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20 December 2022
Springfield Woman Pleads Guilty to Reselling Stolen Goods and Money LaunderingRead the Press Release
BOSTON – A Springfield woman pleaded guilty in federal court in Springfield on Dec. 16, 2022 to reselling stolen goods on eBay and money laundering.
Mimi Mai, 49, pleaded guilty to one count of interstate transportation of stolen goods, four counts of money laundering, and two counts of engaging in monetary transactions in property derived from specified unlawful activity. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for April 7, 2023.
Mai owned and operated a pawn shop in Holyoke, Mass., called EZ Exchange. Mai purchased stolen goods from people she knew had stolen the items and resold them on eBay at a price well above what she had paid the sellers. The stolen goods included a variety of household goods, including power tools, electronic devices, sunglasses, and beauty and personal care products. Between 2018 and 2021, Mai earned more than $2.1 million from the sale of items she had listed for sale as “new” on eBay. Mai then used her eBay earnings to buy property in Florida.
The charges of interstate transportation of stolen goods and engaging in monetary transactions in property derived from specified unlawful activity provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of money laundering provides for a sentence of at least 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Joleen D. Simpson, Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston; and Holyoke Police Chief David Pratt made the announcement today. Assistance was provided by the Springfield Police Department, New England State Police Information Network and investigators from Home Depot, CVS, Target and Stop & Shop. The case is being prosecuted by Assistant U.S. Attorney Catherine Curley of Rollins’ Springfield Branch Office.
Sparks Man Sentenced to Prison for Unlawful Possession of FirearmsRead the Press Release
RENO – A Sparks resident was sentenced on Monday by Chief U.S. District Judge Miranda M. Du to 77 months in prison followed by three years of supervised release for unlawful possession of three firearms after prior felony convictions.
According to court documents, David Lee Wiley Jr., 41, pleaded guilty in August 2022 to felon in possession of firearms. He admitted that on February 4, 2022, he possessed three firearms, which included a rifle, a stolen Glock 30S .45 caliber pistol, and a 9mm IWI UZI pistol with a loaded, high-capacity magazine. Wiley is prohibited by law from possessing a firearm due to prior felony convictions in Washoe County, including convictions for Ex-Felon in Possession of a Firearm and Possession of a Controlled Substance for the Purpose of Sale.
U.S. Attorney Jason M. Frierson for the District of Nevada and Acting Special Agent in Charge Joshua Jackson for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
This case was investigated by the Sparks Police Department and ATF. Assistant U.S. Attorney Andrew Keenan prosecuted the case.
The case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. For more information about PSN, visit www.justice.gov/usao-nv.
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South Bend Man Sentenced to 120 Months in PrisonRead the Press Release
SOUTH BEND –Joshua Campbell, 32 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to possession of child pornography, announced United States Attorney Clifford D. Johnson.
Campbell was sentenced to 120 months in prison followed by 5 years of supervised release.
According to documents in the case, in April 2019, Campbell was on parole for child molesting when he downloaded images and videos of child pornography. Some of the images or videos were of minors under the age of 12. Campbell’s sentence reflects consideration of his prior child molesting conviction.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Indiana State Police. The case was prosecuted by Assistant United States Attorney John M. Maciejczyk.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .
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Shelton Man Sentenced to 66 Months in Federal Prison for Trafficking Narcotics in BridgeportRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ANTHONY SMALL, also known as “Whompy,” 31, of Shelton, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 66 months of imprisonment, followed by four years of supervised release, for trafficking narcotics in Bridgeport.
According to court documents and statements made in court, in the summer of 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department began investigating individuals who were distributing narcotics in and around Bridgeport. The investigation included the use of court-authorized wiretaps, controlled purchases of narcotics, physical and video surveillance, and the execution of multiple search and seizure warrants. The investigation revealed that Small’s brother, Antonio Small, led an organization that was distributing large quantities of heroin, fentanyl and crack cocaine on the west side of Bridgeport.
Antonio Small, Anthony Small and their associates used a residence on Poplar Street in Bridgeport to store, process and package narcotics.
The group was also involved in violence. Intercepted calls revealed that Antonio Small kept a firearm at the residence, and that he possessed it while looking to retaliate against someone he believed had wronged him. On October 31, 2018, a close associate of Antonio Small was shot and killed in the vicinity of the Poplar Street residence. A female who was close by was also killed during the incident.
In addition, one of the Smalls’ co-conspirators, while in possession of drugs that he intended to distribute, engaged police in a car chase and struck and killed another motorist and maimed two pedestrians.
Anthony Small has been detained since his arrest on January 15, 2019. On January 21, 2020, he pleaded guilty to one count of conspiracy to distribute, and to possess with the intent to distribute, controlled substances, and three counts of possession with intent to distribute heroin.
Antonio Small pleaded guilty and, on July 15, 2022, was sentenced to 25 years of imprisonment.
Anthony Small also has pending state charges stemming from a shooting in Stratford in January 2019.
This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, as well as the DEA, Connecticut State Police, and the Stratford, Norwalk, Seymour and Trumbull Police Departments.
The case was prosecuted by Assistant U.S. Attorneys Karen L. Peck and Patrick J. Doherty through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Shasta County-Based “Joined Inc.” CEO Sentenced to 18 Months in Retirement Fund Embezzlement SchemeRead the Press Release
SACRAMENTO, Calif. — Maurice “Buddy” Shoe, 59, formerly of Palo Cedro, was sentenced to 18 months imprisonment for embezzlement from his employees’ retirement funds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Shoe was the CEO of Joined Inc., a now defunct corporation based in Shasta County that provided student recruiting and retention services to Christian colleges and universities throughout the United States. The company provided a 401(k) retirement benefit plan for its employees. From February through November 2015, Shoe embezzled approximately $124,902.03 from the employee retirement benefit fund, protected under the Employee Retirement Income Security Act of 1974 (ERISA), by withholding funds from employees’ paychecks for 401(k) contributions, but failing to forward those contributions to the 401(k) plan. Shoe was also ordered to pay back restitution to the victims of the fraud.
This case is the product of an investigation by the U.S. Department of Labor – Employee Benefits Security Administration, San Francisco Regional Office. Assistant U.S. Attorneys Audrey Hemesath and Kate Lydon are prosecuting the case.
Sextortion Crimes on the Increase: Talk to Your Kids NowRead the Press Release
PITTSBURGH – The United States Attorney’s Office for the Western District of Pennsylvania, in partnership with Homeland Security Investigations – Philadelphia (HSI), the Federal Bureau of Investigation – Pittsburgh (FBI), and the National Center for Missing and Exploited Children (NCMEC), is issuing a public safety alert regarding an alarming increase in the online exploitation of children and teens.
Reports of the online enticement of minors have dramatically spiked in recent months—including reports of sextortion. “Sextortion”—a term that combines the words “sex” and “extortion”—occurs when an individual, often a child, is threatened or blackmailed, usually online, by a person demanding sexual content (photos/videos) or money from the child against his or her will. This may happen when a child or teen shares an image with someone they thought they knew or trusted, but the individual has gained the child’s trust through deceit, coercion, or deception (and sometimes, predators falsely claim that they have obtained photos that the child may have shared with someone else). Once predators acquire the images, they threaten to release the compromising material unless the victim sends additional images, money, or gift cards. Often the predators demand payment through a variety of peer-to-peer payment applications. In many cases, however, predators release the images even if payments are made. The shame, fear, and confusion that victims experience when they are caught in this cycle often prevents them from asking for help or reporting the abuse.
Sextortion schemes occur in online environments where young people feel most comfortable—using common social media sites, gaming sites, or video chat applications that feel familiar and safe. On these platforms, online predators often use fake female accounts and target minor males between 14- and 17-years old but victims as young as 10 years old have been interviewed.
RESOURCES FOR TALKING TO YOUR CHILD
Information, resources, and conversation guides for talking with your child are available at fbi.gov/StopSextortion.
WHAT IF YOU OR YOUR CHILD IS A VICTIM?
HSI and the FBI encourage the public to report suspected child predators and any suspicious activity. You can contact HSI through its toll-free tip line at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock. From outside the United States and Canada, callers should dial 802-872-6199. Hearing impaired users may call TTY 802-872-6196.
Contact your local FBI field office (in Western Pennsylvania and West Virginia at 412-432-4000), call 1-800-CALL-FBI, or report it online at tips.fbi.gov.
The National Center for Missing and Exploited Children has outlined steps parents and young people can take if they or their child are a victim of sextortion, including:
• Remember, the predator is to blame, not your child or you.
• Get help before deciding whether to pay money or otherwise comply with the predator. Cooperating or paying rarely stops the blackmail and continued harassment.
• REPORT the predator’s account via the platform’s safety feature.
• BLOCK the predator and DO NOT DELETE the profile or messages because that can be helpful to law enforcement in identifying and stopping them.
• Let NCMEC help get explicit images of you off the internet.
• Visit org/IsYourExplicitContentOutThere to learn how to notify companies yourself or visit cybertipline.org to report to us for help with the process.
• Ask for help. This can be a very complex problem and may require help from adults or law enforcement.
• If a victim does not feel that they have adults in their corner, the child can reach out directly to NCMEC for support at [email protected] or call NCMEC at 1-800-THE-LOST.
LAW ENFORCEMENT WORK IN THIS DISTRICT
Reported sextortion can be investigated and often prosecuted. For example, the FBI – Pittsburgh Child Exploitation and Human Trafficking Task Force investigated Markell Smith who used many different Instagram usernames to threaten and extort minor females online in 2018 and 2019. On July 6, 2022, U.S. District Judge William S. Stickman IV sentenced Smith to 17-and-a-half years in prison. See https://www.justice.gov/usao-wdpa/pr/pittsburgh-man-sentenced-17-years-sexual-exploitation-minor. Similarly, Homeland Security Investigations, the Pennsylvania Office of the Attorney General-Child Predator Unit, and various local law enforcement partners investigated Jacob Kolonis for threatening and extorting numerous minors within the Western District of Pennsylvania and Ohio in late 2019 through early 2020. Kolonis extorted his victims by falsely telling them he had obtained nude images of his minor victims; using this leverage, Kolonis extorted his victims into creating sexually explicit material over Snapchat. On Aug. 4, 2022, U.S. District Judge Robert J. Colville sentenced Kolonis to 20 years in prison for his online exploitation of the minors. See https://www.justice.gov/usao-wdpa/pr/judge-sentences-southwest-pa-man-20-years-prison-production-and-attempted-production.
“It is vitally important to provide parents and caregivers the information they need to prevent this crime before it happens and to help victims come forward if it does,” said U.S. Attorney Cindy K. Chung. “We will continue to partner with federal, state and local law enforcement to protect children from sexual exploitation in all its despicable forms.”
“HSI has seen a disturbing rise in sextortion cases recently. I want every parent and child to know that HSI has a unique array of skilled agents and resources working diligently as we take a victim-centered approach to these atrocious crimes,” said William S. Walker, Special Agent in Charge of HSI’s Philadelphia office. “These cases are incredibly challenging to investigate and therefore require immediate law enforcement attention to identify the predators behind these schemes. Please do not succumb to these predators alone. Reach out to our tip line or go to our website to get help.”
"These criminals have become very good at luring in and extorting young children,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “They try to hide behind the anonymity of the internet, but the FBI is not going to let them prey on our children. In addition to community education, we want adults to talk with kids about the dangers of sextortion and sending pictures or other information to people they don’t know. Together, we can all work to keep our most vulnerable citizens safe.”
“The sexual exploitation of children is a deplorable crime. HSI special agents will continue to exhaust every resource to identify, locate, and apprehend predators to ensure they face justice,” said Steve K. Francis, HSI Acting Executive Associate Director. “Criminals who lurk in platforms on the internet are not as anonymous as they think. HSI will continue to leverage cutting-edge technology to end these heinous acts.”
Schenectady Felon Sentenced for Illegally Possessing Loaded FirearmRead the Press Release
ALBANY, NEW YORK – Thomas Hendricks Jr., age 41, of Schenectady, New York, was sentenced today to 46 months in prison for illegally possessing a loaded pistol as a felon.
The announcement was made by United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
As part of his previously entered guilty plea, Hendricks admitted that on June 20, 2021, he brandished a 9mm semi-automatic pistol while live-streaming on his Facebook account. He further admitted that on June 28, 2021, he possessed the same loaded pistol in his residence in the city of Schenectady, at which time it was seized by the Schenectady Police Department pursuant to a search warrant. Two prior felony convictions, for criminal possession of a weapon and aggravated cruelty to animals, prevented Hendricks from legally possessing the firearm in New York.
United States District Mae A. D’Agostino also ordered Hendricks to serve a 3-year term of supervised release following his release from prison.
This case was investigated by ATF and the Schenectady Police Department with assistance provided by the Schenectady County District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Repeat Evansville Felon Sentenced to 2 Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
EVANSVILLE- Reko D. Levels Jr., 26, of Evansville, was sentenced to 2 years in federal prison for illegally possessing a firearm.
According to court documents, on September 20, 2021, Levels was wanted on an active felony warrant in an unrelated state case. Evansville Police Department Officers arrested Levels while he was sitting outside his Evansville apartment complex. Officers initiated a search and found a loaded 9mm pistol in Levels’ right pant pocket. The pistol had been reported as stolen on September 4, 2021.
In an interview with law enforcement officers on September 23, 2021, Levels admitted that he knew the gun was stolen and that he intended to return it to the lawful owner but was arrested before he had the chance to do so.
At the time of his arrest, Levels had been previously convicted in the United States District Court for the Northern District of Florida for stealing a firearm from a licensed dealer, aiding and abetting, and possession of a firearm while under indictment in another case. Levels was also convicted of Criminal Recklessness in Vanderburgh County in 2018.
“This defendant has continued to unlawfully arm himself, undeterred by even a prior federal gun crime conviction,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Repeat armed criminals drive the violence on our streets and holding them accountable will make our communities safer. The U.S. Attorneys Office will continue to work closely with our law enforcement partners to protect our communities from armed criminals.”
