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6 January 2023
Troy Felon Pleads Guilty to Firearm and Drug ChargesRead the Press Release
ALBANY, NEW YORK – Frankie Rios, age 42, of Troy, New York, pled guilty today to illegally possessing a firearm as a convicted felon, and possession with intent to distribute cocaine and cocaine base, announced United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Rios, a convicted felon, admitted that he possessed a .25 caliber Mauser handgun with six rounds of ammunition on March 30, 2019. The handgun was recovered from Rios by Troy Police Officers responding to a stabbing at a bar on 4th Street in Troy. Rios also admitted that on February 17, 2021, he possessed over 100 grams of cocaine and cocaine base with intent to distribute those substances, in Troy.
Rios faces a maximum sentence of 20 years in prison, a fine of up to $1 million, and a term of post-imprisonment supervised release of at least 3 years when he is sentenced before U.S. District Judge Mae A. D’Agostino on May 11, 2023. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by ATF and the Troy Police Department, and is being prosecuted by Assistant U.S. Attorney Benjamin S. Clark.
Tampa Man Sentenced to 72 Months in Prison for Bank Fraud ConspiracyRead the Press Release
TAMPA – A Tampa man was sentenced Thursday in a U.S. District Court to 72 months in prison and a $25,000 fine for his involvement in a bank fraud conspiracy.
According to court documents, Jaykumar Patel, 33, worked in Florida moving criminal proceeds for an India-based fraud conspiracy targeting elderly, vulnerable victims in the United States.
“Those who prey on the most susceptible victims through these kind of scare tactics and phone scams must be punished to the full extent of the law,” said U.S. Attorney Rachelle Aud Crowe. “Defendants both in the United States and overseas need to know that we will protect and defend vulnerable Americans.”
“Elder fraud is a growing problem as the country’s population gets older,” said FBI Springfield Field Office Special Agent in Charge David Nanz. “Illinois ranks ninth highest in total number of victims over age 60, according to the FBI’s Internet Crime Complaint Center 2021 Elder Fraud Report. The FBI takes elder fraud very seriously and, along with our law enforcement partners, will work to hold accountable those who take advantage of the isolation and vulnerability that often surrounds the elderly.”
In June 2021, the Alton, Illinois Police Department filed a report when a resident received a phone call from an individual who claimed to be a member of law enforcement warning her that her identity had been stolen. The caller demanded the victim to send $29,000 to an address in Florida so he could help rectify the situation. The story was false: the victim’s identity had not been stolen, the caller was not law enforcement, and no legitimate law enforcement officer would ever demand money from a victim. But the victim didn’t know that, so she sent the money. A few days later, Patel turned up to pick up the package in Florida and was arrested.
Further investigation showed the fraud on the Alton victim was a small part of the criminal scheme. There were several other victims across the United States who were bullied and frightened out of their hard-earned money. In just a few weeks in 2021, Mr. Patel picked up or intended to pick up packages sent by victims containing more than $481,000.
Individuals should use caution when speaking with strangers on the phone, especially if a caller is asking the person to send money. Legitimate law enforcement will never try to blackmail victims or request residents to send cash by mail. Talk to a family member or someone who can help if something doesn’t sound quite right. There are resources available:
National Elder Fraud Hotline: 833-FRAUD-11. The Department of Justice maintains a National Elder Fraud Hotline. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.
Money Mule Initiative. In October 2018, the Department and law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute money mule activity used to facilitate fraud schemes, especially those victimizing senior citizens. Money mules are individuals used to move criminal proceeds around on behalf of other criminal actors, and money mules may be knowing or unknowing. Efforts by law enforcement disrupt hundreds of money mule operations every year.
The investigation was conducted by the FBI Springfield - Fairview Heights Resident Agency, the St. Petersburg Police Department, and the Alton Police Department. Many other police departments across the United States took statements from victims. Assistant U.S. Attorney Peter Reed prosecuted the case.
Suamico and Kaukauna Car Dealer Sentenced on Fraud ChargeRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on January 5, 2023, John M. Solberg (age: 40) of Suamico, Wisconsin, was sentenced to 30 months in federal prison by Senior United States District Judge William C. Griesbach.
According to court records, Solberg established “Backwoods Bargains,” a used car dealership located in Suamico, Wisconsin, in 2012. Ultimately, the dealership was renamed “Standard Pre-Owned,” and Solberg opened a second location in Kaukauna, Wisconsin, also named “Standard Pre-Owned.” While operating his dealerships, Solberg developed a scheme to defraud individuals that listed their vehicles for sale on Craigslist. Solberg would contact these individuals and offer to sell their vehicles on consignment from his car lots. Court records indicate that Solberg then would sell the consignment cars without paying the owners of the vehicle and would provide fraudulent vehicle titles to the purchasers.
At sentencing, Senior Judge Griesbach noted the serious nature of Solberg’s scheme based on the emotional and financial toll he imposed on his victims. He also questioned whether Solberg truly accepted responsibility for his criminal acts. Though Solberg requested a sentence of probation, the judge determined that a 30-month term in federal prison was required to address the magnitude of the crime and to send a message to Solberg and others that taking advantage of people will result in serious consequences. After serving his prison sentence, Solberg will spend three years on supervised release. The Court also ordered Solberg to pay approximately $290,000 in restitution to his victims.
This case was investigated by the Brown County Sheriff’s Office and the Federal Bureau of Investigation with the assistance of the Kaukauna Police Department and the Wisconsin Department of Transportation’s Division of Motor Vehicles. It was prosecuted by Assistant United States Attorneys Daniel R. Humble and Julie F. Stewart.
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St. Charles County Man Sentenced to 4+ Years in Prison for Downloading and Sharing Child PornographyRead the Press Release
ST. LOUIS – U.S. District Judge Rodney W. Sippel on Friday sentenced a man from St. Peters, Missouri to four and one-half years in prison for downloading and sharing child pornography via a variety of social media apps.
Eric S. Crews, 38, will be on supervised release for life after his release from prison.
Crews used social media, including Kik Messenger, Viber, WhatsApp and TamTam, to send and receive child pornography. When Crews uploaded 14 files containing child sexual abuse material to Kik Messenger on Nov. 11, 2020 and shared them with at least one other Kik user, it triggered an alert to the National Center for Missing and Exploited Children, according to Crews’ plea agreement. After a court-approved search of Crews’ home by St. Charles County police on June 15, 2021, investigators found at least 5,400 images and 610 videos containing child pornography on Crews’ Apple iPhone.
Crews pleaded guilty in U.S. District Court in October to a charge of possession of child pornography.
The St. Charles County Cyber Crime Task Force and the FBI investigated this case. Assistant U.S. Attorney Jillian Anderson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
South Dakota Man Sentenced for Unlawful Firearm PossessionRead the Press Release
United States Attorney Steven Russell announced that Trentelle Clifton, 46, of South Dakota, was sentenced today in federal court in Omaha, Nebraska, for being a felon in possession of a firearm. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Clifton to 72 months of imprisonment. There is no parole in the federal system. After his release from federal prison, Clifton will begin a 3-year term of supervised release.
On July 6, 2022, officers were dispatched to a vehicle in Omaha. Upon arrival, officers located Clifton in the driver’s seat. Clifton attempted to conceal a Springfield Armory handgun. Officers collected the handgun and arrested Clifton. The investigation revealed that the handgun was stolen and that Clifton’s DNA was on it.
Clifton was prohibited from possessing firearms because of prior felony convictions for: possession of a firearm by a prohibited person (2012); robbery (1999); robbery (2012); possession of a controlled substance (2010); escape (2005); and theft (1995).
This case was investigated by Omaha Police Department and was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Shelbyville Man Sentenced to over 43 Years in Federal Prison for Crimes Including Hiring a Hitman to Kill a Child Abuse & Exploitation Victim and Her MotherRead the Press Release
INDIANAPOLIS – Robert Mason Elliott, 28, of Shelbyville, Indiana, was sentenced to 520 months in federal prison after pleading guilty to two counts of murder for hire, witness tampering, illegally possessing a firearm, and producing and distributing child sexual abuse material.
According to court documents, Robert Mason Elliott met Minor Victim 1 in 2017, when she was 16 years old. He was later charged with domestic battery of Minor Victim 1 and barred by several court orders from having contact with Minor Victim 1. In violation of those orders, and while Elliott was on pretrial release, Elliott attempted to deliver heroin to the minor when she was home with her mother, Witness Victim 1. Elliott was subsequently charged with dealing narcotics in Shelby County, Indiana. During the investigation, officers also discovered that Elliott had produced and distributed child sex abuse material of Minor Victim 1 over Facebook.
Elliott was detained pending trial on these state offenses. While incarcerated in the Shelby County Jail on February 20, 2018, Elliott used a jail phone to instruct his mother to hire a member of the Hells Angels motorcycle club to kill or commit serious bodily injury to Witness Victim 1 to prevent her from testifying against him. Elliott’s mother hired the Hells Angel to commit serious bodily injury to Witness Victim 1 in exchange for $500. The jail calls between Elliott and his mother, as well as the calls and texts to the Hells Angel, were recorded and intercepted by law enforcement officials.
After his first attempt was unsuccessful, Elliott then engaged in a second murder for hire plot from inside the Shelby County Jail. Elliott offered three different Shelby County inmates $5,000 per person to kill Minor Victim 1, Witness Victim 1, and another individual. The three inmates provided information to law enforcement officials who again thwarted Elliott’s plan.
On May 7, 2019, Elliott was indicted in federal court for offenses related to child exploitation and illegal firearm possession.
While detained in Marion and Henderson County Jails on those federal charges, Elliott again attempted to have Minor Victim 1 and Witness Victim 1 killed. This time, Elliott asked a cooperating witness to provide him with the phone number for a “cartel hitman.” Through letters, calls, and texts, Elliott hired the individual he believed to be a “cartel hitman” to prevent the witnesses from testifying against him in their state and federal proceedings. Elliott offered, in coded language, to exchange heavy duty equipment, a motorcycle, and military-grade weapons including shoulder-launched multipurpose assault weapons and M203 grenade launchers for the murders. Elliott provided the “cartel hitman” with the victims’ first and last names, Facebook accounts, locations, and places of employment. Elliott conspired with his grandfather to provide the equipment, motorcycle, and military-grade weapons to the purported hitman.
Unbeknownst to Elliott, the “cartel hitman” he contacted during this third attempt to have Minor Victim 1 and Witness Victim 1 murdered was an undercover federal agent. All calls and texts between Elliott, his grandfather, and the “cartel hitman” were recorded. Federal agents executed a search warrant at Elliott’s grandfather’s home and recovered a 2008 Hayabusa motorcycle and at least twenty firearms, including several assault rifles, and thousands of rounds of ammunition. Elliott had agreed to provide the guns, motorcycle, and ammunition the hitman in exchange for killing federal and state witnesses. One of the firearms was illegally purchased for Elliott by another individual, who agreed to falsify federal firearms purchasing forms and provide Elliott with the gun in exchange for a meal at Olive Garden.
Elliott’s repeated efforts to procure the murders of his victim, her mothers, and a witness were unsuccessful.
On June 14, 2022, Elliott pleaded guilty to two counts of Murder for Hire, two counts of Witness Tampering, and one count being a felon in possession of a firearm. Elliott further stipulated in a plea agreement that he had produced and distributed child sex abuse material.
“The defendant’s heinous, violent crimes demonstrate an utter disrespect for the law or the value of human life,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “His physical abuse and sexual exploitation of a child were compounded by his relentless attempts to have the victim and her mother murdered. Only a lengthy federal prison term like the one imposed today will ensure that the victims and the public are protected from this dangerous criminal. I commend the outstanding efforts of our prosecutors, the FBI, the Shelby County Sheriff’s Department, and the Shelby County Prosecutor’s Office to stand up for victims and hold violent abusers accountable.”
“This defendant’s abuse of a minor victim was beyond despicable. He physically and sexually assaulted her, sought to provide her with dangerous narcotics, and had no qualms about killing the minor victim and others in a desperate and twisted attempt to get away with it. Today, the court determined that these horrible crimes deserve a lengthy term of imprisonment.” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI will continue our efforts with our law enforcement partners to ensure the most vulnerable in our society are protected from individuals such as this who would seek to harm them.”
