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10 January 2023
Mexican national admits role in transporting 29 pounds of meth to Bozeman, BillingsRead the Press Release
BILLINGS — A Mexican national today admitted her role in a methamphetamine trafficking scheme in which she transported 25 pounds of the drug to Billings and four pounds of meth to Bozeman from Denver, Colorado, U.S. Attorney Jesse Laslovich said.
Risela Anahid Heredia Soberanes, 32, pleaded guilty to a superseding information charging her with possession with intent to distribute meth. Soberanes faces a mandatory minimum of five years to 40 years in prison, a $5 million fine and at least four years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Soberanes was detained pending further proceedings.
The government alleged in court documents that in mid-July 2022, law enforcement made a controlled purchase of cocaine in Bozeman from a person later identified as co-defendant Isidro Vega Carmona. Another co-defendant, identified at Victor Ocampo, was with Carmona during the purchase. About a month later, Carmona and another person, known as “Guero,” agreed to sell an undercover individual four pounds of meth for $18,000. In late August, the undercover went to Carmona’s residence to purchase the four pounds of meth. Prior to the purchase, law enforcement observed a white Honda Accord with a Colorado license plate arrive at Carmona’s residence. Soberanes got out of the Honda and retrieved items from the trunk. Later investigation confirmed that Soberanes had delivered the meth to Carmona on behalf of “Guero.”
The government further alleged that in October 2022, Carmona offered to sell the undercover 25 pounds of meth for $100,000 and that he would deliver it to Billings. On Oct. 12, 2022, Carmona contacted the undercover and confirmed that Soberanes was again driving the 25 pounds of meth to Billings from Denver and that he would meet the undercover in Billings. Law enforcement observed the Honda Accord at a residence on the 200 block of Broadwater Avenue, where Soberanes parked the vehicle and entered the residence. Carmona then contacted the undercover and ultimately gave instructions to meet him at the Northern Hotel in downtown Billings. Law enforcement observed Carmona and Ocampo get out of a truck and remove a large rolling suitcase from the trunk of the Honda. Carmona began walking with the suitcase in the direction of the Northern Hotel, while Ocampo drove the Honda toward the hotel. Law enforcement arrested Carmona on the street, while he was still in possession of the suitcase, and Ocampo as he was walking away from the Honda near a downtown intersection. Law enforcement arrested Soberanes at the Broadwater Avenue residence while she was sitting in Carmona’s pickup truck. Officers served a federal search warrant on the suitcase and found 25 pounds of meth in numerous plastic bags and several items of female clothing. Twenty-nine pounds of meth is the equivalent of approximately 105,000 doses. Soberanes admitted in an interview that she received the suitcase from “Guero,” who instructed her to deliver it to Billings.
Carmona and Ocampo have pleaded not guilty to charges and are pending trial in the case.
Assistant U.S. Attorney Colin M. Rubich is prosecuting the case, which was investigated by the FBI, the Eastern Montana High Intensity Drug Trafficking Area Task Force and the Missouri River Drug Task Force.
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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Mexican National Sentenced to 96 Months in Federal Prison for Possession of Firearm and Distribution of MethamphetamineRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Porfirio Jimenez-Arizmendi, age 31, a Mexican national unlawfully in the United States and residing in Lincoln, was sentenced today to 96 months in prison for being an unlawful alien in possession of a firearm and for distribution of methamphetamine. U.S. District Judge Maryellen Noreika pronounced the sentence. Mr. Jimenez-Arizmendi, who pled guilty on July 25, 2022, will face removal proceedings upon the completion of his federal prison sentence.
According to court documents, on February 18, 2021, Jimenez-Arizmendi sold approximately 9 ounces of crystal methamphetamine, with an approximate 97% purity, for $9,000. During his arrest for that crime, officers recovered a semiautomatic pistol and seven rounds of ammunition in the pocket of a jacket found on the front passenger seat of the car Jimenez-Arizmendi was driving.
U.S. Attorney Weiss stated, “On a daily basis law enforcement and our communities face the consequences of a gun and drug epidemic. Today’s sentence holds Mr. Jimenez-Arizmendi accountable for his dangerous and illegal behavior.
“Jimenez-Arizmendi sold multi-ounce quantities of extremely pure methamphetamine, which is an illicit stimulant drug that has had a devastating effect on our community,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Jimenez-Arimendi will justifiably face deportation once his federal prison sentence is done.”
The case was investigated by the Delaware State Police and the DEA and was prosecuted by Assistant U.S. Attorney Edmond Falgowski.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 22-CR-60.
Mercer County Man Sentenced to 27 Months in Prison for Interfering with Law Enforcement Officers During Civil DisorderRead the Press Release
NEWARK, N.J. – A Mercer County, New Jersey, man was sentenced today to 27 months in prison for attempting to interfere with law enforcement officers during a civil disorder when he attempted to set fire to a police vehicle during a riot in Trenton, U.S. Attorney Philip R. Sellinger announced.
Kadeem A. Dockery, 31, of Trenton, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce. Judge Martinotti imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On May 31, 2020, large-scale protests were held throughout the United States, including in Trenton, in response to the death of George Floyd. Although the May 31st protest in Trenton was peaceful earlier in the day, violence erupted later. A group of individuals proceeded down East State Street in downtown Trenton and began to riot, smashing store fronts, looting stores, and attacking multiple marked Trenton Police Department vehicles parked on the 100 Block of East State Street.
A city of Trenton street camera and other video footage taken by an individual present on the street recorded Dockery lighting an explosive device and throwing it through the open front driver’s side window of a Trenton Police Department vehicle, attempting to set the police vehicle on fire. The footage captured the sound of an explosion, and smoke emanating from the police vehicle. Law enforcement later identified Dockery through analysis of street camera and other video footage. Dockery was arrested on Aug. 5, 2020.
In addition to the prison term, Judge Martinotti sentenced Dockery to three years of supervised release.
Dockery is the last of four individuals sentenced in connection with the protest in Trenton. Earlja J. Dudley was sentenced in March of 2022 to 30 months in prison; Killian F Melecio was sentenced in June of 2021 to 28 months in prison; and Justin D. Spry was sentenced in September 2021 to 24 months in prison.
U.S. Attorney Philip R. Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force in Newark, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the sentence. He also thanked officers of the Trenton Police Department, under the direction of Police Director Steve E. Wilson; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and officers of the New Jersey Department of Corrections, under the direction of Commissioner Victoria L. Kuhn, for their assistance.
The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division.
Maryland Man Sentenced to 14 Years in Prison for Child Sexual Abuse and Accessing Child PornographyRead the Press Release
WASHINGTON – A Maryland man was sentenced today to 14 years in prison for first-degree child sexual abuse of a minor, with aggravating circumstances, and accessing child pornography. The announcement was made by U.S. Attorney Matthew M. Graves and Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office’s Criminal and Cyber Division.
Sean Cortez Moses, 31, of Suitland, Maryland, pleaded guilty in July 2022, in the U.S. District Court for the District of Columbia. In addition to the prison term, U.S. District Court Judge Trevor N. McFadden ordered Moses to pay $100,000 in restitution to the victim, complete 10 years of supervised release, and register as a sex offender for life.
According to the government's evidence, Moses was identified during a law enforcement investigation into the sexual abuse of an eight-year-old girl. Moses entered a relationship with a woman who resided in the District of Columbia, and who had access to the little girl. Between June of 2017 and June of 2018, he traveled from Maryland into the District of Columbia, where he took advantage of this relationship to sexually abuse the child and to view child pornography.
Moses was arrested on March 4, 2021. He has remained in custody.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. Valuable assistance was provided by the FBI’s Baltimore Field Office, the U.S. Postal Inspection Service, and the Prince George’s County, Maryland Police Department.
In announcing the sentence, U.S. Attorney Graves and Special Agent in Charge Jacobs commended the work of those who investigated the case from the FBI's Child Exploitation and Human Trafficking Task Force, which includes members of the FBI's Washington Field Office and the Metropolitan Police Department’s (MPD) Youth Investigations Division. They also commended the work of Yvonne Bryant, of the Victim and Witness Assistance Unit, and Assistant U.S. Attorneys Jocelyn Bond and Amy E. Larson, who prosecuted the case.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Man Sentenced for Integral Role in Sophisticated International Fraud SchemeRead the Press Release
LEXINGTON, Ky. – A Romanian national was sentenced on Monday to 89 months in prison for his role in a transnational, multimillion-dollar scheme to defraud American victims. He is the 24th member of the organized criminal group to be sentenced, of the 28 who were charged.
Ionut-Razvan Sandu, 35, of Romania, pleaded guilty in April 2022 to conspiracy to commit a Racketeer Influenced and Corrupt Organizations Act (RICO) offense. Four other defendants pleaded guilty to this offense and were sentenced for their roles in the conspiracy between Nov. 16 and 18, 2022, including: Rafael-Liviu Cucu, 33, of Romania to 61 months; Alexandru-Catalin Calin, 40, of Romania, to 61 months; Ciprian-Ionut Filip, 37, of Romania to 70 months; and Gabriel Constantin Georgescu, 37, of Romania to 63 months.
“This highly organized and sophisticated syndicate stole directly from the pockets of hard-working Americans. The criminals then used digital currency to launder their ill-gotten gains,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s result is proof that the Criminal Division and our law enforcement partners will never stop pursuing cybercriminals who target the American public—no matter where these criminals reside, and no matter what tools they use to hide.”
“Cybercrime is an increasingly prevalent means for criminals to prey on the public, causing victims, from across the United States, to lose millions of dollars,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “To continue to protect Americans against organized cybercrime, cooperation and coordination among law enforcement is essential. This case is the result of a massive, years-long effort by the U.S. Secret Service to coordinate the investigation of this crime and identify and apprehend the offenders. I commend the exceptional work done by all our law enforcement partners, and we are proud to have joined this cooperative effort to prosecute this significant cyber fraud scheme.”
“Financial crimes that take place in the cyber domain have a very real impact on everyday Americans and their families,” said Special Agent in Charge Robert Holman of the U.S. Secret Service Louisville Field Office. “The Secret Service remains committed to investigating such crimes, and we appreciate the continued support of our local, state, federal, and international law enforcement partners as we work together to bring those responsible to justice.”
According to plea documents, beginning as early as October 2014, Sandu and other members of the criminal organization collectively developed a process and offered a service by which co-conspirators based in the United States and abroad would launder the proceeds of online auction fraud.
According to court documents, Georgescu, Filip, and other co-conspirators posted false advertisements to popular online auction and sales websites, such as eBay, for goods that did not actually exist. Members of the conspiracy created fictitious online accounts to post these advertisements and communicate with victims, sometimes using the stolen identities of Americans to do so. The advertisements typically marketed the sale of used vehicles or similar goods and targeted working-class Americans.
Members of the conspiracy used several tactics to convince victims to send money for the advertised goods. For example, they impersonated a military member who needed to sell the advertised item before deployment. In furtherance of the scheme, the defendants delivered invoices to the victims bearing trademarks of reputable companies to make the transaction appear legitimate. The defendants also set up call centers to impersonate customer support, address questions, and alleviate concerns over the advertisements.
Once victims had sent payment, members of the conspiracy engaged in a complex money laundering scheme offered by Sandu and others wherein U.S.-based conspirators received victim funds, converted those funds to cryptocurrency, and transferred proceeds in the form of cryptocurrency to foreign-based money launderers. Those foreign-based money launderers, such as Cucu and Calin, would then work with other members of the conspiracy to convert the bitcoin back into fiat currency. Sandu was held responsible for laundering over $3.5 million worth of fraudulent proceeds. To date, law enforcement has identified over 900 victims of this scheme.
The investigation was conducted by the U.S. Secret Service, Kentucky State Police, Lexington Police Department, IRS Criminal Investigation and U.S. Postal Inspection Service, and supported by the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) and the International Organized Crime Intelligence and Operations Center (IOC-2). Assistance was provided by the Romanian National Police (Service for Combating Cybercrime), the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime), and the Supreme Prosecutor’s Office of Cassation of the Republic of Bulgaria. The Justice Department’s Office of International Affairs and Criminal Division’s Money Laundering and Asset Recovery Section provided significant support.
This case is being prosecuted by Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Kathryn M. Dieruf of the U.S. Attorney’s Office for the Eastern District of Kentucky.
Individuals who believe they may be victims of the online auction fraud scheme described herein are encouraged to visit the following website to obtain more information: www.justice.gov/usao-edky/information-victims-large-cases.
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Man Pleads Guilty to Assaulting Flight Attendant and Interfering with Flight CrewRead the Press Release
ALEXANDRIA, Va. – A Miami, Florida, man pleaded guilty today to interfering with a flight crew and assaulting a flight attendant while onboard a United Airlines flight from Miami to Washington, D.C.
According to court documents, on October 4, 2022, Cherruy Loghan Sevilla, 24, was onboard United Airlines Flight 2116 flying from Miami International Airport (MIA) to Washington Dulles International Airport (IAD). About an hour into the flight, Sevilla began to exhibit disruptive and erratic behavior, including wandering around the plane, running up and down the aisle, clapping loudly near the cockpit, and yelling obscenities. Sevilla refused to remain seated and laid on the floor in the aisle of the plane, preventing a flight attendant from walking up the aisle to her jump seat to prepare for landing. Suddenly, the defendant jumped up and lunged at this flight attendant, grabbing and twisting her right breast. A passenger, another flight attendant, and an onboard law enforcement officer attempted to pull the defendant off and subdue him. The defendant resisted and, in the struggle, twisted the arm of the second flight attendant.
Sevilla faces a maximum penalty of 20 years in prison when sentenced on April 21. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Michael H. Glasheen, Special Agent in Charge of the FBI Washington Field Office Counterterrorism Division, made the announcement after U.S. District Judge Claude M. Hilton accepted the defendant’s guilty plea.
Special Assistant U.S. Attorney Stefanie Schwartz and Assistant U.S. Attorney Laura Withers are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-218.