“ATF and the Evansville Police Department work side by side, day in and out, to investigate and arrest those responsible for violence in our community,” stated Daryl S. McCormick, Special Agent in Charge for ATF’s Columbus Field Division. “Levels has demonstrated, through his history of stealing firearms and then possessing firearms as a convicted felon, that he poses a threat to public safety that we are all working to end.”
ATF investigated the case with the valuable assistance of the Evansville Police Department. The sentence was imposed by U.S. District Judge Richard L. Young. Judge Young also ordered that Levels be supervised by the U.S. Probation Office for 1 year following his release from federal prison.
U.S. Attorney Myers thanks Assistant United States Attorney, Matthew B. Miller who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Queens Resident Sentenced to over 12 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
Earlier today in federal court in Brooklyn, Parveg Ahmed was sentenced by United States District Judge Ann M. Donnelly to 153 months’ imprisonment and 15 years supervised release for one count of attempting to provide material support or resources to the Islamic State of Iraq and al Sham (ISIS), a foreign terrorist organization. The defendant pleaded guilty to the charge in June 2018.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Ahmed nearly fulfilled his goal to join a group of violent terrorists who have killed numerous innocent victims, including American citizens, and expressed that he planned to fight against ‘the West’ if he made it to Syria,” stated United States Attorney Peace. “Today’s sentence demonstrates that a significant prison sentence is the end result for radicalized individuals pursuing a misguided path of terror and violence.”
Mr. Peace thanked the FBI’s Joint Terrorism Task Force for its exemplary work on the case.
“The defendant willingly traveled overseas in an attempt to join ISIS so he could participate in the group’s violent acts of terror. The FBI New York Joint Terrorism Task Force, along with our law enforcement partners, remain unwavering in our commitment to protect the American people. As today’s sentence should demonstrate to all, we will continue to ensure those wishing to partake in acts of terror face the consequences in the criminal justice system.”
“An American citizen, Ahmed traveled to the Middle East with the sole intention of betraying his own country by taking up arms against it in the name of ISIS,” stated NYPD Commissioner Keechant Sewell. “Identifying and stopping individuals like this before they can harm the United States and our people are the ideals upon which the Joint Terrorism Task Force was established. I commend and thank the investigators from the NYPD, FBI, and all of our partner agencies on the nation’s first JTTF, here in New York City, for their tireless work on this important case.”
As detailed in publicly filed court documents, Ahmed is a United States citizen who traveled to Saudi Arabia in June 2017, purportedly to celebrate an Islamic religious holiday. Upon his arrival in Saudi Arabia, Ahmed attempted to travel to Syria to join ISIS. Ahmed was apprehended in a Middle Eastern country during his attempted travel to ISIS-controlled territory.
Previously, Ahmed had repeatedly expressed support on social media for ISIS and for individuals who provided support to the foreign terrorist organization’s mission of violent extremism. On July 17, 2017, JTTF agents obtained a search warrant for his personal computer, and learned that he had viewed or listened to recordings of radical Islamic clerics Anwar al-Awlaki, a United States-born cleric and prominent leader of the foreign terrorist organization al Qaeda in the Arabian Peninsula, who was killed on or about September 30, 2011, and Abdullah el-Faisal, a Jamaican-born cleric, who was found guilty in the United Kingdom of solicitation to commit murder for preaching to followers to kill individuals, including Americans, because he deemed them to be enemies of Islam. Ahmed was deported to the United States on August 28, 2017, where he was arrested at John F. Kennedy International Airport. Subsequent review of electronic devices found in Ahmed’s possession when he was detained attempting to travel to Syria also revealed draft messages explaining that the defendant planned to join ISIS in Syria to wage violent jihad and expressing farewell to the defendant’s family members. Specifically, a draft message stated “[W]e have made it to Dawlatul Islam [ISIS] in Syria. In sha Allah [God willing] we will join the Jihad very soon and in Sha Allah [God willing] we will then join the ranks of the Shuhuda [martyrs]. The West has invaded the land of the Muslims and is constantly attacking it.”
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Craig R. Heeren and Meredith A. Arfa are in charge of the prosecution, with assistance from Paralegal Specialist Magdalena St. Surin and Trial Attorney John Cella of the National Security Division’s Counterterrorism Section.
The Defendant:
PARVEG AHMED
Age: 27
Ozone Park, QueensQueens Man Sentenced to 17 Years in Prison for Sexual Exploitation of a Child on the InternetRead the Press Release
Earlier today, in federal court in Central Islip, Kevin Rizo was sentenced by United States District Judge Joanna Seybert to 17 years in prison for sexually exploiting a minor. Rizo will also be required to register as a sex offender upon his release from prison. Rizo pleaded guilty to the charge in September 2021.
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 sentence.
“The defendant’s sextortion is unconscionable and extremely harmful to the young boy who should be commended for bravely coming forward to law enforcement to stop this predator,” stated United States Attorney Peace. “Today’s substantial prison sentence will protect the community here and elsewhere from Rizo, who trolled the Internet for more than 100 boys to entice and terrorize. I urge parents and caregivers to have frank conversations with their children about the dangers of communicating online with strangers who can pretend to be anyone or anything while making inappropriate requests for photos and videos.”
“Rizo preyed on children utilizing the internet and social media applications – using fear to extort them to do his bidding. Sextortion is a growing threat for children online and this significant sentence sends a clear message that those who attempt to exploit and harm children will face serious consequences,” said Ivan J. Arvelo, Special Agent in Charge for Homeland Security Investigations in New York.
In December 2016, a 14-year-old boy and his parents reported to Nassau County police officers that on the night of November 30, 2016 to December 1, 2016, the victim had been contacted by Rizo on Instagram, who was using the moniker “Alyssa,” and pretending to be a teenage girl. After the victim complied with “Alyssa’s” request to see explicit photographs and videos of the victim, the defendant threatened to share those photographs and videos with the victim’s friends unless the victim provided even more explicit material. On that same day, several friends of the victim received nude photos of the teen from Rizo.
The government’s investigation revealed that Rizo had communicated with at least 130 boys and that most of them sent him nude images and videos of themselves at his behest. After Rizo received the images and videos, he threatened to disseminate them to others, including the boys’ friends and family members, if more images and videos were not sent.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Oren Gleich is in charge of the prosecution.
The Defendant:
KEVIN RIZO (also known as “Alyssarxx,” “Alysaflxx,” Alyssa.rxx,” and “Ally.love.15”)
Age: 33
Flushing, New YorkE.D.N.Y. Docket No. 17-CR-283 (JS)
Postal Employee Sentenced for Desertion of MailRead the Press Release
United States Attorney Steven Russell announced that Matthew J. Doherty, II, 36, of Omaha, Nebraska, was sentenced on December 19, 2022, in federal court in Omaha for Desertion of Mail. United States Magistrate Judge Michael D. Nelson sentenced Doherty to a two-year term of probation.
Between February 28, 2022, through March 9, 2022, Doherty, who was then employed as the mail carrier in Tekamah, Nebraska, took possession of mail for the purposes of delivering it to intended recipients. Instead of delivering all of the mail or returning it to the post office or to another authorized Postal Service employee, Doherty discarded at least 46 pieces of mail in a dumpster in Tekamah.
This case was investigated by the United States Postal Service – Office of the Inspector General.
Philadelphia Man Charged for Throwing Three Incendiary Bombs at Residences in Northeast PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jason Mattis, 49, of Philadelphia, PA, was arrested and charged by Indictment with three counts of possession of an unregistered destructive device, charges which stem from three incidents that occurred in June and July 2022 in Northeast Philadelphia. Mattis made his initial appearance in federal court on December 15, 2022, and was ordered detained pending further proceedings.
The Indictment alleges that on two separate occasions on June 30, 2022, and again on July 1, 2022, Mattis lit an incendiary device commonly known as a Molotov cocktail, and threw it onto the porch of three different residences in the Tacony section of Philadelphia. On all three occasions, the weapon thrown by Mattis ignited and started a fire on the porch of each residence. Two of these incidents occurred in the middle of the night on June 30, 2022, and the last occurred during the evening hours on July 1, 2022. ATF examined evidence left at each scene and determined that the weapons allegedly used by the defendant were incendiary bombs as that term is defined under federal law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, the defendant faces a maximum possible sentence of 30 years in prison, a three-year period of supervised release, a $750,000 fine, and a $300 special assessment.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peoria Man Sentenced to 152 Months in Prison for Possession Intent to Distribute and Federal Firearm OffensesRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Daryl G. McGhee, 33, of the 6000 block of North Hamilton, was sentenced on December 16, 2022, to a total of 152 months in federal prison, to be followed by six years of supervised release. McGhee’s sentencing follows two separate jury trials in February 2021 and August 2022, resulting in convictions for drug trafficking and firearms offenses. Specifically, McGhee was sentenced to concurrent 92-month sentences for possession of cocaine with intent to distribute and possession of a firearm by a felon. Additionally, McGhee was sentenced to a 60-month term of imprisonment for possessing a firearm in furtherance of a drug trafficking crime, to be served consecutively to the 92-month sentences.
At the sentencing hearing, the government presented evidence that on February 13, 2021, Peoria Police were dispatched to McGhee’s residence at approximately 4:30 a.m. on a report of domestic violence. Upon arrival, police learned that McGhee had left the residence out the back door on foot in the bitter sub-zero temperatures and was in possession of a firearm. An officer then tracked McGhee’s footprints in the freshly fallen snow and located him crouched down and hiding in an evergreen bush several blocks from his home. McGhee was not wearing gloves or a winter coat. He was in possession of a cell phone and $381 cash. After McGhee was arrested, a Peoria Police K-9 unit was utilized to search the surrounding area and the service dog located a leather shoulder satchel concealed under a dumpster alongside McGhee’s footprints in the snow. The satchel contained 140 grams of cocaine and a 9mm semi-automatic DVC Tactical model 1911 handgun loaded with 17 rounds of ammunition. A round of ammunition was located in the chamber of the gun, indicating it was ready to be fired. The government also introduced an image from McGhee’s social media account where he was wearing the leather bag, as well as a video from social media where he was depicted brandishing the DVC 9mm handgun.
Also at the hearing, U.S. District Judge Joe Billy McDade found that McGhee’s offense and criminal history involving acts of violence and firearms reflected a lack of self-control and disrespect for the law and other people.
McGhee has remained in the custody of the U.S. Marshals Service throughout the pendency of the case. At sentencing, McGhee faced statutory penalties of up to 30 years’ imprisonment, a maximum $2,000,000 fine, and no less than six years of supervised release for possession of cocaine with intent to distribute; up to 10 years’ imprisonment and three years of supervised release for possession of a firearm as a felon; and not less than five years’ imprisonment for possessing a firearm in furtherance of a drug trafficking crime, to be served consecutively to any other sentences imposed.
“The U.S. Attorney’s Office and its law enforcement partners are committed to aggressively prosecuting armed drug traffickers that pose a threat to the safety of our communities,” said Assistant U.S. Attorney Ronald L. Hanna.
The case investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Peoria Police Department. Assistant U.S. Attorneys Ronald L. Hanna and Douglas F. McMeyer represented the government at trial.
The case against McGhee 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.
Penn Hills Felon Charged with Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH, PA – A suburban Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics trafficking and firearms laws, United States Attorney Cindy K. Chung announced today.
The two-count Indictment named Harry E. Duncan, age 35, formerly of Penn Hills, Pennsylvania, as the sole defendant.
According to the Indictment, on or about Nov. 18, 2022, in the Western District of Pennsylvania, Duncan was found to have possessed with intent to distribute quantities of cocaine base (in the form commonly known as “crack”), fentanyl, and cocaine, all of which are Schedule II controlled substances Additionally, Duncan was found in possession of a Winchester Model 1300 defender 12-gauge, pump action shotgun; 41 rounds of 12-gauge ammunition with bandolier; 38 rounds of .45 auto ammunition; 144 total rounds of 9mm ammunition; 50 rounds of .40 S&W ammunition; and 337 rounds of 5.56 cal. ammunition with metal ammunition container. As a convicted felon, it is unlawful for Duncan to be in possession of firearms and ammunition.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ohio Felon Charged with Violating Federal Drug and Firearms LawsRead the Press Release
PITTSBURGH, PA - A resident of Columbus, Ohio, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania on charges of violating federal narcotics trafficking and firearms laws, United States Attorney Cindy K. Chung announced today.
The two-count Indictment named Lester Rondale Moore as the sole defendant.
According to the Indictment, on or about Oct. 10, 2022, Moore traveled from his primary residence in Columbus, Ohio, to an apartment complex in Monroeville, Pennsylvania, where he was found in possession of, and with intent to distribute 50 grams or more of methamphetamine, 40 grams or more of fentanyl, and a quantity of cocaine base (in the form commonly known as crack) and cocaine. Moore was further charged with possession of a loaded Smith and Wesson 9 mm pistol. As a convicted felon, Moore is prohibited from possessing firearms or ammunition.
As to the drug charge, the law provides for a total sentence of not less than ten years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. As to the firearms charge, the law provides for a total sentence of not more than 15 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Moore is currently being held at Allegheny County Jail on an Ohio state parole violation detainer, pending his arraignment on the federal charges.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Drug Enforcement Agency and Monroeville Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New York Man Sentenced to over 12 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
A New York man was sentenced today to 12 years and nine months in prison followed by 15 years of supervised release for attempting to provide material support or resources to the Islamic State of Iraq and al Sham (ISIS), a foreign terrorist organization.
Parveg Ahmed, 27, of Queens, pleaded guilty to one count of attempting to provide material support or resources to a foreign terrorist organization in June 2018. According to court documents, Ahmed is a U.S. citizen who traveled to Saudi Arabia in June 2017, purportedly to celebrate an Islamic religious holiday. Upon his arrival in Saudi Arabia, Ahmed attempted to travel to Syria to join ISIS. Ahmed was apprehended in a country bordering Syria during his attempted travel to ISIS-controlled territory.