The FBI, Shelby County Sheriff’s Department, and Shelby County Prosecutor’s Office investigated this case. The sentence was imposed by U.S. District Court Chief Judge Tanya Walton Pratt. Judge Pratt also ordered that Elliott be supervised by the U.S. Probation Office for 5 years following his release from federal prison. Elliott must also pay restitution of $5,000 each to Minor Victim 1 and Witness Victim 1.
U.S. Attorney Myers thanked Assistant United States Attorneys Tiffany J. Preston and Kristina M. Korobov, who prosecuted this case.
In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Savitz Drug Store to Pay $275,000 to Resolve Alleged Controlled Substance Act ViolationsRead the Press Release
COLUMBIA, SOUTH CAROLINA -- Savitz Drug Store, Inc., has agreed to pay $275,000 to resolve allegations that it committed recordkeeping and dispensing violations of the Controlled Substances Act (CSA). These requirements are designed to prevent the diversion of controlled substances.
This civil settlement includes a corrective action plan and is the culmination of a joint investigation by the United States Drug Enforcement Agency (DEA); S.C. Department of Health and Environmental Control, Bureau of Drug Control (DHEC); and U.S. Attorney’s Office that began in March 2022, when a routine controlled substance inspection by S.C. DHEC revealed that Savitz could not account for approximately 22,056 milliliters of Promethazine with Codeine.
“When pharmacists fail to comply with federal law, they can put controlled substances on the street and place the public at great risk,” said U.S. Attorney Adair F. Boroughs. “Our office is committed to working with our partners to hold pharmacists accountable for their responsibilities under federal law.”
“The mission of DEA’s Office of Diversion Control is to prevent, detect and investigate the diversion of controlled pharmaceutical and listed chemicals from legitimate sources,” said Robert J. Murphy, the Special Agent in Charge (SAC) of the Atlanta Division of the DEA. “In this case, DEA Diversion Investigators did an outstanding job of uncovering this pharmacist’s systemic record-keeping violations and failures to safeguard controlled substances.”
The United States alleges that the Pharmacist-in-Charge of Savitz failed to properly safeguard his Controlled Substance Ordering System (CSOS) private user identification login and password, which resulted in a staff Pharmacist using the CSOS login and password to order controlled substances at least one hundred times.
The United States further alleges that due to Savitz’s failure to maintain complete and accurate controlled substance records and necessary oversight, a tenured Pharmacy Technician at Savitz was able to divert 46 bottles of Promethazine with Codeine (Schedule V) from Savitz over a three-month timeframe. Promethazine with Codeine is a cough syrup that can be used as the main ingredient in a drink mixture commonly known as “Lean” or “Purple Drank.” Effects of “Lean” or “Purple Drank” are consistent with the abuse characteristics of other opioids and result in a sedative and woozy or swooning euphoria.
The conduct outlined in the settlement agreement is merely alleged; the agreement does not constitute an admission of liability by Savitz.
A main objective of the CSA is controlling illegitimate traffic in controlled substances. To prevent the diversion of controlled substances, the CSA regulates persons, companies, and other entities that manufacture, distribute, and dispense controlled substances.
This matter was investigated by DHEC Agent Ann Shields, DEA Acting Group Supervisor Derek Barr, DEA Investigator Kelli Capehart, and Assistant U.S. Attorney Johanna Valenzuela of the U.S. Attorney’s Office for the District of South Carolina.
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Sandusky Man Charged with Threatening Law Enforcement and Unlawful Possession of Machine GunRead the Press Release
TOLEDO – A federal grand jury returned a six-count indictment charging Aron McKillips, 29, of Sandusky, Ohio, with five counts of interstate communication of threats and one count of unlawful possession of a machine gun.
The indictment against McKillips alleges that from September 2021 to July 2022, McKillips made at least five online threats to harm and/or kill law enforcement members. In addition, the indictment alleges that in September 2022, McKillips unlawfully possessed a machine gun, specifically, a drop-in auto sear that could convert an AR-15 semi-automatic rifle into a fully automatic machinegun.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Cleveland FBI, Toledo Resident Agency. This case is being prosecuted by Assistant United States Attorneys Michael J. Freeman and Gene Crawford.
Rock Island Man Sentenced to Federal Prison for Drug TraffickingRead the Press Release
Davenport, IA – Jayvontae Dashwan Bland Robertson, age 29, of Rock Island, Illinois, was sentenced on January 4, 2023, to 96 months in prison for conspiracy to distribute fentanyl and marijuana, and felon in possession of a firearm. Following his term of imprisonment, Robertson was ordered to serve three years of supervised release.
According to court records, in 2021, law enforcement investigated Bland Robertson for fentanyl and marijuana trafficking. In July 2021, Bland Robertson was found in possession of over 13 grams of fentanyl during a traffic stop. In August 2021, law enforcement executed a search warrant at Bland Robertson’s residence, locating additional evidence of drug trafficking and a loaded firearm. In February 2022, police had contact with Bland Robertson and again he had a loaded firearm, along with fentanyl and marijuana. The investigation determined that Bland Robertson received and trafficked at least 6 kilograms of marijuana and over 240 grams of fentanyl.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department’s Tactical Operations Bureau along with the Iowa State Patrol investigated the case.
Rochester Woman Pleads Guilty to Assaulting Two People on an AirplaneRead 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 Cynthia McKnight, 24, of Rochester, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to two counts of simple assault in the special aircraft jurisdiction of the United States, which each carry a maximum penalty of six months in prison and a $5,000 fine.
Assistant U.S. Attorneys John D. Fabian and Charles M. Kruly, who are handling the case, stated that on April 19, 2022, McKnight was a passenger on an American Airlines flight from the Buffalo Niagara International Airport to Chicago O’Hare International Airport. After the aircraft’s doors were closed, and while the aircraft was preparing to depart, McKnight made her way to the front of the aircraft and engaged in a verbal altercation with one passenger, then spat on another passenger. As a result, the aircraft was required to return to the gate. McKnight then attempted to exit the aircraft as it was in motion on the ground, pushing a flight attendant in the process who had attempted to prevent her from opening an aircraft door. McKnight was able to open an aircraft door, which deployed the aircraft’s emergency slide, and exited the aircraft.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Michael Stansbury and the Niagara Frontier Transportation Authority Police, under the direction of Chief Brian Patterson.
Sentencing is scheduled for May 16, 2023, before Judge Vilardo.
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Recidivist Child Pornography Offender Sentenced to 10 Years in PrisonRead the Press Release
DETROIT – An offender who possessed child pornography only four months after his release from federal prison for the same offense was sentenced to ten years in federal prison for possession of child pornography, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Angie Salazar, Special Agent in Charge of the Detroit Office of the Department of Homeland Security.
Jacob Jeffrey Baron, 34, of Fort Gratiot, Michigan, was sentenced by United States District Judge Sean F. Cox. As part of his plea, Baron admitted that he possessed and uploaded files of child pornography involving pre-pubescent children engaged in sex acts to Dropbox, a cloud storage service. Agents later found evidence of 191 child pornography images on Baron’s cellular phone. Baron was under supervision at the time of the offense because he had just completed a 4-year prison sentence for another federal child pornography conviction.
“Every time an image of child sexual abuse is downloaded or viewed it is a revictimization for the child involved. This significant sentence demonstrates that we will continue to protect children from recidivist offenders,” U.S. Attorney Ison stated.
“Repeat offenders like Baron are a clear and present danger to our communities and our children,” said HSI Detroit Special Agent in Charge Angie Salazar. “Our special agents and law enforcement partners will continue to investigate these despicable crimes and bring child predators to justice.”
This case was investigated by the Department of Homeland Security and was prosecuted by Assistant United States Attorneys Myra Din and Christopher Rawsthorne.Reality Show Cast Member Jennifer Shah Sentenced to 78 Months in Prison for Running Nationwide Telemarketing Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JENNIFER SHAH was sentenced today by United States District Judge Sidney H. Stein to 78 months in prison for running a nationwide telemarketing fraud scheme. SHAH previously pled guilty to one count of conspiracy to commit wire fraud in connection with telemarketing.
U.S. Attorney Damian Williams said: “With today’s sentence, Jennifer Shah finally faces the consequences of the many years she spent targeting vulnerable, elderly victims. These individuals were lured in by false promises of financial security, but in reality, Shah and her co-conspirators defrauded them out of their savings and left them with nothing to show for it. This conviction and sentence demonstrate once again that we will continue to vigorously protect victims of financial fraud and hold accountable those who engage in fraudulent schemes.”
According to the Superseding Indictment and statements made in court proceedings and filings:
From at least 2012 until her arrest in March 2021, SHAH was an integral leader of a wide-ranging, nationwide telemarketing fraud scheme that victimized thousands of innocent people. The scheme principally involved selling those victims so-called “business services” in connection with the victims’ purported online businesses (the “Business Opportunity Scheme”). In particular, SHAH knowingly and intentionally facilitated the sale of “leads” — contact information for potential victims who had been identified as susceptible to the scheme’s lies — to sales floors that were perpetrating the Business Opportunity Scheme and, during the latter portion of her participation in the scheme, owned and operated one of the sales floors that was part of the scheme.
Many of SHAH’s victims were elderly or vulnerable. Many of those people suffered significant financial hardship and damage. At SHAH’s direction, victims were defrauded over and over again until they had nothing left. She and her co-conspirators persisted in their conduct until the victims’ bank accounts were empty, their credit cards were at their limits, and there was nothing more to take.
SHAH was not deterred by the Federal Trade Commission’s investigations or enforcement actions, nor by learning that dozens of her co-conspirators had been arrested by federal law enforcement, pled guilty for their roles in the scheme, and that two were convicted at trial. SHAH was not ignorant of these developments: she took a series of increasingly extravagant steps to conceal her criminal conduct from the authorities. She directed others to lie, she put businesses and bank accounts in the name of others, she required payment in cash, she instructed others to delete text messages and electronic documents, she moved some of her operations overseas, and she tried to put computers and other evidence beyond the reach of investigators. These efforts were not short-lived or narrow in scope. She engaged in a yearslong, comprehensive effort to hide her continued role in the scheme.
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In addition to the prison term, SHAH, 49, of Salt Lake City, Utah, was sentenced to five years of supervised release. She was also ordered to forfeit $6,500,000, 30 luxury items, and 78 counterfeit luxury items, and to pay $6,645,251 in restitution.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations’ El Dorado Task Force.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Kiersten A. Fletcher, Benet J. Kearney, Robert B. Sobelman, and Sheb Swett are in charge of the prosecution.
Philadelphia, Lehigh Valley Postal Workers Agree to Repay Fraudulently Obtained Unemployment Assistance BenefitsRead the Press Release
PHILADELPHIA, PA – United States Attorney Jacqueline C. Romero announced that Jaire Chance, 27, of Philadelphia, has agreed to a consent judgment of $100,399, and Robert Day, 42, of Center Valley, Lehigh County, has agreed to a consent judgment of $110,610 to resolve allegations that they violated the False Claims Act by improperly seeking Pandemic Unemployment Assistance (PUA) benefits when they were employed by the United States Postal Service.
The United States alleges that Chance and Day made materially false and fraudulent statements to the Pennsylvania Department of Labor and Industry to obtain PUA benefits, meant for individuals not eligible for regular unemployment compensation or extended unemployment benefits. In fact, both were working full-time for the United States Postal Service for most or all of the time they were receiving PUA benefits. During that time, Day was also earning income as a driver using the Uber mobile application to arrange work. Further details regarding the United States’ allegations regarding conduct by Chance and Day can be found in the complaints filed in federal court, United States v. Jaire Chance, U.S.D.C. E.D. Pa. No. 2:22-cv-4626, and United States v. Robert Dean Day, U.S.D.C. E.D. Pa. No. 5:22-cv-4736.
“There is no excuse for any individual who fraudulently obtains money set aside to help victims of the COVID-19 pandemic,” said U.S. Attorney Romero. “The fraud alleged in this case is particularly egregious as it was perpetrated by a federal employee. The United States Attorney’s Office is ready to investigate and bring to justice any individual who abuses emergency assistance in this way.”