Logan County Woman Sentenced for COVID-19 Relief Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – Alexis Ransom, 25, of Logan, was sentenced today to five years of federal probation and ordered today to pay $42,250.00 in restitution for a scheme to defraud the Paycheck Protection Program (PPP) of over $42,250.00 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
According to court documents and statements made in court, beginning on March 27, 2021, and continuing to August 16, 2021, Ransom applied for three PPP loans for her purported business, Alexis Renae Ransom, which she claimed did business under the tradenames of Renae’s Fashion Consulting LLC and Momma & Me Boutique. Ransom admitted that she falsely stated that Renae’s Fashion Consulting LLC was established in 2019, and had earned $66,900.00 in gross income in 2019 and 2020, and that Momma & Me Boutique earned $69,000.00 in gross income in 2019. The investigation revealed that Ransom’s purported business and its tradenames had not engaged in substantial business activity before February 15, 2020. Ransom further admitted that she submitted a false Internal Revenue Service (IRS) Form 1040 in connection with the first loan application she submitted for Renae’s Fashion Consulting LLC.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities.
Ransom obtained two PPP loans worth $13,937.50 for Renae’s Fashion Consulting LLC, and one PPP loan worth $14,375.00 for Momma & Me Boutique. Ransom admitted that she later applied to have all three PPP loans forgiven even though she had not spent the loan proceeds on permissible business expenses. The SBA forgave her loans on August 16, 2021.
Ransom pleaded guilty to wire fraud. United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the United States Secret Service.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Kathleen Robeson prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-122.
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Logan County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Anthony Ryan Webb, 42, of Ethel, pleaded guilty today to distribution of methamphetamine.
According to court documents and statements made in court, on May 3, 2021, Webb sold more than 50 grams of methamphetamine to a confidential informant in Ethel. At the time, Webb was an employee of the United States Postal Service. As a result of his job duties, Webb had access to packages that had been placed in the United States Mail and was responsible for sorting out packages that had been damaged in transit. Webb admitted that he stole approximately 1 pound of methamphetamine from a package, which he then sold to the informant.
Webb is scheduled to be sentenced on April 24, 2023, and faces a maximum penalty of 40 years in prison, four years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Postal Service-Office of Inspector General (OIG) and the West Virginia State Police.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-123.
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Liberty County Felon Guilty of Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Dayton man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Clifford Scott Oclair, 57, pleaded guilty to possession of a firearm by a prohibited person before U.S. District Judge Marcia A. Crone on Jan. 9, 2023.
According to court documents, on July 11, 2022, Oclair was arrested by deputy U.S. Marshals and Liberty County law enforcement officers in Liberty County who were tracking him down in an attempt to arrest him for outstanding warrants. A few minutes prior to his arrest, Oclair was observed crossing through a fenced-off, open area into a pasture along Highway 321 near Dayton. Law enforcement officers set up a perimeter in the pasture and took positions in high grass on the ground, while observing the area. Within a few minutes, officers observed Oclair on the run moving toward them. When Oclair got close enough, the officers emerged from their positions with their weapons raised and arrested him, but not before he was observed discarding a firearm he had concealed in his pants. The loaded firearm was discovered in the grass nearby.
Oclair was indicted by a federal grand jury on Oct. 5, 2022. He faces up to 15 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.
This case is being investigated by the Dayton Police Department, Liberty County Constable’s Office, Precincts 4 and 6, Port Arthur Police Department, U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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Knott County Man Sentenced to 298 Months for Armed Fentanyl and Methamphetamine TraffickingRead the Press Release
PIKEVILLE, Ky. – A Pippa Passes, Ky., man, Tony Minor, 44, was sentenced on Tuesday to 298 months in federal prison, by U.S. District Judge Robert Wier, for possession with intent to distribute methamphetamine and fentanyl, and possession of a firearm in furtherance of drug trafficking.
According to Minor’s plea agreement, on February 10, 2022, law enforcement attempted to stop a vehicle in which Minor was an occupant. Minor ran from law enforcement, who eventually apprehended him and found baggies, a scale, and over 100 grams of methamphetamine on his person. Law enforcement then searched Minor’s residence and found additional drugs, including over 40 grams of fentanyl and a loaded firearm. Minor possessed this firearm to protect himself from the dangers of drug trafficking and was not legally permitted to possess the firearm because he was a convicted felon.
Minor pleaded guilty to the current charges in August 2022. Minor was previously convicted of a drug trafficking felony in the Knott County Circuit Court.
Under federal law, Minor must serve 85 percent of his prison sentence. He will be under the supervision of the U.S. Probation Office for eight years after his release from prison.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI Louisville Field Office; and Sheriff Dale Richardson, Knott County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by the FBI, KSP, and Knott County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Jamestown Woman Pleads Guilty for Her Role in Selling Fentanyl That Led to A DeathRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Alisha Centi, 28, of Jamestown, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to possess with intent to distribute, and to distribute, heroin, fentanyl, and methamphetamine, which carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that between March 2020, and June 2021, Centi and co-defendant Garson Butcher conspired with others to possess and sell heroin, fentanyl, and methamphetamine. On March 29, 2020, Centi and Butcher sold fentanyl which resulted in the death of an individual identified as T.R. On September 28, 2020, Centi and Butcher sold heroin to an individual identified as K.K., who overdosed but regained consciousness after receiving multiple doses of Narcan. In addition, Centi and Butcher used residences on Fairview Avenue and Roland Road to manufacture and distribute heroin, fentanyl, and methamphetamine.
Butcher was previously convicted and is awaiting sentencing.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the Jamestown Police Department, under the direction of Chief Timothy Jackson, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James B. Quattrone.
Sentencing is scheduled for June 30, 2023, at 10:00 a.m. before Judge Sinatra.
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Hebbronville resident admits to smuggling over a million in cocaineRead the Press Release
CORPUS CHRISTI, Texas - A 63-year-old man has pleaded guilty to possession with intent to distribute approximately 16 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
On Sept. 7, 2022, Ascencion Garza Jr. drove his truck into the primary inspection lane of a Border patrol (BP) checkpoint located near Falfurrias. There, authorities searched his vehicle and discovered 15 bricks of cocaine in concealed compartments within the rear quarter-panels.
The drugs weighed approximately 16 kilograms and have an estimated street value of more than $1.1 million.
U.S. District Judge Nelva Gonzalez Ramos will impose sentencing April 11. At that time, Garza faces up to life in federal prison and a possible $10 million maximum fine.
Garza has been and will remain in custody pending that hearing.
Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Tyler Foster is prosecuting the case.
Guam Seafood Store Owner Sentenced to 21 Months Imprisonment for Food Stamp FraudRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Basiano B. Joysa, age 47 from Dededo, Guam was sentenced in the United States District Court of Guam to 21 months imprisonment, with credit for time served, for Unauthorized Use of Food Stamp Benefits, in violation of 7 U.S.C. § 2024(b). The Court also ordered three years of supervised release following imprisonment, $250,000 in restitution, and a mandatory $100 special assessment fee. In addition, defendants convicted of trafficking SNAP benefits are ineligible to receive SNAP benefits and may not participate in the program as vendors.
Basiano Joysa and Hilaria Willy owned and operated Angarap Fish Mart (“Angarap”), a small specialty seafood store in Dededo. On October 2001, Angarap was authorized by the USDA’s Food and Nutrition Service to participate in the agency’s program known as SNAP, formerly the Food Stamp Program. SNAP is a 100% federally funded program that provides financial aid to eligible recipients for use at authorized retail food stores. Under the program, SNAP recipients receive electronic benefits transfer (“EBT”) authorization cards that operate as debit cards. Each month authorized recipients are issued certain amounts of SNAP benefits that can be accessed only with their EBT cards and encrypted personal identification numbers. Under the program, Joysa and Willy knew that SNAP benefits could not be accepted or redeemed in exchange for credit or loans, and that SNAP recipients could not be discriminated against by charging them interest.
From January 1, 2010, to December 31, 2013, Joysa and Willy acquired SNAP benefits in exchange for extending credit to SNAP recipients and payment on their credit accounts. They also charged SNAP recipients who purchased merchandise on credit with a 1.2 percent fee for every credit transaction. Willy previously pled guilty and will be sentenced on February 21, 2023.
“Nutritional benefits provide essential support to low-income individuals nationwide,” stated United States Attorney Anderson. “Any unlawful fees and interest imposed by retailers diminishes the impact of this important program. We will continue to uphold the accountability and integrity of SNAP through targeted prosecutions in our districts.”
“SNAP is taxpayer-funded and intended to help the disadvantaged,” said FBI Special Agent in Charge Steven Merrill. “The FBI, along with our partners in law enforcement, is committed to investigating the misuse or abuse of any government-funded program.”
The Federal Bureau of Investigation and the USDA- Office of Inspector General (USDA) investigated this case. The case was prosecuted by Marivic P. David, First Assistant United States Attorney in the District of Guam.
Former insurance agent pleads guilty to defrauding customers by creating life insurance policies in their names without victims’ knowledgeRead the Press Release
CINCINNATI – A former insurance agent pleaded guilty in U.S. District Court to defrauding dozens of victims in the Cincinnati and Dayton area.
Specifically, Seneca Birchmore, 45, of Cincinnati, admitted to committing aggravated identity theft, a federal crime punishable by a mandatory two-year prison sentence. Birchmore also fraudulently obtained two COVID Paycheck Protection Program loans.
According to court documents, Birchmore lost his license as an insurance agent in 2019 because he was writing unauthorized insurance policies so that he could collect the commissions.
After losing his license, Birchmore then stole the identities of two other insurance agents and used those identities to write more life insurance policies for customers who did not want them. Birchmore had the commissions from dozens of local customer victims deposited into his own bank accounts.
Local law enforcement departments received complaints from victims that money was being automatically withdrawn from their bank accounts for insurance policies they never ordered. Many of the victims are senior citizens, and most reside in Dayton, Englewood, Middletown and Cincinnati.
The commissions for Birchmore’s original fraudulent insurance policies under his own name as an agent totaled more than $8,000. The commissions for policies created under the stolen identities of other agents totaled more than $93,000.
As part of his plea, Birchmore has agreed to pay the following restitution:
- Americo Financial Life and Annuity Insurance Company: $34,820.37
- Columbian Life Insurance Company: $16,604.01
- Transamerica Life Insurance Company: $4,671
- Mutual of Omaha: $2,104.65
- Great Western Insurance Company: $16,303.17
- Aetna Health and Life Insurance Company: $8,826.84
- American General Life Insurance Company: $158.82
- Guarantee Trust Life Insurance Company: $17,906.07
- U.S. Small Business Administration: $41,665
In a separate scheme, Birchmore fraudulently obtained two COVID Paycheck Protection Program loans totaling more than $40,000. Birchmore claimed on both loan applications that he owned a business in his name and stated his gross income for 2019 was more than $13 million. No such business exists.
The defendant was charged federally and arrested in June 2022.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, was joined by the Social Security Office of Inspector General, U.S. Secret Service, Ohio Department of Insurance, Ohio Bureau of Motor Vehicles, U.S. Department of Labor Office of Inspector General, U.S. Marshals Service, Butler County Sheriff’s Office and Cincinnati Police Department in announcing the guilty plea entered yesterday before Senior U.S. District Judge Susan J. Dlott. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
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Former South Carolina Priest Indicted for the Sexual Abuse of a MinorRead the Press Release
COLUMBIA, SOUTH CAROLINA — A federal grand jury in Columbia returned a 3-count indictment against Jamie Adolfo Gonzalez-Farias, a/k/a “Father Gonzalez,” a/k/a “E,” 67, a former South Carolina priest, for the alleged sexual abuse of an 11-year-old minor.
The indictment charges three counts: Coercion and Enticement of a Minor, Transportation of a Minor with Intent to Engage in Criminal Sexual Activity, and Aggravated Sexual Abuse with a Child. The Grand Jury also identified Florida state statutes of Lewd or Lascivious Molestation and Lewd or Lascivious Exhibition as implicated by Gonzalez-Farias’s conduct.
The indictment alleges that Gonzalez-Farias has been ordained as a Priest since at least 1990, and that he has held various positions in the churches in which he served, including Pastor, Parochial Vicar, Administrator, Chaplain, and Priest. The indictment further alleges that Gonzalez-Farias began serving in South Carolina in 2015, and that he sexually abused a minor to whom he had access by virtue of his service as a Priest.
As indicated on the public docket (Criminal No. 3:22-cr-874), Gonzalez-Farias was arrested in Miami, Florida, on November 28, 2022, and placed in the custody of the United States Marshals. On January 9, 2023, he made his initial appearance in federal court in Columbia, South Carolina. At that hearing, the Government requested the defendant remain detained, and Gonzalez-Farias elected to not request a bond at this time. United States Magistrate Judge Shiva V. Hodges ordered that Gonzalez-Farias remain detained pending trial.
Gonzalez-Farias faces a mandatory sentence of at least 30 years in federal prison and a maximum of Life on the Aggravated Sexual Abuse With a Child count. He faces a mandatory sentence of at least 10 years and a maximum of Life on the remaining counts. He also faces fines of up to $250,000, a $5,000 special assessment, mandatory restitution payable to any victims, court-ordered supervision for life to follow any term of imprisonment, and requirements to register as a sex offender.
“The exploitation of children – particularly by those in positions of trust – will not be tolerated in our state,” said U.S. Attorney Adair F. Boroughs. “Our commitment to victims and survivors is that when they are met with abuse, offenders will be met with a full measure of accountability.”
“The defendant’s alleged actions are deeply troubling,” said FBI Columbia Special Agent in Charge Susan Ferensic. “The FBI will not stand for crimes committed against children, and we are poised to use the full weight of our agency to protect minors and hold offenders accountable.”
The FBI is seeking the public’s help in identifying potential victims. If you believe you or your minor dependent(s) were victimized by Gonzalez-Farias, or if you have relevant information about Gonzalez-Farias the FBI should know, you are encouraged to contact the FBI at 803-551-4200.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and the Laurens County Sheriff’s Department. Assistant U.S. Attorneys Elliott B. Daniels and E. Elizabeth Major are prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Former San Francisco Resident Sentenced to More Than Three Years in Prison for Multi-Year Campaign of CyberstalkingRead the Press Release
SAN FRANCISCO – Ramajana Hidic Demirovic was sentenced to 37 months in prison for cyberstalking and conspiracy to commit cyberstalking in connection with a scheme to harass and intimidate victims, including teenagers who had romantic relationships with the defendant’s co-conspirator, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Hon. Vince Chhabria, U.S. District Judge after the defendant admitted she was guilty of the federal criminal charges.
