following days, and investigators also determined that Smith, using a different Kik user account, had engaged in sexually explicit exchanges with the OCE in 2020. Smith and the OCE agreed to meet on August 18, 2021.
On August 18, 2021, Smith was arrested by New London Police on state charges after he arrived at the agreed upon meeting location. He was charged by federal criminal complaint in February 2022.
Judge Meyer has scheduled sentencing for April 4, 2023, at which time Smith faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years. Smith is released on a $100,000 bond pending sentencing.
This matter has been investigated by the Federal Bureau of Investigation, with the assistance of the New London Police Department. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Stilwell, Oklahoma Resident Sentenced to Life Imprisonment for Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Earl McAlister, age 55, of Stilwell, Oklahoma, was sentenced to life imprisonment and 5 years of supervised release for Murder in Indian Country – Second Degree. The charges arose from an investigation by the Federal Bureau of Investigation and the Adair County Sheriff’s Office.
The defendant previously entered a guilty plea to an Information filed in August 2022 alleging that on or about November 17, 2019, within the Eastern District of Oklahoma, in Indian Country, the defendant, Earl McAlister, a non-Indian, with malice aforethought, did unlawfully kill Randolph England, an Indian, in violation of Title 18, United States Code, Sections 1111(a), 1151, 1152, and 2. The investigation revealed that McAlister shot England two times. After which, McAlister along with others drove to his “compound,” placed the victim’s body on a burn pile with tires and set him on fire until nothing was left but bone fragments and teeth. McAlister then dumped the victim’s remains down a ravine in a plastic container. Investigators were able to identify the victim by comparing dental records.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the victim in this case was a member of a federally recognized Indian tribe and the crime occurred in Adair County, within the boundaries of the Cherokee Nation Reservation and within the Eastern District of Oklahoma.
“The life sentence imposed by the Court is fitting punishment for the defendant’s vicious acts,” said United States Attorney Christopher Wilson. “I am thankful for the cooperative efforts of local, state, and federal law enforcement in working this case. Investigating and prosecuting violent crimes like this one will continue to be a priority for the United States Attorney’s Office.”
“The murder of Randolph England was senseless and horrific, but today’s sentencing ensures the defendant will remain safely away from the public for the rest of his life,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “The FBI will continue to work closely with our law enforcement partners to investigate the most serious crimes in Indian Country.”
The Honorable David Cleveland Joseph, U.S. District Judge from the United States District Court for the Western District of Louisiana, temporarily assigned to the Eastern District of Oklahoma, presided over the hearing. McAlister will remain in custody pending transportation to a designated United States Bureau of Prisons facility to serve his non-paroleable sentence of incarceration.
Assistant United States Attorney Cameron McEwen represented the United States.
St. Paul Felon Charged with Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A St. Paul man has been charged in a federal indictment for illegal possession of a firearm as an armed career criminal, announced U.S. Attorney Andrew M. Luger.
According to court documents, on October 4, 2022, Torrence Ricardo Finley, 33, was found in possession of a Taurus, G3X, 9mm semi-automatic handgun. Because Finley has prior felony convictions, including multiple domestic assault convictions, in Chisago, Dakota, and Ramsey Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
The indictment charges Finley with one count of possession of a firearm as an armed career criminal. He was arraigned yesterday in U.S. District Court before Magistrate Judge Tony N. Leung. Finley was ordered to remain in detention pending further court proceedings.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Minneapolis Police Department, and the Hennepin County Sheriff’s Department.
Assistant U.S. Attorney Emily A. Polachek is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
St. Louis Man Caught with Two Fully Automatic Glocks Charged with Gun CrimeRead the Press Release
ST. LOUIS – A man from St. Louis, Missouri caught with two illegally modified, fully automatic Glock handguns and suspected narcotics has been charged with a federal gun crime.
Courtlend D. Green, 25, was charged by complaint in U.S. District Court in St. Louis with being a felon in possession of a firearm. He is in custody and is scheduled to appeal in federal court Tuesday.
An affidavit filed in support of the complaint says St. Louis Metropolitan Department officers were told that Green, a documented gang member, was selling narcotics. Police spotted Green and surrounded him in his parked car, deploying spike strips. Green drove off and crashed into an occupied vehicle a short distance away and then fled on foot before he was arrested, the affidavit says.
Police found two Glock handguns modified with conversion devices, also known as switches, that make them fully automatic, the affidavit says. One had a drum magazine containing 41 rounds and the other had a 20-round extended magazine. Police also found suspected narcotics. Green was convicted of involuntary manslaughter in St. Louis Circuit Court in 2022 and is therefore not permitted to possess a firearm, the affidavit says.
Federal and state officials at a news conference Thursday warned of Glock switches and the dangerous trend of an increase in conversion devices being used and found in the St. Louis area and around the country.
Christopher Beavers, Assistant Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, said Thursday that the ATF has seen a 500% increase in the number conversion devices recovered as part of criminal investigations across the country.
Lt. Col. Michael Sack of the St. Louis Metropolitan Police Department, said the crime lab has seen a similar large increase in the number of Glock switches seized and analyzed, with one in 2019, one in 2020, 27 in 2022 and three in the first five days of 2023 alone.
Courtesy of the U.S. Attorney's office.U.S. Attorney Sayler Fleming said, “Our office is taking this extremely seriously and we will use all of the statutes and all the punishment provisions that we have available to us.”
“Under federal law, the mere possession of the device is punishable by up to 10 years in prison,” Fleming said, even if not installed in or on a firearm.
But Fleming also cautioned that if a firearm with a conversion device is used while committing a serious drug offense or a crime of violence as defined by federal law, “you’re going to be looking at… not less than 30 years imprisonment. And let me add that that is consecutive to any other sentence you may receive.”
Fleming said a Glock with a conversion device was used to fatally shoot 16-year-old Terrion Smith in downtown St. Louis in March.
Officers are also seeing more high-capacity magazines being used with the firearms.
“These things are dangerous to our officers because of the rate of fire of these weapons,” Sack said. “They are also dangerous to everybody in the neighborhood because of their inaccuracy.”
A fully automatic pistol is difficult to control and “inherently dangerous,” he said.
Both Beavers and Sack said the devices also frequently malfunction.
Sack also said that there were 66 ShotSpotter reports of fully automatic gunfire in St. Louis in 2021 and 339 through December 12th of 2022. St. Louis County has seen similar increases, as the weapons move frequently between jurisdictions.
Green also faces drug, weapon and other charges in St. Louis Circuit Court.
Charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
St. Louis County Business Owner Admits $231,100 Pandemic Loan FraudRead the Press Release
ST. LOUIS – A business owner from St. Louis County, Missouri on Tuesday admitted a role in fraudulently applying for pandemic-related loans totaling $231,100.