“It is alleged in the settlement agreements filed in court that Jaire Chance and Robert Day submitted weekly certifications, which falsely represented they were unemployed due to the COVID-19 pandemic, to the Pennsylvania Department of Labor and Industry’s Pandemic Unemployment Assistance (PUA) program. In actuality, they were employed full-time by the U.S. Postal Service for all or a majority of the period that they submitted the certifications. The submission of those certifications resulted in Chance and Day receiving PUA benefit payments that they were not eligible to receive. We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to safeguard unemployment compensation benefit programs,” said Syreeta Scott, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
“The majority of postal employees are hard-working public servants dedicated to moving the mail to its proper destination. Unfortunately, Day and Chance betrayed this public trust when applying for unemployment benefits. The USPS-OIG, along with our law enforcement partners, will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the United States Postal Service,” stated Jeffrey E. Krafels, Special Agent-in-Charge of the Mid Atlantic Area Field Office, United States Postal Service Office of Inspector General.
This investigation was conducted by United States Attorney’s Office for the Eastern District with investigators from the United States Postal Service Office of Inspector General and United States Department of Labor Office of Inspector General. Assistant United States Attorneys Paul W. Kaufman and Isaac J. Jean-Pierre handled the investigation and consent resolution.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Pensacola Man Pleads Guilty to Purchasing A Firearm for A Convicted FelonRead the Press Release
PENSACOLA, FLORIDA – Tavaris East, 42, of Pensacola, Florida, pled guilty to making a false statement to a federally licensed firearms dealer when purchasing a firearm. The plea was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
On April 27, 2022, East purchased a firearm from a federally licensed firearms dealer and checked the box “yes” that he was “the actual transferee/buyer of the firearm” on the ATF Form 4473. However, East purchased the firearm for Kennon Farrow, a convicted felon. The firearm was recovered by law enforcement on May 24, 2022, after it was used by Kennon Farrow to commit a homicide.
Sentencing in this case is set for March 30, 2023, at 9:00 a.m., at the United States Courthouse in Pensacola before the Honorable United States District Judge T. Kent Wetherell II. East faces 10 years in prison.
The case resulted from an investigation by the Pensacola Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorney Jeffrey M. Tharp.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Passaic County Man Admits Producing Child Pornography and Online EnticementRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man admitted producing one or more images of child sexual abuse and enticing a minor to engage in sexually explicit conduct, U.S. Attorney Philip R. Sellinger announced today.
Jose Minaya, 27, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Julien X. Neals on Jan. 5, 2023, to an information charging him with one count of production of child pornography and one count of online enticement.
According to documents filed in this case and statements made in court:
In July 2019, Minaya used a web-based application to engage a child in a sexually explicit conversation online. Minaya persuaded the child to take sexually explicit photographs of the child and send them to him. Minaya was arrested at his home in May 2020, at which time agents seized multiple electronic devices. Further investigation revealed that Minaya had used another application to entice an additional minor to engage in sexually explicit conduct.
The charge of production of child pornography, carries a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison. The charge of online enticement carries a mandatory minimum of 10 years in prison and a maximum of life in prison. Each of the charges carry a fine of up to $250,000. Sentencing is scheduled for May 9, 2023.
U.S. Attorney Sellinger credited special agents with the Department of Homeland Security – Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Ohio Man Pleads Guilty for Unlawfully Stealing over 712 Seized Bitcoin Subject to Forfeiture in Brother’s Pending Criminal CaseRead the Press Release
Defendant’s Brother Convicted of Running the Money Laundering Service Helix
WASHINGTON – Gary James Harmon, 31, of Cleveland, Ohio, pleaded guilty today to perpetrating a scheme to steal cryptocurrency that was pending criminal forfeiture from Harmon’s brother, now-convicted money launderer and proprietor of Grams-Helix, Larry Dean Harmon. Specifically, Harmon pleaded guilty to wire fraud and obstruction of justice for unlawfully taking more than 712 bitcoin that had been seized by law enforcement and was subject to forfeiture in the pending criminal prosecution of Larry Harmon.
The plea was announced by United States Attorney Matthew M. Graves, Darrell J. Waldon, Special Agent in Charge of IRS-Criminal Investigation (IRS-CI), and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal and Cyber Divisions.
The wire fraud charge carries a statutory maximum sentence of up to 20 years in prison; the obstruction of justice charge carries a statutory maximum sentence of 20 years in prison. U.S. District Court Chief Judge Howell scheduled a sentencing hearing for March 17, 2023.
According to court documents, in February 2020, the defendant’s brother, Larry Harmon, was arrested for his operation of Helix, a darknet-based cryptocurrency money laundering service, known as a “mixer” or “tumbler.” As Harmon later admitted, Helix laundered over 350,000 bitcoin – valued at over $300 million at the time of the transactions – on behalf of customers, with the largest volume coming from Darknet markets. As part of the arrest, law enforcement seized various assets, including a cryptocurrency storage device containing Larry Harmon’s illegal proceeds generated through the operation of Helix, which were subject to forfeiture in the criminal case. However, law enforcement was initially unable to recover bitcoin stored on the device due to the device’s additional security features.
Knowing that the government was seeking to recover the bitcoin stored on the seized device for forfeiture in Larry Harmon’s criminal case, Gary Harmon used his brother’s credentials to recreate the bitcoin wallets stored on the device and covertly transfer more than 712 bitcoin, valued at approximately $4.8 million at the time, to his own wallets – stealing those funds and obstructing the pending criminal forfeiture proceeding. Gary Harmon further laundered the proceeds through two online bitcoin mixer services before using the laundered bitcoins to finance large purchases and other expenditures.
In August 2021, Larry Harmon pled guilty to money laundering conspiracy in connection with his case.
As part of his plea today, Gary Harmon also agreed to the forfeiture of cryptocurrencies and other properties derived from the fraudulently taken proceeds, including more than 647.41 Bitcoin (BTC), 2.14 Ethereum (ETH), and 17,404,400.64 Dogecoin (DOGE). Due to the increase in market prices, the total value of these forfeitable properties exceeds $12 million.
- This matter was investigated by the IRS-CI District of Columbia Cyber Crime Unit and the Federal Bureau of Investigation.
In announcing the plea, U.S. Attorney Graves, IRS-CI Special Agent in Charge Waldon, and FBI Special Agent in Charge Jacobs commended the work of those who investigated the case from the IRS Criminal Investigation – Cyber Crime Unit and the FBI’s Washington Field Office. The case is being prosecuted by Assistant U.S. Attorney Christopher B. Brown and Trial Attorney C. Alden Pelker, of the Department of Justice Computer Crime and Intellectual Property Section (CCIPS), with assistance from Paralegal Specialist Michon Tart and former Paralegal Specialist Chad Byron. Additional assistance has been provided by Assistant U.S. Attorneys Segev Phillips and Daniel Riedl of the Northern District of Ohio and CCIPS Trial Attorney S. Riane Harper.
Niagara Falls Man Pleads Guilty to Gun ChargeRead 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 Lazarus R. Hayes, 33, of Niagara Falls, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to possession of a firearm in furtherance of drug trafficking, which carries a mandatory minimum penalty of five years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that on June 19, 2021, the Niagara Falls Police Narcotics Unit and Niagara County Drug Task Force executed a search warrant at Hayes’s Pierce Avenue residence. During the search, they recovered from a bag belonging to co-defendant Gerald Harper approximately 93 grams of cocaine, 9 grams of fentanyl, 26 grams of amphetamine, 245 milligrams of hydrocodone, and 720 milligrams of oxycodone. In addition, within Hayes’s residence, investigators seized approximately 8 grams of cocaine, 20 clonazepam tablets, a digital scale, two loaded firearms, $3,958 in cash, which is proceeds of drug trafficking activities.
Gerald Harper was previously convicted and is awaiting sentencing.The plea is the result of an investigation by the Niagara Falls Police Department, under the direction of Superintendent John Faso, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, and the Niagara County Sheriff’s Office, under the direction of Sheriff Michael Filicetti.
Sentencing is scheduled for May 9, 2023, at 2:00 p.m. before Judge Sinatra.
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Niagara Falls Man Going to Prison for 28 Years for Production of Child PornographyRead 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 Jonathon Cassatt, 36, of Niagara Falls, NY, who was convicted of production of child pornography, was sentenced to serve 28 years in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Cassatt repeatedly sexually abused a child between the ages of 12 and 14 years old. The sexual abuse was reported to the Niagara Falls Police Department, which obtained a search warrant for Cassatt’s cell phone. During a search of the cell phone, images of the ongoing abuse were recovered. In addition, other images of child pornography that Cassatt had downloaded from the internet were also discovered on the cell phone.
The sentencing is the result of a coordinated investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Michael Stansbury, the Niagara County Sheriff’s Office, under the direction of Sheriff Michael Filicetti, and the Niagara Falls Police Department, under the direction of Superintendent John Faso.
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New Orleans Man Pleads Guilty to Violating Federal Gun Control ActRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that MICHAEL CRAWFORD, age 27, from New Orleans, Louisiana, pleaded guilty on January 4, 2023 to being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, CRAWFORD exchanged gunfire with an individual at the intersection of Chef Menteur Highway and Louisa Street and sustained gunshot wounds. Moments later, law enforcement encountered CRAWFORD in possession of a firearm. CRAWFORD was prohibited from firearm possession because he was convicted of Possession of Tramadol in 2019.
In pleading guilty, CRAWFORD faces a maximum sentence of ten (10) years imprisonment and a fine of up to $250,000.00. The defendant also faces a term of supervised release of up to three (3) years, and a mandatory $100.00 special assessment fee. The Honorable Sarah S. Vance set sentencing in this matter for April 5, 2023.
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.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Maria Carboni is in charge of the prosecution.
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New Jersey Man Pleads Guilty in Conspiracy to Use Stolen Identities to Fraudulently Purchase VehiclesRead the Press Release
BOSTON – A New Jersey man pleaded guilty today to his role in a scheme to use the stolen identities of United States citizens from Puerto Rico to fraudulently purchase vehicles and other merchandise and apply for and utilize bank accounts and credit cards.
Jose Irizarry, 46, of Union City, N.J., pleaded guilty to conspiracy to commit wire fraud, wire fraud, aggravated identity theft and false representation of a Social Security number. U.S. District Court Judge Patti B. Saris scheduled sentencing for April 6, 2023.
The defendant and multiple co-defendants were charged by criminal complaint in September 2020 and subsequently indicted by a federal grand jury in October 2020. In a coordinated multi-jurisdictional effort, Irizarry was also charged in the State of New Jersey, and others involved in the scheme were also charged there, in the District of New Jersey, the Northern District of Ohio and the Eastern District of Pennsylvania.
According to charging documents, between October 2017 and January 2019, Irizarry visited Massachusetts car dealerships to purchase late-model vehicles and applied for 100% financing. In support of the applications, the defendant provided stolen biographical information of real United States citizens, fraudulent Puerto Rico driver’s licenses and Social Security cards in those identities, as proof of identification. The defendant used the stolen identities to illegally open bank accounts and credit cards and purchase vehicles, many of which were exported out of the United States. Irizarry was charged with using stolen identities to obtain car loans and purchase three cars worth $140,124, collectively.
The charges of wire fraud and conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Acting Special Agent in Charge of Homeland Security Investigations in New England; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Brockton Police Chief Brenda Perez made the announcement today. Assistance was provided by the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna Nuzum and Adam Deitch of Rollins’ Criminal Division are prosecuting the case. The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nevada man admits role in Billings commercial sex investigationRead the Press Release
BILLINGS — A Nevada man accused in an investigation into commercial sex activity in Billings admitted today to transporting a person with the intent to engage in prostitution, U.S. Attorney Jesse Laslovich said.
Cecil Jerome Hatchett, 32, of Las Vegas, Nevada, pleaded guilty to a superseding information charging him with transportation of a person with intent to engage in prostitution. Hatchett faces a maximum of 10 years in prison, a $250,00 fine and three years of supervised release. If accepted by the court, a plea agreement reached by the parties calls for Hatchett to serve a sentence of not less than five years of imprisonment.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for May 4. Hatchett was detained pending further proceedings.
