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16 December 2022
Former Chairman of Riviera Beach Housing Authority Pleads Guilty to Extortion for Kickback PaymentsRead the Press Release
MIAMI – Delvin Thomas, 44, of West Palm Beach, Fla., has pled guilty to one count of extortion after using his chairman position to receive a kickback from a real-estate transaction. Thomas will be sentenced March 3, 2023, before Judge Kenneth Marra.
Around April 2019, Thomas was the chairman of the Riviera Beach Housing Authority, during which time the authority sought to purchase real-estate located in Riviera Beach for a low-income rental property. Thomas introduced a real estate broker to the person at Riviera Beach Housing Authority responsible for purchasing the property and Riviera Beach Housing Authority entered into a contract with the broker to purchase the property.
The broker was to receive a three percent commission from the property’s purchase. Once the contract to purchase the property was entered, Thomas told the broker that he, Thomas, was to receive 50 percent of the commission for its sale. At closing, the broker’s company was paid a commission of $18,930. In order to hide the unlawful payment of Thomas’ 50 percent share, Thomas contacted a straw party to act as a front for this illicit activity.
The straw party (or front) agreed to deposit two checks issued to the front’s business bank account and then issue checks from said account to Sire Development Group LLC, a company Thomas owned. Two checks in the amounts of $6,400 and $3,065 were issued to the front’s company account. This represented 50 percent of the commission received by the broker. The checks falsely stated in the memo section that the payments were for “company branding” and “marketing services.” The front then issued two checks to Thomas’ company, Sire Development Group LLC, in the amounts of $6,400 and $3,000—falsely stating in the check’s memo section that the payments were for “consulting services.”
Thomas faces a statutory maximum term of imprisonment of 20 years and a fine of $250,000.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and acting Special Agent in Charge Robert M. Dewitt, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
The FBI investigated this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former CEO of Subprime Auto Lender Indicted in $54.5 Million Bank Fraud SchemeRead the Press Release
CHICAGO — The former chief executive officer of a suburban Chicago subprime auto lending company has been charged in federal court with orchestrating a scheme that defrauded a bank of approximately $54.5 million.
JAMES COLLINS was the CEO of Evanston, Ill.-based Honor Finance LLC. From 2015 to 2018, Collins schemed with another top Honor executive to submit false information to the bank about a portfolio of loans made to subprime borrowers, in an effort to maintain a certain level of funding from a line of credit provided to Honor by the bank, according to an indictment returned in U.S. District Court in Chicago. The false information also allowed Collins and his co-schemer to increase the amount of funding they received from a trust established by Honor and the bank to securitize thousands of loans in Honor’s portfolio and sell them as bonds to investors, the indictment states. The indictment alleges that Collins selected delinquent vehicle loans for the trust that he knew were not eligible to be included in the portfolio because Honor and its affiliates had previously advanced money to the borrowers through the use of improper accounting entries. Collins hid the ineligibility of these loans from the bank, bond investors, and rating agencies, the indictment states.
As a result of Collins’s false representations and material omissions regarding the line of credit and the trust, the bank lost approximately $54.5 million, the indictment states.
The indictment charges Collins, 53, of Evanston, Ill., with 15 counts of bank fraud and two counts of securities fraud. Arraignment is scheduled for Dec. 19, 2022, at 10:00 a.m., before U.S. Magistrate Judge Beth W. Jantz.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Securities and Exchange Commission. The government is represented by Assistant U.S. Attorneys Matthew Getter and Paige Nutini.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of bank fraud is punishable by up to 30 years in federal prison, while each securities fraud count carries a maximum of 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Five Individuals Sentenced in $12 Million Federal Financial Aid Fraud SchemeRead the Press Release
Five individuals were sentenced yesterday for conspiring to defraud the U.S. Department of Education’s financial aid programs of over $12 million in federal funds.
According to court documents, from around August 2010 through May 2018, the defendants created and ran an elaborate sham university – the Columbus, Georgia, satellite campus of Apex School of Theology (Apex Columbus). Anderson, the former Director of Apex Columbus, enrolled hundreds of individuals who were not qualified and who had no desire to obtain a theological education to pose as students. The defendants and their co-conspirators then worked together to fraudulently complete financial aid applications in students’ names and to complete students’ homework and exams. After falsely ensuring that the sham students would receive federal financial aid, the defendants either stole student financial aid refund checks or required students to cash their aid checks and provide a portion to the co-conspirators. During the course of the conspiracy, the Department of Education issued approximately $12 million in fraudulently procured financial aid.