Demirovic, 47, of San Francisco at the time she committed the offenses and currently of Brentwood, pleaded guilty to the charges on August 4, 2022. According to her plea agreement, Demirovic admitted she sent hundreds of malicious, deceptive, and abusive communications intended to sabotage the personal relationships, social reputation, academic life, and work prospects of her intended victims. In all, Demirovic pleaded guilty to seven counts of cyberstalking as well as an eighth count of conspiracy to commit cyberstalking. She acknowledged in her plea agreement that between 2016 and 2019 she and a co-conspirator attempted to cause and did cause substantial emotional distress to their victims. The principal targets of the scheme were persons with whom her co-conspirator (her daughter) had a falling out after a relationship or friendship. In each case, after the relationship ended, Demirovic engaged in a campaign to punish the victims.
Examples of Demirovic’s cyberstalking and additional conduct are described in her plea agreement and in the government’s sentencing memorandum. The descriptions are disturbing. Demirovic’s first victim was a 14-year-old high school student who dated Demirovic’s co-conspirator for only a few days in February 2016. Demirovic went to the victim’s school, located him, accosted him, and, in front of other students, threatened him. Demirovic also contacted the victim’s mother using text messages and falsely accused him of being violent against Demirovic’s co-conspirator.
A second victim was a close female friend of Demirovic’s daughter until the two teenagers had a falling out. In response, Demirovic began sending harassing text messages to her and leaving threatening voicemail messages. Demirovic threatened to send fabricated incriminating evidence to the police and to arrange to have this victim disciplined by her school.
A third victim became Demirovic’s target after he briefly “dated” her daughter in 2016. Demirovic sent vicious text messages to this victim and threatened to seek a restraining order against him that would prejudice his college applications. She made false reports to his employer accusing the victim of being physically abusive, using drugs, and having a problem with alcohol—leading the victim to quit his job. She contacted administrators at the victim’s school and repeated these false allegations. Demirovic also used Instagram spoof accounts that used the victim’s name and images of him.
Demirovic acknowledged in her plea agreement that her tactics escalated throughout the rest of 2016 and 2017; by May of 2018, Demirovic and her co-conspirator began a 17-month course of conduct that was intended to humiliate and destroy the social relationships of a fourth victim. This time, Demirovic created and used social media accounts—some that impersonated the victim and others that used pseudonyms—to systematically transmit hundreds of communications and postings about the victim. Messages were sent to the victim, his family, friends, school officials, and strangers. For example, Demirovic created social media postings suggesting, among other things, that the victim was high on drugs, that he was emotionally and psychologically abusive, and that he was engaged in online bullying and anonymous messaging. Demirovic also submitted a complaint about the victim to Title IX officers at his university, falsely alleging he had "harassed and stalked" girls. Demirovic’s harassing conduct continued even after a judicial officer issued a temporary restraining order directing Demirovic to refrain from harassing the victim and his family.
A more detailed description of the defendant’s conduct and the effect on her multiple victims is included in the government’s memorandum filed in connection with the defendant’s sentencing.
On March 10, 2022, a federal grand jury issued a superseding indictment charging Demirovic with seven counts of cyberstalking, in violation of 18 U.S.C. § 2261A(2), and one count of conspiracy to commit cyberstalking, in violation of 18 U.S.C. § 371. Pursuant to her plea agreement, Demirovic pleaded guilty to all counts.
In addition to the prison term, Judge Chhabria ordered Demirovic to serve a three-year term of supervised release to begin after her prison term. Judge Chhabria ordered the defendant to surrender on March 10, 2023, to begin serving her prison term rand scheduled a hearing for February 15, 2023, to determine issues regarding restitution.
Assistant U.S. Attorneys Joseph Tartakovsky and Lauren Harding are prosecuting the case with assistance from Lance Libatique. The prosecution is the result of an investigation by the FBI.
Former Pennsylvania Correctional Officer Pleads Guilty to Excessive ForceRead the Press Release
A former Philadelphia Department of Prisons sergeant pleaded guilty in federal court in Philadelphia to a civil rights charge and falsification of records related to the use of excessive force on a detainee.
During the plea hearing, Ronald C. Granville, 42, admitted that on Oct. 6, 2020, he was ordered by a senior officer to supervise a strip-search of an individual whose initials were V.H., a pre-trial detainee housed at the Curran-Fromhold Correctional Facility (CFCF) in Philadelphia. At approximately 9:00 p.m., Granville and four correctional officers escorted V.H. to his cell to conduct the strip-search. After V.H. complied with the correctional officers’ orders and was naked, Granville and other officers physically assaulted V.H. As a result of the assault, V.H. was hospitalized with injuries to his face, ribs and scrotum, and had to undergo emergency surgery. Following the assault, the defendant and other officers submitted and helped submit false reports about the incident. The investigation into the other correctional officers’ actions is ongoing.
“This defendant is being held accountable for using excessive force and violating the Constitutional rights of a detainee under his care, custody and control,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to work with our federal, state and local partners to investigative and prosecute law enforcement officers who violate federal criminal civil rights laws.”
“A uniform and a badge do not provide a license to brutalize,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “The U.S. Attorney's Office and our partners at the FBI and DOJ’s Civil Rights Division will devote the personnel and resources necessary to ensure that excessive force cases are investigated and prosecuted to the fullest extent of the law. As law enforcement, we must maintain the highest standards of conduct to protect the integrity of our criminal justice system and the civil rights of all Americans, while recognizing with gratitude that the overwhelming majority of law enforcement officers do just that every day.”
“While those behind bars may have lost their freedom, they retain their humanity — and their civil rights,” said Special Agent in Charge Jacqueline Maguire of the FBI Philadelphia Field Office. “Battering a compliant detainee is indefensible, and the FBI is committed to seeking justice for the victims of such violence and other criminal misconduct.”
A sentencing date has been set for April 25. Granville faces up to 30 years of imprisonment and a fine of up to $500,000.
The FBI Philadelphia Field Office and the Philadelphia Department of Prisons investigated the case.
Assistant U.S. Attorneys Nancy E. Potts and Everett R. Witherell for the Eastern District of Pennsylvania and Trial Attorney Daniel E. Grunert of the Civil Rights Division’s Criminal Section are prosecuting the case.
Former Old Forge Borough Council President Sentenced to One Year of Imprisonment for BriberyRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert Semenza, Jr., age 47, of Old Forge, Pennsylvania, was sentenced by United States District Judge Malachy E. Mannion, to 12 months of imprisonment for committing bribery.
According to United States Attorney Gerard M. Karam, Semenza, the former President of the Old Forge Borough Council, pleaded guilty to soliciting, demanding, and accepting cash payments in exchange for performing and promising to perform official acts, between January 2019 and February 2020. The official acts were in connection with a civil litigation filed by Old Forge Borough against a local business owner in a dispute over Old Forge zoning ordinances. Semenza agreed, in exchange for cash payments, to vote on the local business owner’s behalf in matters before the Old Forge Borough Council, to advocate on behalf of the local business owner with the Old Forge Borough Council, the Old Forge Borough Solicitor, and Old Forge zoning officials, and to propose a favorable resolution for the civil litigation to the Old Forge Borough Council and Solicitor, among other things.
Judge Mannion also imposed one year of supervised release on Semenza, following his term of imprisonment. In pronouncing the sentence, Judge Mannion highlighted the negative effect that the public corruption offense had on the public’s trust in its elected officials.
Semenza’s conspirator, James J. Peperno, Jr., was convicted following a jury trial, of conspiracy, federal program bribery, honest services wire fraud, Travel Act, false statement, and perjury offenses. Peperno is awaiting sentencing.
The case was investigated by the Scranton Federal Bureau of Investigation’s Public Corruption Task Force, which consists of members of the Pennsylvania State Police and the Pennsylvania Attorney General’s Office, and federal agents from the FBI and Internal Revenue Service. Assistant U.S. Attorneys Phillip J. Caraballo and Jeffrey St John prosecuted the case.
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Former Muncie Police Department Supervisor Pleads Guilty to Obstruction of Justice for Writing False Report to Cover up Excessive Force by Other OfficersRead the Press Release
A former sergeant with the Muncie Police Department (MPD), in Muncie, Indiana, pleaded guilty today to one count of obstruction of justice for writing a false report to cover up the excessive use of force by other MPD officers under his command.
According to court documents and statements made during the change of plea hearing, on or about Aug. 9, 2018, Joseph Krejsa, 52, responded to the scene of an arrest involving a civilian with the initials L.G. Before he arrived on the scene, other MPD officers under his supervision – including Officer Chase Winkle, the son of the then-Chief of Police – had used excessive force against L.G., resulting in serious injury to L.G.’s face. The day after the arrest, Krejsa conducted a supervisory review of the incident, during which he noted that he had watched the videos of the incident and falsely deemed those uses of force “justified.”
Several days later, on or about Aug. 13 and Aug. 14, 2018, the captain of MPD’s patrol division tasked Krejsa with conducting a more in-depth review of the officers’ uses of force during L.G.’s arrest, which was separate from the typical shift sergeant review. In response to this request, Krejsa watched the involved-officers’ body worn camera videos, which revealed what had happened during the arrest: Two officers under his supervision, Chase Winkle and Corey Posey, approached L.G. in an alley way and gave several verbal commands to L.G. – including to put his hands on his head and to get on the ground – and L.G. complied with those commands. On the ground, as Posey held both of L.G.’s hands behind his back, L.G. directed a verbal insult towards officers, and in response, Winkle, using his knee, dropped his bodyweight down onto L.G.’s neck and head area. L.G. screamed out words to the effect of, “He crushed my whole face!” and pulled his hands towards his face. Winkle then tased L.G., as other MPD officers, including Officer Jeremy Gibson, arrived to assist. Toward the end of the incident, officers secured one of L.G.’s hands in handcuffs, lifted him up to a seated position, and Gibson delivered two forceful knee strikes directly to L.G.’s face.
After reviewing the officers’ body camera videos, Krejsa knowingly authored a lengthy memorandum for MPD’s official records that contained several false statements. Specifically, Krejsa falsely implied that any force used against L.G. was justified to ensure officer safety; falsely asserted that officers used only low levels of force near the start of the incident, and escalated to higher levels of force only after less force was ineffective; falsely stated that Winkle “kneeled on [L.G.]’s left shoulder and upper body,” when in fact Krejsa knew that Winkle had used his knee to strike L.G.’s head and neck area; and falsely implied that Winkle’s uses of force against L.G. caused only cuts to L.G.’s face, when Krejsa knew that the use of force against L.G. caused serious bodily injury to L.G. As part of his plea, Krejsa admitted that he knew, when he wrote the false report, that the inaccuracies and material omissions in his report were intended to influence any potential investigation into the incident.
Krejsa is the fourth Muncie Police Department official to plead guilty in connection with this investigation. Krejsa was one of four MPD officers who were indicted in April 2021 in a 17-count superseding indictment for their roles in using excessive force against arrestees and/or attempting to cover up the misconduct. A fifth Muncie police officer, Dalton Kurtz, previously entered a pre-indictment guilty plea on Aug. 4, 2021, to one count of misprision of felony for concealing and failing to report inappropriate use of force by Winkle during a separate incident.
On May 13, 2022, Gibson also pleaded guilty to civil rights and obstruction charges for assaulting a different arrestee and writing a false report about the incident. On Dec. 5, 2022, Winkle pleaded guilty to eleven counts of civil rights and obstruction offenses for assaulting arrestees and writing false reports about the incidents, including the arrest of L.G. The last remaining officer is scheduled to stand trial at a later date.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Zachary A. Myers for the Southern District of Indiana, and Special Agent in Charge Herbert J. Stapleton of the FBI Indianapolis Field Office made the announcement.
The FBI Indianapolis Field Office investigated the case.
Trial Attorneys Katherine G. DeVar and Mary J. Hahn of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Peter Blackett for the Southern District of Indiana are prosecuting the case.
Former Co-Owner and Sales Manager of defunct medical testing lab sentenced to prisonRead the Press Release
Seattle – A resident of Astoria, Oregon was sentenced today in U.S. District Court in Seattle to two years in prison for five federal felonies connected to his scheme to profit from illegal kickbacks in the medical testing industry, announced U.S. Attorney Nick Brown. Richard Reid, 53, was convicted in March 2022, following a six-day jury trial. At today’s sentencing hearing, U.S. District Judge John C. Coughenour denied a defense motion to postpone the prison sentence while Reid appeals his conviction.
“Mr. Reid was the architect of a scheme to illegally profit on toxicology tests that were paid for by government insurance,” said U.S. Attorney Brown. “The web of referrals and kick-backs led to significant profits for NWPL and its owners. Such illegal kick-backs simply inflate medical costs for the rest of us.”
The activities of Bellevue-based Northwest Physicians Laboratory (NWPL) have been the subject of extensive civil and criminal litigation. Richard Reid was one of the owners and the Vice President of Sales for NWPL. Reid helped NWPL obtain more than $3.7 million in kickback payments by steering urine drug test specimens to two labs that could bill the government for testing. This resulted in government payments to those two labs of more than $6.5 million.
According to records filed in the case between January 2013 and July 2015, two labs, that were not physician owned, made payments to NWPL in exchange for referrals of Medicare and TRICARE program business, in violation of the Anti-Kickback Statute. Paying remuneration to medical providers or provider-owned laboratories in exchange for referrals encourages providers to order medically unnecessary services. The Anti-Kickback Statute functions, in part, to discourage such behavior. NWPL was physician-owned, and for that reason could not test urine samples for patients covered by government health programs such as Medicare, Medicaid, and TRICARE. In order to conceal the payment of the kickbacks, Reid and other co-conspirators involved described the fees as being for marketing services; however, no marketing services were performed.