Joe C. Cohen Jr., 66, of Bel Ridge, pleaded guilty in front of U.S. District Judge Catherine D. Perry to two felony counts of theft of government property.
Cohen admitted providing his personal information to someone who submitted applications for Economic Injury Disaster Loans for two of Cohen’s businesses with falsified information, overstating the revenue and number of employees for the businesses. The loans were intended to help business owners struggling with the economic effects of the COVID-19 pandemic.
Cohen knew that this person was going to submit the applications, and deposited the resulting loan money, $110,000 in one loan and $121,100 in the other, into his checking accounts, according to his guilty plea. He then transferred a portion of the money to the man who applied for the loans.
Cohen was indicted in October. He is scheduled to be sentenced April 14 and could face up to 10 years in prison, a $250,000 fine, or both. He will also be ordered to repay the money.
The case was investigated by the Social Security Administration Office of Inspector General. Assistant U.S. Attorney Diane Klocke is prosecuting the case.
South Florida Doctor Sentenced to Prison for Unlawfully Dispensing NarcoticsRead the Press Release
MIAMI – Dr. Ronald Lubetsky was sentenced today to five years in prison by U.S. District Judge Donald M. Middlebrooks for unlawfully dispensing narcotics—specifically oxycodone and morphine.
Lubetsky was convicted at trial in November on seven counts of unlawfully dispensing narcotics. Trial evidence showed that law enforcement learned of Lubetsky’s operation and practices over the course of more than two years. They learned that Lubetsky prescribed large doses of opioid pain medication that were not supported by any demonstrable medical need and were therefore without any legal basis.
An expert medical witness called by the government testified that Lubetsky’s prescribing practices were far outside the scope of generally accepted medical practices, were not prescribed for any legitimate medical purpose, and could have had dangerous effects on the patients.
On two different occasions, law enforcement discovered that a patient had told Lubetsky that she had sold or given away some of her oxycodone pills. When hearing this, the doctor simply issued her more prescriptions. Even an expert medical witness called to testify on behalf of the doctor conceded that some of the doses of opioids Lubetsky prescribed could have sent his patient to the emergency room had she taken them.
At sentencing, the United States also provided evidence that during the course of the Drug Enforcement Administration’s (DEA) investigation, four of Lubetsky’s patients had been arrested for drug deals they set up while in the waiting room of the doctor’s office.
Markenzy Lapointe, U.S. Attorney for the Southern District of Florida, and Special Agent in Charge Deanne L. Reuter, DEA, Miami Field Division, made the announcement.
DEA, Miami Field Division, investigated this case with assistance from City of Miami Police Department; Miami Gardens Police Department; Miami-Dade Police Department; and Aventura Police Department. Assistant U.S. Attorney Frank Tamen prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 21-CR-20485.
Sioux City Man Sentenced to Federal Prison for Escape from Federal CustodyRead the Press Release
A man who walked out of a residential reentry center in Sioux City was sentenced on January 6, 2023, to more than one year in federal prison.
Paul Marvin Cooper, age 25, from Sioux City, received the prison term after an October 14, 2022, guilty plea to one count of escape from federal custody.
In a plea agreement, Cooper admitted that he knowingly escaped from custody of Dismas Charities Residential Reentry Center in Sioux City, Iowa, where he was lawfully confined by virtue of a conviction for Conspiracy to Distribute a Controlled Substance in the District of South Dakota.
On July 7, 2022, Cooper signed out of Dismas Charities to attend a treatment program in downtown Sioux City. At approximately 6:20 p.m. on July 7th, Dismas was alerted of a tampering alarm on Cooper’s GPS device along with its location. Dismas staff tried contacting Cooper’s personal phone several times but there was no answer. The GPS was later located in the trash at a retail store on Floyd Boulevard in Sioux City and appeared to have been cut off. Cooper’s whereabouts were unknown until he was arrested on July 12, 2022, by the United States Marshals Service at a retail store located on Pierce Street in Sioux City.
Cooper was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Cook was sentenced to 12 months’ and one-day imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Cooper is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 22-CR-4056.
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Shreveport Man Sentenced for Illegal Possession of a Firearm and DrugsRead the Press Release
SHREVEPORT, La. – Denell Linn Lee, 44, of Shreveport, Louisiana, was sentenced today on drug and firearms charges, United States Attorney Brandon B. Brown announced. United States District Judge Elizabeth E. Foote sentenced Lee to 115 months (8 years, 7 months) in prison, followed by 3 years of supervised release. Lee pleaded guilty on September 27, 2022, to possession of a firearm by a convicted felon and possession with intent to distribute methamphetamine.
According to information presented to the court, on the evening of February 27, 2020, agents with the Caddo-Shreveport Street Level Interdiction Unit and agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) stopped Lee for driving a car without a license plate. As agents approached the vehicle, they detected a strong odor of marijuana coming from inside the vehicle. Law enforcement officers lawfully searched the vehicle and found a small amount of marijuana on the driver’s side floorboard where Lee had been sitting. In addition, agents found a bag containing a .22 caliber revolver, a digital scale, and approximately 565 tablets of a substance containing methamphetamine. The combined weight of the tablets was over 100 grams.
Lee has a lengthy criminal history, including convictions for simple kidnapping, simple burglary, attempted possession of a firearm by a convicted felon, domestic abuse battery, and domestic abuse with strangulation. As a convicted felon, Lee is prohibited from possessing any firearm or ammunition.
The case was investigated by the ATF and Shreveport Police Department and prosecuted by Assistant U.S. Attorney Mike Shannon.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Shiprock woman sentenced to five years and 10 months in prison for assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Faith Nicholle Sullivan was sentenced on Jan. 9 to five years and ten months in prison. Sullivan, 28, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, pleaded guilty on July 12 to assault with a dangerous weapon in Indian Country.
On June 8, 2021, Navajo Police responded to a report of a fight involving Sullivan at her residence in Shiprock on the Navajo Nation. As one of the responding officers was speaking with Sullivan outside the residence, Sullivan, who was intoxicated, pulled a knife and began to swing it at the officer. The officer tackled Sullivan and took away the knife. A second officer deployed a taser and the officers subdued Sullivan.
During the assault, Sullivan stabbed the first officer in the leg. The officer was transported to the Northern Navajo Medical Center for care.
Upon her release from prison, Sullivan will be subject to three years of supervised release.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Department of Criminal Investigation and the Navajo Police Department. Assistant United States Attorney Alexander F. Flores prosecuted the case.
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Scott County Man Sentenced for Wire FraudRead the Press Release
LEXINGTON, Ky. – A Georgetown, Ky., man, Ralph Tackett, 66, was sentenced to 33 months in federal prison on Monday, by Chief U.S. District Judge Danny C. Reeves, for wire fraud.