Previously, Ahmed had repeatedly expressed support on social media for ISIS and for individuals who provided support to the foreign terrorist organization’s mission of violent extremism. On July 17, 2017, law enforcement agents obtained a search warrant for his personal computer, and learned that he had viewed or listened to recordings of radical Islamic clerics Anwar al-Awlaki, a U.S.-born cleric and prominent leader of the foreign terrorist organization al Qaeda in the Arabian Peninsula, who was killed on or about Sept. 30, 2011, and Abdullah el-Faisal, a Jamaican-born cleric, who was found guilty in the United Kingdom of solicitation to commit murder for preaching to followers to kill individuals, including Americans, because he deemed them to be enemies of Islam. Ahmed was deported to the United States on Aug. 28, 2017, where he was arrested at John F. Kennedy International Airport. Subsequent review of electronic devices found in Ahmed’s possession when he was detained attempting to travel to Syria also revealed:
- Messages explaining that the defendant planned to join ISIS in Syria to wage violent jihad and expressing farewell to the defendant’s family members. Specifically, review of his devices revealed a message he composed, but had not yet sent, stating, “[W]e have made it to Dawlatul Islam [ISIS] in Syria. In sha Allah [God willing] we will join the Jihad very soon and in Sha Allah [God willing] we will then join the ranks of the Shuhuda [martyrs]. The West has invaded the land of the Muslims and is constantly attacking it.”
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Breon Peace for the Eastern District of New York, Assistant Director Robert R. Wells of the FBI Counterterrorism Division and Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office made the announcement.
The FBI’s Joint Terrorism Task Force investigated the case.
Assistant U.S. Attorneys Craig R. Heeren and Meredith A. Arfa for the Eastern District of New York prosecuted the case, with valuable assistance provided by the National Security Division’s Counterterrorism Section.
New York Man Sentenced to 16 Months’ Imprisonment for Bank FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 19, 2022, Algernon Donte Martin, age 26, of Bronx, New York, was sentenced to 16 months’ imprisonment by U.S. District Court Judge Christopher C. Conner following his conviction for bank fraud. Judge Conner also ordered Martin to pay victims restitution in the amount of $82,969.06, and to serve three years of supervised release following his release from prison.
According to United States Attorney Gerard M. Karam, Martin was a member of a conspiracy in which he and others stole mail from postal boxes, rifled that mail to find checks that had been made payable to third parties, and then altered the checks and deposited them in other bank accounts. The conspiracy was formed in the New York City area, and its reach extended into central Pennsylvania. The investigation identified at least 40 stolen checks, of which 19 had been cashed, resulting in financial losses to victims. The conspiracy involved the participation of Kazaria Blair, age 32, a U.S. Postal Service employee working in the Harrisburg area. Blair provided the conspirators access to a postal key that enabled them to open blue postal collection boxes to steal the mail. She has pleaded guilty to conspiracy charges in relation to the scheme.
Judge Conner previously sentenced two co-defendants:
- Edward Hart, age 32, of Bronx, New York, was sentenced to 18 months in prison; and,
- Travis Terrell Price, age 27, of Allentown, Pennsylvania, was sentenced to serve four months in prison.
The case was investigated by the United States Postal Inspection Service – Harrisburg Office. Assistant U.S. Attorney Christian T. Haugsby prosecuted the case.
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New Hampshire Man Pleads Guilty to Possessing Fentanyl Intended for DistributionRead the Press Release
BOSTON – A Manchester, N.H., man pleaded guilty yesterday to possessing fentanyl with intent to distribute.
Michael Warner, 30, pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Indira Talwani scheduled sentencing for March 15, 2023.
In August 2020, Warner was observed leaving a known drug source location in Lawrence. Once on the highway, agents stopped Warner, who admitted to buying 70 grams of fentanyl, an amount consistent with narcotics distribution.
The charge of possession with intent to distribute 40 grams or more of fentanyl provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Assistant U.S. Attorney Philip C. Cheng of Rollins’ Organized Crime and Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Minnesota Man Indicted for Romance Scam Targeting Colorado WomanRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Adetomiwa Seun Akindele, age 37, of Minnesota, has been indicted on 10 counts of wire fraud and 11 counts of money laundering.
According to the indictment, beginning in January 2018, and continuing until October 2018, Akindele posed as a wealthy Italian-American businessman, “Frank Labato,” on a dating website, where he met a widowed Colorado woman. In February 2018, “Frank” began emailing the victim, and in March 2018, the two began exchanging telephone calls. During these communications, “Frank” provided the victim with additional false details about his personal and work background, images, and photos, to substantiate his fictitious persona. In March 2018, “Frank” represented to the victim that he had encountered a financial crisis related to his purported work abroad for which he claimed to need money, funds, and assistance from the victim. At “Frank’s” direction, the victim opened a cryptocurrency exchange account, where she eventually wired over $1.6 million dollars. From there, Akindele converted the money into various cryptocurrencies, laundered it across multiple crypto exchanges and then converted it back into U.S. dollars and deposited it into his own bank accounts. “Frank” fraudulently represented to the victim that he would repay her for the requested “loans” to his business. Over the course of the scheme, “Frank” executed three fraudulent “promissory notes” to reassure the victim that she would be repaid.
The Federal Bureau of Investigation (FBI) Denver Division conducted the investigation. Assistant United States Attorney Sarah Weiss is handling the prosecution of the case.
The charges contained in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
Case number: 22-cr-00326
Michigan Man Sentenced to 105 Years for Armed Drug Trafficking and Attempted RobberyRead the Press Release
LONDON, Ky.— A Flint, Michigan man, Charles Ray Edwards, 39, was sentenced to 105 years in federal prison on Tuesday, by U.S. District Judge Robert E. Wier, after being convicted of armed drug trafficking and attempted robbery.
In July 2022, Edwards was convicted of heroin trafficking, fentanyl trafficking, conspiracy to distribute both substances, felon in possession of a firearm, use of a firearm in furtherance of the drug trafficking, and for his role in an attempted Hobbs Act robbery at a convenience store. His trafficking and robbery offenses involved three shooting victims, including the death of a bystander in the convenience store.
According to testimony at trial, Edwards was dealing heroin and fentanyl in Southeastern Kentucky region. As part of his drug trafficking crimes, Edwards wounded two individuals in a shooting incident in Knox County. Then, during the attempted robbery, a bystander in the store was shot and killed. Edwards has a prior felony conviction and was prohibited from possessing firearms.
“Charles Edwards was trafficking in dangerous drugs, attempted to hold up a store, was involved in multiple shootings – one resulting in the death of a bystander – and did all this with firearms he was prohibited from possessing,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “There is little question his conduct warrants the sentence imposed, and that our communities will now be safer for his incarceration. We will prioritize the prosecution of those who engage in such reckless and destructive violence and continue to do our part to protect our communities. We hope this will provide some sense of justice to the victims and are grateful for the critical efforts of our law enforcement partners.”
“ATF’s core mission is to protect the public from violent criminals like Charles Edwards,” said ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “Armed drug trafficking and violence go hand in hand. Today, Edwards was held accountable for his actions because of the hard work of our ATF London Office, Kentucky State Police, Williamsburg Police Department, and the U.S. Attorney’s Office. This investigation demonstrates our continued commitment to stopping violent criminals and the drug traffickers that plague our Eastern Kentucky communities.”
United States Attorney Shier; ATF SAC Morrow; Colonel Phillip Burnett Jr., Commissioner, Kentucky State Police; and Chief Jason Caddell, Williamsburg Police Department, jointly announced the sentence.
The investigation was conducted by the ATF, KSP, and Williamsburg Police Department. The United States was represented in the case by Assistant U.S. Attorneys Jenna Reed and Jason Parman.
This case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. The PSN program involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Miami Man Sentenced for his Role in a Nationwide Gas Station Skimming SchemeRead the Press Release
ALBANY, NEW YORK – Arley Gonzalez, age 35, of Miami, Florida, was sentenced today to 27 months in prison for his role in an access device fraud conspiracy. The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Ketty Larco-Ward, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service (USPIS).
As part of his guilty plea on May 20, 2021, Gonzalez admitted that between December 2015 and July 2019, he conspired with others to commit access device fraud by building skimming devices designed to steal gas station customer information, installing those devices inside gas pumps in Albany, Broome, and Montgomery Counties, and elsewhere, and then using the information collected by those devices to create fraudulent credit and debit cards. The fraudulent cards were used to obtain money orders, gift cards, cash, and other things of value. As part of his plea agreement, Gonzalez agreed to be subject to a forfeiture money judgment in the amount of $247,000.
Senior United States District Judge Gary L. Sharpe also imposed a three-year term of supervised release to follow Gonzalez’s term of incarceration.
This case was investigated by the FBI Albany Field Office and USPIS Boston Division, with assistance from the FBI Field Offices in Miami and Pittsburgh, the USPIS Miami Division, and the United States Secret Service Miami Field Office. The case was prosecuted by Assistant U.S. Attorney Rick Belliss and former Assistant U.S. Attorney Emily Powers.
Member of Drug Trafficking Organization Sentenced to 235 Months in Federal Prison for Drug OffenseRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced the sentencing of Victor Welton, age 49, of Baton Rouge, Louisiana, as part of Operation Going Bacc to Cali, an extensive federal, state, and local investigation by the Middle District Organized Crime and Drug Enforcement Task Force (OCDETF) aimed at a drug trafficking network spanning from Compton, California, through Baton Rouge, and to Miami, Florida.
Chief Judge Shelly D. Dick sentenced Welton to 235 months in federal prison following his conviction of conspiracy to distribute and possess with intent to distribute over 2.6 pounds of fentanyl. Welton must also serve 3 years of supervised release following his term of imprisonment.
According to admissions made as part of his guilty plea, in or about June 2020, Welton agreed with co-conspirators in Baton Rouge, Compton, and Miami to distribute and possess with intent to distribute fentanyl in the Middle District of Louisiana and elsewhere. Welton used other individuals to travel between California, Louisiana, and Florida, to transport fentanyl to a drug dealer in Miami.
On June 21, 2020, Welton arranged for two of several individuals, whom he used to transport fentanyl between Compton, Baton Rouge, and Miami, to travel to Compton and pick up fentanyl. The two individuals traveled by air to California and, on June 22, 2020, began their return trip to Baton Rouge on June 24, 2020, using Greyhound Bus services. During the early morning hours of June 24, 2020, both couriers arrived at the Greyhound Bus Terminal in Baton Rouge, Louisiana. At that time, they were greeted by law enforcement with a search warrant for their persons and baggage. Law enforcement discovered and seized three zip lock bags with a white powdery substance. The contents of each of the bags were analyzed by the Louisiana State Police Crime Laboratory, with the contents of each identified as fentanyl, and with a total weight of slightly over 2.6 pounds. The two couriers were then arrested by law enforcement.
When explaining the reasons to support the 235 month term of imprisonment, Chief Judge Dick commented on the significant danger associated with fentanyl, along with Welton’s role as the leader of a drug-trafficking conspiracy that involved at least four other co-conspirators.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the Drug Enforcement Administration and East Baton Rouge Parish Sheriff’s Office. This case was prosecuted Assistant U.S. Attorney Paul L. Pugliese.
Massachusetts Man Convicted of Trafficking Four Tons of Cocaine Hidden Inside FurnitureRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction yesterday in Manhattan federal court of ABEL MONTILLA for his participation in a cocaine trafficking scheme between 2018 and 2021. The jury convicted MONTILLA following a one-week trial before U.S. District Judge P. Kevin Castel. Sentencing of MONTILLA is scheduled for March 22, 2023.
U.S. Attorney Damian Williams said: “The unanimous jury verdict holds Abel Montilla accountable for his role in a widespread cocaine trafficking organization that flooded the streets with four tons of cocaine. Montilla was a coordinator of the drug trafficking organization who traveled around the country to manage the delivery of the organization’s cocaine-filled furniture. He now faces the prospect of a lengthy prison sentence for his crime.”
According to the allegations contained in the Superseding Indictment and the evidence presented in court during the trial:
Between 2018 and 2021, MONTILLA was a member of a drug trafficking organization (“DTO”) that engaged in a drug-trafficking scheme involving the concealment of cocaine inside custom-built furniture. Between in or about September 2018 and June 2019, the DTO sent approximately 27 shipments of cargo from Puerto Rico to the continental United States. The cocaine was concealed in more than approximately 70 custom cube-shaped coffee tables or other furniture. The organization falsely represented that the cargo contained furniture, but that furniture in fact concealed hundred-kilogram quantities of cocaine. In total, the trafficking organization shipped approximately 4,000 kilograms of cocaine, worth at least $120,000,000 on the street. Eight of the organization’s shipments were sent to addresses in the Southern District of New York, including in Yonkers and the Bronx. Those eight shipments contained a total of approximately 775 kilograms (1,704 pounds) of cocaine.
Photographs introduced into evidence during trial of furniture containing cocaine and seized cocaine are below:
MONTILLA was a Massachusetts-based coordinator of cocaine shipments who managed the recipients of the organization’s deliveries of cocaine shipments and the distribution of the cocaine concealed inside the furniture. At times, MONTILLA drove straight through the night from Massachusetts to Florida to be present for a cocaine delivery, then flew or drove back to Massachusetts to handle additional cocaine deliveries there. In total, MONTILLA coordinated at least a dozen drug shipments in Massachusetts and Florida, and at least twelve of the 27 shipments were sent to addresses affiliated with MONTILLA.
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MONTILLA, 49, of Springfield, Massachusetts, was found guilty of conspiracy to distribute and possess with the intent to distribute narcotics, which carries a maximum sentence of life in prison and a mandatory minimum sentence of ten years in prison.
The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
This prosecution 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.
Mr. Williams praised the outstanding investigative work of the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the United States Postal Inspection Service in this investigation.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Juliana N. Murray and Ryan B. Finkel are in charge of the prosecution.
Man Sentenced to More Than 15 Years in Prison for KidnappingRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced Thursday to 190 months in prison for conspiring to kidnap and transport an undocumented noncitizen.