In the sentencing memo asking that Reid receive the same two-year sentence as CEO Jae Lee, prosecutors described his role writing, “Reid hid the truth and kept the cover story in place by lying to his sales force, lying to providers, and sharing fraudulent opinion letters from attorneys. NWPL grew and the money – including illegal kickbacks – rolled in. The kickbacks increased as time went on, and totaled almost $5 million. As the proceeds of the crime rose, so did Reid’s monthly distributions -- from $10,000 in 2013 to $50,000 in 2015.”
Reid was convicted of one count of conspiracy to solicit and receive kickbacks involving health care programs and four counts of receipt of kickbacks.
The company, NWPL, pleaded guilty in February 2021 and was sentenced to pay $8,114,417 in restitution joint and several with the other criminal defendants. NWPL has dissolved. To date, the labs and individuals involved in this investigation have paid more than $14 million to settle related civil allegations.
In addition to Reid, three other defendants have pleaded guilty and await sentencing. Former NWPL CEO Jae Lee was sentenced to two years in prison in May 2022. Kevin Puls, the former Executive Director of NWPL was sentenced to 90 days in prison and a year of supervised release.
"Mr. Reid's sentencing culminates his part in a years-long investigation wherein he was convicted last year for actively orchestrating and personally benefiting from a scheme to corrupt and defraud the healthcare system, including the Department of Defense's TRICARE program," said Bryan D. Denny, the Special Agent in Charge of the DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. "DCIS will continue to work with its partners to root out fraudulent activities, like those in this particular investigation, that weaken TRICARE and inevitably increase costs unnecessarily."
“Mr. Reid let his greed get in the way of doing what was right by taxpayers” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “He solicited and received hundreds of thousands of dollars in kickbacks. Ultimately, frauds like these inflate health care costs for the rest of us. I applaud the work of our investigators and partners to hold Mr. Reid accountable, provide justice to the victims, and bring his crimes to an end.”
The case was investigated by the FBI, Health and Human Services Office of Inspector General (HHS-OIG), and the Defense Criminal Investigative Service (DCIS).
The case was prosecuted by Assistant United States Attorney Michael Dion and former Assistant United States Attorney Brian Werner.
Five Florida Men Sentenced for Conspiracy and Interstate Transportation of over $1.3 Million of Stolen PerfumeRead the Press Release
NEWARK, N.J. – Five men were sentenced today for their roles in a conspiracy to transport over $1.3 million worth of stolen perfume products out of New Jersey to Florida, U.S. Attorney Philip R. Sellinger announced.
Carlos Duvergel, 58, of Miami Gardens, Florida, was sentenced to 33 months in prison. Four defendants residing in Hialeah, Florida, were also sentenced: Juan Crespo, 46, was sentenced to 37 months in prison; Felix Castillo, 49, was sentenced to 33 months in prison; Asnay Fernandez, 32, was sentenced to 33 months in prison; and Ismael Manzano-Suarez, 25, was sentenced to 33 months in prison. The defendants were previously convicted at trial before Judge Peter G. Sheridan with conspiring to transport stolen property in interstate commerce and transportation of stolen property in interstate commerce. Judge Sheridan imposed the sentences today in Trenton federal court.
According to documents filed in this case and statements made in court:
In November 2017, the defendants broke into a warehouse storing perfume products in Edison, New Jersey, and drove away with two tractor trailers filled with stolen perfume products. The value of the stolen perfume products was over $1.3 million. The defendants were arrested in May 2018 while attempting to break into another perfume warehouse in East Brunswick, New Jersey.
In addition to the prison term, Judge Sheridan sentenced each defendant to three years of supervised release and were ordered to pay total restitution of $1.36 million.
U.S. Attorney Philip R. Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencings. He also thanked the Edison Police Department, the East Brunswick Police Department, and the Middlesex County Prosecutor’s Office, for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Christopher D. Amore of the National Security Unit and Special Assistant U.S. Attorney Timothy P. Shaughnessy of the Organized Crime and Gangs Unit in Newark.
Federal Prosecutors Aggressively Pursuing Those Who Lie in Connection with Firearm TransactionsRead the Press Release
OKLAHOMA CITY — The Western District of Oklahoma is aggressively seeking to keep firearms out of the wrong hands by pursuing those who lie in connection with gun purchases. Several recent cases charged in federal court highlight these efforts.
Federal law prohibits knowingly making any false statement in connection with purchasing, or attempting to purchase, a firearm. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) requires prospective firearm buyers to complete ATF Form 4473. This Form requires buyers to answer several questions, including those about the buyer’s competency, criminal history, drug use, immigration status, and history with domestic violence. Applicants who knowingly make false statements may also face criminal prosecution for a felony and up to 10 years in federal prison. Federal Firearms Licensees (FFLs), who sell or transfer a firearm to a prohibited person, allow a straw purchaser to buy a gun for someone else, or fail to keep proper records of who they sell firearms to may also face criminal prosecution. Before attempting to purchase a firearm, prospective buyers who have eligibility concerns should visit www.atf.gov or contact their local ATF field office.
"Keeping guns out of the hands of those who shouldn’t have them is of paramount concern," said U.S. Attorney Robert J. Troester. "We will use the tools available to us to pursue those who use a straw purchaser or lie when trying to buy a gun. We will continue to work closely with ATF and our law enforcement partners to prevent guns from falling into the wrong hands by holding accountable those who lie to get them."
"ATF and its’ partners work tirelessly to keep firearms out of the hands of those who should not have them. There is no higher priority than protecting our citizens and their loved ones from firearms violence. The lesson learned here is that if you buy a gun for someone that shouldn’t have one, you will go to prison. And trust me, prison is not somewhere you want to be," stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
The following recent cases brought in federal court are examples of efforts in the Western District to hold defendants accountable for making false statements in connection with the attempted purchase or purchase of a firearm or related offenses:
Sentencings:
- AMY CARWILE, 46, and KEVIN CARWILE, 48, both of Purcell, Oklahoma, were sentenced on August 3, 2022, to serve three months in federal prison. According to public record, the Carwiles were engaged in the business of selling firearms, and dating back to 2012, they made false statements and failed to maintain proper records in connection with their firearm business. Transaction records indicate that the Carwiles had sold approximately 253 firearms through their off-the-books operation. Records further reflect law enforcement seized 112 firearms that were to be sold without completing the appropriate and required paperwork. Their federal firearms license to sell firearms has been revoked.
- EDDIE WAYNE MORRISON, 34 of Duncan, Oklahoma, was sentenced to time-served, or essentially 16 months in federal custody, on December 29, 2022, for making a false statement during the purchase of a firearm. According to public record, Morrison purchased a firearm from EZ Pawn in Duncan. Prior to purchasing a firearm, Morrison had been deemed incompetent by a court. He was also subject to a protective order in Love County. A judge had ordered Morrison detained in federal custody since August 12, 2021, until sentencing. He is currently serving a term of two years of supervised release.
Guilty Pleas:
- HERIBERTO FLORES, 29, of Oklahoma City, pleaded guilty on April 5, 2022, to illegal possession of ammunition as a convicted felon. According to public record, Flores was at an Oklahoma City Fairgrounds gun show with another individual, Haley Adkison, where officers observed the two looking at different handguns. Law enforcement pulled over Flores after he left the gun show and found him in possession of ammunition. At sentencing, Flores faces up to ten years in federal prison.
- HALEY LEEANNE ADKISON, 24, of Oklahoma City, pleaded guilty on August 18, 2022, to making a false statement during a firearms transaction. According to public record, Adkison was observed completing paperwork regarding the purchase of firearms at an Oklahoma City Fairgrounds gun show, after looking at different firearms with Heriberto Flores. Adkison was scheduled to take possession of six firearms at the vendor’s store in Tulsa, Oklahoma. At sentencing, Adkison faces up to ten years in federal prison.
- JOSHUA DAVID MOSELEY, 31, of Harrah, Oklahoma, pleaded guilty on September 6, 2022, to making a false statement during the purchase of a firearm. According to public record, Moseley attempted to purchase a firearm from Super Pawn #2 Inc., in Oklahoma City. Moseley checked “no” for having been convicted in any court of a misdemeanor crime of domestic violence. Public records show that, on January 6, 2022, Mosely was convicted of misdemeanor domestic assault and battery in Oklahoma County District Court case CM-2021-1377. At sentencing, Moseley faces up to 10 years in federal prison.
- BRIONJRE MARTAI ODELL HAMILTON, 22, of Oklahoma City, pleaded guilty on October 10, 2022, to making false statements during attempted purchases of firearms. According to public record, on May 25, 2022, Hamilton was convicted of carrying a firearm under the influence of drugs (marijuana) in Oklahoma County District Court case CM-2021-3533. Thereafter, records reflect Hamilton lied on the ATF Form 4473 regarding his eligibility to purchase firearms and attempted to purchase firearms on four separate occasions, after the ATF informed Hamilton that he was a prohibited from doing so. At sentencing, Hamilton faces up to 10 years in federal prison on all four counts.
- NEMORY ZAHID RAMOS CASTRO, 22, of Oklahoma City, pleaded guilty on January 5, 2023, for making a false statement during the purchase of a firearm. According to public record, Ramos made false written statements in connection with the purchases of two assault-style firearms, one in Oklahoma City and one in Luther, Oklahoma. In one instance, Ramos submitted the ATF Form 4473 stating he was not acquiring the assault-style firearm for another person, but a few hours after the transfer law enforcement found another individual in possession of it during a traffic stop. At sentencing, Castro faces up to ten years in federal prison on both counts.
Sentencings hearing in federal criminal cases take place approximately 90 days after a plea of guilty. Reference is made to public filings for more information.
This case is part of Project Safe Neighborhoods, the Department of Justice’s signature nationwide initiative that brings together federal, state, local, and tribal law enforcement officials and prosecutors to address violent crime, reduce gun violence, and enforce federal firearms laws.
Federal Judge Sentences Man to More Than Five Years in Prison for Illegally Possessing Firearm in RockfordRead the Press Release
ROCKFORD — A federal judge has sentenced a Rockford man to more than five years in federal prison for illegally possessing a firearm in Rockford.
U.S. District Judge Iain D. Johnston on Friday sentenced MARCUS CLAY, 23, to five years and two months in prison. Clay pleaded guilty in September 2022 to a charge of illegal firearm possession. As a previously convicted felon, Clay was prohibited by federal law from possessing firearms. Clay admitted in a plea agreement that while in Rockford on Oct. 27, 2021, he possessed a loaded handgun with an extended magazine. The magazine was loaded with an additional 29 rounds of ammunition.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and Carla Redd, Chief of the Rockford Police Department. The government was represented by Special Assistant U.S. Attorney Theodora Anderson, a prosecutor with the Winnebago County State’s Attorney’s Office who is working with the U.S. Attorney’s Office under a federal grant to prosecute certain firearm offenses in federal court.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Federal Charges Announced Against Maine Man Who Carried Out Machete Attack in Times Square on New Year’s Eve in Name of JihadRead the Press Release
Trevor Thomas Bickford, 19, of Wells, Maine, 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.
“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,” said Attorney General Merrick B. Garland. “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.”
“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,” said U.S. Attorney Damian Williams for the Southern District of New York. “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.”
“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,” said FBI Director Christopher Wray. “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.”
“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,” said Assistant Director Michael J. Driscoll of the FBI New York Field Office. “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.”
“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,” said NYPD Commissioner Keechang L. Sewell. “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:
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 is charged 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 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 is investigating the case.
Assistant U.S. Attorneys Sarah L. Kushner and Kaylan E. Lasky for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney D. Andrew Sigler of the National Security Division’s Counterterrorism Section.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Downstate Man Sentenced for Trafficking in Prohibited WildlifeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Jose A. Der, Jr., 50, of Brooklyn, NY, who was convicted of trafficking in prohibited wildlife, was sentenced to serve two years’ probation and a $10,000 fine payable to the Lacey Act Reward fund by U. S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Aaron J. Mango, who handled the case state that in November 2016, Der owned a business, Der Dau Custom Made Boots & Shoes, Inc., in Brooklyn, NY. Der used Der Dau’s corporate delivery account to have four shipments of custom-made boots imported from Canada at the Peace Bridge Port of Entry. The shipments contained nine pairs of boots trimmed with exotic wildlife skins, including stingray, crocodile, python, and monitor lizard. The boots, which were being returned to Der for alteration and/or repair but were intercepted and inspected at the border and subsequently seized by the U.S. Fish and Wildlife Service (USFWS). The boots were not declared to USFWS and no required permits accompanied the shipments. The seized boots were valued at approximately $20,593. The investigation determined that following the boot seizures, Der replaced the Canadian customer’s boots but did not declare the replacement boots to USFWS or obtain permits. Between 2015 and 2020, 48 additional pairs of custom-made boots comprised with exotic wildlife leathers were shipped in international commerce by Der to customers. Der did not file a declaration with USFWS or obtained permits. The value of the custom boots which were unlawfully shipped in international commerce is $129,361.
The sentencing is the culmination of an investigation by the United States Fish and Wildlife Service, under the direction of Ryan Noel, Special Agent-in-Charge of the USFWS-Office of Law Enforcement North-Atlantic Appalachian Region, the New York State Department of Environmental Conservation, and Environment and Climate Change Canada, under the direction of Robert Baxter, Operations Manager, Wildlife Enforcement Directorates Major Case Unit, Ontario Region.
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Dominican Man Previously Convicted in Fentanyl Distribution Conspiracy Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Dominican man pleaded guilty today in federal court in Boston to illegally reentering the United States after deportation.
Milton Jose Arias, 32, pleaded guilty to one count of unlawful reentry before U.S. District Court Judge Allison D. Burroughs, who scheduled sentencing for April 4, 2023.
Arias is a citizen of the Dominican Republic who illegally entered the United States at an unknown time and location without inspection. In July 2019, Arias was convicted in federal court in Boston of fentanyl distribution and fentanyl distribution conspiracy and, in March 2020, was removed from the United States.
In January 2022, Arias was found to have unlawfully reentered the United States without the appropriate permission sometime after his removal.
The charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England; and Lawrence Police Chief Roy P. Vasque made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit is prosecuting the case.