According to the agreed facts presented, Tackett was the treasurer of a church in Georgetown, who embezzled a total of $512,042.00, in part through the commission of wire fraud. Tackett admitted, among other facts, that from December 2015 until July of 2019, he stole money directly from the church, by transferring funds to pay on his personal credit cards, by issuing checks which he deposited into his own personal and business accounts for his own benefit, and by unlawfully transferring money in other ways, to meet the demands of a third-party. Throughout this time, Tackett concealed the true nature of the church’s expenditures from the church Pastor and Board members, by exploiting his position of trust and the access he wielded as the organization’s treasurer. The church endured substantial financial hardship as a result of Tackett’s theft.
As part of his sentence, Tackett was ordered to pay restitution in the amount of $532,807.46 to the church. This amount includes the amount of money he embezzled directly, as well as the additional costs the church was found to have incurred as a direct result of Tackett’s crime.
Under federal law, Tackett must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.
The investigation was conducted by the FBI. The United States was represented by Assistant United States Attorney Tashena A. Fannin.
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San Antonio Man Sentenced to 13 Years for Receiving Child PornographyRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced Thursday to 160 months in prison for the receipt of child sexual abuse material.
According to court documents, Dustin Kotara, 42, participated in a messaging group dedicated to child abuse and exploitation. Through the phone app, Kotara sent child sexual abuse material to an undercover agent. In addition to his 13-year prison sentence, Kotara received 25 years of supervised release and was ordered to pay a total of $45,000 in restitution to nine child victims.
“Individuals who traffic child pornography further victimize those children by enabling the production of child sexual abuse material,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “This results in the direct abuse of children. Our office will continue to identify and prosecute those who prey on the most vulnerable members of our society.”
“This is a horrible crime, and our agents and law enforcement partners are working to prevent these types of crimes every single day,” said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Division. “The FBI will remain vigilant in our efforts to rescue children from those who seek to exploit or prey upon them.”
The FBI investigated the case.
Assistant U.S. Attorney Tracy Thompson 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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Sacramento Area Home Health Care and Hospice Agencies Owner Sentenced to 25 Months in Prison for Conspiring to Defraud MedicareRead the Press Release
SACRAMENTO, Calif. — Akop Atoyan, 51, of Glendale, was sentenced today to 25 months in prison for one count of conspiracy to commit health care fraud and one count of conspiracy to pay and receive health care kickbacks, U.S. Attorney Phillip A. Talbert announced.
In addition, Atoyan was ordered to pay $2,525,363 in restitution to the U.S. Department of Health and Human Services and to forfeit that same amount to the United States.
According to court documents, Atoyan and his wife, Liana Karapetyan, owned and controlled home health care and hospice agencies in the greater Sacramento area: ANG Health Care Inc., Excel Home Healthcare Inc., and Excel Hospice Inc. On behalf of the agencies, Atoyan and Karapetyan certified to Medicare that they would not pay kickbacks in exchange for Medicare beneficiary referrals to the agencies.
Despite their certifications, from at least July 2015 through April 2019, Atoyan and Karapetyan paid and directed others to pay kickbacks to multiple individuals for beneficiary referrals, including employees of health care facilities, as well as employees’ spouses. The kickback recipients included John Eby, a registered nurse who worked for a hospital in Sacramento; Anita Vijay, the director of social services at a skilled nursing and assisted living facility in Sacramento; Jai Vijay, Anita Vijay’s husband; and Mariela Panganiban, the director of social services at a skilled nursing facility in Roseville.
In total, Atoyan, Karapetyan, and others caused the agencies to submit over 8,000 claims to Medicare for the cost of home health care and hospice services. Based on those claims, Medicare paid the agencies approximately $31 million. Of that amount, Medicare paid the agencies at least $2.5 million for services purportedly provided to beneficiaries referred in exchange for kickbacks paid to, among others, Eby, Anita Vijay, Jai Vijay, and Panganiban. Because the agencies obtained the beneficiary referrals by paying kickbacks, the agencies should not have received any Medicare reimbursement.
This case was the product of an investigation by the Federal Bureau of Investigation and the Department of Health and Human Services’ Office of Inspector General. Assistant U.S. Attorney Matthew Thuesen prosecuted the case.
In separate cases, Eby and Panganiban await sentencing after pleading guilty for their roles in the kickback scheme. On Jan. 20, 2022, Anita Vijay was sentenced to one month in prison, and Jai Vijay was sentenced to two years’ probation. On July 21, 2022, Karapetyan was sentenced to 18 months in prison.
Richmond Man Sentenced for Using a Firearm while Trafficking DrugsRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced to five years in prison today for using and carrying a firearm during and in relation to a serious felony drug trafficking crime.
According to court documents, on March 10, 2022, Deshan Harris, 21, possessed a concealed semiautomatic pistol while he possessed a half ounce of crack cocaine with intent to distribute it. Police encountered Harris after observing him leaving the area of the Carolina Express convenience store located in the North Highland Park area of Richmond.
According to information presented at sentencing, when the police stopped Harris’s vehicle, Harris failed to comply with the officers’ lawful requests during the traffic stop as Harris concealed the loaded, 9mm semiautomatic pistol under his leg. A subsequent search of Harris’ vehicle resulted in the seizure of 15.9 grams of cocaine, oxycodone pills, over an ounce of marijuana, a digital scale, packaging materials, $852 in U.S. currency and an extended magazine loaded with 9mm ammunition. A search of Harris’s person resulted in the recovery of $1,714 in U.S. currency.
Just eight days earlier, police had seized another loaded, concealed pistol from Harris. According to ballistic evaluations submitted to the National Integrated Ballistic Information Network (NIBIN), Ti’Eric Brooks (Case No. 3:22-cr-79) straw purchased the pistol 28 days earlier. From the time of the pistol’s purchase until its recovery from Harris on March 2, 2022, that pistol had been used in a shooting at the Homewood Suites by Hilton in the City of Richmond and the shooting of a young man off Porter Street.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Christopher Amon, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division made the announcement after U.S. District Judge David J. Novak imposed the sentence.
Assistant U.S. Attorneys Olivia Norman and Jessica Wright are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), which 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.
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. 3:22-cr-80.
Retired St. Louis Priest Sentenced to 5 Years in Prison for Possessing Child PornographyRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a retired St. Louis priest who created PowerPoint presentations containing child pornography to five years in prison.
Judge Schelp also ordered James T. Beighlie, 72, to pay $4,750 in restitution to one of the victims portrayed in the child pornography, and $22,000 in special assessments that will go towards other victims of crimes involving children. After his release from prison, he will be on supervised release for life.
Beighlie possessed 6,000 images containing child sexual abuse material on one computer, including about 3,000 images containing child pornography and 2,992 images of child erotica. Beighlie created two PowerPoint presentations with graphic titles that linked to thousands of the images, and often visited and edited the presentations over a period of years. Another computer had 236 images and 40 videos containing child sexual abuse material.