In court documents, the government alleged that on April 21, 2021, law enforcement responded to a call concerning possible commercial sex activity at the Quality Inn in Billings. Officers knocked on the door of the suspect room and announced themselves. Co-defendant Ashley Stella, another female identified as Jane Doe 1, a minor, and co-defendant Mark Jay Albrecht emerged. In interviews with law enforcement, Jane Doe 1 indicated she had met Stella in December 2020 and that Stella informed her that she worked in commercial sex. Jane Doe 1 told law enforcement that the two traveled from Nevada and elsewhere to Montana in April 2021. Once in Montana, both Stella and Jane Doe 1 engaged in commercial sex. Stella told law enforcement that she had met Jane Doe 1 in the fall of 2020 and learned of her true age later that year. Stella said the two had traveled from Nevada to Montana for the purpose of commercial sex and had asked Jane Doe 1 if she wanted to go on this trip with her. Investigators searched electronic media belonging to Stella and Jane Doe 1 and found numerous messages between Hackett and Stella. The communications included discussions about the upcoming commercial sex appointments of Stella and Jane Doe 1. In addition, law enforcement discovered a rental car from Reno, Nevada, from April 2021 in Hackett’s name and determined it was the same car that Stella and Jane Doe 1 drove to Montana for commercial sex. In April 2021, prostitution was illegal in Montana.
Stella, of Reno, Nevada, was sentenced to eight years in prison for conviction of transportation of a minor to engage in prostitution. Albrecht, of Gillette, Wyoming, pleaded guilty on Jan. 4 to prostitution near military and navy establishments, a misdemeanor, and is pending sentencing.
Assistant U.S. Attorneys Zeno B. Baucus and Bryan T. Dake are prosecuting the case, which was investigated by the FBI, Montana Division of Criminal Investigation, Billings Police Department, the Reno, Nevada, Police Department and IRS.
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Multinational Corporation and Several Individuals Charged with Multimillion-Dollar Organic Grain Fraud SchemeRead the Press Release
Two Dubai entities and several individuals were charged in an indictment unsealed in the District of Maryland recently for their roles in a multimillion-dollar scheme to export non-organic grain into the United States to be sold as certified organic.
Hakan Agro DMCC and Hakan Organics DMCC, both based in Dubai, and Goksal Beyaz, Nuray Beyaz and Mustafa Cakiroglu, all of Turkey, were each charged with conspiracy, smuggling, and wire fraud. An initial appearance for Hakan Agro and Hakan Organics was held on Jan. 5 in the District of Maryland.
The indictment alleges that between November 2015 and May 2017, the defendants operated a scheme where Hakan Agro, Hakan Organics and associated entities would purchase non-organic soybeans and corn from Eastern Europe before having it shipped to the United States as “organic.” This scheme allowed the defendants to charge the higher prices associated with organic grains. Organic grains often cost as much as 50% more than conventional (i.e. non-organic) grains.
Among other misconduct, the indictment alleges:
- In late 2015, the defendants obtained non-organic, non-GMO soybeans from Ukraine for $423 per metric ton (MT). Thereafter, the defendants arranged to have the same soybeans shipped to Baltimore, Maryland, where they were sold as “organic soybeans” for $614/MT, totaling over $4.9 million.
- In early 2016, the defendants arranged to purchase non-organic corn for $168/MT and have it delivered to Constanta, Romania. Simultaneously, they arranged to sell the same corn from Constanta through Baltimore as “organic corn” for $247/MT. The invoices for this falsely labeled corn totaled over $3.3 million.
- In late 2016, the defendants shipped 16,250 MT of non-organic soybeans falsely labeled as “organic” from Turkey to the United States where they were sold for over $10 million
- In early 2017, the defendants arranged for 21,000 MT of non-organic corn to be shipped to the United States falsely labeled as organic. The invoices for the falsely-labeled corn totaled over $6.7 million.
- In early 2017, the defendants arranged for a load of non-organic soybeans to be shipped from Turkey to Baltimore falsely labeled as “organic” soybeans.
Wire fraud and smuggling are each punishable by a maximum penalty of 20 years in prison. Conspiracy is punishable by a maximum penalty of five years in prison. Upon conviction, a federal district court judge would determine any defendant’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Department of Agriculture, Office of Inspector General investigated this case
Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney LaRai Everett for the District of Maryland are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Monroe County Man Sentenced to 25 Years’ Imprisonment for Distributing Controlled Substances Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeremy Edward Johnson, age 31, of Stroudsburg, Pennsylvania, was sentenced to 300 months in prison by U.S. District Court Judge Malachy E. Mannion following his conviction for conspiring to distribute and possess with intent to distribute heroin and fentanyl within the Middle District of Pennsylvania, resulting in the death of a person.
According to United States Attorney Gerard M. Karam, Johnson and Nickas were engaged in a conspiracy to obtain and distribute controlled substances, heroin and fentanyl, for the time beginning January 2020 through March 2021, which resulted in a death. Both defendants were also found guilty of aiding and abetting each other in the December 10, 2020 distribution of heroin and fentanyl, resulting in that death.
Prosecutors from the U.S. Attorney’s Office presented the testimony of multiple witnesses during trial, including Dr. Michael Coyer, a Forensic Toxicologist, who opined that death resulted from the use of heroin and fentanyl; and a PSP Forensic Chemist, who analyzed drugs found at the scene of the death. Additional testimony was provided by officers and detectives from the Monroe County District Attorney’s Office; the Pennsylvania State Police; the Pocono Township Police Department, the FBI – Scranton Office; and an FBI special agent from the Pittsburgh Office.
Nickas is currently scheduled to be sentenced on February 3, 2023.
The charges stem from a joint investigation involving the FBI in Scranton, the Pennsylvania State Police, and the Monroe County District Attorney’s Office. Assistant United States Attorneys Michelle Olshefski and Sean Camoni 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 and fentanyl. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Monmouth County Man Sentenced to 63 Months in Prison for $2.8 Million Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man was sentenced to 63 months in prison for committing securities fraud to obtain over $2.8 million from victim investors, U.S. Attorney Philip R. Sellinger announced today.
Mark Marchi, 55, of Red Bank, New Jersey, previously pleaded guilty before U.S. District Court Judge Claire C. Cecchi to an information charging him with one count of securities fraud. Judge Cecchi imposed the sentence on Jan. 4, 2023, in Newark federal court.
According to documents filed in this case and statements made in court:
Marchi, who was previously barred from the securities industry, purported to provide investment adviser services to clients. Beginning in December 2015, he managed and controlled Precipio Capital LLC, after previously managing and controlling a different investment company called Global Alliance Capital, LLC. Through Global Alliance, Marchi solicited investments from multiple investors, and when he ceased operating Global Alliance, Marchi represented to those investors that he rolled over their accounts into Precipio. Marchi also solicited investors to invest directly into Precipio.
Instead of using the funds on legitimate investments, Marchi diverted approximately $2.8 million of those funds from victim investors for other purposes, including paying back previous Global Alliance investors and his own use. Marchi made repeated misrepresentations to the victim investors, which included false claims about the status and performance of investments and false assurances to victims that their investments were profitable. Marchi also provided victims with falsified records, including trading records, performance reports, and K-1s.
In addition to the prison term, Judge Cecchi sentenced Marchi to three years of supervised release and ordered him to pay restitution of $2.87 million.
U.S. Attorney Sellinger credited the special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to today’s sentencing. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Division of Consumer Affairs, under the direction of Attorney General Matthew J. Platkin and Acting Bureau Chief Amy Kopleton, as well as the U.S. Securities and Exchange Commission’s Division of Enforcement, under the direction of Director Gurbir S. Grewal, for their assistance.
The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.
Massive Lynchburg Narcotics Conspiracy Dismantled, Ringleader SentencedRead the Press Release
LYNCHBURG, Va. – The North Carolina source of supply, who conspired with dozens of others to distribute narcotics into Lynchburg and the greater Central Virginia region, was sentenced earlier this week to 27.5 years in federal prison.
Jermel Lawrence Storey, 45, a former Lynchburg resident who most recently resided in Charlotte, North Carolina, pled guilty in July 2022 to conspiring to possess with the intent to distribute five kilograms or more of cocaine, possession with the intent to distribute and distributing cocaine, possession with the intent to distribute and distributing 500 grams or more of cocaine, and possession of a firearm (a short-barreled rifle) in furtherance of a drug trafficking crime.
Storey was held responsible for distributing more than 150 kilograms of cocaine into the Lynchburg area, a quantity valued at more than $4.5 million.
“Dismantling this massive narcotics conspiracy makes a significant impact on the entire Central Virginia area,” said United States Attorney Christopher R. Kavanaugh. “In collaboration with our federal, state and local law enforcement partners, my Office continues its unyielding pursuit of criminals who traffic in drugs and guns and threaten the safety and security of our communities.”
“This sentencing should send a clear message to those who prey on our community that their actions will be aggressively investigated and prosecuted to the fullest extent of the law,” said Lynchburg Police Chief Ryan Zuidema. “We know there is a clear connection between drug activity and violent crime, and this sentencing reinforces our community’s unwillingness to tolerate either. The Lynchburg Police Department recognizes that this outcome would not have been possible without the assistance of our local, state, and federal law enforcement partners.”
ATF Washington Field Division Acting Special Agent in Charge Christopher Amon said, “Combating violent gun crime and narcotics distribution within our communities is something we do every day, and we take this mission very seriously. We will continue to collaborate with our partners as we disrupt the illegal use and possession of firearms, distribution of narcotics and other violent acts within our community ensuring criminals are held accountable.”
“DEA’s top priority is investigating and dismantling drug trafficking organizations and its members like Mr. Storey, who are responsible for distributing dangerous and deadly firearms and drugs such as cocaine, meth, heroin, and fentanyl into our neighborhoods,” said Jarod Forget, Special Agent in Charge for the DEA Washington Division. “While they are turning a profit, people and their families are tormented by violence and the consequences of drug use and addiction. We will continue working with our federal, local and state partners to disrupt and reduce violent, drug-related crime, to effectively hold these violent offenders accountable and give our communities the safety they deserve.”
According to court documents, between January 2016 and January 2021, Storey led and organized a widespread drug trafficking organization that imported large quantities of cocaine into the Lynchburg, Virginia area from Houston, Texas through Charlotte, North Carolina. Even after moving to Charlotte, Storey continued his drug-dealing conspiracy by directing his co-conspirators to meet him in Charlotte to collect the drugs and then to return to Lynchburg for sales throughout Central Virginia. Storey possessed and used multiple firearms for protection and intimidation and made threats of violence to further his criminal enterprise, including using firearms on video calls and when people visited him in person in order to intimidate them. Additionally, when his co-conspirators did not comply with his demands, Storey threatened to harm them as well as their family members.
The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lynchburg Police Department, the Virginia State Police’s Central Virginia Drug and Gang Task Force, and the Office of the Commonwealth’s Attorney for the City of Lynchburg investigated the case.
Assistant United States Attorneys Sean Welsh and Ronald M. Huber prosecuted the case.
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 .
Maryland Man Sentenced to More Than Six Years in Federal Prison for His Role in a $28 Million Ponzi Scheme Involving “1st Million Dollars” Wealth Management CompanyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Arley Ray Johnson, age 63, of Bowie, Maryland, yesterday to 78 months in federal prison, followed by three years of supervised release, for conspiracy, wire fraud, and securities fraud charges, in connection with a $28 million Ponzi scheme involving 1st Million, a purported wealth management and financial literacy company. Johnson was convicted on September 29, 2022, after a 10-day trial.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Matthew R. Stohler of the United States Secret Service - Washington Field Office; and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington
According to the evidence presented at his trial, Johnson conspired with his co-defendants, including Dennis Mbongeni Jali and John Erasmus Frimpong to defraud investors through several related entities including The Smart Partners LLC, which did business as “1st Million Dollars” or “1st Million.” Johnson served as the Chief Operating Officer for 1st Million, which was headquartered in Largo, Maryland.
According to trial evidence, 1st Million presented itself as a wealth management and financial literacy company, with its core business offering being a 12-month guaranteed investment contract. These investment contracts, entitled “Corporate Guarantees,” represented that the client’s principal would be invested in foreign currency or cryptocurrency and guaranteed individuals who invested money with 1st Million monthly returns ranging from 6% to 35% of the initial investment. At the end of the investment period, the contract promised that the investor would receive the return of all of the principal invested. In reality, the evidence at trial showed, 1st Million did not invest victims’ funds as promised and, instead, misappropriated the funds for themselves and used the funds to keep the scheme afloat, including using funds from new investors to repay existing investors.