According to court documents, Rosalio Cano Jr., 22, transported an undocumented noncitizen to multiple locations in or around San Antonio over a five-day period. During this time, co-conspirators were in contact with the now-kidnapping victim’s family and repeatedly raised demands for payment. During the investigation, Cano fled from federal agents. He was located and arrested by the U.S. Marshal’s Service on Oct. 14, 2021.
“This is just one example of what dangerous turns illegal border crossing can take—from illegal entry to kidnapping and extortion,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “I appreciate the dedication to this investigation by our agency partners, and this nearly 16-year federal sentence serves as a reminder of how seriously we take these cases.”
“The actions of this defendant highlight the dangers of human smuggling and the risks law enforcement face while carrying out their duties. Cano schemed to kidnap and extort migrants for personal profit and when confronted by law enforcement, he displayed callous disregard for human life by firing shots at pursuing agents in his attempt to elude capture,” said Acting Special Agent in Charge Craig Larrabee of the Department of Homeland Security Investigations (HSI) San Antonio Division. “This sentence sends a clear message to those who exploit people for profit, HSI and our law enforcement partners will remain relentless in bringing justice to criminals who endanger the lives of migrants, our brave law enforcement officers, and the people in our communities.”
“The tactical apprehension and arrest without incident of Rosalio Cano Jr. clearly showed the importance and effectiveness of law enforcement agencies working together,” said U.S. Marshal Susan Pamerleau. “The diligent and collaborative efforts of the U.S. Marshals Service Lone Star Fugitive Task Force and the San Antonio Division of Homeland Security Investigations made certain to take another human trafficker off the streets and for justice to be served.”
HSI and the USMS investigated the case. Assistant U.S. Attorney Amy Hail prosecuted the case.
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Machias Man Sentenced to 2 Years for Unlawfully Possessing FirearmRead the Press Release
BANGOR, Maine: A Machias man was sentenced in U.S. District Court in Bangor today for being a felon in possession of a firearm.
U.S. District Judge Lance E. Walker sentenced Eric Legare, 37, to two years in prison and two years of supervised release. Legare pleaded guilty on July 21, 2022.
According to court records, Legare was a passenger in a vehicle stopped in East Machias by Washington County Sheriff’s Office deputies when a firearm was found inside the vehicle. Legare admitted that he had handled the firearm and that his DNA would likely be on it. Legare is prohibited from possessing firearms due to a 2017 conviction for manslaughter.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Washington County Sheriff’s Office investigated the case. The Washington County District Attorney’s Office also assisted with the case.
Project Safe Neighborhoods: 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. To learn more information about PSN, visit www.justice.gov/psn.
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Leader of nationwide moving company scam conspiracy sentenced to 72 months in prisonRead the Press Release
CINCINNATI – A Miami, Florida, man was sentenced to 72 months in prison for conspiring in a racketeering enterprise to defraud individuals through moving companies located throughout the United States. Identified victims of the fraud lost more than $2.4 million total.
Serghei Verlan, 39, was sentenced in U.S. District Court in Cincinnati today.
The criminal enterprise used a series of moving companies to exploit thousands of people across the country by demanding ransom for the personal possessions those people had entrusted the enterprise to transport.
Verlan was one of 12 defendants indicted in July 2018 and was one of two leaders of the conspiracy. According to court documents, the defendants operated and worked through at least 12 affiliated moving companies to enrich themselves by defrauding customers who hired them to move their household goods.
The enterprise executed their scheme through various moving companies in Florida, Ohio, Maryland, North Carolina, Illinois, Texas, California, Connecticut, Colorado and Missouri. More than 1,000 customers have been identified as victims.
One of the enterprise’s warehouses was in West Chester, Ohio, and some of the identified victims reside in the Southern District of Ohio.
As part of the conspiracy, the defendants would provide customers with low binding estimates to do their move, promising to beat their competitor’s prices. After the customers agreed to hire the moving companies, employees of the moving companies would load the customers’ goods onto the truck and then the price of the move would be bumped. Co-conspirators would use an inflated cubic footage for the price of moving the customers’ goods.
Verlan was one of the few defendants who knew the “actual” or “real” cubic footage for customers’ goods and instructed workers to charge customers based on the fraudulently inflated price. He told employees to cap the overcharge at 20 percent to keep customer complaints down.
Verlan also paid employees to write fake positive reviews of their various companies to manage their online image. He was also directly responsible for furthering the conspiracy by “reincarnating” affiliated companies into “new” companies controlled by the enterprise through false statements to federal regulators.
Verlan pleaded guilty in August 2022 to participating in the racketeering conspiracy.
The other leader of the conspiracy, Andrey Shuklin, 34, of Miami, Florida, was sentenced in U.S. District Court in May to 78 months in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Andrea M. Knopf, Regional Special Agent-in-Charge, Office of Inspector General, U.S. Department of Transportation (USDOT); and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by U.S. District Judge Douglas R. Cole. Assistant United States Attorneys Megan Gaffney Painter and Matthew C. Singer are representing the United States in this case.
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Las Vegas Man Sentenced to 18 Years in Prison for Six Armed RobberiesRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced today by U.S. District Judge Andrew P. Gordon to 18 years in prison followed by five years of supervised release for committing six armed robberies of gas station convenience stores.
Jonathan Nagel (25) pleaded guilty in September 2022 to six counts of interference of commerce by robbery, one count of brandishing a firearm during and in relation to a crime of violence, and one count of failure to appear.
According to court documents, from January 21, 2021 to August 18, 2021, Nagel committed six armed robberies of businesses located in North Las Vegas and Las Vegas. At each robbery, Nagel pretended to make a purchase at the checkout counter. He then pointed a 9mm handgun at the store clerk and demanded money from the cash register. Nagel was arrested in August of 2021 and admitted he was planning to rob a seventh store that night. After Nagel was arrested for the armed robberies, he was initially released on pretrial supervision and ordered to self-surrender on March 7, 2022. However, on March 4, 2022, he cut off his GPS monitor, and absconded from pretrial supervision. Nagel was arrested in Arizona later that month.
U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
This case was investigated by the FBI, North Las Vegas Police Department, and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Bianca Pucci prosecuted the case.
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Lame Deer pastor arraigned on sexual abuse chargesRead the Press Release
BILLINGS — A Lame Deer pastor appeared on a summons for arraignment today on sexual abuse charges alleged to have occurred on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said.
Dean Alan Smith, 66, a pastor, pleaded not guilty to an indictment charging him with one count of aggravated sexual abuse, one count of abusive sexual contact and three counts of abusive sexual contact by force and of a child. If convicted of the most serious crime, Smith faces a maximum of life in prison, a $250,000 fine and not less than five years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Judge Cavan continued Smith’s release with conditions pending further proceedings.
An indictment, filed on Dec. 9, alleges that between 2017 and 2019 near Lame Deer, on the Northern Cheyenne Indian Reservation, Smith knowingly caused a person, identified as Jane Doe 1, to engage in a sexual act by using force and that Smith knowing caused Jane Doe 1 to engage in sexual contact by using force. The indictment further alleges that between 2017 and 2019, Smith knowingly caused a person, identified as Jane Doe 2, who had not attained the age of 12, to engage in sexual contact by force. In addition, the indictment alleges that between 2019 and 2020, Smith knowingly caused persons, identified as Jane Doe 3 and Jane Doe 4, both who had not attained the age of 12, to engage in sexual contact by force.
The U.S. Attorney’s Office is prosecuting the case, which was investigated by the FBI.
An indictment is merely an accusation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If people have additional information or know of persons who may have encountered similar conduct alleged against the defendant, please contact the FBI Billings Office at 406-248-8487.
PACER case reference. 22-140.
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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Kansas National Guard Soldier Sentenced to 16 Years for Sexual Exploitation of a ChildRead the Press Release
SPRINGFIELD, Mo. – A Chanute, Kansas, man serving with the Army National Guard was sentenced in federal court today for sexually exploiting an 11-year-old southwest Missouri victim to produce child pornography.
Christian Sinclair, 22, was sentenced by U.S. District Judge Stephen R. Bough to 16 years in federal prison without parole. The court also sentenced Sinclair to 15 years of supervised release following incarceration.
On March 2, 2022, Sinclair pleaded guilty to one count of the sexual exploitation of a child. Sinclair admitted that he used a minor to produce child pornography from Aug. 1, 2020, through June 15, 2021.
According to Sinclair’s plea agreement, a captain in the Kansas National Guard contacted the Sierra Vista, Arizona, police department on June 15, 2021, while his unit was deployed to Arizona. The captain reported that Sinclair, one of the soldiers in his command, was sexting an 11-year-old child in Missouri. Sinclair’s fiancée had reported to the captain earlier the same day that she had screenshots between herself and Sinclair in which Sinclair admitted to “cheating” on her with an 11-year-old child.
The child victim told investigators that she had sent Sinclair multiple pornographic videos and images of herself via Snapchat at Sinclair’s request. Sinclair admitted that he also sent pornographic images of himself to the child victim via Snapchat.
This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Joplin, Mo., Police Department, the FBI, the Southwest Missouri Cyber Crimes Task Force, the Lamar, Mo., Police Department, the Sierra Vista, Arizona, Police Department, and the Chanute, Kan., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department Secures Settlement with Southern California School District to Protect the Civil Rights of English Learner StudentsRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with the Colton Joint Unified School District in California to resolve an investigation into the district’s program for students learning English. The department’s investigation, conducted jointly by the Civil Rights Division and the U.S. Attorney’s Office for the Central District of California, revealed that the district denied some English learner students the instruction they needed to become fluent in English and the necessary supports to fully participate and thrive in school.
“Students learning English have a right to receive an education equal to that of their classmates,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “School districts have an obligation to overcome language barriers and support English learners in participating fully in their schools’ academic programs. The Civil Rights Division is committed to ensuring that school districts across the nation comply with federal law and provide all students equal access to a quality education.”
“We are committed to giving English learners meaningful access to the education provided by their school districts,” said U.S. Attorney Martin Estrada for the Central District of California. “These students can learn English, develop critical skills, graduate and attend college, and then contribute to our shared society. But first they must have real access to the educational programs offered in their district. This settlement ensures that English-learner students have that access.”
The department's investigation identified failures to ensure that all teachers were qualified to provide instruction in how to learn English, meaning that some students did not have access to the language services they needed to become fluent. Similarly, math, science and social studies teachers were often not qualified to support English learner students in their classrooms, depriving those students of an education on these essential subjects. In addition, the department found lapses in services to English learners with disabilities, as well as barriers to participation in the district’s gifted and talented program, among other issues.
Under the agreement, the district will work to ensure that all English learners receive instruction on the English language from a trained and qualified teacher. Similarly, the district will ensure that teachers instructing these learners on core subjects, like math, science and social studies, can provide the type of support necessary for those students to understand and learn the material. The department will monitor the district’s progress over the next three years.
The Spanish version of the press release is available here. The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Justice Department Secures Settlement with Colton Joint Unified School District to Protect the Civil Rights of English Learner StudentsRead the Press Release
LOS ANGELES – The Justice Department announced today that it has reached a settlement agreement with the Colton Joint Unified School District to resolve an investigation into the district’s program for students learning English.
The department’s investigation, conducted jointly by the United States Attorney’s Office and the Justice Department’s Civil Rights Division, revealed that the district denied some English learner students the instruction they needed to become fluent in English, and the necessary supports to fully participate and thrive in school.
“We are committed to giving English learners meaningful access to the education provided by their school districts,” said United States Attorney Martin Estrada. “These students can learn English, develop critical skills, graduate and attend college, and then contribute to our shared society. But first they must have real access to the educational programs offered in their district. This settlement ensures that English learner students have that access.”
“Students learning English have a right to receive an education equal to that of their classmates,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “School districts have an obligation to overcome language barriers and support English learners in participating fully in their schools’ academic programs. The Civil Rights Division is committed to ensuring that school districts across the nation comply with federal law and provide all students equal access to a quality education.”
The department’s investigation identified failures to ensure that all teachers were qualified to provide instruction in how to learn English, meaning that some students did not have access to the language services they needed to become fluent. Similarly, math, science and social studies teachers were often not qualified to support English learner students in their classrooms, depriving those students of an education on these essential subjects. In addition, the department found lapses in services to English learners with disabilities, as well as barriers to participation in the district’s gifted and talented program, among other issues.
Under the agreement, the district will work to ensure that all English learners receive instruction on the English language from a trained and qualified teacher. Similarly, the district will ensure that teachers instructing these learners on core subjects, like math, science and social studies, can provide the type of support necessary for those students to understand and learn the material. The department will monitor the district’s progress over the next three years.
Assistant United States Attorney Katherine Hikida of the Civil Division’s Civil Rights Section and attorneys from the Educational Opportunities Section of the Justice Department’s Civil Rights Division handled this matter.
Information about the Civil Division’s Civil Rights Section is available on its website at https://www.justice.gov/usao-cdca/civil-division/civil-rights-section. Individuals in the seven counties of the Central District of California may report possible civil rights violations to the United States Attorney’s Office by calling (213) 894-2879 or emailing [email protected].
Justice Department Secures Agreement with Massachusetts Department of Correction Investigation Involving Individuals in Mental Health CrisisRead the Press Release
The Justice Department announced today that it has entered into a settlement agreement with the Massachusetts Department of Correction (MDOC) to resolve the department’s investigation into MDOC’s treatment of incarcerated individuals in mental health crisis.
Under the agreement, MDOC will improve policies and training related to mental health care for incarcerated individuals. These improvements will ensure that individuals in mental health crisis receive three daily mental health contacts; that support staff interact with them while they are on a mental health watch; and that MDOC develop a new unit to provide more intensive mental health treatment for individuals in mental health crisis who are not improving while on mental health watch. In addition, MDOC will provide better documentation of mental health treatment for incarcerated individuals experiencing prolonged mental health crisis. MDOC’s Mental Health Director will now have a role in determining the cell conditions and privileges for anyone on a mental health watch.
The agreement also provides for an independent monitor to assess MDOC’s implementation of the agreement’s requirements and review clinical determinations to ensure MDOC is providing adequate mental health treatment for individuals in mental health crisis. The monitor will prepare periodic public reports on MDOC’s progress.