“It’s depressing and sickening to know that people were looking at images and videos of my online sexual abuse when I was a little girl and that they were getting pleasure from it – my abuse,” wrote one of the victims in a letter to Judge Schelp.
Beighlie had been looking at child sexual abuse material since at least 2008, Assistant U.S. Attorney Colleen Lang said in court, and revised his PowerPoint presentations more than 200 times. “This criminal conduct was part of his daily life,” Lang said.
On May 17, 2021, while he was working at the Congregation of the Mission in St. Louis, colleagues found compromising images of Beighlie on a church printer.
The church launched an internal investigation. When a private IT support company found what appeared to be videos of minors engaging in sex acts, an attorney for the church contacted the FBI.
Beighlie pleaded guilty in October to two counts of possession of child pornography.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Colleen Lang is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Repeat offender sent to prison againRead the Press Release
CORPUS CHRISTI, Texas - A 37-year-old member of the Texas Syndicate prison gang has been ordered to federal prison for possessing firearms as a convicted felon, announced U.S. Attorney Alamdar S. Hamdani.
John Henry Jimenez aka Joker, Corpus Christi, pleaded guilty Sept. 28, 2022.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Jimenez to serve 40 months in federal prison to be immediately followed by three years of supervised release.
At the hearing, Judge Ramos heard evidence of his extensive criminal history involving narcotics, firearms, burglary and assaults. She also heard evidence that Jimenez is an active member in the Texas Syndicate Prison Gang.
On March 2, 2022, law enforcement conducted a traffic stop on the vehicle Jimenez was driving, at which time they found a handgun with an obliterated serial number under his seat.
A traffic stop two months later led to his arrest again. While officers were taking him into custody, they discovered a handgun in his waistband.
Jimenez had been on supervised release since 2020 after serving a 77-month-term for being a felon in possession of a firearm. As a convicted felon, he is prohibited from possessing a firearm or ammunition per federal law.
Jimenez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Corpus Christi Police Department’s Gang Unit. Assistant U.S. Attorney Barbara J. De Pena prosecuted the case.
Renton, Washington, resident sentenced to ten years in prison for drug trafficking while armed with a stolen handgunRead the Press Release
Seattle – A Renton, Washington resident who continued to deal drugs and possess firearms after many of his coconspirators were arrested and charged federally, was sentenced today in U.S. District Court in Seattle to ten years in prison, announced U.S. Attorney Nick Brown. Gerson Alberto Flores-Rivera, 28, pleaded guilty in May 2022 to distribution of methamphetamine, possession of fentanyl with intent to distribute, possession of methamphetamine, heroin, and fentanyl with intent to distribute and carrying a firearm during and in relation to a drug trafficking crime. At the sentencing hearing U.S. District Judge John C. Coughenour said, “Fentanyl is the worst we’ve seen – meth was the worst before fentanyl came along…. The other tragic thing about fentanyl that really bothers me is that it tends to be focused on younger people. It’s the young people that are dying.”
Fentanyl pillsFlores-Rivera had been heard on the wire-tap involving a drug trafficking organization related to the CJNG cartel. When members of that group were arrested in July 2020, Flores-Rivera’s identity was not fully known. His full identity and role in the CJNG related cartel came into focus in the spring of 2021, as Flores-Rivera continued to sell drugs. On five different dates between February and May 2021, Flores-Rivera sold methamphetamine and fentanyl to a person working with law enforcement. Following the last drug deal, Flores-Rivera was arrested with 500 fentanyl pills and a loaded stolen Glock 9mm semi-automatic handgun with an extended magazine.
Stolen handgunA court authorized search of Flores-Rivera’s apartment turned up 24 kilos of methamphetamine hidden in his couch, 2 kilos of heroin, 16,000 fentanyl pills, another firearm, and more than $45,000 in cash.
Drugs hidden in couchIn asking the court to impose a ten-year sentence prosecutors wrote, “After working alongside members of one of the most violent drug trafficking organizations our District has prosecuted, Flores-Rivera continued to serve as an armed drug trafficker for others…. After many of his coconspirators were arrested in July 2020, and despite widespread publicity about their arrests, Flores-Rivera missed an opportunity to extricate himself from the dangerous and illegal world of drug trafficking. Instead, he doubled down and continued unabated – stealing cars, dealing drugs, and carrying guns.”
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. The investigation was conducted by the U.S. Drug Enforcement Administration’s (DEA) Tacoma Resident Office in partnership with Tahoma Narcotics Enforcement Team (TNET), Kent Police Department, Homeland Security Investigations, SeaTac Police Department, Thurston County Narcotics Team (TNT), the Federal Bureau of Investigation, and the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF).
The case is being prosecuted by Assistant United States Attorneys Amy Jaquette and C. Andrew Colasurdo.
Red Lake Man Sentenced to 37 Years in Prison for the Murder of a Red Lake Tribal Police OfficerRead the Press Release
BEMIDJI, Minn. – A Red Lake man has been sentenced to 37 years in prison for fatally shooting a Red Lake Tribal Police Officer, announced United States Attorney Andrew M. Luger.
“The tragic and violent events of July 27, 2021, that claimed the life of Officer Ryan Bialke brought an incalculable loss to his family and to his community,” said U.S. Attorney Andrew Luger. “Although the 37-year sentence handed down today represents justice under the law, the harm can never be undone. We honor the memory of Officer Bialke and commend the officers of the Red Lake Tribal Police Department for their continued courage and commitment in serving their community.”
“When David Brian Donnell opened fire at officers on July 27, 2021, our community lost a husband, a father, a son, and a hero,” said Alvin M. Winston, FBI Special Agent in Charge, Minneapolis Division. Officer Bialke paid the ultimate price for his dedication to public safety, and today's sentence is a testament to the tireless efforts of our state and local partners and the Headwaters Safe Trails Task Force to ensure that violent criminals are held accountable for their heinous crimes. We are unwavering in our commitment to safeguarding our indigenous communities with our tribal partners, and our thoughts are with Officer Bialke's family and colleagues as they heal from this tragedy.”
According to court documents, on July 27, 2021, officers with the Red Lake Tribal Police Department (“RLTPD”) responded to a call to conduct a welfare check on David Brian Donnell, Jr., 30, at his residence in Redby, Minnesota. Five RLTPD officers responded to Donnell’s residence. Upon arrival, the officers found Donnell standing outside on the porch and attempted to have him walk towards the officers, but Donnell instead went inside the residence. Because Donnell had an active tribal warrant and was refusing to comply, the officers made the decision to breach the door. As soon as the door was breached, Donnell opened fire on the officers. Officer Ryan Bialke was immediately struck by gunfire and fell. Donnell continued shooting, firing several rounds from an Izhmash Saiga 7.62 caliber rifle at the four other officers on the scene. One RLTPD officer returned fire to allow the officers to escape into the woods. Donnell continued firing at the officers as they fled into the woods. Donnell fired at least 22 shots at Officer Bialke and the four other RLTPD officers. Officer Bialke succumbed to his injuries and died on the scene. Donnell then fled the scene, taking the rifle with him. Shortly thereafter, officers arrested Donnell at a nearby residence.