Name, Age
Residence
Sentence
Sandra Anderson, 63
Hampton, Georgia
108 months in prison
Three years of supervised release
Yolanda Brown Thomas, 51
Columbus, Georgia
63 months in prison
Three years of supervised release
Kristina Parker, 35
Stone Mountain, Georgia
Four years in prison
Three years of supervised release
Erica Montgomery, 49
Fort Mitchell, Alabama
51 months in prison
Three years of supervised release
Leo Frank Thomas, 56
Phenix City, Alabama
Three years in prison
Three years of supervised release
All five defendants were also ordered to pay, jointly and severally, $11,821,022 in restitution to the Department of Education.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Peter D. Leary for the Middle District of Georgia; Special Agent in Charge Keri E. Farley of the FBI Atlanta Field Office; Special Agent in Charge Reginald J. France of the Department of Education Office of Inspector General (ED-OIG), Southeastern Regional Office; and Special Agent in Charge James E. Dorsey of the IRS Criminal Investigation (IRS-CI) made the announcement.
The FBI, ED-OIG, and IRS-CI investigated the case.
Assistant Chief Leslie S. Garthwaite and Trial Attorneys Siji Moore, Spencer Ryan, and Matt Kahn of the Criminal Division’s Fraud Section prosecuted the case, with valuable assistance from the U.S. Attorney’s Office for the Middle District of Georgia.
Final Defendant Sentenced to Life in Prison for Role in Deadly Lexington KidnappingsRead the Press Release
LEXINGTON, Ky. — A Lexington man, Ramon Camacho Zepeda, 54, was sentenced to life in in federal prison, on Friday, by U.S. District Judge Karen Caldwell, after previously being convicted of conspiracy to commit kidnapping and interstate transportation of stolen automobiles.
According to evidence presented at trial, the charges stemmed from the kidnappings of two individuals, identified in court records as J.O. and M.A.T.O. Both victims were killed during the commission of the kidnappings. Their bodies were discovered in the trunk of a Volkswagen Jetta, on September 11, 2017, at 430 Blue Sky Parkway, in Lexington. That location was an automotive repair business owned by J.O. Two vehicles belonging to J.O. were stolen during the offenses and transported to Wilkes-Barre, Pennsylvania. Evidence presented at trial revealed that Camacho Zepeda and Diaz Barraza were distributing kilogram quantities of cocaine and heroin in Lexington, and that J.O. had incurred a debt to them, based on his involvement in the drug trafficking. Testimony by a pathologist from the Kentucky Medical Examiner’s Office established that J.O.’s cause of death was attributed to “chop wounds” to the head and asphyxiation. The second victim, M.A.T.O., died from asphyxiation.
Zepeda, Rosario Diaz Barraza, 32, of Phoenix, and John Carlos Betancourt, 27, of Penuelas, Puerto Rico, were convicted at trial in April 2022. Diaz Barraza was sentenced in September 2022 to 35 years in prison, followed by five years of supervised release. Betancourt was sentenced in July 2022 to 84 months in prison, followed by three years of supervised release.
Additionally, Serrano-Jimenez pled guilty as charged to conspiracy to commit kidnapping in the case. On October 6, 2022, he received 168 months in prison, followed by five years of supervised release. Finally, Jose Felix Tlatenchi, of Wilkes- Barre, pled guilty to an information as an accessory after the fact to the kidnapping. He was sentenced to 120 months and a term of SR
Under federal law, Zepeda 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 five years.
“This sentence brings to close the prosecution of a horrific crime,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Unfortunately, in addition to the severe damage of abuse and addition, the illegal drug trade often brings with it dramatic violence. Here, two people brutally lost their lives, and the sentences imposed are unquestionably warranted. Bringing those responsible for this awful crime to justice involved tireless, dedicated, and remarkable work, by both our trial team and our law enforcement partners, across several states. Those who continue to engage in this dangerous trade should know that we are committed and will continue to use all the resources available to us to combat it.”