Defendant Sentenced in Groundbreaking Cryptocurrency Insider Trading CaseRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that NIKHIL WAHI was sentenced by U.S. District Judge Loretta A. Preska to 10 months in prison for his participation in a scheme to commit insider trading in cryptocurrency assets by using confidential information from his brother, a former product manager at Coinbase Global, Inc. (“Coinbase”), about which crypto assets were scheduled to be listed on Coinbase’s exchanges. WAHI previously pled guilty to one count of conspiracy to commit wire fraud.
U.S. Attorney Damian Williams said: “At a time when the cryptocurrency markets have been plagued by fear, uncertainty, and doubt, insider trading creates the impression that everything is rigged and that only people with secret advantages can make a real buck. Today’s sentence makes clear that the cryptocurrency markets are not lawless. There are real consequences to illegal insider trading, wherever and whenever it occurs.”
According to the allegations in the Indictment and statements made in public court proceedings and filings:
Beginning in approximately October 2020, NIKHIL WAHI obtained from his brother, an employee of Coinbase working on highly confidential crypto asset listings, secret tips about which crypto assets would be listed on Coinbase. Using that insider information, NIKHIL WAHI used anonymous Ethereum blockchain wallets and accounts held under pseudonyms at centralized cryptocurrency exchanges to acquire those crypto assets shortly before Coinbase publicly announced that it was listing these crypto assets on its exchanges. On multiple occasions following Coinbase’s public listing announcements, NIKHIL WAHI sold the crypto assets for a profit.
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In addition to the prison sentence, WAHI, 27, of Seattle, Washington, was ordered to pay $892,500 in forfeiture.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation. He also acknowledged the assistance of the Justice Department’s National Cryptocurrency Enforcement Team, as well as that of the Securities and Exchange Commission, which separately initiated civil proceedings against WAHI.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Noah Solowiejczyk and Nicolas Roos are in charge of the prosecution.
Coventry Man Charged with Fraudulently Obtaining COVID-19 Relief FundsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Jean Pierre Njock, Acting Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that JOHN MATAVA, 58, of Coventry, has been charged by federal criminal complaint with offenses related to his receipt of COVID-19 relief funds.
Matava was arrested on January 7, 2023. He appeared yesterday before U.S. Magistrate Judge Thomas O. Farrish in Hartford and was released on a $60,000 bond.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act provided emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program (PPP). In April 2020, Congress authorized more than $300 billion in additional PPP funding. The PPP allowed qualifying small businesses and other organizations to receive unsecured loans at an interest rate of 1%. PPP loan proceeds were to be used by businesses on payroll costs, interest on mortgages, rent and utilities. The PPP allowed the interest and principal to be forgiven if businesses spent the proceeds on these expenses within a certain period of time of receipt and used at least a certain percentage of the amount to be forgiven for payroll.
The PPP was overseen by the Small Business Administration, which has authority over all PPP loans. Individual PPP loans, however, were issued by private approved lenders, such as Celtic Bank, which received and processed PPP applications and supporting documentation, and then made loans using the lenders’ own funds, which were guaranteed by the SBA.
As alleged in the criminal complaint, in April 2020, Matava applied to Celtic Bank for a $100,000 PPP loan for J.M. Builders LLC. The application submission included several false representations, including that J.M. Builders LLC had eight employees and an average monthly payroll of $40,000; that the monies would be used for payroll, lease, mortgage, interest and utilities; and that the business owner was not subject to pending formal criminal charges. At the time of the PPP loan application, there were no records of payroll or employees with the Connecticut Department of Labor for J.M. Builders LLC, and Matava was subject to criminal charges in two pending cases related to arrests in 2017 and 2018.
It is alleged that on April 22, 2020, Celtic Bank disbursed $100,000 to a bank account for J.M. Builders LLC on which Matava was the signatory. The account was opened on April 21, 2020, and had a balance of $0 immediately prior to the loan funds being disbursed. Between April 2020 and January 2021, Matava used the funds primarily for personal expenditures, including $3,498 to pay a dog breeder, $4,777 for payments to an RV superstore in Connecticut, and legal fees, including a $2,000 retainer, for four court cases in Rockville, Connecticut.
It is further alleged that in January 2021, Matava sought $100,000 in additional PPP funds from Celtic Bank, and included with the application several additional false statements and fraudulent tax documents. Celtic Bank denied the application.
The complaint charges Matava with wire fraud affecting a financial institution, which carries a maximum term of imprisonment of 30 years, and with making an illegal monetary transaction, which carries a maximum term of imprisonment of 10 years.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Connecticut Man Sentenced for Cyberstalking and Threatening Massachusetts WomanRead the Press Release
BOSTON – A Connecticut man was sentenced today in federal court in Boston for threatening, harassing and intimidating a Massachusetts woman through social media and email.
Marshall Nicholas Fain, 32, of New Haven, Conn., was sentenced by U.S. District Court Judge Angel Kelley to 46 months in prison and three years of supervised release. In August 2022, Fain pleaded guilty to one count of cyberstalking and one count of transmitting threats through interstate commerce.
“When relationships end people need to act appropriately, even when they are upset, and move on. Mr. Fain obviously was not capable of doing so. Now he has been sentenced to 46 months in prison because he terrorized and threatened to kill his ex-girlfriend and her family. Stalking and violently threatening others – whether online or in person – is a serious, federal crime. Thanks to the victim’s strength and immediate action, Mr. Fain is now a convicted felon,” said United States Attorney Rachael S. Rollins. “Although today’s sentence can’t erase the pain and suffering Mr. Fain caused, we hope it brings the victim and her family solace in knowing he has been held accountable and will be removed from our community.”
“Marshall Fain used his words as weapons, sending threatening messages to harass and intimidate his ex-girlfriend and her family. His actions were intended to inflict emotional harm and the fear of physical violence and that’s exactly what they did. We thank the victim for her bravery in helping us put him behind bars,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Cyberstalking is a serious crime, and you can be sure the FBI will continue to work to identify others like Mr. Fain who are using today’s technology in such a despicable way.”
Fain was in a relationship with the victim for approximately two years, until the relationship ended in August 2021. Soon after, in September 2021 and continuing through December 2021, Fain sent the victim multiple private messages through email and social media threatening to kill the victim and members of her family.
Fain created multiple social media and email accounts which he used to harass and threaten the victim anonymously. Specifically, Fain used anonymous Instagram and Facebook accounts to send the victim messages that said, among other things, “I’ll kill you” and “You gonna get yours if it’s the last thing I do.” Fain also used anonymous email addresses to send the victim threatening messages that said, among other things, “I’m gonna find you and kill you if it’s the last thing I do,” “By now you know I don’t give a f*** about my own life so I really don’t mind taking yours,” and “When the time is right you gonna be one of the girls going missing. Ima torture the f*** out of you when I catch you.”
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement today. The Federal Bureau of Investigation, New Haven Division provided valuable assistance in the matter. Assistant U.S. Attorney Evan Gotlob of Rollins’ Major Crimes Division prosecuted the case.
Columbia Man, Gang Member, Sentenced to 46 months in Federal Prison for Multiple Firearms OffensesRead the Press Release
COLUMBIA, SOUTH CAROLINA —David Bryant III, 25, of Columbia, was sentenced to more than 46 months in federal prison after pleading guilty to possession of a stolen firearm, possession of a firearm with an obliterated serial number, and possession of a firearm by a felon.
Evidence presented to the Court showed that on January 28, 2020, officers with the U.S. Marshals Fugitive Task Force located Bryant in the passenger seat of a vehicle on Wilkes Road in Columbia and arrested him on an outstanding warrant. The arresting officers smelled marijuana coming from the vehicle and the driver confirmed marijuana was present. Officers searched the vehicle and found marijuana as well as a 12-gauge shotgun, a 9mm pistol, and .40 caliber pistol. The serial number on the 9mm pistol had been completely removed.
After law enforcement read Bryant his Miranda rights, he confirmed that all of the firearms belonged to him and that the .40 caliber pistol was given to him after it was stolen by a friend. At the time of his arrest, Bryant was a known member of a street gang, and his prior convictions for assault and battery 1st degree and discharging a firearm into a dwelling disqualified him from possessing a firearm or ammunition.
United States District Judge Mary Geiger Lewis sentenced Bryant to 46 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the City of Columbia Police Department. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
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Charlotte Man Is Convicted of Defrauding the North Carolina Medicaid ProgramRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte has convicted Donald Booker, 57, of Charlotte, of multiple federal charges in connection with a scheme to obtain more than $11 million from the North Carolina Medicaid program, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. On December 9, 2022, Booker’s co-defendant, Delores Jordan, 54, of Louisville, Kentucky, pleaded guilty for her role in the fraudulent scheme.
Joining U.S. Attorney King in making today’s announcement are Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, (IRS-CI) Charlotte Field Office, and North Carolina Attorney General Josh Stein, who oversees the North Carolina Medicaid Investigations Division (MID).
According to filed court documents, trial evidence and witness testimony, Booker owned United Diagnostic Laboratories (UDL), a urine toxicology testing laboratory, and United Youth Care Services (UYCS), a company that provided mental health and substance abuse treatment services. Booker’s co-defendant, Jordan, owned Legacy Housing, a housing provider. Trial evidence established that, from January 2016 to August 2019, Booker and his co-conspirators executed a conspiracy to defraud the North Carolina Medicaid program by paying illegal kickbacks to Jordan and other co-conspirators in exchange for urine samples from Medicaid-eligible beneficiaries.
As Jordan previously admitted in court, she and other co-conspirators recruited housing-vulnerable individuals and other Medicaid-eligible beneficiaries for housing and other programs and services. Once enrolled, the beneficiaries were required to submit urine specimens for drug testing as a condition of their participation in the program. The specimens were provided to UDL and UYCS for medically unnecessary urine drug testing. Booker and his co-conspirators paid the recruiters a kickback from UYCS’s NC Medicaid reimbursement on the drug testing. According to evidence presented at trial, Booker and Jordan also executed a conspiracy to launder the proceeds of the kickback and health care fraud conspiracy in order to conceal and disguise the nature and source of UYCS’s illegal kickback payments for drug testing referrals.
The jury convicted Booker of conspiracy to commit health care fraud, multiple violations of the Anti-Kickback Statute, money laundering conspiracy, and money laundering. Jordan pleaded guilty to healthcare fraud conspiracy and money laundering conspiracy. A sentencing date for the defendants has not been set.
The FBI, IRS-CI, and NC Medicaid Investigations Division investigated the case.
Assistant U.S. Attorneys Graham Billings and Michael Savage of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Charleston Man Pleads Guilty to Fentanyl and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Doran King Burroughs Jr., 23, of Charleston, pleaded guilty today to distribution of 40 grams or more of fentanyl and being a felon in possession of firearms.
According to court documents and statements made in court, on August 10, 2022, Burroughs sold approximately 102 grams of fentanyl to a confidential informant while outside a Charleston business in the informant’s vehicle. Burroughs admitted to that transaction and an additional sale of approximately 51 grams of fentanyl to a confidential informant on May 4, 2022, in the informant’s vehicle.
On August 11, 2022, law enforcement officers executed a search warrant at Burroughs’ residence. Burroughs admitted that officers found approximately 76 grams of fentanyl, a drum magazine loaded with 7.62x39mm ammunition, a Spartan Armor System body armor carrier, and four firearms: a Glock, model 17, 9mm pistol; a PAP, model M92PV, 7.62-caliber pistol; a Glock, model 43X, 9mm pistol; and a Bushmaster model xm15-e25, .223-caliber rifle. Burroughs admitted to possessing the fentanyl with the intent to distribute it.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Burroughs was prohibited from possessing firearms because of his conviction for first-degree possession of a controlled substance, first offense, in Boone County, Kentucky, Circuit Court on March 7, 2022.
Burroughs is scheduled to be sentenced on May 3, 2023, and faces a mandatory minimum of five years and up to 55 years in prison, four years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Metropolitan Drug Enforcement Network Team (MDENT).
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-172.
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Buffalo Man Going to Prison for Selling Crack CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Nikita Burt, 39, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, crack cocaine, was sentenced to serve 21 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between October 2021, and January 12, 2022, Burt supplied crack cocaine to co-defendant David Garrett, who then sold the cocaine to an individual working with the Drug Enforcement Administration (DEA). Between November and December 2021, the DEA conducted three controlled purchases of cocaine from David Garrett. On January 12, 2022, DEA agents executed search warrants on Burt’s vehicle and his Mortimer Street residence, which agents believed he was utilizing as a location to store drugs. During the search of Burt’s vehicle, they recovered $2,334 in cash. During the search of Burt’s Mortimer residence, agents recovered three defaced handguns. One of the handguns was linked to Burt through DNA analysis.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Brighton Man Pleads Guilty to $1.5 Million COVID-Relief FraudRead the Press Release
BOSTON – The owner of a Massachusetts-based food truck business pleaded guilty today to filing fraudulent loan applications in order to obtain $1.5 million in pandemic relief under the Coronavirus Aid, Relief and Economic Security (CARES) Act and the American Rescue Plan Act.
Loc Vo, 55, pleaded guilty to one count of wire fraud. U.S. Senior District Court Judge William G. Young scheduled sentencing for May 3, 2023. Vo was arrested and charged in July 2022.
Vo owned Smart Gourmet LLC (Smart Gourmet), a food truck business in Massachusetts, and Indy Publish, a dormant Maryland company. Between April 2020 and July 2021, Vo submitted loan applications on behalf of these businesses under three Small Business Administration (SBA) pandemic relief programs: the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan Program (EIDL), and the Restaurant Revitalization Fund (RRF). In these applications, Vo requested approximately $1.5 million and committed to use the funds for rent, mortgage interest, payroll and utilities, among other eligible expenses.
After receiving the relief funds, Vo immediately transferred most of them to brokerage accounts in his name to purchase shares in an electric car manufacturer, an internet marketplace company and a biotechnology company, among others.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP. Another is the EIDL, through which the SBA offers loans that can only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred. The American Rescue Plan Act established the RRF to provide funding to help restaurants and other eligible businesses keep their doors open through forgivable loans for eligible uses.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Berkley Nurse Sentenced for Tampering with Patients' FentanylRead the Press Release
BOSTON – A Berkley nurse was sentenced yesterday in federal court in Boston for tampering with fentanyl intended for patients at a hospital’s post-surgery recovery unit and an outpatient vascular surgery center.