In addition to misrepresenting that victim funds would be used to invest, Johnson and his co-defendants also falsely stated that investors’ principal would be held in a trust account protected from any financial instability of 1st Million or market volatility. In fact, victim funds were not placed in a trust account or otherwise guaranteed. In addition, Johnson and his co-defendants falsely claimed that 1st Million was financially healthy and earning astronomical profits, but 1st Million’s accounts, some of which were controlled by Johnson, were frequently overdrawn and 1st Million had substantial cash flow problems, all of which Johnson and his co-conspirators concealed from investors.
As detailed in the trial evidence, Johnson and his co-defendants recruited victims to invest in 1st Million by holding promotional events at upscale hotels and event spaces, attending church-sponsored events intended to target investments from churchgoers, and representing themselves as religious men more interested in the financial freedom of others than personal financial gain. Johnson and his co-defendants presented themselves as “pastors,” and told prospective investors that 1st Million’s work was in furtherance of God’s mission as it helped churches and their members achieve personal wealth and financial freedom. Johnson and his co-defendants also hired “agents” of 1st Million to organize recruiting events to attract more investors, in exchange for a higher return on the agents’ investments.
By Spring 2019, 1st Million’s accounts were often overdrawn by hundreds of thousands of dollars, and some of the checks 1st Million sent to pay investors monthly returns were returned by the bank due to insufficient funds. Nevertheless, Johnson and Frimpong continued to solicit funds from existing investors, as well as new investors, and failed to tell any of these potential investors of 1st Million’s financial problems. Ultimately, the scheme collapsed in May 2019 and hundreds of 1st Million investors collectively lost millions of dollars.
Over the course of the conspiracy, Johnson and his co-defendants persuaded or attempted to persuade more than 1,200 victims from across the United States to provide them with wire transfers, checks, and cash totaling more than $28 million, from numerous victims. The evidence proved that although the victims were promised tremendous returns on their investments, Johnson and his co-conspirators did not invest any of the money, instead using it to fund their own lifestyles and to perpetuate the fraud scheme.
John Erasmus Frimpong, age 42, of Upper Marlboro, Maryland previously pleaded guilty to a wire fraud conspiracy, conspiracy to commit securities fraud, and to securities fraud. Judge Chuang has scheduled sentencing for Frimpong on February 10, 2023, at 9:00 a.m.
Jali fled the United States in May 2019, but has since been arrested in South Africa.
Separate civil actions filed against Johnson and his co-defendants by the Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission remain pending.
United States Attorney Erek L. Barron commended the FBI, the U.S. Secret Service, and the U.S. Postal Inspection Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Caitlin R. Cottingham and Jennifer L. Wine, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Maple Heights Man Convicted of Possessing a Firearm as a FelonRead the Press Release
CLEVELAND – On Thursday, Jan. 5, 2023, a federal jury convicted Adolphus Philpot, 36, of Maple Heights, Ohio, of being a felon in possession of a firearm. Philpot was convicted following a two-day trial before U.S. District Judge Pamela A. Barker in Cleveland.
According to court documents and evidence presented at trial, on March 26, 2021, Philpot was arrested on an outstanding warrant for felonious assault, which stemmed from a January 2021 shooting. Following his arrest, law enforcement authorities began an investigation into information they had received regarding Philpot’s suspected possession of firearms.
Authorities later determined that Philpot had concealed two firearms belonging to him in a residence and had contacted associates to arrange for the firearms to be hidden from law enforcement. Philpot is prohibited from possessing a firearm due to previous convictions of domestic violence, aggravated assault, and drug trafficking in the Cuyahoga County Common Pleas Court.
This investigation was conducted by the Cleveland Division of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). This case is being prosecuted by Assistant United States Attorney Kelly L. Galvin.
Luzerne County Man Pleads Guilty to Methamphetamine and Fentanyl TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that William Heck, age 41, of Hazleton, Pennsylvania, pleaded guilty on January 5, 2023, before U.S. District Court Judge Malachy E. Mannion, to a charge of possession with intent to distribute more than fifty grams of methamphetamine and additional amounts of fentanyl.
According to United States Attorney Gerard M. Karam, Heck admitted to possessing more than fifty grams of methamphetamine and additional amounts of fentanyl for distribution in the Hazleton area of Luzerne County in 2020. The charges stem from an incident on October 2, 2020, in which members of the Pennsylvania State Police served a search warrant at a residence in Hazleton, where Heck was living, and seized 226 grams of methamphetamine, 2,464 packets of fentanyl, $4,452 in U.S. currency, and other items of drug paraphernalia.
The charges resulted from an investigation conducted by the Pennsylvania State Police and the FBI Safe Streets Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. 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.
Under federal law, Heck faces a mandatory minimum sentence of five years in prison for the drug trafficking charge, up to a maximum sentence of forty years in prison, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Lawton Man Pleads Guilty to Child Sex Crimes, Witness TamperingRead the Press Release
A Lawton man was convicted in federal court for attempting to entice an undercover police officer whom he believed was a minor and for enticing a 12-year-old child to send sexually explicit pictures of herself, announced U.S. Attorney Clint Johnson.
Justin Eli Muncy, 46, of Lawton, pleaded guilty to attempted coercion and enticement of a minor; coercion and enticement of a minor; production of child pornography; and two counts of tampering with a witness by corrupt persuasion. Muncy was a convicted sex offender when he committed the crimes.
The stipulations in the plea agreement call for Muncy to serve 35 years in prison. A federal judge will determine whether to approve the plea agreement at later sentencing hearing.
According to the agreement, Muncy admitted that from Jan. 27, 2022, to April 14, 2022, he attempted to entice an individual he believed to be a 14-year-old minor to engage in sexual activity. Instead, he was communicating with an undercover officer.
Additionally, Muncy admitted that he coerced and enticed a 12-year-old child to take sexually explicit pictures of herself and send them to him via social media from Oct. 10, 2021, to April 14, 2022. The images are considered child pornography.
Finally, starting on April 14, 2022, Muncy made multiple attempts to obstruct the investigation and criminal proceedings related to his illicit conduct. For example, when he learned of a pending state arrest warrant, he hid his cell phone in the crawlspace of his home so investigators could not locate it. After his arrest, he wrote multiple handwritten letters from Tulsa County Jail requesting that a witness wipe his cellphone data or plant his phone at another individual’s home to falsely implicate that individual. Muncy also mailed several letters directing the witness to lie during court proceedings regarding his case.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tulsa County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney Leah Paisner is prosecuting the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Justice Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Kenosha Man Sentenced for Injuring Police Officer During August 2020 Kenosha RiotsRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on January 5, 2023, Chief U.S. District Judge Pamela Pepper sentenced Ashton Howard (age: 29) to 60 months in federal prison for obstructing a law enforcement officer while that officer was engaged in his official duties during a civil disorder, in violation of Title 18, United States Code, Section 231(a)(3). Howard, who entered a guilty plea to the offense last year, also will spend three years on supervised release following his prison term and will be required to pay over $29,000 in restitution related to medical expenses resulting from his offense.
According to court filings, following the shooting of Jacob Blake on August 23, 2020, Howard was part of a crowd that gathered near the location of the shooting. Some members of the crowd became violent, and a police vehicle was damaged. As Kenosha Police Officers attempted to secure and move the damaged vehicle, Howard threw a brick at one of the officers. The brick hit the officer in the head, knocking him unconscious. After the brick struck the officer, video showed the defendant nearby yelling “I dropped his b*tch ass! I dropped his b*tch ass!” The officer subsequently was transported to the hospital.
Court filings also indicate that Howard’s phone contained videos showing the victim being hit with the brick and several still images from the video showing the victim on the ground with emojis indicating “quiet” and “mouth shut.” After the assault, the defendant bragged to multiple individuals that he was the person who hit the officer on August 23.
“Every day, law enforcement professionals – like the police captain whom Mr. Howard hit in the head with a brick – make sacrifices and put their own lives and well-being on the line to protect all of us,” stated U.S. Attorney Haanstad. “Unlike individuals who sought to peacefully voice concern over social and racial justice issues in Kenosha and elsewhere, Mr. Howard chose to engage in violence – intentionally injuring someone who was seeking to prevent further violence in his community. I commend the resilience of this officer in quickly returning to duty despite his injuries and for his continued service to all who live and work in Kenosha.”
"Violence directed at the men and women of law enforcement who are sworn to protect the people of Wisconsin is completely unacceptable," said Special Agent in Charge Michael Hensle. "The FBI will continue to use all available resources and will bring those to justice who assault law enforcement officers."
“Today’s sentencing of the defendant is reassuring that violence, especially when directed towards law enforcement, is never acceptable in our society,” said Kenosha Police Chief Patrick Patton. “The Kenosha Police Department is extremely appreciative of the work conducted by the Federal Bureau of Investigation and the U.S. Attorney’s office regarding this case.”
The Federal Bureau of Investigation and the Kenosha Police Department investigated the case. The case was prosecuted by Assistant U.S. Attorneys Benjamin Proctor and John Scully.
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Johnstown Man Sentenced to 30 Months in Prison for Conspiring to Distribute and Possess FentanylRead the Press Release
JOHNSTOWN, Pa. – A former resident of Johnstown, PA, has been sentenced in federal court to a total of 30 months in prison followed by four years of supervised release on his conviction of conspiracy to distribute and possess with intent to distribute fentanyl, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Anthony Andrews, age 41, on January 5, 2023.
According to information presented to the court, from on or about April 2019, to on or about July 2021, Andrews did conspire to distribute and possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of fentanyl.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Ms. Chung commended the Federal Bureau of Investigation, Laurel Highlands Resident Agency and Homeland Security Investigations for the investigation that led to the successful prosecution of Andrews. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Pennsylvania Office of the Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Jamestown Man Faces Mandatory 10 Years in Prison After Pleading Guilty to Drug and Gun ChargesRead 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 Douglas Beardsley, 38, of Jamestown, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine and being a felon in possession of firearms. The charges carry a mandatory minimum penalty of 10 years in prison and a maximum of life.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that between September 2018 and January 2019, Beardsley bought, sold, and distributed heroin and methamphetamine for profit in the Jamestown area, utilizing several co-conspirators, associates, and runners as well as Facebook and various electronic devices to operate his drug trafficking activities. Beardsley also distributed large amounts of methamphetamine to numerous other individuals in the Jamestown area. During the conspiracy, Beardsley utilized residences on Linden and Forest Avenue in Jamestown for his drug trafficking. In January 2019, investigators executed a search warrant at the Forest Avenue residence, recovering two firearms, ammunition, $296.00 in cash, quantities of crystal methamphetamine, a digital scale, and other drug paraphernalia. Throughout the conspiracy, Beardsley obtained approximately $112,000 in monetary proceeds from drug trafficking.
In March 2005, March 2009, and February 2013, Beardsley was convicted on various charges in Chautauqua County Court, including drug possession, attempted burglary, and DWI, and is legally prohibited from possessing a firearm.
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 Jamestown Police Department and the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone.
Sentencing is scheduled for May 30, 2023, before Judge Arcara.
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Italian Citizen Pleads Guilty to Multi-Year Manuscript Theft and Impersonation SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that FILIPPO BERNARDINI pled guilty to one count of wire fraud in connection with a multi-year scheme to impersonate individuals involved in the publishing industry in order to fraudulently obtain more than one thousand prepublication manuscripts of novels and other forthcoming books. The defendant pled guilty before U.S. Magistrate Judge Sarah Netburn. The defendant is scheduled to be sentenced on April 5, 2023, before U.S. District Judge Colleen McMahon.
U.S. Attorney Damian Williams said: “Filippo Bernardini used his insider knowledge of the publishing industry to create a scheme that stole precious works from authors and menaced the publishing industry. Through impersonation and phishing schemes, Bernardini was able to obtain more than a thousand manuscripts fraudulently. I commend the career prosecutors of this Office as well as our law enforcement partners for writing the final chapter to Bernardini’s manuscript theft scheme.”
According to statements and filings in federal court:
Beginning in at least August 2016 and continuing through his January 2022 arrest, BERNARDINI, who was based in London and worked in the publishing industry, impersonated agents, editors, and other individuals involved in publishing to fraudulently obtain prepublication manuscripts. In carrying out this scheme, BERNARDINI created fake email accounts that were designed to impersonate real people employed in the publishing industry, including literary talent agencies, publishing houses, literary scouts, and others. BERNARDINI created these accounts by registering more than 160 internet domains that were crafted to be confusingly similar to the real entities that they were impersonating, including only minor typographical errors that would be difficult for the average recipient to identify during a cursory review. Over the course of this scheme, BERNARDINI impersonated hundreds of distinct people and engaged in hundreds of unique efforts to fraudulently obtain electronic copies of manuscripts that he was not entitled to. BERNARDINI obtained more than a thousand manuscripts through fraud.