“Our investigation found that Massachusetts’ prisons subjected incarcerated people in mental health crisis to prolonged periods of restrictive housing conditions, instead of providing them constitutionally adequate mental health care and supervision,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement ensures heightened supervision, increased out-of-cell contact with mental health staff, and intensive mental health care in a new treatment-focused housing unit when needed. These reforms will help ensure people receive the services they need when they are in crisis.”
“As prosecutors, we have a duty to enforce criminal laws which can result in sending people to carceral facilities,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “We also have a duty to ensure that once someone is incarcerated and in the custody and control of a state, local or federal government, that they receive constitutional treatment and adequate mental and physical health care. In the instant case, our investigation found unconstitutional conditions and circumstances where incarcerated people in mental health crisis harmed themselves up to and including suicide. We must provide better mental health treatment in our carceral facilities. Statistics show that far too many of the incarcerated population with significant mental health and substance use disorders, among other severe things. Moving forward, we will be working closely with DOC to address and correct the serious issues and violations identified in our November 2020 Notice. This agreement is the product of hard work and collaboration and offers many innovative solutions. Specifically, the creation of a Stabilization Unit, a newly established civilian Support Person position, as well as mandatory out-of-cell mental health contacts. With these innovations, we intend for Massachusetts to become the gold standard in mental health supervision and treatment for incarcerated individuals. DOC could become an example for the nation.”
The Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts initiated the investigation of MDOC in October 2018 under the Civil Rights of Institutionalized Persons Act. This law authorizes the Attorney General to file a lawsuit to address the rights of individuals in institutionalized settings. In November 2020, the department announced findings that MDOC violated the constitutional rights of incarcerated individuals in mental health crisis. The department found that MDOC did not adequately supervise individuals in mental health crisis, did not provide them adequate mental health care, and used prolonged mental health watches under restrictive housing conditions.
For more information about the Civil Rights Division and the Special Litigation Section, please visit https://www.justice.gov/crt/special-litigation-section. Additional information about the U.S. Attorney’s Office for the District of Massachusetts’ Civil Rights Unit is available at: www.justice.gov/usao-ma/civil-rights. You can also report civil rights violations to the Section by completing the complaint form available at https://civilrights.justice.gov/.
Individuals with relevant information about compliance with the agreement are encouraged to contact the department by phone at (833) 223-1550 (voicemail only), or by email at [email protected].
Jury Convicts Two KC Men of Kidnapping, MurderRead the Press Release
KANSAS CITY, Mo. – Two Mexican nationals have been convicted in federal court of kidnapping and murder.
Jonathan M. Bravo-Lopez (also known as “Jonathan Vravo,” and “Shadow”), 27, and Juan D. Osorio (also known as “Spexx”), 28, both of whom are citizens of Mexico residing in Kansas City, Mo., were found guilty on Friday, Dec. 16, of conspiracy to commit kidnapping and kidnapping resulting in death. Osorio was also found guilty of being an illegal alien in possession of a firearm. Bravo-Lopez was also found guilty of illegally reentering the United States after having been deported in 2016.
Evidence introduced during the trial indicated that Bravo-Lopez and Osorio conspired to kidnap Cristian Escutia in an attempt to rob him of money. They transported Escutia across state lines from Missouri to Kansas before fatally shooting him on April 3, 2017.
Bravo-Lopez and Osorio arranged to purchase $300 of marijuana from Escutia as a ruse to lure him into their kidnapping plan. On April 3, 2017, they met Escutia outside his residence, shot him in the arm, and forced him into their vehicle, a Chrysler Pacifica, at gunpoint. The kidnapping was captured by the video surveillance system outside a nearby residence. When they drove to the 200 block of Donovan Road in Kansas City, Kan., they forced Escutia out of the vehicle. Escutia was shot three times in the head and left to die on the side of the road.
Osorio, who is in the United States unlawfully, was in possession of an Action Arms Uzi .45-caliber semi-automatic pistol when he was arrested on April 7, 2017.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three hours before returning guilty verdicts to U.S. District Judge Roseann Ketchmark, ending a trial that began Dec. 5, 2022.
Under federal statutes, Bravo-Lopez and Osorio each are subject to a mandatory sentence of life in federal prison without parole. The sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and Matthew A. Moeder. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Kansas City, Kan., Police Department.
Jessamine County Man Sentenced to 20 Years in Prison for Production of Child PornographyRead the Press Release
LEXINGTON, Ky.— A Nicholasville, Ky., man, Noah James Grimes, 30, was sentenced to 20 years in federal prison on Monday, by U.S. District Judge Karen C. Caldwell, after pleading guilty to enticing a minor to engage in sexually explicit conduct outside the United States, with the purpose of producing a visual depiction of that conduct.
According to Grime’s guilty plea, a minor victim from Ontario, Canada, told their parent that someone had taken sexually explicit pictures of them at daycare. That person had been talking on a video chat with Grimes around the time the pictures were taken. Law enforcement discovered that the person who had taken the sexually explicit photos of the minor had been asked to do so by Grimes and had previously sent pictures of herself to Grimes, when she was a minor. A search warrant of Grimes phones revealed more than a hundred images of minor males, under the age of 12. Grimes admitted to knowingly persuading someone to produce sexually explicit images outside the United States and having those images sent to him.
Grimes pleaded guilty to the charge in January 2022.
Under federal law, Grimes must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; Chief Frank Bergen, Hamilton Police Department, Ontario, Canada; and Chief Bryan MacCulloch, Niagara Regional Police Service, Ontario, Canada, jointly announced the sentence.
The investigation was conducted by the FBI, the Hamilton Police Department and Niagara Regional Police Service. The United States was represented by Assistant U.S. Attorney David Marye.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Inmate Sentenced for Conspiring to Steal Government PropertyRead the Press Release
ALBANY, NEW YORK – Irvis Jorge, age 44, was sentenced today to 364 days in jail for fraudulently applying for unemployment benefits while a state prisoner.
The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (NYSDOCCS); and New York State Department of Labor (NYSDOL) Commissioner Roberta Reardon.
Jorge worked with his girlfriend, Pamela Febo, to submit a fraudulent unemployment insurance claim to NYSDOL using Jorge’s personal identifying information, at time when Jorge was an inmate in NYSDOCCS custody. Febo submitted the application at Jorge’s direction in October 2020 and continued to re-certify Jorge’s benefits eligibility each week for approximately four months. Febo certified each week that Jorge was “able and available to start work immediately” even though Febo knew Jorge remained incarcerated and could not work. NYSDOL paid the defendants $27,348 based on the repeated false certifications.
Senior United States District Judge Gary L. Sharpe ordered the 364-day term of imprisonment to run consecutive to Jorge’s state term of imprisonment for criminal possession of a controlled substance in the third degree. He also imposed 3 years of supervised release, and ordered restitution in the amount of $27,348 and forfeiture in the amount of $12,444. Febo pled guilty on October 26, 2022, and is scheduled to be sentenced in February.
The case was investigated by the FBI, the NYSDOCCS Office of Special Investigations, and the NYSDOL Office of Special Investigations. The case was prosecuted by Assistant U.S. Attorney Jonathan S. Reiner.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Indiana Man Ordered to Pay Restitution and Serve Probation for Defacing the Washington MonumentRead the Press Release
Defendant Was Arrested With Paint Brush In-Hand
WASHINGTON – Shaun Deaton, 44, of Bloomington, Indiana, was sentenced today to one year of probation and was ordered to pay $3034.99 in restitution to the National Park Service for vandalizing the Washington Monument. On September 20, 2022, Deaton traveled to Washington, DC, and defaced the Washington Monument by painting it using red paint. He was arrested with the paint brush still in his hand and red paint on his clothes and body.
On September 22, 2022, Deaton was charged with destruction of federal property. On October 17, 2022, Deaton pleaded guilty to the misdemeanor.
In announcing the sentence, U.S. Attorney Matthew M. Graves commended the work of the United States Park Police and the National Park Service. The case was prosecuted by Assistant U.S. Attorney Josh Gold.
Immigration Attorney and CEO of Immigration Services Company Convicted at Trial of Conspiring to Commit Immigration FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ULADZIMIR DANSKOI, the CEO of an immigration services firm, and JULIA GREENBERG, an immigration attorney, were found guilty yesterday in Manhattan federal court of conspiracy to defraud the United States and conspiracy to commit immigration fraud following a two-week trial before United States District Judge J. Paul Oetken.
U.S. Attorney Damian Williams said: “Asylum is an incredibly important benefit designed to protect the world’s most vulnerable people. The defendants, a CEO of an immigration services firm with offices in both Manhattan and Brooklyn and a licensed attorney, exploited that system for financial gain by knowingly peddling false claims and coaching clients to lie under oath. Yesterday, a unanimous jury convicted them both for these crimes.”
According to the allegations in the Indictment and evidence presented at trial:
A New York City immigration services firm, “Russian America,” worked with clients – primarily aliens from Russia and the Commonwealth of Independent States – seeking visas, asylum, citizenship, and other forms of legal status in the United States. Among other things, Russian America advised certain of their clients in the manner in which they were most likely to obtain asylum in this country, fully understanding that those clients did not legitimately qualify for asylum. The firm also prepared and submitted to United States Citizenship and Immigration Services (“USCIS”) clients’ fraudulent asylum application documents and affidavits, often including fraudulent allegations of past persecution. Members and associates of the firm also coached certain clients to lie under oath during interviews conducted by USCIS Asylum Officers and provided legal representation to their clients during various immigration proceedings.
ULADZIMIR DANSKOI and previously convicted codefendant Yury Mosha operated and maintained Russian America’s Brooklyn and Manhattan offices, respectively. Each advised and aided their clients to seek asylum under fraudulent pretenses. Among other things, DANSKOI advised a client, a confidential FBI source (the “Source”), to seek asylum on the fraudulent basis that the client was persecuted in Ukraine for being a gay male, when in fact DANSKOI fully understood that the Source was a heterosexual male who suffered no such persecution. DANSKOI submitted the Source’s fraudulent asylum application and Affidavit, filed under penalty of perjury, to USCIS.
Meanwhile, Mosha encouraged a second client, a Government cooperator (the “Cooperator”), to establish and maintain online blogs that were critical of the client’s home country as a way to generate a false claim that, based on the client’s invented political opinion, it was unsafe for him to return to his native country. Mosha also personally prepared and submitted the Cooperator’s asylum application, Affidavit, and related paperwork under penalty of perjury, knowing that these documents contained material falsehoods.
When the Source and Cooperator needed to prepare for an interview, conducted under oath by a USCIS asylum officer, DANSKOI and Mosha connected each to JULIA GREENBERG, a New York immigration attorney, who coached both clients to lie to Asylum Officers and provided legal representation to these clients during immigration proceedings. For example, GREENBERG, understanding that the Source was a heterosexual male who did not suffer persecution in his home country, prepared the Source for questioning by an Asylum Officer, advised the Source how to falsely answer certain anticipated questions from the Asylum Officer, and instructed the Source to dress and change the Source’s appearance in a manner that comported with GREENBERG’s vision of a gay male.
DANSKOI and Mosha also agreed to help certain Russian America clients obtain employment visas by creating fake leases and staging offices to create the impression to USCIS that these clients had legitimate jobs waiting for them in the United States.
* * *
DANSKOI, 55, and GREENBERG, 42, each originally from Belarus and currently residing in Staten Island, New York, were convicted of one count of conspiring to defraud the United States and conspiring to commit immigration fraud, which carries a maximum sentence of five years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI’s New York Eurasian Organized Crime Task Force, Homeland Security Investigations, and USCIS’s New York Asylum Office and Fraud Detection and National Security Unit. Mr. Williams also thanked United States Customs and Border Protection for its assistance.
This case is being prosecuted by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys David R. Felton and Jonathan E. Rebold are in charge of the prosecution.
Honduran Man Pleads Not Guilty to Unlawfully Transporting Foreign Nationals in VermontRead the Press Release
The United States Attorney stated that Guillermo Paredes-Bobadilla, 31, of Honduras and Brunswick, New Jersey, was arraigned yesterday in United States District Court in Burlington on an indictment charging him with unlawfully transporting three individuals from Guatemala who entered the United States illegally. Paredes-Bobadilla pleaded not guilty and remains in the custody of the U.S. Marshals Service in accordance with a prior order of the Court.
According to public documents in the case, during the early morning hours of December 1, 2022, based on information suggesting a nearby illegal border crossing, the United States Border Patrol initiated a traffic stop of a vehicle driven by Paredes-Bobadilla in Highgate, Vermont. Border Patrol identified Paredes-Bobadilla as a Honduran national living in New Jersey who had filed an asylum claim, which had not been adjudicated. The three passengers acknowledged they were from Guatemala and did not have legal status to be in the United States. The passengers stated that each paid $1,000 to be smuggled into the United States and that a foot guide led them to the pick up location.
The United States Attorney’s Office emphasizes that an indictment is an accusation only and that the defendant is presumed innocent until and unless proven guilty. As currently charged Paredes-Bobadilla, faces up to five years of imprisonment if convicted. Any sentence in the case will be advised by the United States Sentencing Guidelines.
U.S. Attorney Nikolas Kerest credited the agents of the United State Border Patrol for their investigation and apprehension of Paredes-Bobadilla and their continued efforts to prevent the exploitation of foreign nationals by human-smuggling organizations.
Assistant U.S. Attorney Joseph Perella represents the United States in this case. Paredes-Bobadilla is represented by Assistant Federal Public Defender Steven Barth.
High-ranking Member of the Sons of Silence Motorcycle Club Sentenced to 10 Years in Prison for Drugs and Weapons ViolationsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Seburn John Henry IV, age 37 of Colorado Springs, was sentenced to 10 years in federal prison for possession of a firearm by a prohibited person and possession with intent to distribute methamphetamine.