Hugo Vieira, 42, was sentenced by U.S. District Court Judge Angel Kelley to five years of probation, with the first year to be served in home detention. Vieira was also ordered to pay a fine of $20,000. The government recommended a sentence of 38 months in prison and three years of supervised release. In May 2022, Vieira pleaded guilty to one count of tampering with a consumer product.
From 2017 to January 2019, while working at a Massachusetts hospital and an outpatient vascular surgery center, Vieira removed fentanyl from vials meant for patients who were undergoing surgery or recovering from surgery. To conceal his conduct, Vieira replaced the diverted fentanyl with saline. When his conduct was discovered, law enforcement identified 60 tampered vials at the vascular surgery center and two vials at the hospital post-surgery recovery unit. Those vials contained only 1.3–7% of the declared concentration of fentanyl citrate.
United States Attorney Rachael S. Rollins; Fernando McMillan, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Margret R. Cooke, Commissioner of the Massachusetts Department of Public Health made the announcement. Assistant U.S. Attorneys Elysa Q. Wan and David J. Derusha of Rollins’ Criminal Division prosecuted the case.
9 January 2023
Wilmer Man Sentenced to Ninety-Two Months Imprisonment for Mailing Suboxone Strips to Inmates in Federal PrisonRead the Press Release
John Robert Payne, of Wilmer, was sentenced today to ninety-two months imprisonment for conspiracy to distribute a controlled substance and providing contraband to a federal prisoner. The sentence was handed down by United States District Court Judge Kristi K. DuBose. Payne previously pled guilty to the offenses.
Documents filed with the court established that investigators with the Yazoo City Federal Correctional Complex (YCFCC) in Mississippi discovered that Payne mailed two letters, on two separate dates, to inmates at the prison. The envelopes contained a total of thirty-four Suboxone (Buprenorphine) strips. The first letter was mailed on August 31, 2021, to an inmate and it contained twenty strips of Suboxone. The Suboxone was hidden between two pictures. On September 21, 2021, Payne mailed a second letter into YCFCC to a different inmate containing fourteen Suboxone (Buprenorphine) strips. In this envelope, the Suboxone strips were hidden between a picture and a Walmart receipt. Suboxone (Buprenorphine) is a schedule III synthetic opioid.
Investigators also recovered a recorded telephone call from Payne to an inmate at YCFCC in which Payne and the inmate discuss a letter that Payne sent into the prison. During the same conversation, Payne discusses drugs and drug usage at YCFCC with the inmate. At the time Payne mailed the opioids to the inmates he was on supervised release with the federal probation office after serving a federal prison term for possession with the intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.U.S. Attorney Sean P. Costello praised the outstanding work of the investigators in detecting the opioid drugs and the partnering of multiple investigative agencies to bring the defendant to justice.
This case was investigated by Investigators at the YCFCC, the United States Postal Inspection Service and the Department of Homeland Security, Homeland Security Investigations (HSI). The case was prosecuted by Assistant United States Attorneys George F. May and Lawrence J. Bullard.
Washington, D.C. Man Sentenced to 54 Months in Prison for Downloading Child PornographyRead the Press Release
Man Apprehended After Using the Dark Web
WASHINGTON – John Green, 81, of the District of Columbia, was sentenced today to 54 months in prison for accessing and downloading child pornography. The sentence was announced by U.S. Attorney Matthew M. Graves, and Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office’s Criminal and Cyber Division.
Green pleaded guilty on October 25, 2022, in the U.S. District Court for the District of Columbia, before the Honorable Colleen Kollar-Kotelly. Green must also pay $18,000 in restitution to his victims. Upon completion of his prison term, he will be placed on five years of supervised release and will be required to register as a sex offender for 15 years.
According to the government’s evidence, in May of 2019, Green used his computer to access a website on the Dark Web that offered individuals the opportunity to access and download child sexual abuse material, featuring children as young as infants. At the time of this criminal offense, Green was 78 years old. In July of 2021, law enforcement obtained a search warrant for Green’s home. A laptop computer was seized which, when forensically examined, was found to contain over nine hundred images and videos of child pornography. Additionally, numerous DVDs and books were discovered which featured children in various states of undress, and in sexually explicit situations.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation and Human Trafficking Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Graves and Special Agent in Charge Jacobs commended the work of those who investigated the case from the FBI's Child Exploitation and Human Trafficking Task Force, which includes members of the FBI's Washington Field Office and MPD’s Youth Investigations Division. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Amy E. Larson, who prosecuted the case.
Virginia Man Pleads Guilty to Conspiring to Violate Iranian SanctionsRead the Press Release
Greenbelt, Maryland – Behrouz Mokhtari, age 72, of McLean, Virginia and Tehran, Iran, a native of Iran and a naturalized citizen of the United States, pleaded guilty today to two conspiracies to violate sanctions imposed by the United States on Iran regarding the exportation, re-exportation, sale, or supply directly or indirectly, any goods, technology, or services to Iran.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, from at least March 2018 until at least September 2020, Mokhtari conspired with his co-defendant and others to evade Iranian sanctions by engaging in business activities on behalf of Iranian entities without first obtaining the required licenses from the Office of Foreign Assets Control (OFAC).
Mokhtari held management positions and/or maintained ownership control of multiple business in Iran and the United Arab Emirates (“UAE”), referred to collectively as “the FSR Network.” Mokhtari and his co-conspirators used the FSR Network to provide services to Iranian entities and engage in transactions involving Iranian petrochemical products, including refining petrochemical products and transporting them by sea. Mokhtari and his co-conspirators used bank accounts located in the UAE, including Bitubiz FZE, which was part of the FSR Network and over which Mokhtari exercised partial or complete control, to process these U.S. dollar transactions.
Mokhtari admitted that Bitubiz operated as a conduit for the FSR Network to conceal the fact that Mokhtari and his co-conspirators were engaging in financial transactions with, and providing services to, Iranian entities. Bitubiz maintained daily ledgers which recorded the receipt and transfers of funds. After receiving an incoming wire transfer, Bitubiz would credit most of that amount to Ayegh Isfahan Manufacturing Company (“AIM”). Mokhtari and others held ownership interests in AIM, which was located in Iran, was engaged in the petrochemical industry, and was part of the FSR Network.
As stated in his guilty plea, from about February 2013 until at least June 2017, Mokhtari and a number of Iranian nationals engaged in a conspiracy to conduct illicit shipments of petrochemical products to and from Iran, in violation of the Iranian sanctions and used the U.S. financial system to facilitate such shipments. In furtherance of the scheme, Mokhtari created a front company in Panama, East & West Shipping, Inc., to purchase two liquid petroleum gas (LPG) tanker vessels for approximately $38 million. These vessels were subsequently used to transport Iranian petrochemical products in international commerce on behalf of, and to benefit, Iranian entities associated with the Government of Iran.
After using East & West to purchase the two vessels (LPG Vessel 1 and 2), Mokhtari transferred ownership of the vessels to other entities, in order to conceal the conspirators’ financial and ownership interest in the two vessels. The conspirators then used another entity, Greenline Shipholding, Inc., to control operations of LPG Vessels 1 and 2. For example, through email communications from Greenline email accounts, or email accounts containing some variation of the Greenline name, the conspirators directed Company 5, a ship management company, to oversee the leasing and operation of LPG Vessel 1 and 2 to transport Iranian petrochemical products from Iranian ports to other locations and to participate in ship-to-ship transfers of Iranian products while on the high seas.
The conspirators, including Mokhtari, used the United States financial system to engage in transactions related to the hiring of the vessels and other expenses. In addition, Mokhtari and his co-conspirators frequently communicated by email about the nature and source of the products that the vessels were transporting, as well as the use of false shipping documents and other measures taken to conceal the fact that the vessels were transporting products to and from Iran, in order to evade the Iranian sanctions.
At some point prior to May 2017, ownership of LPG Vessel 1 was transferred to Russell Shipping, Inc., which was owned by Mokhtari. On May 30, 2017, Mokhtari sold LPG Vessel 1 to be scrapped for more than $3.1 million. Mokhtari received a total of $2,862,591.12 from that sale. The purchaser wired funds to accounts at two separate banks held in the name of Mori Construction and Development, LLC (Mori Construction). Mokhtari was the sole owner of Mori Construction and controlled both bank accounts. Through a series of inter-account transfers and check payments, by September 2017 all of the proceeds from the sale of LPG Vessel 1 were located in a third account, over which Mokhtari and his daughter had signature authority. In March 2018, Mokhtari used those proceeds to purchase a home in Campbell, California for $1,512,000.
Mokhtari admitted that he knew that, as a United States citizen, he was prohibited from engaging in business with or providing services to Iranian entities, without first obtaining a license or permission from OFAC to do so. Neither Mokhtari, nor any of his co-conspirators ever applied for or obtained such a license. Mokhtari further knew that it was illegal to engage in transactions intended to evade Iranian sanctions, or to engage in transactions related to goods and services of Iranian origin or export.
As part of his guilty plea, Mokhtari must forfeit money, property, and/or assets derived from, obtained as the result of, or used to facilitate the commission of his illegal activities, including the residence he purchased in Campbell, California and a money judgment in the amount of approximately $2,862,598.12.
Mokhtari faces a maximum sentence of five years in federal prison for each of the two conspiracy counts. U.S. District Judge George J. Hazel has scheduled sentencing for April 3, 2023 at 10:00 a.m.
United States Attorney Erek L. Barron commended FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Kathleen O. Gavin, 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 www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Virginia Man Pleads Guilty to Conspiring to Violate Iranian SanctionsRead the Press Release
Behrouz Mokhtari, 72, of McLean, Virginia, and Tehran, Iran, a naturalized U.S. citizen, pleaded guilty today to two separate conspiracies to violate sanctions imposed by the United States on Iran regarding the exportation, re-exportation, sale, or supply, directly or indirectly, of any goods, technology, or services to Iran.
According to his guilty plea, from at least March 2018 until at least September 2020, Mokhtari conspired with his co-defendant and others to evade Iranian sanctions by engaging in business activities on behalf of Iranian entities without first obtaining the required licenses from the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).
Mokhtari held management positions and/or maintained ownership control of multiple business in Iran and the United Arab Emirates (UAE), referred to collectively as “the FSR Network.” Mokhtari and his co-conspirators used the FSR Network to provide services to Iranian entities and engage in transactions involving Iranian petrochemical products, including refining petrochemical products and transporting them by sea. Mokhtari and his co-conspirators used bank accounts located in the UAE, including Bitubiz FZE, which was part of the FSR Network and over which Mokhtari exercised partial or complete control, to process these U.S. dollar transactions.
Mokhtari admitted that Bitubiz operated as a conduit for the FSR Network to conceal the fact that Mokhtari and his co-conspirators were engaging in financial transactions with, and providing services to, Iranian entities. Bitubiz maintained daily ledgers which recorded the receipt and transfers of funds. After receiving an incoming wire transfer, Bitubiz would credit most of that amount to Ayegh Isfahan Manufacturing Company (AIM). Mokhtari and others held ownership interests in AIM, which was located in Iran, engaged in the petrochemical industry, and part of the FSR Network.
As stated in his guilty plea, from about February 2013 until at least June 2017, Mokhtari and several Iranian nationals engaged in a separate conspiracy to support illicit shipments of petrochemical products to and from Iran in violation of the Iranian sanctions. In furtherance of the scheme, Mokhtari created a Panama-based front company, East & West Shipping Inc., to purchase two liquid petroleum gas (LPG) tanker vessels to transport Iranian petrochemical products in international commerce on behalf of, and to benefit, Iranian entities associated with the Government of Iran.
After using East & West to purchase the two vessels (LPG Vessels 1 and 2), Mokhtari transferred ownership of the vessels to other entities to conceal the conspirators’ financial and ownership interest. The conspirators then used another entity, Greenline Shipholding Inc., to control the operations of LPG Vessels 1 and 2. For example, through email communications from Greenline email accounts, or email accounts containing some variation of the Greenline name, the conspirators directed Company 5, a ship management company, to oversee the leasing and operation of LPG Vessels 1 and 2 to transport Iranian petrochemical products from Iranian ports to other locations and to participate in ship-to-ship transfers of Iranian products while on the high seas.
The conspirators, including Mokhtari, used the U.S. financial system to engage in transactions related to the vessels and other expenses. In addition, Mokhtari and his co-conspirators frequently communicated by email about the nature and source of the products that the vessels were transporting, as well as the use of false shipping documents and other measures to conceal the fact that the vessels were transporting products to and from Iran in violation of Iranian sanctions.
At some point prior to May 2017, ownership of LPG Vessel 1 was transferred to Russell Shipping Inc., which was owned by Mokhtari. On May 30, 2017, Mokhtari sold LPG Vessel 1 to be scrapped for more than $3.1 million. Mokhtari received a total of $2,862,591.12 from that sale. The purchaser wired funds to accounts at two separate banks – one held in the name of Mori Construction and Development LLC and the other held in the name of Mori Construction. Mokhtari was the sole owner of Mori Construction and controlled both bank accounts. Through a series of inter-account transfers and check payments, by September 2017, the proceeds from the sale of LPG Vessel 1 were located in a third account, over which Mokhtari and his daughter had signature authority. In March 2018, Mokhtari used those proceeds to purchase a home in Campbell, California, for over $1.5 million.
Mokhtari admitted that he knew that, as a U.S. citizen, he was prohibited from engaging in business with or providing services to Iranian entities without first obtaining a license or permission from OFAC to do so. Neither Mokhtari nor any of his co-conspirators ever applied for or obtained such a license. Mokhtari further knew that it was illegal to engage in transactions intended to evade Iranian sanctions or to engage in transactions related to goods and services of Iranian origin or export.
As part of his guilty plea, Mokhtari must forfeit money, property and assets derived from, obtained as the result of, or used to facilitate the commission of his illegal activities, including the residence he purchased in Campbell, California, and a money judgment in the amount of $2,862,598.12.
Mokhtari faces a maximum sentence of five years in federal prison for each of the two conspiracy counts. U.S. District Judge George J. Hazel scheduled sentencing for April 3.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Erek L. Barron for the District of Maryland, Assistant Director Alan E. Kohler Jr. of the FBI Counterintelligence Division and Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office made the announcement.