In addition, BERNARDINI engaged in a phishing scheme to surreptitiously gain access to a database maintained by a New York City-based literary scouting company (“Scouting Company-1”). BERNARDINI created a webpage that impersonated Scouting Company-1’s website. Then, in or about July 2020, BERNARDINI impersonated a Scouting Company-1 employee and emailed two individuals, directing them to BERNARDINI’s look-alike webpage and prompting the users to provide their usernames and passwords. BERNARDINI’s webpage was programmed to automatically forward the input usernames and passwords to an email account controlled by BERNARDINI. BERNARDINI obtained the login information of approximately 20 users.
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FILIPPO BERNARDINI, 30, of London, United Kingdom, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. As part of his guilty plea, BERNARDINI agreed to pay restitution of $88,000.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Daniel G. Nessim is in charge of the prosecution.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Jan. 5 was:
Christopher Glenn Lakey, 35, of Kalispell and Columbia Falls, on charges of prohibited person in possession of firearm, armed career criminal. If convicted of the most serious crime, Lakey faces a maximum of 15 years in prison, a $250,000 fine and five years of supervised release. Lakey was detained pending further proceedings. The FBI, FBI Lab, Flathead County Sheriff’s Office, Whitefish Police Department, Montana Probation and Parole and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-43.
Appearing on Jan. 4 was:
Jared Glenn Barth, 33, of Missoula, on charges of depredation of government property. If convicted of the most serious crime, Barth faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Barth was released pending further proceedings. The Department of Homeland Security Federal Protective Services and U.S. Marshals Service Court Security staff investigated the case. PACER case reference. 22-61.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Jan. 5 was:
Nicole Marie Schwalbach, 40, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Schwalbach faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Schwalbach was detained pending further proceedings. The Drug Enforcement Administration, Billings Police Department and Yellowstone County Sheriff’s Office investigated the case. PACER case reference. 22-150.
Cody Lawrence Big Hair, 31, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Big Hair faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Big Hair was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
PACER case reference. 22-119.
Crystal Angela Nicole Gutierrez, 33, of Aurora, Colorado, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious charge, Gutierrez faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Gutierrez was released pending further proceedings. The Montana Division of Criminal Investigation, Montana Highway Patrol, Bureau of Alcohol, Tobacco, Firearms and Explosives and Laurel Police Department investigated the case. PACER case reference. 22-144.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Holland Man Pleads Guilty to Cocaine TraffickingRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced that Jason Duenas, 27, of Holland, pleaded guilty to possession of more than 5 kilograms of cocaine with intent to distribute. At sentencing, Duenas will face a mandatory minimum sentence of at least 10 years in prison. The date of sentencing has not yet been scheduled.
“Drug dealing at kilogram scale doesn’t just ruin lives, it ruins communities,” said U.S. Attorney Mark Totten, for the Western District of Michigan. “Apart from the harm caused to drug users and their loved ones, trafficking at this level fuels deadly gun violence that can subject entire neighborhoods to a climate of fear and reprisal. My office remains committed to holding dealers fully accountable for their willingness to trample communities in pursuit of profit.”
According to facts contained within Duenas’s written plea agreement, Duenas kept approximately 19 kilograms of cocaine inside a home during the summer of 2022. Most of the cocaine was packaged into “bricks” that were stored in and around a laundry room to which Duenas had access. Duenas planned to sell the drugs to others for personal profit.
Duenas’s arrest was the culmination of an interagency investigation led by the West Michigan Enforcement Team, the Holland Police Department, and the Drug Enforcement Administration. Interagency investigations are a crucial part of how the Department of Justice combats illegal drug trafficking. Often, agencies partner through the Organized Crime Drug Enforcement Task Force (OCDETF) program. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Heroin Dealer Sentenced for Selling Fatal Dose of FentanylRead the Press Release
Harrisonburg, Va.– A West Virginia man, who sold a fatal dose of fentanyl-laced pain pills, was sentenced this week to 11 years in federal prison.
Gregory Allen Sirk, 48, of Martinsburg, West Virginia, pled guilty in May 2022 to knowingly distributing acetyl fentanyl and fentanyl.
“Throughout the Western District of Virginia, we have seen record numbers of drug poisoning deaths - many as a result of adulterated pills,” United States Attorney Christopher R. Kavanaugh said today. “We will continue to work with our partners both in the law enforcement community and the recovery community to prosecute the most serious offenders and provide treatment for those fighting substance abuse disorder.”
According to court documents, Sirk was a well-known drug dealer who routinely obtained heroin and pain pills from Baltimore for resale in the Winchester, Virginia area. In February 2019, Sirk sold two foil packets of heroin to a family member and her boyfriend. Both individuals ingested the drugs, watched a movie, and went to bed.
However, the following morning, the victim was not breathing. Law enforcement and emergency medical services were called to the home but he was pronounced dead and it was later determined he died from accidental acute combined fentanyl and acetyl fentanyl poisoning.
The Drug Enforcement Administration and the Northwest Virginia Regional Drug and Gang Task Force, which is comprised of the Winchester Police Department, the Frederick County Sheriff’s Office, the Shenandoah County Sheriff’s Office, the Clarke County Sheriff’s Office, the Warren County Sheriff’s Office, the Front Royal Police Department, the Page County Sheriff’s Office, the Strasburg Police Department, and the Virginia State Police, investigated the case.
Assistant U.S. Attorney Lena L. Busscher prosecuted the case.
Greer Man Sentenced in Multimillion Dollar South Carolina Medicaid SchemeRead the Press Release
Columbia, South Carolina – Jonathan W. Sumter, 51, of Greer, was sentenced to over 7 years in federal prison after pleading guilty in a case of theft of government funds for his scheme to defraud South Carolina Medicaid of over $1 million.
According to evidence presented to the Court, Sumter founded PHC Supportive Services as a company supposedly providing rehabilitative behavioral health services to disabled, low-income individuals in South Carolina through the Medicaid program. Instead, between 2015 and 2019, the company billed South Carolina Medicaid over one million dollars for services never performed.
The Government provided evidence that PHC never had any actual clients or service providers. Instead, Sumter repeatedly billed Medicaid by using the stolen National Provider Identifier (NPI) numbers of nine health care professionals to create fraudulent invoices to Medicaid. Sumter then used the stolen identities of 196 Medicaid members with severe mental and emotional health disorders without their knowledge or consent. Caregivers and clients contacted by investigators indicated that they had never received any services from Sumter or PHC. Additionally, the service providers Sumter used on his invoices indicated that they did not work for PHC and had not provided medical services for the company.
“Using stolen identifies of the most defenseless people to steal money from the hard-working people of South Carolina is unacceptable. We will continue to aggressively prosecute offenders who steal from programs designed to provide sorely needed care for our most vulnerable citizens,” said U.S. Attorney Adair Boroughs.
“This sentence warns bad actors in the behavioral healthcare field that South Carolina has citizens in need of these services; any fraudulent conduct that abuses these programs or prevents our citizens from receiving needed services will not be tolerated. Our office will continue to partner with the United States Attorney’s Office for the arrest and prosecution of those committing fraud against the Medicaid program. We thank our law enforcement partners at the United States Department of Health and Human Services’ Office of the Inspector General for their partnership during this investigation,” Attorney General Alan Wilson said.
United States District Judge Donald C. Coggins sentenced Sumter to 92 months in prison. Sumter was also ordered to repay $1,055,373.66 in restitution to South Carolina Medicaid.
The case was investigated by the United States Department of Health and Human Services and the South Carolina Attorney General’s Office. It was prosecuted by Assistant United States Attorney T. DeWayne Pearson.
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Germantown Man Sentenced to 10 Years in Federal Prison for the Illegal Possession and Distribution of Firearms and DrugsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Dwight Luis Clarke, age 32, of Germantown, Maryland, to 10 years in federal prison, followed by four years of supervised release, for two counts of being a felon in possession of a firearm and four counts of possession with intent to distribute controlled substances. Clarke admitted that he sold crack cocaine and seven firearms, including five privately manufactured firearms, known as “ghost guns” to an undercover law enforcement officer.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Marcus Jones of the Montgomery County Police Department; and Chief Victor Brito of the Rockville City Police Department.
According to his plea agreement, during late 2021 and early 2022, Clarke was identified as a suspected trafficker of narcotics and firearms. In February 2022, an ATF Special Agent, acting in an undercover capacity (the UC) contacted Clarke, who agreed to sell the UC crack cocaine and firearms. During three meetings that month, Clarke sold the UC: two privately made firearms (PMFs) that Clarke referred to as “ghost guns,” specifically, Polymer80 Inc. 9mm semi-automatic pistols, bearing no apparent serial numbers; a.22-caliber semi-automatic AR-style pistol; a 33 round 9mm extended magazine, which contained one 9mm cartridge; a .22-caliber extended AR-style magazine loaded with three .22-caliber cartridges, a .22LR caliber mini mag ammunition box containing 95 cartridges; a .380 caliber semi-automatic pistol; and 44.48 grams of crack cocaine.
During one of the meetings, Clarke told the UC that he was unable to purchase a gun at a gun store for the same reason that the UC stated that the UC could not go to a gun store, that is, due to a prior felony conviction.
As detailed in the guilty plea, at the end of February, Clarke and the UC communicated again regarding the purchase of additional narcotics and firearms. On February 28, 2022, Clarke and the UC met at the designated location and Clarke sold the UC three fully assembled ghost guns for a total of $3,000, specifically, three Polymer80 Inc., 9mm semi-automatic pistols, each bearing no apparent serial number.
Search warrants were executed on March 7, 2022, at Clarke’s residence and vehicle. Law enforcement seized firearms and ammunition from Clarke’s residence. Clarke was not present at the time, but was arrested a short time later, after asking to meet with the UC to complete a previously agreed upon sale of firearms and crack cocaine. Law enforcement recovered a Polymer80 Inc. 9mm semi-automatic pistol that Clarke had attempted to throw away before his arrest, and seized approximately 54.78 grams of crack cocaine from Clarke.
Clarke admitted that he knew he had a previous felony conviction and was prohibited from possessing firearms or ammunition. Further, Clarke admitted that he possessed firearms in connection with his drug trafficking business.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the ATF, the Montgomery County Police Department, and the Rockville City Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Timothy F. Hagan and Patrick D. Kibbe, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Fremont Man Sentenced in Conspiracy to Produce and Transfer Fraudulent DocumentsRead the Press Release
United States Attorney Steven Russell announced that Martin Alonzo Castro, 42, of Fremont, Nebraska, was sentenced today in federal court in Omaha for Conspiracy to Produce and Transfer Fraudulent Documents. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Castro to time served. Castro has been in custody since his arrest on April 14, 2021. There is no parole in the federal system. He was also ordered to serve a 3-year term of supervised release. Castro will be deported by U.S. immigration authorities.
In the spring of 2020, law enforcement officers investigating an identity theft matter involving the use of a deceased person’s Social Security number learned that fraudulent identity documents could be obtained from co-defendant Tomas De La Cruz-Perez.
Over the course of the year, investigators made several purchases of fraudulent documents (Social Security cards, state Driver’s Licenses, and Lawful Permanent Resident cards (I-551s) from De La Cruz-Perez, who was receiving dozens of packages originating in California through the U.S. Mail. Investigators determined that co-defendant Luis Alberto Castro-Santos, of Pomona, California, was the source of the fraudulent documents mailed to De La Cruz-Perez for sale to customers in Nebraska. Investigators determined that Castro and co-defendant Estuardo Ruiz-Orozco, of Wakefield, Nebraska, were also selling fraudulent documents obtained from Castro-Santos in California. Ruiz-Orozco was sentenced to imprisonment for a term of 24 months on May 12, 2022. Castro-Santos and De La Cruz-Perez were sentenced to imprisonment for terms of 24 months and 15 months, respectively, on October 21, 2022.
Investigators planned and executed coordinated arrests of the defendants on April 14, 2021. Investigators obtained warrants to search the Nebraska defendants’ residences and cars, yielding hundreds of counterfeit federal and state identity cards.