Donnell, who pleaded guilty on April 1, 2022, to one count of murder in the second degree, was sentenced today in U.S. District Court by Judge John R. Tunheim. During the hearing, Judge Tunheim stated that the 37-year sentence was “justified by a senseless crime,” and extended condolences to the family of Officer Bialke, who gave his life in the line of duty, “he was a fine man, I wish I had known him.”
This case was the result of an investigation conducted by the Red Lake Tribal Police Department, the FBI Headwaters Safe Trails Task Force, the Minnesota Bureau of Criminal Apprehension (BCA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beltrami County Sheriff’s Office, and U.S. Customs and Border Protection.
Assistant U.S. Attorneys Melinda A. Williams and Joseph S. Teirab prosecuted the case.
Portland Man with 18 Prior Felony Convictions Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
PORTLAND, Ore.—On January 9, 2023, a Portland man with a criminal history spanning decades was sentenced to federal prison after he was arrested for discharging a firearm into the air outside a local restaurant during an altercation with his girlfriend.
Tyrone Lamont Allen, 53, was sentenced to 77 months in federal prison and three years’ supervised release.
According to court documents, on November 9, 2021, officers from the Portland Police Bureau (PPB) responded to a disturbance and reports of shots fired near a restaurant and bar in southeast Portland. Witnesses reported Allen, who was on post-prison supervision for committing multiple bank robberies, and his girlfriend were involved in an altercation inside the restaurant that escalated as the couple moved outside. When the woman threatened to call 911, Allen fired a single shot from a handgun into the air and drove off. Responding officers viewed surveillance footage of the incident and observed Allen arguing with and hitting his girlfriend. The video also showed Allen’s girlfriend hiding behind vehicles in the restaurant’s parking lot while he drove around looking for her.
While conducting their investigation, officers observed Allen drive by the restaurant. The officers quickly stopped his vehicle and detained him. Allen admitted to the officers that he “got a little hot” in his altercation with his girlfriend, but denied firing or possessing a firearm. Officers found a .38 caliber revolver with five spent casings in the cylinder underneath the driver’s seat of Allen’s vehicle. Allen claimed the firearm belonged to his girlfriend.
On October 3, 2022, Allen was charged by criminal information with illegally possessing a firearm as a convicted felon. On October 12, 2022, he pleaded guilty to the single charge.
This case was investigated by the FBI and PPB. It was prosecuted by Parakram Singh, Assistant U.S. Attorney for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Port of Long Beach Dockworker Pleads Guilty to Conspiracy Count for Fraudulently Billing Union’s Health Plan for Sexual ServicesRead the Press Release
LOS ANGELES – A dockworker at the Port of Long Beach pleaded guilty today to participating in a scheme that submitted fraudulent bills to his labor union’s health insurance plan for sexual services or for physical therapy that never was provided.
Cameron Rahm, 39, of Pico Rivera, pleaded guilty to one count of conspiracy to commit health care fraud.
According to his plea agreement, Rahm obtained sexual services from women employed at three businesses: Back to Life Wellness Center LLC and The Chiroman Wellness Center – both based in San Pedro – and the Wilmington-based Waterfront Wellness Center Inc. These companies offered patients chiropractic services and acupuncture treatments, in addition to sexual services.
In exchange for receiving sexual services, Rahm authorized the conspiracy’s leader – Sara Victoria, 46, of San Pedro – to submit false claims to Rahm’s health plan run by his union, the International Longshore and Warehouse Union – Pacific Maritime Association. The ILWU-PMA benefit plan provided coverage for chiropractic services and generally covered all of the cost with no deductible and without requiring plan members receiving the services to contribute any copay amount or incur any other out-of-pocket costs.
From January 2017 to April 2021, Rahm authorized Victoria to submit false claims to the union’s health benefit plan under the name of his wife, who was a plan beneficiary. Rahm’s false and fraudulent claims that Victoria submitted to the ILWU-PMA plan were for services that were not actually rendered, including chiropractic and physical therapy services.
Rahm also requested $240 in cash per month from Victoria in exchange for his authorization for Victoria to submit additional false claims for reimbursement to the ILWU-PMA plan for services not rendered using his and his wife’s insurance information.
Victoria, aided and abetted by Rahm, submitted approximately $178,495 in fraudulent claims to the ILWU-PMA plan for services purportedly rendered to Rahm’s wife, for which for which the plan paid approximately $30,243.
United States District Judge Stanley Blumenfeld Jr. scheduled an April 25 sentencing hearing, at which time Rahm will face a statutory maximum sentence of 10 years in federal prison.
In December 2022, Victoria pleaded guilty to one count of conspiracy to commit health care fraud and one count of aggravated identity theft. In total, Victoria submitted approximately $2,110,920 in claims to the ILWU-PMA plan, for which the plan paid approximately $551,810. Her sentencing hearing is scheduled for April 14.
Four other dockworkers at the Port of Long Beach pleaded guilty to one felony count of conspiracy to commit health care fraud and face up to 10 years in federal prison at their sentencing hearings:
- Rodolpho Bojorquez, 68, of Carson, who is to be sentenced on April 11;
- Cesar Delgadillo, 49, of Wilmington, who has a January 31 sentencing date;
- Joel Lizarraga, 55, of Palmdale, whose sentencing hearing is scheduled for February 28; and
- Simon Ramirez, 50, of Wilmington, who is scheduled for sentencing on January 24.
Three additional defendants – also dockworkers at the Port of Long Beach – each pleaded guilty to one misdemeanor count of theft in connection with health care. Each defendant faces a statutory maximum sentence of one year in federal prison:
- Clifford Hopson, 65, of the Willowbrook area of South Los Angeles, who is scheduled for sentencing on January 24;
- Rogelio Martinez, 53, of Torrance, whose sentencing hearing is scheduled for February 14; and
- Lawrence Robles, 42, of San Pedro, who is to be sentenced on February 28.
The FBI and the United States Department of Labor – Employee Benefits Security Administration investigated this matter.
Assistant United States Attorney Jason C. Pang of the Major Frauds Section is prosecuting this case.
Pompano Beach Man Sentenced to Prison for Enticing a 10-Year-Old Child into Engaging in Criminal Sexual ActivityRead the Press Release
MIAMI – Michael E. Simpson Jr., 24, of Pompano Beach, Fla., has been sentenced by U.S. District Judge Rodney Smith to 20 years in prison for enticing a 10-year-old child into criminal sexual activity.