The FBI investigated the case.
Assistant U.S. Attorney Kathleen O. Gavin for the District of Maryland prosecuted the case, with valuable assistance provided by the National Security Division’s Counterintelligence and Export Control Section.
United States Attorney Implements Groundbreaking Settlement with Meta Platforms, Inc., Formerly Known as Facebook, to Address Discrimination in the Delivery of Housing AdsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, along with Kristen Clarke, Assistant Attorney General for the Justice Department’s Civil Rights Division, announced today that the Justice Department has reached a key milestone in its settlement agreement with Meta Platforms, Inc. (“Meta”), formerly known as Facebook, Inc., requiring Meta to change its ad delivery system to prevent discriminatory advertising in violation of the Fair Housing Act (“FHA”). As required by the settlement entered on June 27, 2022, resolving a lawsuit filed in the U.S. District Court for the Southern District of New York, Meta has now built a new system to address algorithmic discrimination. Today, the parties informed the Court that they have reached agreement on the system’s compliance targets. This development ensures that Meta will be subject to court oversight and regular review of its compliance with the settlement through June 27, 2026.
U.S. Attorney Damian Williams said: “This groundbreaking resolution sets a new standard for addressing discrimination through machine learning. We appreciate that Meta agreed to work with us toward a resolution of this matter and applaud Meta for taking the first steps towards addressing algorithmic bias. We hope that other companies will follow Meta’s lead in addressing discrimination in their advertising platforms. We will continue to use all of the tools at our disposal to address violations of the Fair Housing Act.”
“This development marks a pivotal step in the Justice Department’s efforts to hold Meta accountable for unlawful algorithmic bias and discriminatory ad delivery on its platforms,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold Meta accountable by ensuring the Variance Reduction System addresses and eliminates discriminatory delivery of advertisements on its platforms. Federal monitoring of Meta should send a strong signal to other tech companies that they too will be held accountable for failing to address algorithmic discrimination that runs afoul of our civil rights laws.”
The United States’ complaint alleged, among other things, that Meta uses algorithms in determining which Meta users receive ads, including housing ads, and that those algorithms rely, in part, on characteristics protected under the FHA. Specifically, the United States alleged that Meta feeds troves of user information into its ad delivery system, including information related to users’ FHA-protected characteristics such as sex and race, and uses that information in its personalization algorithms to predict which ad is most relevant to which user. As the complaint alleged, Meta’s delivery algorithms introduce bias when delivering ads, resulting in a variance along sex and estimated race/ethnicity between the set of users who are eligible to see housing ads based on the advertiser’s targeted audience and the set of users who actually see the ad.
Pursuant to the settlement, Meta has developed a new system—the Variance Reduction System (“VRS”)—to reduce the variances between the eligible audience and the actual audience. The United States has concluded that the new system will substantially reduce the variances between the eligible and actual audiences along sex and estimated race/ethnicity in the delivery of housing advertisements. The VRS will operate on all housing advertisements across Meta platforms, and the agreement requires Meta to meet certain compliance metrics in stages. For example, by December 31, 2023, for the vast majority of housing ads on Meta platforms, Meta will reduce variances to less than or equal to 10% for 91.7% of those ads for sex and less than or equal to 10% for 81.0% of those ads for estimated race/ethnicity. For more information on the operation of the VRS, read Meta’s technical paper.
As further provided in the settlement agreement, the parties have selected an independent, third-party reviewer, Guidehouse, Inc. (“Guidehouse”), to investigate and verify on an ongoing basis whether the VRS is meeting the compliance metrics agreed to by the parties. Under the agreement, Meta must provide Guidehouse and the United States with regular compliance reports and make available any information necessary to verify compliance with the agreed-upon metrics. The court will have ultimate authority to resolve any disputes over the information that Meta must provide.
Finally, as also required by the settlement agreement, Meta has ceased delivering housing advertisements using the Special Ad Audience tool (which delivered ads to users who “look like” other users), and Meta will not provide any targeting options for housing advertisers that directly describe or relate to FHA-protected characteristics.
This agreement marks the first time that Meta will be subject to court oversight for its ad targeting and delivery system.
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt. More information about the U.S. Attorney’s Office for the Southern District of New York is available at www.justice.gov/usao-sdny. Individuals who believe they have been victims of housing discrimination may submit a report to the U.S. Attorney’s Office for the Southern District of New York online at https://www.justice.gov/usao-sdny/civil-rights or by telephone at (212) 637-0840; may submit a report online to the Department of Justice atwww.civilrights.justice.gov; or may contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at www.hud.gov.
The case is being handled by the Office’s Civil Rights Unit in the Civil Division. Assistant U.S. Attorneys Ellen Blain, David J. Kennedy, and Christine S. Poscablo are in charge of the case.
U.S. Attorney’s Office Celebrates National Law Enforcement Appreciation Day 2023Read the Press Release
COLUMBIA, SOUTH CAROLINA —Today, January 9, 2023, the United States Attorney’s Office for the District of South Carolina is showing its appreciation to law enforcement agencies across the state to celebrate national Law Enforcement Appreciation Day (“L.E.A.D.”). The start of the new year is a perfect time to show support for our law enforcement partners, who often go above and beyond to serve our communities, including by responding to critical incidents, gathering toys for needy kids during the holiday, distributing groceries to families in need, and playing ball with neighborhood kids. Their tireless dedication to the communities they serve does not go unnoticed.
From the Upstate to the Lowcountry and across the Pee Dee and Midlands, members of the USAO will be making visits to departments to thank officers in person and to share artwork done by local school children thanking officers.
The USAO encourages members of the community to take a moment to thank your local community officers, school resource officers, etc. Remember to also thank the families of those officers as the inherent dangers of the job are always at the forefront of their minds.
Here are a few simple things you can do to thank the officers in your community:
1. Take snacks/bottled water to local departments, along with a note of support;
2. Suggest to schools and children that they write letters or draw pictures supporting law enforcement and then drop those letters/pictures off at the local police department/sheriff’s office;
3. Send a letter, card, or email to your local law enforcement agency expressing support and appreciation. Ask that your support be shared with agency staff; and
4. Take a moment to thank the officers you encounter during your normal day.
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U.S. Attorney's Office Files Statement of Interest in Fair Housing Act Case Alleging Unlawful Algorithm-Based Tenant Screening PracticesRead the Press Release
BOSTON – Today the Justice Department filed a Statement of Interest to make clear that the Fair Housing Act (FHA) applies to residential screening companies that develop and sell algorithmic-based screening services to housing providers. The Statement of Interest, filed in federal court in Boston, also addresses the appropriate pleading standard for disparate impact claims under the FHA. The statement highlights the United States’ commitment to enforcing the FHA, including in cases involving algorithms and tenant screening software.
The Department’s statement is in response to motions to dismiss filed in Louis et al v. SafeRent et al. – a lawsuit filed in the District of Massachusetts in May 2022. The lawsuit was filed by plaintiffs Mary Louis and Monica Douglas, two Black rental applicants who use housing vouchers to pay part of their rent. Plaintiffs applied for rental housing but allege they were denied due to their “SafeRent Score,” a score derived from SafeRent’s algorithmic-based screening software. The Plaintiffs allege that SafeRent scores result in disparate impact against Black and Hispanic rental applicants because the underlying algorithm relies on certain factors that disproportionately disadvantage Black and Hispanic applicants, such as credit history and non-tenancy related debts, while failing to consider one highly relevant factor, the use of housing vouchers.
“Algorithms are written by people. As such, they are susceptible to all of the biases, implicit or explicit, of the people that create them,” said United States Attorney Rachael S. Rollins. “As the housing industry and other professions adopt algorithms into their everyday decisions, there can be disparate impacts on certain protected communities. Stable and affordable housing provides a unique pathway to success, opportunity and safety. We must fiercely protect the rights and protections promulgated in the Fair Housing Act. Today’s filing recognizes that our 20th century civil rights laws apply to 21st century innovations.”
“Housing providers and tenant screening companies that use algorithms and data to screen tenants are not absolved from liability when their practices disproportionately deny people of color access to fair housing opportunities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This filing demonstrates the Justice Department’s commitment to ensuring that the Fair Housing Act is appropriately applied in cases involving algorithms and tenant screening software.”
“Tenant screening policies are not exempt from the Fair Housing Act’s protections just because decisions are made by algorithm,” said Damon Smith, General Counsel for the United States Department of Housing and Urban Development. “Housing providers and tenant screening companies must ensure that all policies that exclude people from housing opportunities, whether based on algorithm or otherwise, do not have an unjustified disparate impact because of race, national origin or another protected characteristic.”
Through the Statement of Interest, the Department seeks to assist the court by addressing two questions of law erroneously represented in the defendants’ motions to dismiss. First, the statement sets out the appropriate standard for pleading disparate impact claims under the FHA. Second, the statement clarifies that the FHA’s text and caselaw support the FHA’s application to companies providing residential screening services.
The Defendants in Louis et al v. SafeRent et al. have moved to have the case dismissed and Plaintiffs oppose defendants’ motions. The Justice Department’s Statement of Interest disagrees with the Defendants’ pleading standard for disparate impact claims and with SafeRent’s assertion that the FHA does not apply to companies like SafeRent. The motions to dismiss are now pending before the court.
Assistant U.S. Attorney Gregory Dorchak of Rollins’ Civil Rights Unit and Trial Attorney Kinara Flagg of the Justice Department’s Civil Rights Division handled the matter.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit https://www.justice.gov/usao-ma/civil-rights
U.S. Attorney Announces Human-Trafficking Task Force and Multi-Prong Effort to Combat Trafficking in Eastern North CarolinaRead the Press Release
RALEIGH, N.C. – U.S. Attorney Michael Easley is announcing efforts to combat human trafficking including the launch of a dedicated task force, and increased community outreach and education to raise awareness. As part of the annual observation of January as Human Trafficking Awareness Month, Easley also highlighted several successful human trafficking prosecutions led by his office.
“It is easy to dismiss human trafficking as a problem that happens only in other parts of the country or the world, but sadly it is something that is happening right here in our communities in Eastern North Carolina,” said U.S. Attorney Michael Easley. “Our office is advancing the fight to end human trafficking in our communities. Working together with our law enforcement partners at every level, we seek to identify, locate, and recover the victims and prosecute individuals and organizations exploiting the most vulnerable members of our community. In addition to using our investigative and prosecutorial tools, we are ensuring that our law enforcement partners are armed with the tools and expertise to investigate these cases and hosting events to promote education and awareness.”
New Human Trafficking Task Force
The office is announcing the creation of a dedicated human trafficking task force, initially focused on the Raleigh-Cary area, that is meeting regularly to share intelligence and investigative leads, receive specialized training, develop investigative tools and expertise for law enforcement agencies. The task force includes members of three prosecutorial offices and 11 law enforcement agencies, including the Wake and Johnston County District Attorney’s offices, Homeland Security Investigations (HSI), the Federal Bureau of Investigation (FBI), U.S. Marshal Service, Internal Revenue Service (IRS), N.C. State Bureau of Investigation (NCSBI), N.C. State Highway Patrol (NCSHP), the Wake County Sheriff’s Office, St. Augustine’s University and the Raleigh, Apex and Cary Police Departments. The goal is to use lessons learned from this task force to develop regional task forces in other parts of the district in the coming year.
“The U.S. Marshals Service has always worked closely with the National Center for Missing and Exploited Children (NCMEC) and our federal, state, and local counterparts to recover missing and endangered children," stated U.S. Marshal Glenn McNeill. "We are excited to serve this vital mission and build upon these partnerships as the task force grows in the never-ending pursuit of justice for victims of human trafficking.”
“We are appreciative for this opportunity to further our agency’s efforts in combating human trafficking throughout our state and beyond,” said Colonel Freddy L. Johnson Jr., commander of the North Carolina State Highway Patrol. “The work to be done by this collaborative group of passionate law enforcement professionals will undoubtedly help in identifying victims, removing them from harm’s way and in building strong cases to fully prosecute the offenders of these callous acts.”
“By bringing together the experience and expertise of all cooperating law enforcement agencies, we greatly enhance our ability to combat human trafficking and bring those perpetrating these heinous crimes to justice,” said Ronnie Martinez, Special Agent in Charge of HSI Charlotte that covers North and South Carolina.
“Human traffickers prey on the vulnerable members of our community, and we are proud to join our Federal, state, and local partners on the human trafficking task force to combat this prolific crime,” said Raleigh Police Chief Estella Patterson. “The Raleigh Police Department will work steadfastly with our partners to educate our community and raise awareness of the impacts of human trafficking. Additionally, we will work closely with the court system to ensure that human traffickers are prosecuted to the fullest extent of the law and that the victims are given the resources and support for healing. We will not be a community that allows individuals to abuse other members of society.
NCSBI Director Robert Schurmeier stated, “The creation of a task force specifically dedicated to fighting human trafficking is a welcomed development for North Carolina. Having this resource in place will allow us to better serve the citizens of NC and the many victims of human trafficking. We understand the difficulties and many challenges presented by the complexities of human trafficking investigations. However, together with our criminal justice partners, we believe we can make a profound impact by saving lives and holding to account those who traffic their fellow human beings. The SBI is eager for the opportunity to combat human trafficking in all forms, and is honored to be part of a task force comprised of so many talented members.”
Education, Awareness and Community Outreach
In an effort to raise awareness and educate those involved in the fight against human trafficking, staff from the U.S. Attorney’s Office participated in nearly half a dozen community engagement events, with more planned for 2023. In addition to the direct outreach efforts, the office has also worked to strengthen partnerships with non-governmental organizations and other service providers to ensure that victims of human trafficking are getting the help that they need after the trauma they have experienced.
Prosecution of Human Traffickers
Finally, the office is highlighting several human trafficking prosecutions from 2022 that have helped to put traffickers and members of their organizations behind bars.