This case was investigated by Homeland Security Investigations, the United States Postal Inspection Service, the Social Security Administration’s Office of Inspector General, and the Nebraska Department of Motor Vehicles.
Four More Straw Purchasers Sentenced for Roles in Beckley-to-Philadelphia Firearms Trafficking ConspiracyRead the Press Release
BECKLEY, W.Va. – Four more defendants were sentenced today for making false statements in acquisition of firearms. Each admitted to a straw purchasing role in a conspiracy to traffic over 140 firearms from the Beckley area to Philadelphia, Pennsylvania.
Jaleel Delaney, 27, of Beckley, Arileah Lacy, also known as “Leah,” 24, of Beckley, Dejaha Morris, 23, of Beckley, and Michelle Grim, 51, of Eccles, were each sentenced to five years of federal probation. Delaney was ordered to serve the first four months on home detention, and Grim was ordered to serve the first eight months on home detention.
According to court documents and statements made in court, each admitted to buying firearms for Bisheem Jones, also known as “Bosh,” who told them which firearms to buy at Beckley businesses and provided the money for the purchases. Each time they bought a firearm for Jones, they falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Record Form 4473 that they were the buyers of the firearms when they knew they were purchasing them for Jones and his trafficking conspiracy.
Lacy bought a Ruger, Model Ruger-57, 5.7x28 caliber pistol, for Jones on April 14, 2021. Lacy further admitted she purchased at least six firearms as part of the overall scheme. Delaney admitted to illegally straw purchasing a Glock, Model 19, 9mm pistol on May 4, 2021, and further admitted to carrying out other straw purchases for Jones and others. Morris admitted that she purchased a Taurus G3C, 9mm pistol for Jones on October 17, 2020, and further admitted to carrying out at least eight straw purchases for Jones and others. Grim admitted she bought a Taurus, G3C, 9mm pistol for Jones on November 5, 2020, and further admitted to carrying out at least 17 straw purchases.
Lacy, Delany, Morris and Grim are among 18 defendants who pleaded guilty in connection with the firearms trafficking. Of the over 140 firearms trafficked in the conspiracy, approximately 45 have been recovered at crime scenes primarily in Philadelphia and have been connected to two homicides, crimes of domestic violence, and other violent offenses.
After five days of trial, a federal jury found Jones guilty on December 16, 2022, of conspiracy to travel interstate with the intent to deal in firearms without a license, conspiracy to commit money laundering, and interstate travel with the intent to deal in firearms without a license. Jones is scheduled to be sentenced on April 7, 2023, and faces a maximum penalty of 35 years in prison.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Frank W. Volk imposed the sentences. Assistant United States Attorney Negar M. Kordestani prosecuted the cases.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 5:22-cr-46, 5:22-cr-80, 5:22-cr-82, and 5:22-cr-83.
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Former West Virginia Parole Officer Pleads Guilty to Federal Civil Rights Offense for Sexually Assaulting Female ParoleeRead the Press Release
Former West Virginia Division of Corrections and Rehabilitation Parole Officer Anthony Demetro, 44, pleaded guilty today in federal court in the Southern District of West Virginia to violating the civil rights of a female parolee by sexually assaulting her.
During the plea hearing, Demetro admitted that on or about April 16, 2021, he used his position, authority and status as a state parole officer to force a female parolee to perform oral sex on him against her will. At the time, the parolee was participating in residential drug and alcohol treatment as a condition of her parole. Demetro admitted that he knew that the parolee did not want to have sex with him but that he coerced her into doing so anyway, for his own sexual gratification.
“This defendant’s job was to help parolees reenter society and reintegrate into their communities, but instead he abused his power and authority to sexually assault a female parolee who was seeking treatment and care in a state program,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will continue to hold accountable those officers who breach the public trust by violating the rights of people in their custody and control at any stage of the criminal justice process.”
“The defendant abused his position of power and trust by sexually assaulting a vulnerable woman who was trying to re-enter society,” said U.S. Attorney Will Thompson for the Southern District of West Virginia. “This immoral and illegal conduct will not be tolerated in this District. I commend the female victim who was brave enough to come forward, even though she knew she was putting her own personal freedom at risk. I thank the FBI, the Justice Department’s Civil Rights Division and the Assistant U.S. Attorneys who investigated and prosecuted this case.”
“Protecting the civil rights of all Americans is a top priority for the FBI,” said Special Agent in Charge Mike Nordwall of the FBI Pittsburgh Field Office. “This plea should send a message that those who violate their oath of office and abuse their authority will be held accountable. The FBI will relentlessly pursue color of law violations and hold criminals like Mr. DeMetro accountable for their actions.”
With his guilty plea, the defendant faces a 15-year sentence, with a maximum of five years of supervised release, and registration as a sex offender under the Federal Sex Offender Registration and Notification Act.
A sentencing date has been set for April 20.
The FBI Pittsburgh Field Office investigated the case.
Trial Attorneys Kathryn E. Gilbert and Daniel E. Grunert of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorneys Monica Coleman and Nowles Heinrich for the Southern District of West Virginia prosecuted the case.
Former Senior Athletic Department Administrator at the University of Southern California Sentenced to Six Months in Prison in College Admissions CaseRead the Press Release
BOSTON – The former Senior Associate Athletic Director at the University of Southern California (USC) was sentenced today for using her position to facilitate students’ admission as purported athletic recruits in exchange for money.
Donna Heinel, 61, of Long Beach, Calif., was sentenced by U.S. District Court Judge Indira Talwani to six months in prison and two years of supervised release. Heinel was also ordered to forfeit $160,000. In November 2021, Heinel pleaded guilty to honest services wire fraud.
As the Senior Associate Athletic Director and Senior Women’s Administrator, Heinel was one of the highest-ranking members of the USC Athletics Department and served as the liaison between athletic coaches and the USC Admissions Department. Beginning in early 2014, Heinel solicited and received bribe payments from William “Rick” Singer and his clients to facilitate their children’s admission to USC as athletic recruits. For approximately four years, Heinel misled USC’s athletic admissions subcommittee by presenting the students as recruits to USC’s athletic teams when, in reality, the coaches had not recruited them and some did not even play the sport they were purportedly being recruited to play. In some cases, Heinel falsified students’ athletic credentials when presenting them to the athletic admissions subcommittee. In exchange, Heinel received more than $1 million in payments from Singer and his clients to university accounts she oversaw. In addition, Heinel received $160,000 in payments for her own personal benefit. In total, the subcommittee on athletic admissions approved the admission of approximately two dozen applicants Heinel presented as purported recruits.
Singer previously pleaded guilty and, on Jan. 4, 2023, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 42 months in prison.
Case information, including the status of each defendant, is available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Terry Harris, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Eastern Regional Office made the announcement today. Assistant U.S. Attorneys Stephen E. Frank, Leslie A. Wright, Kristen A. Kearney, Ian J. Stearns and Kriss Basil of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Former Registered Broker Sentenced to 5 Years' Imprisonment for Conspiring with Long Island Boiler Room to Pump and Dump Stock on Unsuspecting Elderly InvestorsRead the Press Release
Earlier today, in federal court in Central Islip, Lawrence Isen, a former registered broker who participated in a criminal conspiracy to promote and manipulate the price of shares in publicly traded companies, was sentenced by United States District Judge Joanna Seybert to 5 years’ imprisonment for conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, money laundering conspiracy, and money laundering. The Court also ordered Isen to pay over $8 million in restitution and over $700,000 in forfeiture. Isen and co-defendant Jeffrey Chartier were convicted of the charges by a federal jury in March 2020 following a six-week trial. Chartier was sentenced in December 2022.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, announced the sentence.
“Lawrence Isen and his co-conspirators used their skills to steal precious savings from elderly, hard-working people all over the country,” stated United States Attorney Peace. “Today’s sentence should serve as yet another reminder to fraudsters who prey on the vulnerable that this Office will hold them accountable for the damage they cause to the security and well-being of so many.”
Mr. Peace also thanked the Federal Bureau of Investigation, New York Field Office, for its hard work and dedication in leading the investigation, and expressed his appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG), for their cooperation and assistance.
From 2014 to 2016, Isen, Chartier and others working with a Melville, New York-based boiler room artificially inflated the price and trading volume of stock in struggling companies with poor prospects, and off-loaded it onto unsuspecting victims who were often elderly and vulnerable.
The evidence at trial showed that Isen colluded with crooked investors, both in the United States and overseas, to dump large volumes of shares in Hydrocarb Energy Corp., trading under the ticker symbol HECC, and Intelligent Content Enterprises, Inc., trading under the ticker symbol ICEIF, on the victims. Isen, who was barred from acting as a broker by FINRA in 1996 and convicted of wire fraud conspiracy and obstruction of justice in the Southern District of New York in 2000, orchestrated the manipulation of stock belonging to, among others, major HECC shareholder Michael Watts and major ICEIF shareholders located in India. He did so by, among other things, connecting the investors with the boiler room; negotiating the terms of the arrangements between them; and managing the relationships between them. Isen assisted the boiler room in its illegal cold call campaigns that used lies and high-pressure sales tactics to lure victims, by, among other things, transferring money and stock required by the boiler room for the campaigns; working with the boiler room to fill the duped victims’ orders with Isen’s crooked investors’ stock; and creating fraudulent stock purchase agreements, consulting agreements and invoices to cover up the illegal conduct.
The government has calculated that the conspiracy’s market manipulation fraudulently inflated the stock price of HECC, ICIEF and three other companies by more than $147 million. All 16 defendants charged in this case have been convicted.
Assistant United States Attorneys Whitman G.S. Knapp and Kaitlin T. Farrell are in charge of the prosecution with assistance from Paralegal Specialist Peyton Jefferson. Assistant United States Attorney Tanisha Payne of the Office’s Asset Recovery Section is handling forfeiture matters in the case.
The Defendant:
LAWRENCE ISEN
Age: 69
San Diego, CaliforniaDefendant Previously Sentenced:
JEFFREY CHARTIER
Age: 59
Sunny Isles, FloridaDocket No. 17-CR-372 (JS)
Former Claims Adjuster Pleads Guilty to Assisting Individuals Who Committed Armed Robberies, Shootings, While Dressed as Police OfficersRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Jasmine Weber (28, Tampa) pleaded guilty today to conspiracy to commit Hobbs Act Robbery. Weber faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between December 2020 and April 2021,
a group of individuals engaged in a conspiracy to rob individuals they suspected of distributing narcotics. During that time, the conspirators engaged in numerous armed robberies in Hillsborough, Pasco, Polk, and Lee counties, three of which resulted in shootings. While committing these offenses, the conspirators impersonated law enforcement officers by wearing black clothing, gloves, and masks—often with law enforcement insignia or vests with a “Sheriff” patch affixed. During certain robberies, the conspirators drove a black Dodge Durango and a white Chevrolet Malibu equipped with blue lights.
Weber was aware of this conspiracy and voluntarily participated in helping to accomplish its goal. Specifically, Weber purchased equipment, including Sheriff’s vests, patches, lights, and other items that she knew would be used by the conspirators to commit the armed robberies.
Members of this conspiracy also provided Weber with identifying information on their potential victims. Weber worked as a claims adjuster for an insurance company and had access to a Lexis Nexis account. Utilizing that database, and knowing the co-conspirators’ intentions, Weber researched the intended victims, and located their home addresses. Members of this conspiracy then committed robberies at those locations.
The individuals who allegedly carried out these robberies, Reginald Roberts, a/k/a/ “Rudy” (22, Lakeland), Nathaniel Keith Carr, a/k/a “Nate” (28, Riverdale), Daniel Jackson, a/k/a “D-Jack” (29, Winter Haven), Chrishawn De’Earl Butler, a/k/a “Baby” (22, Brooksville), and Darius Hudson, a/k/a “Toot” (43, Arcadia) were indicted on April 26, 2022, and are currently pending trial.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Hillsborough County Sheriff’s Office, the Bartow Police Department, the Lakeland Police Department, the Dade City Police Department, the Cape Coral Police Department, the Pasco Sheriff’s Office, the Hernando County Sheriff’s Office, the Arcadia Police Department, and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
Former Bank Manager in Orange County Pleads Guilty to Bank Fraud for Stealing $1.2 Million from Elderly Customers’ AccountRead the Press Release
SANTA ANA, California – A former Orange County-based bank manager pleaded guilty today to a federal criminal charge for stealing $1.2 million in savings from elderly customers by using one the victims’ identities to fraudulently open a bank account, then impersonating the victim to transfer the stolen money to different bank accounts.