In 2021, while sitting in a parked vehicle with his then fiancé’s 10-year-old daughter, Simpson began playing a sexually explicit video on his phone. He intentionally positioned it so the child could see it. While the video played, Simpson exposed himself to the child, touched himself, and solicited the child to have inappropriate contact with him.
The child reported the incident and law enforcement began an investigation into Simpson and discovered he possessed approximately 264 videos and 1,146 images of child sexual abuse material of prepubescent children to include infants and toddlers. In addition, law enforcement found evidence that Simpson attended events in which grown adults dressed up in infant attire and engaged in sexual activity.
On October 17, 2022, Simpson pled guilty to one count of enticing a minor to engage in criminal sexual activity. In addition to his prison sentence, he will have 15 years of supervised release.
U.S. Attorney Markenzy Lapointe of the Southern District of Florida and acting Special Agent In Charge Michael E. Buckley of Homeland Security Investigations (HSI) made the announcement.
HSI Fort Lauderdale investigated the case with assistance from Broward Sheriff’s Office Special Victims Unit. Assistant U.S. Attorneys Ajay Alexander and Brooke Latta 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 and led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 21-cr-60332.
Pharr woman sentenced for trafficking cocaine with husband and othersRead the Press Release
VICTORIA, Texas – A 47-year-old South Texan has been ordered to prison after admitting to trafficking cocaine from Hidalgo County to other states across the country, announced U.S. Attorney Alamdar S. Hamdani.
Idalia Guzman pleaded guilty Feb. 6, 2019.
Today, Senior U.S. District Judge John D. Rainey imposed a 96-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional testimony from the prison ministries representative and learned that Guzman had received a theology degree while awaiting sentencing.
The narcotics investigation began in 2017 which led to the discovery that a group was planning to smuggle an undetermined amount of cocaine from Hidalgo County past the Falfurrias Border Patrol checkpoint.
Authorities stopped a vehicle Guzman was driving in Premont. Her husband Victor Del Toro, Pharr, was the passenger. Law enforcement found approximately a half kilogram of cocaine concealed in the vehicle.
Further investigation revealed the Texas Chicano Brotherhood was responsible for smuggling 10 similar size loads of cocaine to San Diego, Texas, and the states of Michigan and Florida.
At the time of her plea, Guzman admitted her involvement and acknowledged she had transported over 10 times in the same manner.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Del Toro was sentenced in 2019 to 120 months incarceration.
Homeland Security Investigations conducted the investigation along with the Texas Department of Public Safety; Bureau of Alcohol, Tobacco, Firearms and Explosives; District Attorney Offices in Starr County and Hidalgo Counties and Texas Office of the Attorney General. Assistant U.S. Attorneys Patti Hubert Booth and David Paxton prosecuted the case.
People’s Republic of China Citizen Indicted for Allegedly Stalking, Threatening Individual Promoting Democracy in ChinaRead the Press Release
BOSTON – A Berklee College of Music student, who is citizen of the People’s Republic of China (PRC), has been indicted by a federal grand jury in Boston in connection with allegedly stalking and threatening an individual who posted fliers in support of democracy in China around the Berklee campus area.
Xiaolei Wu, 25, was indicted today on one count of cyberstalking and one count of interstate transmissions of threatening communication. Wu was previously arrested and charged by criminal complaint with one count of stalking on Dec. 13, 2022. At the time of the events alleged in the Indictment, Wu was living in Boston while attending the Berklee College of Music.
According to the charging documents, on Oct. 22, 2022, an individual posted a flier on or near the Berklee College of Music campus in Boston which said, “Stand with Chinese People,” as well as, “We Want Freedom,” and “We Want Democracy.” It is alleged that, beginning on or about Oct. 22, 2022, and continuing until Oct. 24, 2022, Wu made a series of communications via WeChat, email and Instagram directed towards the victim who posted the flier. Among other things, Wu allegedly said, “Post more, I will chop your bastard hands off.” He also allegedly told the victim that he had informed the public security agency in China about the victim’s actions and that the public security agency in China would “greet” the victim’s family. It is further alleged that Wu solicited others to find out where the victim was living and publicly posted the victim’s email address in the hopes that others would abuse the victim online.
The charge of cyberstalking provides for a sentence up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of interstate transmissions of threatening communication provides for a sentence up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Timothy H. Kistner of Rollins’ National Security Unit is prosecuting the case with the assistance of Counterintelligence and Export Control Section Trial Attorney Menno Goedman.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
People’s Republic of China Citizen Indicted for Allegedly Stalking, Threatening Individual Promoting Democracy in ChinaRead the Press Release
A Berklee College of Music student, who is a citizen of the People’s Republic of China (PRC), has been indicted by a federal grand jury in Boston in connection with allegedly stalking and threatening an individual who posted fliers in support of democracy in China.
Xiaolei Wu, 25, was indicted on one count of cyberstalking and one count of interstate transmissions of threatening communication. Wu was previously arrested and charged by criminal complaint with one count of stalking on Dec. 13, 2022. Wu has lived in Boston while attending the Berklee College of Music.
According to the charging documents, on Oct. 22, 2022, an individual posted a flier on or near the Berklee College of Music campus in Boston which said, “Stand with Chinese People,” as well as, “We Want Freedom,” and “We Want Democracy.” It is alleged that, beginning on or about Oct. 22, 2022, and continuing until Oct. 24, 2022, Wu made a series of communications via WeChat, email, and Instagram directed towards the victim who posted the flier. Among other things, Wu allegedly said, “Post more, I will chop your bastard hands off.” He also allegedly told the victim that he had informed the public security agency in China about the victim’s actions and that the public security agency in China would “greet” the victim’s family. It is further alleged that Wu solicited others to find out where the victim was living and publicly posted the victim’s email address in the hopes that others would abuse the victim online.
The charge of cyberstalking provides for a sentence up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of interstate transmissions of threatening communication provides for a sentence up to five years in prison, three years of supervised release and a fine of up to $250,000.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Rachael S. Rollins for the District of Massachusetts, Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division, and Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Division made the announcement.
Assistant U.S. Attorney Timothy H. Kistner for the District of Massachusetts is prosecuting the case, with valuable assistance provided by Trial Attorney Menno Goedman of the National Security Division’s Counterintelligence and Export Control Section.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Oklahoma Inmate Pleads Guilty to Running a Drug ConspiracyRead the Press Release
An Oklahoma inmate who used contraband cell phones to lead a methamphetamine distribution operation pleaded guilty this week in federal court, announced U.S. Attorney Clint Johnson.
Richard Dale Deeter, Jr., 45, pleaded guilty to drug conspiracy. Deeter admitted that he directed other members of the conspiracy to obtain kilogram amounts of methamphetamine and to distribute the drug in Tulsa. He conducted the conspiracy while incarcerated for a state drug trafficking conviction.