According to the plea agreement, on June 22, 2021, the Colorado Springs Police Department was conducting surveillance on a residence in Colorado Springs that was believed to be involved in narcotics distribution. During surveillance, two detectives observed the defendant working in and around a black Cadillac Escalade parked near the residence they were surveilling. Detectives saw the defendant near the back passenger compartment of the vehicle with a handgun in his right hand. It appeared to the detectives that the defendant was manipulating the slide of the handgun with his left hand. One of the detectives observed the defendant appear to load a firearm magazine. The defendant eventually left in the vehicle with a female passenger. Law enforcement knew the defendant was a high-ranking member of the Sons of Silence Motorcycle Club and also knew the defendant was a previously convicted felon who could not lawfully possess firearms. As such, both detectives believed the defendant was unlawfully in possession of a firearm and notified the CSPD Armed Violent Offenders Unit (AVOU) to respond and attempt to contact the defendant. That same day, law enforcement contacted the defendant as he pulled into a 7-Eleven in the same black Cadillac Escalade he was observed in earlier that day. The defendant was instructed to exit the vehicle, and he complied. One detective walked toward the driver’s door, which was left open, and observed two firearms in the driver’s door pocket. One of the handguns was a Taurus 9mm handgun loaded with a magazine containing 9mm ammunition. The other was a Smith & Wesson 9mm handgun loaded with a magazine containing 9mm ammunition. Law enforcement than began searching the vehicle. During that search, detectives located another handgun in the front passenger floorboard area. This handgun was also found to be loaded with a magazine containing .45 caliber ammunition. At the time the defendant possessed the firearms and ammunition, he knew that he had been convicted of a felony and was prohibited from possessing firearms. Detectives also located a total of 228.88 grams of suspected methamphetamine and two digital scales inside a black bag found on the floor of the front passenger seat in the vehicle.
Judge Raymond P. Moore sentenced the defendant on December 16, 2022.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Colorado Springs Police Department handled the investigation. Assistant United States Attorney Kelly Churnet handled the prosecution.
CASE NUMBER: 21-cr-00236
Great Falls man sentenced to 51 months in prison for fraudulent check, stolen identity schemeRead the Press Release
GREAT FALLS — A Great Falls man who admitted using stolen personal identifying information to make fraudulent checks in a scheme to spend almost $40,000 at area businesses was sentenced on Dec. 19 to 51 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said today.
John Brendan Dailey, 52, pleaded guilty in August to wire fraud and aggravated identity theft.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris also ordered $28,359 restitution.
The government alleged that in 2019 and 2020, Dailey participated in a fraudulent check scheme where he used fake identification cards, stolen checks and check printing software and materials to create new checks with valid account numbers. Dailey then used the fake identification cards and altered checks to spend almost $40,000 at businesses in the Great Falls and surrounding area. Dailey’s conduct affected dozens of victims and impersonated numerous real individuals, who suffered financial loss and now face a lifetime of monitoring whether someone is using their personal information.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case, which was investigated by the FBI and Great Falls Police Department.
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Georgia Man Sentenced to 244 Months in Prison for His Role in Ponzi and COVID-19 Fraud SchemesRead the Press Release
Christopher A. Parris, 42, formerly of Rochester, New York, and currently of Lawrenceville, Georgia, who was convicted of conspiracy to commit mail fraud related to a Ponzi scheme, as well as to wire fraud involving the fraudulent sale of purported N95 masks during the pandemic, was sentenced to serve 244 months in prison by U.S. District Judge Frank P. Geraci Jr.
“The schemes for which this defendant was sentenced, including the purported sale of non-existent medical supplies during the pandemic, were outrageous,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work closely with its law enforcement partners to prosecute those responsible for these types of fraud.”
“Christopher Parris, and his co-defendant Perry Santillo, engaged in an elaborate scheme to defraud hundreds of victims out of approximately $115 million dollars,” said U.S. Attorney Trini Ross for the Western District of New York. “These defendants went to great lengths to perpetuate their fraud and did so over a substantial period of time. This office, along with our law enforcement partners, committed significant resources to investigate this scheme, resulting in the prosecution of both Christopher Parris and Perry Santillo, who have now been sentenced to substantial periods of incarceration for victimizing their innocent clients in this Ponzi scheme. In addition, defendant Parris was also convicted for his part in a COVID-19 fraud scheme, during which he obtained approximately $7.4 million dollars by falsely purporting to have N95 masks, made in the United States, that he could sale to various medical companies, including the VA hospital, during the height of the pandemic.”
“This defendant exploited the unprecedented situation presented by the pandemic,” said U.S. Attorney for the District of Columbia Matthew M. Graves. “Fraud like this, playing off fears during a pandemic, merits a significant sentence, as the court imposed today. This sentence should be a warning to anyone who thinks they can get away with defrauding the government or others during a crisis.”
“Mr. Parris’ conduct was deceptive and manipulative, ultimately defrauding consumers out of hundreds of millions of dollars,” said Acting Special Agent in Charge Michael Stansbury of the FBI Buffalo Office. “This example of blatant greed is an affront to every hard-working taxpayer. Scammers are trying everything they can to defraud people of their hard-earned money, but the FBI is doing everything we can to make sure they don’t succeed. Today’s sentencing is further commitment that we will continue to work with our partners to protect the financial well-being of honest, hard-working Americans.”
“Today’s sentencing should give clear warning that the U.S. Postal Inspection Service will aggressively investigate and seek prosecution of individuals like Christopher Parris, who swindled investors out of their retirement savings and created financial devastation for so many victims,” said Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service, Boston Division. “We will continue to support and collaborate with our federal law enforcement partners to stop those who are engaged in these types of schemes.”
“It seems Parris’ multi-million-dollar Ponzi scheme to defraud investors out of their hard-earned cash was not enough, so he turned his attention to a multi-million-dollar COVID fraud scheme,” said Special Agent in Charge Thomas M. Fattorusso of IRS Criminal Investigations New York. “There were no boundaries in Parris’ cons, and no one person was safe as long as he was lining his pockets with their money. Now, with today’s sentencing, Parris will face justice; putting his scamming days behind him as he spends his time behind bars.”
“The pandemic and subsequent distribution of billions of dollars in relief funds created novel opportunities for bad actors and left VA vulnerable to various fraud schemes” said Inspector General Michael J. Missal of the Department of Veterans Affairs. “The vigilance and agility of our agents helped our office prevent the government and taxpayers from being defrauded of hundreds of millions of dollars. We will remain proactive in looking at high-risk areas and work with our law enforcement partners to stop these schemes before it is too late.”
“Homeland Security Investigations (HSI) special agents have sworn an oath to protect the American public, which they continued to uphold during the global health crisis,” said Special Agent in Charge David Denton of HSI New Orleans. “Our agents quickly reacted to protect Americans from opportunistic individuals who exploited a public health crisis to harm and deceive others for their own profit. This sentencing is a gratifying outcome for HSI and our law enforcement partners who were at the forefront of the government’s investigation response to COVID-19-related crime.”
The Ponzi Scheme
Between January 2011 and June 2018, Parris conspired with co-defendant Perry Santillo and others to obtain money through an investment fraud, commonly known as a Ponzi scheme. Specifically, in 2007, Parris and Santillo, as equal partners, formed a business known as Lucian Development in Rochester. Prior to approximately July 2007, Lucian Development raised millions of dollars from investors in Rochester, and elsewhere, by soliciting investments for City Capital Corporation, a business operated by Ephren Taylor. In July 2007, Parris and Santillo were advised by Ephren Taylor that their investors’ money had been lost. In response, in August 2007, Parris and Santillo agreed to acquire the assets and debts of City Capital Corporation. The acquisition proved financially ruinous, with the amount of the acquired debt far exceeding the value of the acquired assets. Taylor was later prosecuted and convicted of operating a Ponzi scheme.
Subsequently, Parris and Santillo chose not to disclose the truth to investors that their money, entrusted to Lucian Development for investment in City Capital Corporation, was gone. Instead, Parris and Santillo continued to solicit ever-increasing amounts of money from new investors in an unsuccessful attempt to recoup the losses. In order to find potential investors to solicit and defraud, Parris and Santillo purchased businesses from established investment advisors or brokers who were looking to exit their businesses. Between approximately 2008 and September 2017, Parris and Santillo, using money obtained from prior investors, purchased the businesses of at least 15 investment advisors or brokers, located in Tennessee, Ohio, Minnesota, Nevada, California (five businesses), Florida, South Carolina (two businesses), Texas, Pennsylvania, Maryland, and Indiana.
The investment offerings pitched by Parris and Santillo consisted principally of unsecured promissory notes and preferred stock issued by various entities controlled by Parris and Santillo. Potential investors were offered an apparent array of investment options to create the illusion of a diversified investment portfolio. Those investment options included products issued by purported issuers such as First Nationle Solutions (FNS), Percipience Global Corporation, United RL Capital Services, Boyles America, Middlebury Development Corporation and NexMedical Solutions, among others. None of these issuers had substantial bona fide business operations or used investor money in the manner and for the purposes represented to investors. To the extent that an issuer may have had some minor legitimate business activities, it was not profitable, and insufficient revenues were generated to pay investors any returns (let alone return the principal amounts of their investments).
Over the years, to keep the Ponzi scheme from being detected, a substantial portion of incoming new investor monies were depleted by making promised interest and other payments to earlier investors. Most of the rest of incoming investor money was used by Parris, Santillo, and other co-conspirators to finance lavish lifestyles of the conspirators, their families and associates; to expand the scheme by purchasing investment advisor/brokerage businesses to obtain access to fresh investors; and to pay operating expenses – salaries for a sales force and administrative staff, office rents and related expenses, housing for employees, and interest on loans – all of which were used to keep the scheme going and maintain a façade of legitimate business operations.
Very little investor money was deployed in productive investments, and when so deployed, the investments yielded meager income and were not profitable, or failed altogether. The Ponzi scheme was headquartered and based out of locations in Rochester, with a number of satellite offices around the country. Administrative and banking functions were largely performed out of Rochester. The conspiracy employed a variety of salespeople, including Parris and Santillo, who traveled around the country to meet with and solicit new investors.
Between January 2012 and June 19, 2018, Parris and Santillo obtained at least $115.5 million from approximately 1,000 investors. By the time the scheme collapsed in late-2017 and early 2018, Parris and Santillo, doing business through an array of corporate entities, had returned approximately $44.8 million to investors as part of their scheme, but continued to owe investors approximately $70.7 million.
Among the Rochester-area victims of the Ponzi scheme were the following:
- A resident of Webster, New York, who held a total asset value of $94,341.89 with a fictitious company known as First Nationle Solutions (FNS), which, as of Dec. 31, 2017, was in fact worthless or close to worthless; and
- A resident of Victor, New York, and his wife, who invested approximately $221,758.67 with FNS and Middlebury Development. The couple received three payments of $2,500 but lost approximately $214,258.67.
Parris and Santillo controlled hundreds of different business bank accounts opened under numerous different business names at various financial institutions, including but not limited to Bank of America, Citizens Bank, Genesee Regional Bank, and ESL Federal Credit Union. Santillo and Parris directed and authorized the transactions that occurred in the accounts, including deposits, withdrawals, check writing and funds transfers. The various bank accounts were used to transfer money from one account to another. Incoming investor money was routinely transferred through several accounts before the funds were finally spent on whatever purpose Parris and/or Santillo authorized. By moving investors’ funds through various accounts in various entity names, Parris and Santillo were able to conceal and obscure the fact that new investor money was being used to repay earlier investors, finance the operations of the Ponzi scheme, and fund their lifestyles.
Santillo was previously convicted and sentenced to serve 210 months in prison.
The COVID-19 Fraud Scheme
Parris also pleaded guilty in a case originally charged in the U.S. District Court for the District of Columbia to defrauding the U.S. Department of Veterans’ Affairs (VA), as well as at least eight other victim companies, in a scheme involving personal protection equipment (PPE). Between February and April 10, 2020, the defendant, as the owner and operator of Encore Health Group, a company based in Atlanta, that purported to broker medical equipment, offered to sell scarce PPE, including 3M-brand N95 respirator masks, to various medical supply companies and governmental entities. In these proposals, Parris knowingly misrepresented his access to, and ability to obtain and deliver on time, vast quantities of 3M N95 masks and other PPE. The defendant falsely represented that he was able to obtain 3M N95 masks directly from authorized sources in the United States, when in fact, he had no ready access to 3M factories or 3M N95 masks or other PPE, no proven source of supply, and no track record of procuring and delivering such items.
For example, in March 2021, Parris offered to sell the VA 125 million 3M N95 masks at a cost of $6.45 per mask. In this process, the defendant attempted to obtain an upfront payment of $3.075 million from the VA, even though he knew at the time that he had no access to the promised masks or present ability to deliver the promised masks.
As part of his guilty plea, Parris admitted that, in addition to attempting to defraud the VA, he actually obtained upfront payments totaling approximately $7.4 million from at least eight clients for 3M N95 masks that he knew he had no access to or present ability to obtain or deliver on time. Parris also admitted that the proceeds of the scheme totaled approximately $6,218,525. In total, Parris sought orders in excess of $65 million for the non-existent PPE equipment.
The sentencing is the result of an investigation by Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service Boston Division; Acting Special Agent-in-Charge Michael Stansbury of the FBI Buffalo Division , Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation Division; Acting Special Agent in Charge Jonathan Mellone of the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud New York Region; Superintendent Adrienne A. Harris of the New York State Department of Financial Services; the Securities and Exchange Commission; Inspector General Michael J. Missal of the VA OIG; and Special Agent in Charge Douglas Williams of the HSI New Orleans Field Office.
Assistant U.S. Attorney Richard A. Resnick for the Western District of New York, Assistant U.S. Attorney Peter Lallas for the District of Columbia, and Trial Attorney Patrick Runkle of the Civil Division’s Consumer Protection Branch are prosecuting the case.
On May 17, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources, and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Georgia Man Sentenced to 14 Years in Federal Prison for Submitting More Than $2.9 Billion in False Tax Claims to the IRSRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced David O. Isagba to 14 years in federal prison for mail fraud and conspiring to defraud the United States with respect to tax claims. This sentence was imposed consecutively to Isagba’s 2022 conviction for possession of child pornography from the Eastern District of New York.