Lana Pothos, 59, of Anaheim, pleaded guilty to one count of bank fraud, a crime that carries a statutory maximum sentence of 30 years in federal prison.
According to her plea agreement, during the summer of 2020, Pothos – who worked as a relationship manager at a Bank of America branch in Yorba Linda – and an accomplice worked together to steal the savings of approximately $1.2 million from two married senior citizen clients who shared an account with the bank.
In June 2020, Pothos used one victim’s personal identifiable information to create an online banking profile for the victim without the victim’s knowledge or permission. Using Bank of America’s internal computer system, Pothos then changed the victims’ mailing address to a hair salon in Yorba Linda that Pothos frequented and also changed their telephone number to a phone number she used. Using that phone number, Pothos called the bank several times while impersonating one of the victims. In July 2020, Pothos’ co-schemer opened a new bank account and email address in one victim’s name.
On seven occasions from July 2020 to October 2020, approximately $1,212,144 was transferred out of the victims’ bank account into the fraudulently opened account Pothos and her accomplice controlled, then transferred again to an account used by the co-schemer at a different bank. The stolen money was then used for personal expenses, including $47,000 that was transferred to a Pothos-controlled entity.
United States District Judge Cormac J. Carney scheduled a July 10 sentencing hearing in this case.
Theron Fox, 49, of Tustin, Pothos’ alleged co-schemer, is charged with five counts of bank fraud and two counts of aggravated identity theft. Fox is scheduled to go to trial on February 7.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI investigated this matter.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting this case.
Five Narcotics Traffickers Extradited from Curaçao to Face International Cocaine Distribution and Importation ChargesRead the Press Release
Later today, Jo-Andy Christepher Marie Balentina, Joell Charles Marie Balentina, Sheriann Ann Marie Bryan, Leon George Hall, and Edlyson Reuel Elias Sophia will be arraigned at the federal courthouse in Brooklyn on international cocaine distribution conspiracy and related cocaine importation charges. Jo-Andy Balentina is also charged with money laundering conspiracy for his role in laundering the proceeds of cocaine sales generated by the trafficking.
The defendants were extradited from Curacao on January 5, 2023. The United States submitted requests for their provisional arrests based on the warrants issued in the Eastern District of New York. A sixth defendant, Israel Osial Barrett, also known as “English,” was arrested in the United Kingdom on a provisional arrest warrant and the government is currently seeking his extradition.
Breon Peace, United States Attorney for the Eastern District of New York, and Ivan J. Arvelo, Special Agent in-Charge, Homeland Security Investigations, New York (HSI), announced the extraditions and arraignments.
“The defendants operated an international drug trafficking enterprise that for years funneled over one hundred kilograms of cocaine into the United States onboard cruise ships and commercial airliners, using an extensive network of corrupt airport employees,” stated United States Attorney Peace. “This Office and our law enforcement partners will continue to identify, investigate and prosecute narcotrafficking organizations that not only flood our streets with dangerous drugs, but also corrupt and compromise airport security.”
Mr. Peace extended his appreciation to the United States Drug Enforcement Administration, the United States Marshals Service, the Department of Justice’s Office of International Affairs, and the United States Department of State for their assistance, as well as to law enforcement authorities in Curaçao including the Curaçao Openbaar Ministerie (Public Prosecutor’s Office) and Korps Politie Curaçao (Police Force) who provided significant cooperation.
“As alleged, these individuals have created and led an elaborate network of traffickers and collaborators who used their access to secure areas at airports and on cruise ships to move massive amounts of cocaine into the United States. Today’s arraignments move us one step closer to the dismantlement of this criminal organization responsible for flooding our streets with cocaine while lining their pockets with the proceeds,” stated HSI Special Agent-in-Charge Arvelo. “HSI, along with our partners, is committed to leveraging our international footprint and customs law authorities to disrupt the flow of dangerous drugs into our communities and dismantling the drug trafficking organizations who peddle in this poison.”
As set forth in the indictment, court filings and statements made in Court, the defendants are all leaders, members or associates of a Curaçao-based drug trafficking organization (the Curaçao DTO) responsible for importing large shipments of cocaine into the United States, and laundering illicit funds derived from their narcotrafficking activities and sales in the United States back into Curaçao. The defendants and the Curaçao DTO transported cocaine from Curaçao to the United States by various methods, including commercial airliners and cruise ships.
Since at least early 2017, Jo-Andy Balentina was the principal leader of the Curaçao DTO. Organization members including Bryan, Hall and Sophia, were responsible for recruiting, training and managing other individuals as couriers to transport and accompany cocaine shipments on the commercial aircraft and cruise ships. The Curaçao DTO also utilized corrupt airport employees at Curaçao/Hato International Airport in Curaçao, specifically Joell Balentina, and at John F. Kennedy International Airport in Queens to exploit their security clearances and to facilitate the loading and unloading of cocaine shipments and bulk cash on commercial aircraft and bypass airport security and customs. As a result of the investigation, law enforcement authorities identified or intercepted multiple large-scale shipments of cocaine coming into the United States.
Once the cocaine arrived in the United States, it was smuggled out of the airport or seaport and sold by or on behalf of the Curaçao DTO either directly, or through established distribution networks. In turn, the proceeds were laundered from the United States back to Jo-Andy Balentina and the Curaçao DTO. As a result of this investigation, federal authorities have dismantled the United States-based network of corrupt airport employees and thwarted the planned importation of an additional 300 kilograms of cocaine to be supplied by the Curaçao DTO.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to life in prison.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Jonathan P. Lax, Andrew D. Grubin and Robert M. Pollack are in charge of the prosecution. Assistant United States Attorney Brendan G. King of the Office’s Asset Recovery Section is handling forfeiture matters in the case. The Department of Justice’s Office of International Affairs provided substantial assistance in securing the arrests and extraditions of the defendants.
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 Defendants Being Arraigned Today:
JO-ANDY CHRISTEPHER MARIE BALENTINA (also known as “Enchi,” “Angie” and “Benzy”)
Age: 36
CuraçaoJOELL CHARLES MARIE BALENTINA
Age: 39
CuraçaoSHERIANN ANN MARIE BRYAN (also known as “Sheryl” and “Sharon”)
Age: 39
CuraçaoLEON GEORGE HALL (also known as “Bunny”)
Age: 53
CuraçaoEDLYSON REUEL ELIAS SOPHIA (also known as “Primu”)
Age: 36
CuraçaoThe Defendant Awaiting Extradition:
ISRAEL OSIAL BARRETT (also known as “English”)
Age: 51
Birmingham, United KingdomE.D.N.Y. Docket No. 21-CR-222 (ARR)
Fentanyl Distribution Nets West Texas Man 12 Years in Federal PrisonRead the Press Release
MIDLAND, Texas – An Odessa man was sentenced yesterday to 151 months in prison for distributing fentanyl.
In late 2021, agents with the Drug Enforcement Administration (DEA) received information that Jesus Arevalo, 44, received and distributed kilograms of cocaine and fentanyl in the Midland – Odessa region. The DEA and FBI consequently opened a joint investigation through which undercover agents made multiple purchases of blue M30 pills containing fentanyl from Arevalo.
While executing a search warrant of Arevalo’s residence in July 2022, investigators seized approximately 517 grams of M30 pills containing fentanyl, a loaded handgun and a large amount of U.S. currency. Further investigation revealed that Arevalo had received and distributed at least 2,000 M30 pills containing fentanyl each month in the six months leading up to the search, totaling at least 12,000 fentanyl-laced M30 pills.
Arevalo pleaded guilty on September 27, 2022 to one count of possession with intent to distribute 400 grams or more of a mixture and substance containing fentanyl. He has been in federal custody since his arrest on July 28, 2022.
“Fentanyl has continued to kill too many people for far too long,” said U.S. Attorney Jaime Esparza. “It is a priority for our office to bring fentanyl traffickers to justice, disrupt their operations, and save lives.”
“Fentanyl continues to flood the United States at an alarming rate and our West Texas communities are not immune from its devastation,” said Special Agent in Charge Jeffrey R. Downey of the FBI El Paso Field Office. “This case demonstrates our commitment to address the dangerous trafficking of fentanyl. We will continue to work with our partners at the DEA and state and local law enforcement partners to interdict the distribution of fentanyl wherever it may occur and bring to justice those who are fueling the epidemic.”
In 2022, the DEA seized more than 50.6 million fake pills often laced with fentanyl, more than double the amount of fentanyl pills seized in 2021.
“The dealers distributing illicit fentanyl do not care if they drive addiction or indiscriminately poison Americans,” said Special Agent in Charge Greg Millard of the DEA El Paso Field Office. “Their business model is expansion at all costs. But we know who they are, and we will relentlessly go after them.”
The FBI and DEA investigated the case.
Assistant U.S. Attorney Joe Mahoney prosecuted the case with Assistant U.S. Attorney Mark Tindall handling the forfeiture component.
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Fentanyl Dealer Going to Prison for 12 YearsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Marcus White, 40, of Rochester, NY, who was convicted of possession with intent to distribute fentanyl, was sentenced to serve 144 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Matthew McGrath, who handled the case, stated that in October 2021, the Monroe County Sheriff’s Office, Homeland Security Investigations, and the Greater Rochester Area Narcotics Enforcement Team (GRANET), began investigating the drug trafficking activities of White, after learning that he sold fentanyl to an individual who later overdosed and died. In November 2021, investigators executed a search warrant at White’s residence on Pollard Avenue in Rochester, seizing quantities of narcotics and drug trafficking paraphernalia.
The sentencing is the result of an investigation by the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, the Greater Rochester Area Narcotics Enforcement Team, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
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Ex-Correction Officer Charged with Accepting Bribes to Smuggle Contraband into Rikers Island JailRead the Press Release
An indictment was unsealed today in federal court in Brooklyn, New York, charging Karin Robinson, a former correction officer employed by the New York City Department of Correction (DOC), with conspiracy to violate the Travel Act and conspiracy to distribute controlled substances to an inmate incarcerated at the George R. Vierno Center at Rikers Island (GRVC) between February and June 2019. The initial appearance of the defendant is scheduled for this afternoon before United States Magistrate Judge James R. Cho.
Breon Peace, United States Attorney for the Eastern District of New York and Michael J. Driscoll, Assistant Director-In-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“The corruption of correction officers undermines the orderly running of the institution and endangers the safety of other incarcerated individuals and Department of Correction personnel,” stated United States Attorney Peace. “We will continue to prosecute those who enrich themselves instead of serving the public and work with our federal and local law enforcement partners to stop the flow of illegal narcotics and other contraband into correctional facilities.”
Mr. Peace thanked the New York City Department of Investigation for their outstanding investigative work on the case.
“As alleged in this indictment, Robinson broke her oath of duty as a correction officer when she agreed to accept bribes and smuggle contraband into the prison system. The FBI and our law enforcement partners will continue to pursue those who betray the public trust by abusing their authority and bring them to justice as swiftly as possible,” stated FBI Assistant Director-in-Charge Driscoll.
As set forth in the indictment and other court filings, the defendant was a New York City DOC employee in 2019. Between February and June of 2019, she received thousands of dollars in bribes from a GRVC inmate. In exchange for the bribe payments, the defendant agreed to bring marijuana and other contraband into the GRVC for sale and distribution to other inmates.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Robinson faces a maximum jail time of 10 years.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Laura Zuckerwise, Joy Lurinsky, and Andrew D. Reich are in charge of the prosecution with the assistance of Paralegal Specialist Rachel Friedman.
The Defendant:
KARIN ROBINSON
Age: 29
Queens, New YorkE.D.N.Y. Docket No. 22-CR-555 (AMD)
Erie Man Sentenced to 5 Years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A resident of Erie, PA, has been sentenced in federal court to a total of 60 months in prison followed by 4 years of supervised release on his conviction of conspiracy to distribute methamphetamine, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Keegan McChesney, age 24.
According to information presented to the court, from July 2019 to June 2020, McChesney did conspire to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Ms. Chung commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation that led to the successful prosecution of McChesney. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.