“This case perfectly illustrates the brutal nature of drug trafficking; two individuals suffered a violent end because they got mixed up with the wrong crowd,” said Special Agent in Charge J. Todd Scott, head of the Drug Enforcement Administration’s Louisville Division. “Lexington is a safer community today, with one more violent offender sentenced to prison for committing these barbaric acts.”
United States Attorney Shier; DEA Special Agent in Charge Scott; Colonel Phillip Burnett, Commissioner, Kentucky State Police; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentencing.
The lengthy investigation was conducted primarily by the Lexington Police Department, the Drug Enforcement Administration, and the Kentucky State Police. Multiple additional law enforcement agencies also provided valuable assistance, including the Wilkes-Barre, Pennsylvania Police Department, the Reading, Pennsylvania Police Department, the Pennsylvania State Police, the New York City Police Department, the Harlingen, Texas Police Department, and the U.S. Department of Homeland Security Investigations. The United States was represented in the case by Assistant U.S. Attorneys Todd Bradbury and Francisco Villalobos.
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Federal Grand Jury Indicts Louisville Man and Woman for Conspiring to Distribute MethamphetamineRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky returned an indictment on December 6, 2022, charging a local man and woman with conspiring to possess with the intent to distribute methamphetamine and distributing methamphetamine.
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 Erika Shields of the Louisville Metro Police Department made the announcement.
According to court documents, between August 31, 2022, and November 3, 2022, Malik Abdullah, 22, and Kayla Scott, 21, conspired together to distribute 50 grams or more of methamphetamine in the Louisville area. Abdullah is charged with one count of conspiracy to possess with the intent to distribute methamphetamine and eight counts of distribution of methamphetamine. Scott is charged with one count of conspiracy to possess with the intent to distribute methamphetamine and seven counts of distribution of methamphetamine.
Scott made her initial court appearance yesterday before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. Abdullah was taken into state custody and will make his initial court appearance at later date. If convicted, they each face a mandatory minimum sentence of 10 years and a maximum sentence of life 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 Louisville Metro Police Department are investigating the case.
Special Assistant U.S. Attorney (SAUSA) 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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Federal Grand Jury Indicts Allen County Man for Drug Trafficking and Illegal Possession of a FirearmRead the Press Release
Bowling Green, KY – On December 14, 2022, a federal grand jury returned an indictment charging an Allen County man with possession with the intent to distribute methamphetamine and possession of a firearm by a convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division made the announcement.
According to court documents, Timothy E. Austin, 49, of Scottsville, Kentucky, possessed with the intent to distribute 50 grams or more of methamphetamine on August 15, 2022, in Allen County, Kentucky. Austin is also charged with possessing a Raven Arms, model MP25, .25 caliber semiautomatic pistol after having been convicted of a felony. His prior felony convictions include first-degree possession of a controlled substance and tampering with physical evidence.
Austin is currently in state custody and will be scheduled for his initial appearance before a United States Magistrate Judge of the United States District Court for the Western District of Kentucky once he is transferred to federal custody. If convicted, Austin faces a minimum of 10 years and a maximum of life in federal 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 DEA and the Allen County/Scottsville Crime Task Force are investigating the case.
The case is being prosecuted by Assistant U.S. Attorney Mark J. Yurchisin II.
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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Federal Grand Jury Indicts 2 on Charges of Selling Fentanyl, Other Narcotics through Darknet and Encrypted Messaging ApplicationsRead the Press Release
LOS ANGELES – A federal grand jury has indicted two men who allegedly used the darknet and encrypted messaging applications to sell over 120,000 fentanyl-laced pills and other drugs to thousands of customers across the country.
The 19-count indictment charges Rajiv Srinivasan, 37, of Houston, and Michael Ta, 24, of Westminster, in a conspiracy to distribute and to possess with the intent to distribute fentanyl and methamphetamine. Both defendants are also named in various counts alleging the distribution and possession with the intent to distribute both drugs.
According to the indictment, Srinivasan operated the account “redlightlabs” on the darknet, including the site “Dark0de.” He allegedly used the redlightlabs account to advertise and sell counterfeit M30 oxycodone pills containing fentanyl.
Srinivasan also allegedly used the encrypted messaging application Wickr to communicate with and sell drugs to customers. Srinivasan allegedly received virtual currency as payment for the drugs and then routed that virtual currency through cryptocurrency exchanges.