David Isagba and his wife, Joyce Isagba, were indicted on the tax charges on May 27, 2020. David Isagba pleaded guilty on March 29, 2022. Joyce Isagba was convicted after a jury trial on June 16, 2022. She is scheduled for sentencing on March 16, 2023.
According to the plea agreement and other court documents, David Isagba submitted 227 fraudulent claims to the IRS from 2009 through 2019, falsely claiming to be entitled to more than $2.9 billion in tax refunds on behalf of nonexistent trusts. He subsequently received a total of $5,815,723.65 from the IRS as a result of this fraudulent scheme. Among other things, Isagba used the funds to purchase a home and multiple luxury vehicles.
“The defendant attempted to steal nearly $3 billion from the U.S. Treasury and used the millions he was able to swindle to lavish himself with exorbitant personal luxuries. Today’s sentencing now holds Isagba accountable for his egregious financial crimes and brazen scams,” said Ronald A. Loecker, IRS-CI Acting Special Agent in Charge. “This significant prison term is all the more satisfying given David Isagba’s conviction for possessing child
This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorneys William S. Hamilton and Hannah J. Nowalk.
Former St. Louis County High School Counselor Sentenced to 15 Years for Sex, Inappropriate Conduct with StudentsRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Tuesday sentenced a former St. Louis County, Missouri high school counselor who had sexual contact with one student and inappropriate contact with nine others to 15 years in prison.
After James Q. Jenkins, 38, is released from prison, he will be on supervised release for life and will have to register as a sex offender.
In court, Assistant U.S. Attorney Jillian Anderson said Jenkins executed a “carefully orchestrated web of manipulation” that lasted months, and used students’ religious beliefs or past sexual abuse to prey on them.
She pointed out that Jenkins had been placed on administrative leave and counseled by a prior school for inappropriate behavior with students and sought a job at a third school even after his offenses in St. Louis County came to light in the summer of 2021.
In a letter about Jenkins to Judge White, the mother of one victim wrote, “He was supposed to be helping our seniors map out colleges to help them into the next step of their educational path. Instead, he was manipulating and grooming our girls for his pleasure while traumatizing them for life at the same time.” The mother added that her daughter wanted to attend the sentencing hearing but “couldn't handle the emotional turmoil from it.”
Jenkins pleaded guilty in September to two felonies, coercion and enticement of a minor and transfer of obscene material to minors, and admitted engaging in a pattern of inappropriate activity with multiple students between Oct. 1, 2020 to Sept. 1, 2021.
Jenkins contacted a 15-year-old student on her personal cell phone and via social media, his plea agreement says. Jenkins told her that he was very sexual, requested nude pictures and sent her nude pictures. He claimed he loved her and told her he wanted to have sex with her.
Jenkins complimented the body of a second teen and told her that he wanted to engage in phone sex with her.
Jenkins communicated with a third teen in a sexual manner, sent her nude pictures of himself and requested pictures in return. He also engaged in sexual conduct with the teen while she was a student, on occasion leaving school early to do so. The girl originally began meeting with Jenkins for counseling because of challenges at home.
Jenkins brought up inappropriate topics with a fourth student, arranged to smoke marijuana with her and asked her to teach him a “sensual” dance.
About six more students told authorities that Jenkins made comments about their bodies, communicated with them on their personal cellular telephones and social media accounts, tried to make plans with them outside of school, showed them sexual videos, called them by pet names and touched them in a manner that was inappropriate and uncomfortable.
One teen told other counselors that Jenkins took off his shirt on a Zoom call and touched himself after telling her to share details about when she was molested.
The St. Louis County Police Department 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.
Former Rochester Man Going to Prison for More Than 20 Years for His Role in Ponzi and COVID-19 Fraud SchemesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY--Christopher A. Parris, 42, formerly of Rochester, NY, and currently of Lawrenceville, Georgia, who was convicted of conspiracy to commit mail fraud related to a Ponzi scheme, as well as to wire fraud involving the fraudulent sale of purported N95 masks during the pandemic, was sentenced to serve 244 months in prison by U.S. District Judge Frank P. Geraci, Jr. Parris was also ordered to pay approximately $106-million dollars in restitution.
“The schemes for which this defendant was sentenced, including the purported sale of non-existent medical supplies during the pandemic were outrageous,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work closely with its law enforcement partners to prosecute those responsible for these types of fraud.”
“Christopher Parris, and his co-defendant Perry Santillo, engaged in an elaborate scheme to defraud hundreds of victims out of approximately $115 million dollars,” stated U.S. Attorney Ross. “These defendants went to great lengths to perpetuate their fraud and did so over a substantial period of time. This office, along with our law enforcement partners, committed significant resources to investigate this scheme, resulting in the prosecution of both Christopher Parris and Perry Santillo, who have now been sentenced to substantial periods of incarceration for victimizing their innocent clients in this Ponzi scheme. In addition, defendant Parris was also convicted for his part in a COVID-19 fraud scheme, during which he obtained approximately $7.4 million dollars by falsely purporting to have N95 masks, made in the United States, that he could sale to various medical companies, including the VA hospital, during the height of the pandemic.”
“Defrauding the citizens and companies of this great country will not be tolerated in our society. Individuals who participate in this type of fraudulent activity will be investigate and prosecuted to the fullest extent of the law.” “This defendant exploited a situation like none other in our recent history,” said U. S. Attorney for the District of Columbia Matthew M. Graves. “Fraud like this, playing off fears during a pandemic, merits a significant sentence, as the court imposed today. This sentence should be a warning to anyone who thinks they can get away with ripping off the government or others during a crisis.”
“Mr. Parris’ conduct was deceptive and manipulative, ultimately defrauding consumers out of hundreds of millions of dollars,” stated Michael Stansbury, Acting Special Agent in Charge of the Buffalo FBI Office. “This example of blatant greed is an affront to every hard-working taxpayer. Scammers are trying everything they can to defraud people of their hard-earned money, but the FBI is doing everything we can to make sure they don’t succeed. Today’s sentencing is further commitment that we will continue to work with our partners to protect the financial well-being of honest, hard-working Americans.”
“Today’s sentencing should give clear warning that the U.S. Postal Inspection Service will aggressively investigate and seek prosecution of individuals like Christopher Parris, who swindled investors out of their retirement savings and created financial devastation for so many victims,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “We will continue to support and collaborate with our federal law enforcement partners to stop those who are engaged in these types of schemes.”
“It seems Paris’ multi-million-dollar Ponzi scheme to defraud investors out of their hard-earned cash was not enough, so he turned his attention to a multi-million-dollar COVID fraud scheme. There were no boundaries in Paris’ cons, and no one person was safe as long as he was lining his pockets with their money. Now, with today’s sentencing, Paris will face justice; putting his scamming days behind him as he spends his time behind bars,” said Thomas M. Fattorusso, Special Agent in Charge of IRS-CI New York.
“The pandemic and subsequent distribution of billions of dollars in relief funds created novel opportunities for bad actors and left VA vulnerable to various fraud schemes. The vigilance and agility of our agents helped our office prevent the government and taxpayers from being defrauded of hundreds of millions of dollars,” said VA Inspector General Michael J. Missal. “We will remain proactive in looking at high-risk areas and work with our law enforcement partners to stop these schemes before it is too late.”
“Homeland Security Investigations special agents have sworn an oath to protect the American public, which they continued to uphold during the global health crisis. Our agents quickly reacted to protect Americans from opportunistic individuals who exploited a public health crisis to harm and deceive others for their own profit,” said HSI New Orleans Special Agent in Charge David Denton. “This sentencing is a gratifying outcome for HSI and our law enforcement partners who were at the forefront of the government’s investigation response to COVID-19-related crime.”
The Ponzi Scheme
Between January 2011 and June 2018, Parris conspired with co-defendant Perry Santillo and others to obtain money through an investment fraud, commonly known as a Ponzi scheme. Specifically, in 2007, Parris and Santillo, as equal partners, formed a business known as Lucian Development in Rochester. Prior to approximately July 2007, Lucian Development raised millions of dollars from investors in Rochester, and elsewhere, by soliciting investments for City Capital Corporation, a business operated by Ephren Taylor. In July 2007, Parris and Santillo were advised by Ephren Taylor that their investors’ money had been lost. In response, in August 2007, Parris and Santillo agreed to acquire the assets and debts of City Capital Corporation. The acquisition proved financially ruinous, with the amount of the acquired debt far exceeding the value of the acquired assets. Taylor was later prosecuted and convicted of operating a Ponzi scheme.
Subsequently, Parris and Santillo chose not to disclose the truth to investors that their money, entrusted to Lucian Development for investment in City Capital Corporation, was gone. Instead, Parris and Santillo continued to solicit ever-increasing amounts of money from new investors in an unsuccessful attempt to recoup the losses. In order to find potential investors to solicit and defraud, Parris and Santillo purchased businesses from established investment advisors or brokers who were looking to exit their businesses. Between approximately 2008 and September 2017, Parris and Santillo, using money obtained from prior investors, purchased the businesses of at least 15 investment advisors or brokers, located in Tennessee, Ohio, Minnesota, Nevada, California (five businesses), Florida, South Carolina (two businesses), Texas, Pennsylvania, Maryland and Indiana.
The investment offerings pitched by Parris and Santillo consisted principally of unsecured promissory notes and preferred stock issued by various entities controlled by Parris and Santillo. Potential investors were offered an apparent array of investment options to create the illusion of a diversified investment portfolio. Those investment options included products issued by purported issuers such as First Nationle Solutions (FNS), Percipience Global Corporation, United RL Capital Services, Boyles America, Middlebury Development Corporation and NexMedical Solutions, among others. None of these issuers had substantial bona fide business operations or used investor money in the manner and for the purposes represented to investors. To the extent that an issuer may have had some minor legitimate business activities, it was not profitable, and insufficient revenues were generated to pay investors any returns (let alone return the principal amounts of their investments).
Over the years, to keep the Ponzi scheme from being detected, a substantial portion of incoming new investor monies were depleted by making promised interest and other payments to earlier investors. Most of the rest of incoming investor money was used by Parris, Santillo and other co-conspirators to finance lavish lifestyles of the conspirators, their families and associates; to expand the scheme by purchasing investment advisor/brokerage businesses to obtain access to fresh investors; and to pay operating expenses – salaries for a sales force and administrative staff, office rents and related expenses, housing for employees, and interest on loans – all of which were used to keep the scheme going and maintain a façade of legitimate business operations.
Very little investor money was deployed in productive investments, and when so deployed, the investments yielded meager income and were not profitable, or failed altogether. The Ponzi scheme was headquartered and based out of locations in Rochester, with a number of satellite offices around the country. Administrative and banking functions were largely performed out of Rochester. The conspiracy employed a variety of salespeople, including Parris and Santillo, who traveled around the country to meet with and solicit new investors.
Between January 2012 and June 19, 2018, Parris and Santillo obtained at least $115.5 million from approximately 1,000 investors. By the time the scheme collapsed in late-2017/early 2018, Parris and Santillo, doing business through an array of corporate entities, had returned approximately $44.8 million to investors as part of their scheme, but continued to owe investors approximately $70.7 million in principal.
Among the Rochester area victims of the Ponzi scheme were the following:
• A resident of Webster, New York, who held a total asset value of $94,341.89 with a fictitious company known as First Nationle Solutions (FNS), which, as of Dec. 31, 2017, was in fact worthless or close to worthless; and
• A resident of Victor, New York, and his wife, who invested approximately $221,758.67 with FNS and Middlebury Development. The couple received three payments of $2,500 but lost approximately $214,258.67.Parris and Santillo controlled hundreds of different business bank accounts opened under numerous different business names at various financial institutions, including but not limited to Bank of America, Citizens Bank, Genesee Regional Bank and ESL Federal Credit Union. Santillo and Parris directed and authorized the transactions that occurred in the accounts, including deposits, withdrawals, check writing and funds transfers. The various bank accounts were used to transfer money from one account to another. Incoming investor money was routinely transferred through several accounts before the funds were finally spent on whatever purpose Parris and/or Santillo authorized. By moving investors’ funds through various accounts in various entity names, Parris and Santillo were able to conceal and obscure the fact that new investor money was being used to repay earlier investors, finance the operations of the Ponzi scheme, and fund their lifestyles.
Santillo was previously convicted and sentenced to serve 210 months in prison.
The COVID-19 Fraud Scheme
Parris also pleaded guilty in a case originally charged in the U.S. District Court for the District of Columbia to defrauding the U.S. Department of Veterans’ Affairs (VA), as well as at least eight other victim companies, in a scheme involving personal protection equipment (PPE). Between February and April 10, 2020, the defendant, as the owner and operator of Encore Health Group, a company based in Atlanta, that purported to broker medical equipment, offered to sell scarce PPE, including 3M-brand N95 respirator masks, to various medical supply companies and governmental entities. In these proposals, Parris knowingly misrepresented his access to, and ability to obtain and deliver on time, vast quantities of 3M N95 masks and other PPE. The defendant falsely represented that he was able to obtain 3M N95 masks directly from authorized sources in the United States, when in fact, he had no ready access to 3M factories or 3M N95 masks or other PPE, no proven source of supply, and no track record of procuring and delivering such items.
For example, in March 2021, Parris offered to sell the VA 125 million 3M N95 masks at a cost of $6.45 per mask. In this process, the defendant attempted to obtain an upfront payment of $3.075 million from the VA, even though he knew at the time that he had no access to the promised masks or present ability to deliver the promised masks.
As part of his guilty plea, Parris admitted that, in addition to attempting to defraud the VA, he actually obtained upfront payments totaling approximately $7.4 million from at least eight clients for 3M N95 masks that he knew he had no access to or present ability to obtain or deliver on time. Parris also admitted that the proceeds of the scheme totaled approximately $6,218,525. In total, Parris sought orders in excess of $65 million for the non-existent PPE equipment.