USA v. Kevin Rudolph and Marcus Gambrell (No. 5:19-CR-336-FL)
Marcus Antwan Gambrell, 30, of Raleigh, was sentenced to 210 months in prison, on December 21, 2021, for manufacturing child pornography. Gambrell and co-defendant Kevin Rudolph were charged in a four-count superseding indictment. The indictment charged both men with sex trafficking of a minor and using the internet to promote prostitution, Gambrell with manufacturing child pornography, and Rudolph with possession of a firearm by a felon. Gambrell pled guilty to manufacturing child pornography. Rudolph pled guilty to sex trafficking of a minor and aiding and abetting, and sentencing is scheduled for later this month.
USA v. Jenkins, et al. (No. 7:22-CR-00083)
In July 2022, the government indicted a significant human trafficking investigation, charging 20 human trafficking and drug related offenses including, a sex trafficking conspiracy, sex trafficking of multiple victims by force, fraud or coercion, sex trafficking of a minor, multiple counts related to transportation of victims across state lines for purposes of engaging in commercial sex, a drug conspiracy, and drug related offenses. All defendants are presumed innocent until proven guilty.
USA v. Yomere Juan Busbee (No. 5:20-CR-00393)
In September 2022, a federal jury in Wilmington found the defendant – a violent pimp and drug dealer from Fayetteville – guilty on six counts of kidnapping of four victims, including a minor, drug, and gun offenses stemming from an investigation into the defendant’s sex trafficking offenses. Two co-defendants in the case pled guilty. Busbee is currently set to be sentenced at the end of this month, facing at least 20 years in prison.
USA v. Xiang Yue Jin (No. 5:21-CR-00266) and USA v. Ok Hwa Lee et. al (No. 7:21-CR-00079)
In September 2022, Jin was sentenced to 15 months in prison plus financial restitution for bribery charges intended to protect her illegal “massage parlor” business from law enforcement scrutiny. Five other defendants were indicted in a separate case stemming from the same investigation into illicit massage parlors where sexual services were provided. The last of those five defendants pled guilty in December 2022 and all five are scheduled to be sentenced in 2023.
USA v. Marvarlus Cortel Snead (EDNC No. 7:19-CR-00151; 4th Cir. No. 21-4333)
In December 2022, the Fourth Circuit Court of Appeals affirmed the conviction and sentence of Marvarlus Snead, rejecting all of defendant’s arguments on appeal. Snead was previously convicted at trial and sentenced to 35 years for sex trafficking of a minor.
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If you or anyone you know needs help or has information to provide in regard to a potential human trafficking situation, please contact law enforcement by calling 911 if the situation appears unsafe, or contact the National Human Trafficking Hotline:
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- https://humantraffickinghotline.org/
- 1-888-373-7888
- *Text 233733
- Email: [email protected]
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Three Fentanyl Traffickers Sentenced to Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Luis Omar Rosa Cotto (32, Orlando), Alejandro Acevedo Luna (34, Apopka), and Juan Carlos Garcia (38, Apopka) to federal prison for their roles in a conspiracy to distribute fentanyl.
Luis Omar Rosa Cotto
Pleaded guilty on July 12, 2022
Responsible for over 1.5 kilograms of fentanyl
Sentenced on November 7, 2022, to 10 years in federal prison
Alejandro Acevedo Luna
Pleaded guilty on July 6, 2022
Responsible for over 1 kilogram of fentanyl
Sentenced on January 6, 2023, to 15 years in federal prison
Juan Carlos Garcia
Found guilty at trial on October 17 to 19, 2022
Responsible for over 1 kilogram of fentanyl
Sentenced on January 6, 2023, to 10 years in federal prison
According to court documents, Acevedo Luna and Garcia conspired to drive to a gas station in Apopka and sell more than a kilogram of fentanyl for $33,000. Garcia drove the vehicle and brought a loaded handgun with him, and Acevedo Luna brought the drugs and set up the deal. The Drug Enforcement Administration (DEA) received information about the drug transaction and worked with the Apopka Police Department to conduct a traffic stop. After a search, the loaded handgun was recovered from the center console of the vehicle and the package of drugs was located in the backseat. Both men were arrested without incident.
On the same day, Rosa Cotto was determined to be the source of the fentanyl and a controlled purchase was set up by the DEA to buy an additional half kilogram of fentanyl. Rosa Cotto arrived at the buy location with the drugs, and he was arrested. A bag containing more than half a kilogram of fentanyl was found inside his vehicle. All of the drugs were tested by the DEA laboratory and determined to be p-Fluorofentanyl, which is an analogue of fentanyl and is classified as a Schedule I controlled substance.
This case was investigated by the DEA, Homeland Security Investigations, and the Apopka Police Department. It was prosecuted by Assistant United States Attorneys John M. Gardella and Courtney Richardson-Jones.
Sun Prairie Man Sentenced to More Than 10 Years for Drug TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Daniel Gibbs, 37, Sun Prairie, Wisconsin, was sentenced on Friday, January 6, by Chief U.S. District Judge James D. Peterson to 121 months in federal prison for distributing 50 grams or more of methamphetamine. Gibbs pleaded guilty to this charge on September 14, 2022.
Gibbs sold one pound of methamphetamine to a confidential source on three separate occasions at a residence in Sun Prairie in August and September of 2021. On November 10, 2021, agents executed a search warrant at the residence where Gibbs had previously sold methamphetamine to the confidential source. During the search, agents found approximately four pounds of heroin, a kilogram press, and a loaded firearm.
At the sentencing hearing, Judge Peterson stated that Gibbs had committed “a very serious drug trafficking crime” by distributing significant quantities of methamphetamine and heroin. Judge Peterson also noted that Gibbs had previously served substantial time in federal prison for a violent crime involving kidnapping and extortion.
The charge against Gibbs is the result of a joint investigation by the Drug Enforcement Administration, Dane County Narcotics Task Force, Wisconsin Department of Justice Division of Criminal Investigation, United States Postal Inspection Service, Federal Bureau of Investigation, and Sun Prairie Police Department. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Summerville Man Sentenced to Ten Years in Federal Prison for Possession of Child PornographyRead the Press Release
CHARLESTON, SOUTH CAROLINA — Cameron Dyer, 30, of Summerville, was sentenced to 10 years in federal prison after pleading guilty to possession of child pornography involving a prepubescent minor.
Evidence presented to the Court showed that on May 4, 2020, law enforcement identified a Kik Messenger group created for the sharing of child pornography. Kik Messenger is an instant messaging application for mobile devices that allows users to share content. The members of the group openly engaged in the distribution of child pornography. Dyer was identified as a member of this group and was actively engaged in sharing child pornography. A federal search warrant was executed at Dyer’s home in Dorchester County on September 22, 2021. FBI seized electronic devices and conducted a forensics examination of the devices and found 56 images and 32 videos of child pornography on Dyer’s cell phone, including that of prepubescent children.
The investigation also revealed that Dyer was convicted of Possession of Child Pornography in 2015 at the Superior Court of Massachusetts, Essex County, and sentenced to 18 months in prison and two years of probation.
United States District Judge Bruce Howe Hendricks sentenced Dyer to 120 months in prison, to be followed by a life term of court-ordered supervision. There is no parole in the federal system. Judge Hendricks also ordered Dyer to pay $21,000 in restitution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the 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 sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation (FBI), with assistance from Dorchester County Sheriff’s Office. Assistant U.S. Attorney Dean H. Secor is prosecuting the case.
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Statement of U.S. Attorney Zachary A. Myers on the Passing of Former U.S. Attorney Timothy MorrisonRead the Press Release
INDIANAPOLIS- United States Attorney for the Southern District of Indiana, Zachary A. Myers, issued the following statement on the death of former U.S. Attorney Timothy Morrison.
“The U.S. Attorney’s Office is deeply saddened to hear of Tim Morrison’s passing. Tim served his fellow Hoosiers in the U.S. Attorney’s Office for over 23 years. On three separate occasions he led our office as U.S. Attorney, in 1993, from 2000 to 2001, and from 2007 through 2010. He served in office leadership for many years as First Assistant U.S. Attorney, and successfully prosecuted a wide variety of offenses, including violent crimes, public corruption, fraud, firearms, and national security crimes. Tim was a lifelong prosecutor, who also served in the leadership of the Monroe County and Marion County Prosecutors’ Offices prior to joining the Department of Justice.
In addition to his accomplishments as a prosecutor, Tim was a beloved professor at his alma mater, Indiana University’s Maurer School of Law. For almost ten years, law students benefited from Tim’s wisdom, experience, and passion for our profession. Tim’s dedication, compassion, decency, and commitment to promoting justice have left an indelible mark on the U.S. Attorney’s Office and on our community. We offer our sincerest condolences to Tim’s wife, Linda Hunt, and all of his family, loved ones, and colleagues.”
Solano County Hells Angels Member Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Dennis Killough Jr., 51, of Vacaville, pleaded guilty today to unlawfully possessing two firearms after being convicted of a felony crime, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 8, 2021, law enforcement officers executed a search warrant at Killough’s home as part of an investigation into a brutal beating at the clubhouse for the Vallejo chapter of the Hells Angels Motorcycle Club. In October 2021, two different victims—both of whom were members of a different motorcycle club that is considered a “puppet” (or subordinate) club of the Hells Angels—were beaten by Killough and other club members based on perceived infractions of the Hells Angels’ rules.
During the search of Killough’s home, law enforcement found two firearms, including a Taurus G2C 9 mm compact pistol and a Taurus model PT 745 Pro handgun. Killough has prior felony convictions, including previous firearm convictions, which prohibit him from possessing firearms.
This case is the product of an investigation by the Solano County District Attorney’s Office, the Solano County Sheriff’s Office, the Vacaville Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Aaron D. Pennekamp and Jason Hitt are prosecuting the case.
Killough is scheduled to be sentenced on March 27, 2023, by U.S. District Judge Kimberly J. Mueller. Killough faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Skimmer Builder Sentenced to Prison for Role in Stealing Financial Identities at Gas PumpsRead the Press Release
Potential Victims Urged to Contact Justice Department
For Further Information, Contact: Assistant U. S. Attorneys Sabrina L. Fève and Nicholas W. Pilchak
SAN DIEGO – A Los Angeles resident was sentenced today to 41 months in prison for his role building specialized devices to steal the financial information of unwitting victims at gas pumps throughout Southern California.
Robert Fichidzhyan, age 40, admitted in his plea agreement that he built “skimmers”—customized electronic devices that his accomplices secretly installed at dozens of gas stations to steal credit and debit card information from unknowing patrons. Fichidzhyan admitted that the conspiracy he participated in stole at least $619,923.45 during the period that he was involved.
“Identity thieves should not assume they are safe committing electronic larceny,” said U.S. Attorney Randy S. Grossman. “Anyone who victimizes the public in our jurisdiction will be brought to justice.” Grossman thanked the prosecution team, IRS-CI and Secret Service agents for their excellent work on this case.
As set out in court documents, Fichidzhyan’s accomplices broke into gas pumps throughout Southern California and installed customized skimming devices to steal victims’ credit and debit card information during otherwise legitimate transactions. Next, they made unauthorized cards encoded with victims’ information for their own use, stole victims’ funds, or otherwise sold victim financial information outright to others who would exploit it for their own gain.
Fichidzhyan admitted in his plea agreement that he personally received $249,890.00 from the scheme. He was ordered to forfeit that amount, and to participate in paying restitution of $619,923.45 to the victims of his crime together with his codefendants.
Another defendant in a related case previously received prison time for similar conduct. On June 23, 2022, Margar Simonyan was sentenced to 12 months and 1 day in custody in related case number 21-cr-2659-BAS, together with $11,810 of forfeiture and restitution. The next hearing in the case against the remaining defendants is set for March 20, 2023, before U.S. District Judge Cynthia Bashant.
This investigation involved significant contributions from many different sources, including state, local, and federal law enforcement partners, and assistance from and partnerships with the financial and private sectors, such as the National Cyber-Forensics Training Alliance (NCTFA). Anyone who believes that they may be a victim of this offense can visit the U.S. Department of Justice’s large case website for more information: www.justice.gov/largecases.
“The U.S. Secret Service works vigorously to combat financial fraud perpetrated against the Southern California community, particularly crimes related to skimming,” said SAIC Jason Reynolds of the San Diego Field Office. “The Secret Service, along with our local, state, and federal partners, will continue to be proactive in suppressing this criminal activity, and remains ready to investigate financial crimes wherever they occur.”
DEFENDANTS Case Number 21-CR-2660-BAS
- Haykaz Mansuryan 33 Residence: Granada Hills, California
- Hayk Shakaryan 34 Residence: Glendale, California
- Davit Babayan 36 Residence: Granada Hills, California
- Artour Hakobyan 39 Residence: Glendale, California
- Petros Armutyan 36 Fugitive
- Hakop Karayan 44 Residence: Glendale, California
- Robert Fichidzhyan 40 Residence: North Hollywood, California
- Vasiliy Polyak 32 Residence: Glendale, California
SUMMARY OF CHARGES
Conspiracy to Use Unauthorized Access Devices and Possess Device-Making Equipment, in violation of Title 18, United States Code, Sections 1029(b)(2), 1029(a)(2), and 1029(a)(4)
Maximum Penalty: five to ten years in prison, depending upon prior convictions; fine of $250,000 or twice the gross gain or loss
Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A (Defendants 1, 2, and 4 through 6 only)
Maximum Penalty: mandatory minimum two years in prison, consecutive to any other sentence
AGENCIES
U.S. Secret Service
Internal Revenue Service, Criminal Investigation
Scranton Man Sentenced to 210 Months in Prison for Drug TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Javier Correa, age 41, of Scranton, Pennsylvania, was sentenced on January 3, 2023, to 210 months’ imprisonment by U.S. District Court Judge Malachy E. Mannion, for possession with intent to distribute more than 50 grams of methamphetamine and more than 400 grams of fentanyl.
According to United States Attorney Gerard M. Karam, on April 29, 2021, following a confidential tip, state parole and Drug Enforcement Administration agents searched Correa’s Scranton residence and seized 174 grams of methamphetamine, 611 grams of fentanyl, a loaded Bersa 9mm handgun, firearm magazines, ammunition, and $30,427.25.
This case was investigated by DEA, the Scranton Police Department, and the Pennsylvania State Parole officers. Assistant U.S. Attorneys Geoffrey W. MacArthur and Brian Gallagher prosecuted 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. 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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