The indictment alleges that Ta communicated with Srinivasan about drug orders, obtained fentanyl-laced pills and methamphetamine from sources of supply, stored those drugs in his residence, and mailed out packages with drugs to customers who had ordered them from Srinivasan.
The indictment alleges that between February and November 2022, Srinivasan and Ta sold over 7,000 pills to a person they believed was a drug customer, but who was in fact an undercover law enforcement agent. Srinivasan and Ta allegedly maintained a shared electronic document that detailed approximately 3,800 drug transactions to approximately 1,500 unique customers. That database documented sales between May and November 2022 totaling approximately 123,188 fentanyl pills, over 143 kilograms of methamphetamine, and smaller amounts of fentanyl powder, black tar heroin and cocaine, according to the indictment.
FBI agents arrested both defendants last month pursuant to a criminal complaint. Srinivasan was ordered jailed without bond and is being transported to the Central District of California from Houston. Ta was released on bond and is scheduled to be arraigned on the indictment on December 22.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The statutory maximum sentence for the conspiracy charge alleged in the indictment is life in federal prison.
The FBI investigated this matter. The United States Postal Inspection Service and the United States Attorney’s Office for the Southern District of Texas provided substantial assistance.
The investigation in this matter was conducted under the auspices of the FBI-led Joint Criminal Opioid Darknet Enforcement Team (JCODE), which targets darknet vendors by using sophisticated, high-tech techniques to identify drug traffickers who wrongly believe the dark web allows them to engage in criminal conduct with anonymity. Since its inception in 2018, JCODE investigations have resulted in the arrest of more than 300 darknet drug traffickers, as well as the seizure of more than $42 million in drug-tainted proceeds, over 800 kilograms of narcotics, and approximately 145 firearms.
Assistant United States Attorney Gregg E. Marmaro of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
El Departamento de Justicia llega a un acuerdo con un distrito escolar de la Ciudad de San Bernardino para proteger los derechos civiles de estudiantes que están aprendiendo inglésRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con el Distrito Escolar Unificado de la Ciudad de San Bernardino, el cual resuelve la investigación del Departamento del programa del distrito escolar para sus estudiantes que están aprendiendo inglés. La investigación del Departamento, que se llevó a cabo entre la División de Derechos Civiles y la Fiscalía Federal para el Distrito Centro de California, concluyó que el distrito no estaba proveyendo a estudiantes que están aprendiendo inglés con los servicios y apoyos necesarios como para llegar a dominar el inglés, ni tampoco para poder participar, de manera significativa, en clases de contenido básico, como matemáticas, ciencias o estudios sociales. El distrito ha acordado mejorar sus servicios para que estudiantes que están aprendiendo inglés tengan acceso a las mismas oportunidades educativas esenciales que sus compañeros de clase.
«La educación es una parte fundamental del logro del sueño americano, pero para muchos estudiantes que están aprendiendo inglés por todo el país, sus distritos escolares no proporcionan los servicios y apoyo que necesitan», comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles luchará por garantizar que los distritos cumplan con sus obligaciones en virtud de las leyes federales a brindar a todos sus estudiantes, independientemente de sus habilidades lingüísticas, una educación completa y significativa».
«Las leyes federales protegen los derechos de estudiantes que están aprendiendo inglés a participar plenamente en el aula», declaró Martin Estrada, el Fiscal Federal para el Distrito Centro de California. «El acuerdo de hoy representa un paso importante hacia garantizar que los estudiantes que están aprendiendo inglés reciban la enseñanza que necesitan para avanzar y dominar el inglés y para participar en la escuela de la misma forma que sus compañeros de clase. El acuerdo mejorará los servicios y el apoyo que se ofrecen a los estudiantes que están aprendiendo inglés».
La investigación del Departamento identificó que no se garantizó que todos los maestros que enseñan el idioma inglés estuvieran debidamente calificados. Además, en muchos casos, los maestros de asignaturas básicas como matemáticas, ciencias y estudios sociales no estaban capacitados o calificados como para proporcionar los apoyos que estudiantes que están aprendiendo inglés necesitan para aprender materias apropiadas para su grado, entre otras preocupaciones.