* * *
The sentencing is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Inspector-in-Charge Ketty Larco-Ward of the Boston Division; the FBI, Buffalo Division, under the direction of Acting Special Agent-in-Charge Michael Stansbury, the IRS, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Jonathan Mellone, Special Agent-in-Charge, New York Region, the New York State Department of Financial Services, under the direction of Superintendent Adrienne A. Harris; the Securities and Exchange Commission; the VA OIG, under the direction of Michael J. Missal, Inspector General, and HSI, under the direction of Special Agent in Charge David Denton of the New Orleans Field Office.
Assistant U.S. Attorney Richard A. Resnick is handling the prosecution in the Western District of New York, and Trial Attorney Patrick Runkle of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Peter Lallas are handling the prosecution in the District of Columbia.
On May 17, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Former Federal Agent Sentenced to 126 Months for Enticing a Minor and Engaging in Sex Tourism in the PhilippinesRead the Press Release
East St. Louis, Ill. – A Cahokia, Illinois man was sentenced to 126 months by the Honorable Judge Stephen P. McGlynn for Enticement of a Minor, Travel with Intent to Engage in Illicit Sexual Conduct and Engaging in Illicit Sexual Conduct in a Foreign Place.
According to evidence presented during trial and sentencing, Joseph Albert Fuchs, III, a 55-year-old American citizen, met a 14-year-old girl while visiting the Philippines. Fuchs engaged in sexual conversations with the minor using Facebook and discussed ways to evade detection of her age when he would return to the Philippines to engage in sexual acts with her at a hotel.
Fuchs returned to the Philippines in March 2019 and engaged in sexual acts with the 14-year-old minor. During this time, Fuchs was a special agent for the United States Postal Service Office of Inspector General.
USPSOIG provided their full cooperation into the investigation, and it was later revealed that Fuchs sent nearly $1,000 to the minor over a year long period.
“Knowing the consequences in the U.S., Joseph Fuchs, III traveled thousands of miles to take advantage of a young, impressionable foreign girl, enticed her with financial payments and tried to conceal his involvement with her,” said U.S. Attorney Rachelle Aud Crowe. “Federal agents must be held to a higher ethical standard, and this sentence reflects the severity of the committed crimes.”
“This sentence sends an important message to all predators. We will not allow any crime against children to go unpunished,” said R. Sean Fitzgerald, special agent in charge for HSI Chicago. “We, alongside our law enforcement partners, are committed to holding these kind of criminals accountable for their heinous crimes. Our communities can help by being on the lookout for, and report, suspicious behavior to the proper authorities, regardless of whether the individual is in a position of public trust, like Fuchs.”
Fuchs is required to serve at least 85 percent of his sentence before he is eligible for release. He will be on supervised release for 7 years after he is released from the Bureau of Prisons and will be required to register as a sex offender. Additionally, Fuchs was ordered to pay a total of $18,000 in fines.
Homeland Security Investigations conducted the investigation with assistance from the HSI Attaché Manila, the Philippine National Police and the Cahokia Police Department. The case was prosecuted by Assistant U.S. Attorneys Ali Burns and Laura Reppert.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood and internet safety for children, visit www.usdoj.gov/psc.
Five Additional Defendants Indicted in Firearms Trafficking Conspiracy Involving 500+ Firearms Shipped from Georgia to California and Sold on the Black Market in CaliforniaRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 12-count superseding indictment on Thursday, adding Andre Warren Jr., 24, of Sacramento; Jjuan Brown, 32, of San Francisco; Kenyatta Alexander, 37, of Sacramento; Jarren Meek, 24, of Stockton; and Keino Brue, 28, of Georgia, as defendants, and charging them with conspiracy to unlawfully deal in firearms without a license, and unlawfully dealing in firearms without a license, United States Attorney Phillip A. Talbert announced. Alexander is also charged with three counts of being a felon in possession of a firearm.
According to court documents, on March 24, 2022, Jerrell Lawson, 32, of Sacramento; Aisha Hoggatt, 30, of Sacramento; Terrence Phillips, 40, of Union City; James Gordley, 33, of Modesto; and Malek Williams, 29, of Georgia, were indicted for a firearms trafficking scheme where firearms were acquired in Georgia and shipped to California to sell on the black market.
Between November 2019 and October 2021, the Lawson and his co-conspirators brought more than 500 firearms from Georgia into California and sent more than $300,000 in money transfers to purchase those firearms. Lawson would broker firearms transactions in Georgia over the internet, and Williams, a Georgia resident with a license to carry a concealed firearm, would pick up firearms in person and mail the firearms to various locations in California at Lawson’s direction. Some of the firearms went to individuals who are prohibited from possessing firearms due to prior felony convictions. Hoggatt worked with Lawson to coordinate the purchase, mailing, and distribution of the firearms. Phillips and Gordley also distributed the firearms in California.
Additional investigation has revealed that Warren Jr., Alexander, Brown, and Meek are members of the Lawson’s firearms trafficking organization and sub-distributors of firearms. Bruce also conducted hand-to-hand firearms transactions and received over $23,000 in money transfers to purchase firearms for Lawson’s firearms trafficking organization. Warren Jr., Alexander, Brown, and Meek discussed acquiring and selling firearms and machine gun conversion devices with Lawson. On one occasion, Brown indicated to Lawson the individuals in Oakland who Brown was supplying firearms to were “scar[]y.” Lawson, Phillips, Gordley, Warren Jr., and Alexander are all prohibited from possessing firearms because they each have one or more prior felony convictions.
The investigation began when a firearm used in a shooting in Sacramento was traced to the last known sale by a federally licensed dealer in Georgia. A subsequent sale of the firearm led to Lawson’s firearms trafficking organization. Lawson and his co-conspirators used coded language to traffic firearms and moved money using a variety of financial institutions. During the investigation, interdicted packages destined for Lawson and other co-conspirators were found to contain firearms, ammunition, knives, and brass knuckles, among other things.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, and the Sacramento Region/San Francisco Bay Area Cross-Jurisdictional Firearms Trafficking Strike Force Initiative. Assistant U.S. Attorney Alexis Klein is prosecuting the case.
The Sacramento Region/San Francisco Bay Area Cross-Jurisdictional Firearms Trafficking Strike Force is one of five cross-jurisdictional strike forces launched by the U.S. Department of Justice in July 2021 to disrupt illegal firearms trafficking in key regions across the country. Each strike force is led by designated United States Attorneys, who collaborate with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and with state and local law enforcement partners within their own jurisdiction as well as law enforcement partners in areas where illegally trafficked guns originate. The strike forces use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes, and are an important part of the Department’s Comprehensive Violent Crime Reduction Strategy.
Williams pled guilty to unlawfully dealing in firearms without a license and is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 31, 2023. Williams faces a maximum statutory penalty of five years in prison for unlawful dealing in firearms. Charges are pending against the remaining defendants. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Final Defendant Sentenced to 12 Years in Prison for Leading Nationwide Wire Fraud Conspiracy Targeting WalmartRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced today that the last of seven defendants was sentenced for a retail theft and wire fraud scheme they executed at hundreds of Walmart stores in 38 states. U.S. District Judge Robert J. Jonker sentenced the leader of the conspiracy, Adarius Ferguson, of Benton Harbor, to 144 months in prison. “This sentence marks the end of rampant crime sprees by six men who stole from and conducted fraudulent returns at over 300 Walmart stores across the nation,” said U.S. Attorney Mark Totten.
The seven men sentenced as part of this scheme are:
Name
Residence
Age
Sentence
Adarius Ferguson
Benton Harbor
31
144 months
Christopher Campbell
Benton Harbor
23
30 months
Joshawn Wilson
Benton Harbor
23
24 months
Jaylen Sulton
Benton Harbor
21
27 months
Tipton Lamar Walker
Benton Harbor
22
18 months
Marquis Davis
Benton Harbor
24
30 months
Elisha Vary
Jackson, MI
22
41 months
As part of the conspiracy, the codefendants stole high-priced electronics, such as internet routers, Apple products, and iRobot vacuums, from Walmart stores. They also purchased high-priced electronic goods matching those that were stolen. Using a variety of means, they altered the Walmart receipts from purchased goods and used them to conduct returns of both the stolen goods and the purchased goods, effectively getting double the return value for each item they purchased as part of the scheme. The group stole over $275,000 in Walmart electronics and conducted fraudulent returns in excess of $400,000.
“Brazen is exactly the way to describe what happened. People just piling up electronic equipment and walking out the front door, with the goal of going back in to ‘return’ the product,” said Judge Jonker. In discussing the broader implications of the fraud scheme, Judge Jonker explained, “It isn’t just Walmart. It’s the whole community. It’s all of the people that go to Walmart to buy things that now have to pay more for things because Walmart has to pay for the theft, somehow. . . . Stealing money without violence is still theft, it’s still serious, and it’s still something that people need to be accountable for.”
“This crime not only affected a major retailer, it affected the lives of hundreds of Walmart employees. Some store associates had Walmart keys stolen from their hands as they opened electronic cases for the defendants. Others had their vests, name tags, and store radios stolen. One associate required emergency medical treatment after being assaulted during a theft. And countless Walmart employees were pressured by Adarius Ferguson while he made fraudulent returns.” U.S. Attorney Mark Totten explained. “My office is committed to intercepting and incapacitating fraudsters who threaten the integrity and safety of our communities and effectively raise the cost of goods for all consumers.”
The Federal Bureau of Investigation and the Michigan State Police partnered in the investigation, with support from dozens of law enforcement agencies across the country that investigated thefts and fraudulent returns at Walmart stores in their respective jurisdictions. “The crimes committed by Ferguson and his codefendants were not “victimless” thefts from a retail store. In addition to the financial loss to the store, these defendants created trauma to the victim salesclerks,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “Today’s conclusion of this investigation serves as a reminder to those who engage in a criminal enterprise that the FBI and our law enforcement partners will work together with the private sector to find you and bring you to justice.”
Assistant U.S. Attorneys Kate Zell and Adam Townshend prosecuted the case.
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Federal jury finds Rio Rancho man guilty of theft and making false statements in Social Security schemeRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that a federal jury on Dec. 16 returned a guilty verdict on James Anthony Sandoval, 57, of Rio Rancho, New Mexico. The jury convicted Sandoval on 33 counts of theft of government property and one count each of making false statements and false statements on a Social Security form.
Sandoval became entitled to receive disability benefits in 2008. In 2016 and 2019, he reported to the Social Security Administration (SSA) that he had not worked since becoming ill in 2007. He also reported having difficulty performing simple daily tasks such as any physical activity and engaging in social interactions.
On Feb. 19, 2020, Sandoval was interviewed by the Cooperative Disability Investigations (CDI) Unit at the SSA office in Rio Rancho. During the interview, Sandoval reported he had not worked since 2002 or 2003, and he used an oxygen tank at all times. Sandoval refused to answer any questions regarding his business and denied making a profit or working at a jewelry business.
On March 15, 2021, Sandoval signed and dated an SSA Work Activity Report form in which he stated he was not able to work and had not received any income other than his SSA Disability Insurance benefits. The CDI investigation, however, uncovered facts contrary to these statements. Records from the New Mexico Office of the Secretary of State show that Traditions Past and Present, Inc., is an active, for-profit corporation. The business was incorporated in 2016 with Sandoval as the registered agent, director, director of operations and incorporator. The official address for the business was listed as Sandoval’s current residential address. According to bank records, Sandoval’s jewelry business was also generating a profit.
During the trial, the jury heard evidence including observations of agents and videos of Sandoval at the business location where he was working and identified himself as the owner. Other evidence included reports and photographs of Sandoval working at a vendor booth for his jewelry business at a trade show in Texas. During these observations, some of which lasted approximately an hour, Sandoval did not utilize an oxygen tank and indicated he had attended multiple shows across the United States promoting his business and selling his jewelry.
The prosecution also presented bank records of Traditions Past and Present and Sandoval’s personal bank records from 2014 to 2019. Those records included several transactions from the jewelry business to Sandoval’s personal accounts, all of which were controlled by Sandoval. According to bank records, Sandoval was the only known withdrawer from the accounts.
Sandoval will remain on conditions of release pending sentencing, which has not been scheduled. He faces up to 10 years in prison.
The SSA Office of the Inspector General Albuquerque CDI Unit investigated this case with assistance from the New Mexico Disability Determination Services, the New Mexico Office of Attorney General and SSA. Assistant United States Attorneys Raquel Ruiz-Velez and Kristopher N. Houghton are prosecuting the case.
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Federal Indictment Charges Rush City Woman with Mail Fraud, Money LaunderingRead the Press Release
MINNEAPOLIS – A Rush City woman has been indicted for mail fraud and money laundering after participating in multiple schemes that defrauded individuals throughout the United States, announced U.S. Attorney Andrew M. Luger.
According to court documents, from 2016 through April 2022, Gayle Joyce Ferngren, 69, and others participated in a scheme to launder proceeds that were fraudulently obtained from victims throughout the United States, including the proceeds of romance fraud scams and schemes to defraud Federal Pandemic Assistance Programs. After receiving the fraudulent proceeds, Ferngren kept a portion for herself and transmitted most of the funds to other scheme participants, including to individuals located overseas. In total, Ferngren laundered at least $1.8 million in fraud proceeds.
Ferngren is charged with four counts of mail fraud and one count of conspiracy to commit money laundering. She will make her initial appearance in U.S. District Court at a later date.
This case is the result of an investigation conducted by the U.S. Postal Inspection Service, the U.S. Department of Labor–Office of Inspector General, and the FBI.
Assistant U.S. Attorneys Matthew S. Ebert and Allison K. Ethen are prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Grand Jury Indicts Louisville Man on Firearm ChargeRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky returned an indictment on November 16, 2022, charging a local man with possession of a firearm by a convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Richard Sanders of the Jeffersontown Police Department made the announcement.
According to court documents, between June 13, 2020, and January 1, 2021, Ayub Hussein, 23, possessed a handgun after having previously been convicted in 2019 of unlawful possession of a weapon on school property, a felony.
Hussein made his initial court appearance yesterday before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. If convicted, he faces a maximum sentence of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The ATF and the Jeffersontown Police Department are investigating the case.
Special Assistant U.S. Attorney Emily Lantz is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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