“Richard Deeter and his five coconspirators have now pleaded guilty to drug trafficking crimes in federal court,” said U.S. Attorney Clint Johnson. “Homeland Security Investigations led the investigation in partnership with the Drug Enforcement Administration, Tulsa Police Department, Tulsa County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. These critical partnerships are force multipliers, and the convictions are indicative of what happens when local, state, and federal law enforcement join together to fight large scale criminal activity. I’m proud of the agents, officers and federal prosecutor David Nasar for their work in identifying, investigating and disrupting this drug trafficking organization.”
“HSI will never relent in prosecuting those who peddle illicit drugs within our communities,” said Robert Melton, Assistant Special Agent in Charge of the HSI Dallas - Oklahoma and Texas Panhandle Division. “This defendant’s guilty plea and those of his cohorts should send a clear message that we will hold drug traffickers accountable for their crimes, whether in prison or on the street.”
According to court documents, Deeter directed the purchase and pick up of bulk quantities of methamphetamine from Oklahoma City for the purpose of redistributing the drug within the Northern District of Oklahoma. Deeter and his coconspirators utilized Facebook messenger, video calls, text messaging, encrypted instant messaging, and other methods to conduct operations. Deeter communicated with his coconspirators and others about where to pick up the methamphetamine, drug pricing, and to whom the drug would be sold. He accepted payment from coconspirators and drug customers through the use of Green Dot cards and Cash App. He was also alleged to have directed the use of firearms to further the drug operation and the collection of drug debts. The conspirators kept residences in Tulsa for storing the guns and methamphetamine.
Deeter’s five codefendants have also pleaded guilty for their roles in the drug conspiracy.
-Nicole Cox, 27, of Mountain Home, Arkansas: drug conspiracy
-Izabella Marie Boling, 26, of Broken Arrow: possession of methamphetamine with intent to distribute
-Donnie B. Pearson, 37, of Sand Springs: possession of methamphetamine with intent to distribute
-Jonna Elisa Steele, 38, of Tulsa: use of a communication facility in committing, causing, and facilitating the commission of a drug trafficking felony
-John Wesley Boyd Sparks, 35, of Tulsa: possession of methamphetamine with intent to distribute
Deeter, Pearson, and Sparks are members of the Universal Aryan Brotherhood.
See indictment press release here.
The prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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.
Homeland Security Investigations, the Drug Enforcement Administration, Tulsa Police Department, Tulsa County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney David A. Nasar prosecuted the case.
New York Man Sentenced to Prison for Federal Fraud CrimesRead the Press Release
CHARLESTON, W.Va. – Julio Hisael Almonte, 31, of the Bronx, New York, was sentenced today to one year and three months in prison, to be followed by three years of supervised release, for his role in the fraudulent purchase of new trucks from a pair of Charleston dealerships. Almonte was also ordered to pay $42,375.03 in restitution.
According to court documents and statements made in court, Almonte and a co-conspirator obtained two forged Ohio driver’s licenses by using the information of actual Ohio residents and the co-conspirator’s photo. On June 28, 2018, the co-conspirator used one of the stolen identities and forged licenses to purchase a Ford F-150 Raptor for $76,196.76 from a Charleston dealership. On June 29, 2018, the co-conspirator used the other stolen identity and forged license to purchase a Toyota Tacoma for $42,375.03 from a different Charleston dealership.
On June 30, 2018, Almonte was arrested by the West Virginia State Police in Braxton County as he attempted to drive the Ford F-150 back to the New York area. Almonte pleaded guilty to two counts of wire fraud and one count of conspiracy to commit wire fraud.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the West Virginia State Police, and the U.S. Postal Inspection Service which provided assistance during the investigation.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Nowles Heinrich prosecuted 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. 2:21-cr-160.
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New Haven Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that TYRIQ MARTIN, 22, of New Haven, pleaded guilty yesterday before U.S. District Judge Omar A. Williams in Hartford to possession of ammunition by a felon.
According to court documents and statements made in court, a court-authorized search of Martin’s Snapchat account in the spring of 2022 revealed numerous photos of Martin in possession of firearms. On June 15, 2022, New Haven Police arrested Martin in the area of Ferry Street and Chatham Street on an outstanding state warrant for firearm and narcotics offenses. At the time of his arrest, Martin possessed a loaded Polymer 80 privately made firearm. A subsequent search of the car Martin was seen driving revealed 11 rounds of 9mm ammunition.
In July 2021, Martin was convicted in state court of conspiracy to commit first-degree assault, for which he was sentenced to five years of incarceration, execution suspended after 16 months, and three years of probation.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
At sentencing, which is not scheduled, Martin faces a maximum term of imprisonment of 10 years.
Martin has been detained since his arrest.
This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis and Rahul Kale through the Justice’s Department’s Project Safe Neighborhoods (PSN) program.
PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, 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.
NYSP Sergeant Charged with Tipping Off Targets of Gambling InvestigationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, NY--U.S. Attorney Trini E. Ross announced today that Thomas J. Loewke, 51, of Rochester, NY, was arrested and charged by criminal complaint with obstruction of a state or local law enforcement investigation and obstruction of an official proceeding. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, in October of 2020, Homeland Security Investigations joined an ongoing joint federal, state, and local law enforcement investigation into illegal gambling businesses. One of the businesses was an illegal bookmaking operation, which was managed through accounts on the website sport700.com. Multiple members of the business had access to the website in order to manage and operate the business, violating multiple New York State laws.
During the course of the investigation, investigators intercepted a series of calls and text messages between targets of the investigation, sub-agents and individual bettors discussing the placement of bets, collection of winnings, and payment of losses. Investigators also monitored accounts on sport700.com.
On January 3, 2021, a search warrant was executed on one account belonging to an individual identified as Target 1 of the investigation. A review of the account indicated that Target 1 had 16 sub-agents, who collectively managed 221 individual bettor accounts. Throughout the duration of the account, April 25, 2019, through January 3, 2021, Target 1 generated $1,241,172 in gambling profits. In February 2021, a search warrant was executed on an account belonging to a second target (Target 2) of the investigation. Target 2’s account was created on April 25, 2016, had 128 sub-agent accounts managing 1,789 individual bettors, and profits totaling $8,945,629.
During the investigation, investigators overheard a phone call between Target 1 and Target 2, during which Target 1 said that a member of the New York State Troopers named “TJ” had tipped him off to the ongoing investigation. The Targets then discussed changing the passwords and domain name of the website and erasing the betting history in order to avoid detection. At the time, Loewke was a Sergeant with the New York State Police.
Subsequent investigation determined that, on December 17, 2020, a uniformed New York State Trooper performing maintenance on the computer of an NYSP Senior Investigator involved in the investigation observed a draft affidavit, which included Target 1’s name in plain view at the top of the document. Access to the Senior Investigator’s office was controlled by a swipe card system. Records indicate that on December 17, 2020, the Trooper accessed the office three times in the morning. A review of the Trooper’s cell phone shows that during those times, the Trooper sent an outgoing text message and made two calls to a cellular phone number registered to Loewke. Two additional calls were made to Loekwe’s cell phone that afternoon. The text message stated “Call me ASAP.” The Trooper subsequently confirmed that he had disclosed the existence of the investigation to Loewke. A search of Loewke’s phone also uncovered evidence that he engaged in illegal sports betting by placing numerous bets with another individual.
Loewke made an initial appearance this afternoon before U.S. Magistrate Judge Marian W. Payson and was released on conditions.
The criminal complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, the Internal Revenue Service, Criminal Investigation, under the direction of Special Agent-in-Charge Thomas Fattorusso, the New York State Police, under the direction of Major Brian Ratajczak, the Greece Police Department, under the direction of Chief Michael Wood, and Rochester Police Department, under the direction of Chief David Smith. Additional assistance was provided by the Monroe County District Attorney’s Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Morris County Man Admits Defrauding Department of Veterans Affairs and Threatening Federal AgentRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man today admitted defrauding the Department of Veterans Affairs (VA) of more than $118,000 in disability benefits and sending an interstate text message threatening a federal agent with bodily injury, U.S. Attorney Philip R. Sellinger announced.
Kamil Wakulik, 38, of Long Valley, New Jersey, pleaded guilty by videoconference before U.S. Magistrate Judge José R. Almonte to an information charging him with theft of government funds and interstate transmission of a threat of injury.
According to documents filed in this case and statements made in court:
Wakulik was an active service member in the U.S. Marine Corps from 2003 to 2007. In 2018, during an assessment by the VA for disability benefits, Wakulik made false representations that he suffered from post-traumatic stress disorder based on his active-duty service. Wakulik claimed that he was assigned to and participated in active-duty missions that required him to recover human remains following natural disasters that occurred in the Philippines and Thailand – in fact, he was not involved in recovering human remains. Based on these false statements, the VA increased Wakulik’s disability rating and provided additional monthly disability benefit payments to him totaling over $118,000.
On Aug. 23, 2022, Wakulik sent an interstate text message to an agent of the VA, Office of Inspector General, threatening physical violence against the agent and any other agent involved in investigating Wakulik.
The charge of theft of government funds carries a maximum sentence of up to 10 years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greatest. The charge of interstate transmission of a threat of injury carries a maximum sentence of up to five years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for June 6, 2023.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Adam Baker of the Opioid Abuse Prevention and Enforcement Unit in Newark.
Minneapolis Woman Pleads Guilty to Her Role in a Drug Money Laundering ConspiracyRead the Press Release
ST. PAUL – A Minneapolis woman has pleaded guilty to running a drug money laundering operation on behalf of a large-scale fentanyl and marijuana dealer, announced U.S. Attorney Andrew M. Luger.
According to court documents, between December 2018 and August 2019, Phouvanh Keokaythinh, 37, laundered cash drug proceeds to conceal the drug trafficking activities of a group of gang members who operated as a drug trafficking organization that distributed heroin, fentanyl, and marijuana in and around the Twin Cities. Keokaythinh kept large amounts of cash drug proceeds for Lyndon Swarn, a large-scale fentanyl and marijuana dealer, at her family residence in Bloomington. Swarn’s drug income was generated from the production and sale of illegal fentanyl-laced Oxycodone pills, as well as the production and sale of large amounts of marijuana.
According to court documents, Keokaythinh used cash from Swarn’s drug proceeds to purchase a farm property in Ironwood, Michigan. Swarn and his associates used this property to illegally grow large amounts of marijuana. Keokaythinh and others laundered drug proceeds into a bank account owned by L&S Management LLC, a shell company used for the purchase, maintenance, and upkeep of the property in Ironwood. Keokaythinh also directed others to maintain a credit card that was used for Swarn’s personal spending and other expenses related to the drug trafficking conspiracy. Between January 2017 and March 2019, Keokaythinh and others used drug proceeds to make approximately $117,782.72 in payments on the credit card.
Keokaythinh pleaded guilty yesterday in U.S. District Court before Senior Judge Susan Richard Nelson to one count of concealment money laundering. A sentencing hearing will be scheduled at a later time.
On June 2, 2022, Swarn was convicted in Hennepin County of aiding and abetting first-degree murder in relation to the New Year’s Eve 2019 kidnapping and murder of a local real estate agent. On May 17, 2021, Swarn was convicted in U.S. District Court for possession with intent to distribute more than 33,000 fentanyl-laced Oxycodone pills.
This case is the result of an investigation conducted by the FBI, the Drug Enforcement Administration, the Minneapolis Police Department, and the Hopkins Police Department, with assistance from the Hennepin County Attorney’s Office.
Assistant U.S. Attorney Harry M. Jacobs is prosecuting the case.
Minneapolis Man Sentenced to 12.5 Years in Prison Child Sex TraffickingRead the Press Release
ST. PAUL, Minn. – A Minneapolis man was sentenced to 150 months in prison followed by 15 years of supervised release for sex trafficking a minor, announced United States Attorney Andrew M. Luger.
According to court documents, in August 2020, Charles William Dexter III, 42, recruited a 14-year-old minor to engage in commercial sex acts for his benefit. Dexter arranged for these commercial sex acts using online advertisements, including ads posted on Megapersonals.com, to take place at hotels. He collected half of the proceeds from each of the appointments for commercial sex from the minor victim.
“January is National Human Trafficking Prevention Month and cases such as this represent our ongoing commitment to investigating and prosecuting those who exploit human beings, and in this case minor victims, for financial gain,” said U.S. Attorney Andrew Luger.
“Combatting sex trafficking is a top priority for Homeland Security Investigations (HSI) St. Paul,” said Jamie Holt, HSI St. Paul Special Agent in Charge. “Our agents will continue to focus on fostering safer communities by protecting and supporting sex-trafficking victims and bringing people like Dexter to justice.”
“The FBI is fully committed to combating human trafficking with our federal, state and local partners. Today’s sentence highlights the importance of this work in bringing justice to the victims and preventing human trafficking both in Minnesota and throughout the country,” said Alvin M. Winston, FBI Special Agent in Charge, Minneapolis Division.
Dexter, who pleaded guilty on September 6, 2022, to one count of sex trafficking of a minor, was sentenced today in U.S. District Court by Senior Judge Susan Richard Nelson.
This case was the result of an investigation conducted by Homeland Security Investigations, the Bloomington Police Department, and the FBI.
Assistant U.S. Attorneys Manda M. Sertich and Chelsea A. Walcker prosecuted the case.