Conforme el acuerdo, el distrito ofrecerá enseñanza lingüística a estudiantes que están aprendiendo inglés para ayudarles a dominar el inglés y asegurará que sus maestros sean capacitados y certificados en la provisión de tal enseñanza. Por otra parte, el distrito ofrecerá capacitación a los maestros de asignaturas básicas, tales como matemáticas, ciencias y estudios sociales, en lo que se refiere al uso de herramientas que ayudan a estudiantes que están aprendiendo inglés a entender el contenido de tales asignaturas. Además, el distrito supervisará, de manera eficaz, el progreso de los estudiantes e identificará si los estudiantes necesitan servicios o apoyos adicionales para garantizar que los estudiantes que están aprendiendo inglés tengan acceso a programas de estudiantes dotados y cursos avanzados, incluyendo las asignaturas de Advanced Placement [clases avanzadas con crédito universitario]. El Departamento supervisará el cumplimiento del distrito con el acuerdo durante un período de tres años.
La versión en inglés del comunicado de prensa está disponible aquí: https://www.justice.gov/opa/pr/justice-department-secures-settlement-san-bernardino-city-school-district-protect-rights La ejecución de la ley de Igualdad de Oportunidades Educativas de 1974 es una de las prioridades principales de la División de Derechos Civiles. Para más información sobre la División de Derechos Civiles, puede visitar su sitio web en www.justice.gov/crt. Para más información sobre la labor de la Sección de Oportunidades Educativas, vaya a https://www.justice.gov/crt/educational-opportunities-section. Miembros del público también pueden informar de posibles vulneraciones de derechos civiles en https://civilrights.justice.gov/report/.
El Departamento de Justicia llega a un acuerdo con un distrito escolar de la Ciudad de San Bernardino para proteger los derechos civiles de estudiantes que están aprendiendo inglésRead the Press Release
LOS ANGELES – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con el Distrito Escolar Unificado de la Ciudad de San Bernardino, el cual resuelve la investigación del Departamento del programa del distrito escolar para sus estudiantes que están aprendiendo inglés. La investigación del Departamento, que se llevó a cabo entre la División de Derechos Civiles y la Fiscalía Federal para el Distrito Centro de California, concluyó que el distrito no estaba proveyendo a estudiantes que están aprendiendo inglés con los servicios y apoyos necesarios como para llegar a dominar el inglés, ni tampoco para poder participar, de manera significativa, en clases de contenido básico, como matemáticas, ciencias o estudios sociales. El distrito ha acordado mejorar sus servicios para que estudiantes que están aprendiendo inglés tengan acceso a las mismas oportunidades educativas esenciales que sus compañeros de clase.
«Las leyes federales protegen los derechos de estudiantes que están aprendiendo inglés a participar plenamente en el aula», declaró Martin Estrada, el Fiscal Federal para el Distrito Centro de California. «El acuerdo de hoy representa un paso importante hacia garantizar que los estudiantes que están aprendiendo inglés reciban la enseñanza que necesitan para avanzar y dominar el inglés y para participar en la escuela de la misma forma que sus compañeros de clase. El acuerdo mejorará los servicios y el apoyo que se ofrecen a los estudiantes que están aprendiendo inglés».
«La educación es una parte fundamental del logro del sueño americano, pero para muchos estudiantes que están aprendiendo inglés por todo el país, sus distritos escolares no proporcionan los servicios y apoyo que necesitan», comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles luchará por garantizar que los distritos cumplan con sus obligaciones en virtud de las leyes federales a brindar a todos sus estudiantes, independientemente de sus habilidades lingüísticas, una educación completa y significativa».
La investigación del Departamento identificó que no se garantizó que todos los maestros que enseñan el idioma inglés estuvieran debidamente calificados. Además, en muchos casos, los maestros de asignaturas básicas como matemáticas, ciencias y estudios sociales no estaban capacitados o calificados como para proporcionar los apoyos que estudiantes que están aprendiendo inglés necesitan para aprender materias apropiadas para su grado, entre otras preocupaciones.
Conforme el acuerdo, el distrito ofrecerá enseñanza lingüística a estudiantes que están aprendiendo inglés para ayudarles a dominar el inglés y asegurará que sus maestros sean capacitados y certificados en la provisión de tal enseñanza. Por otra parte, el distrito ofrecerá capacitación a los maestros de asignaturas básicas, tales como matemáticas, ciencias y estudios sociales, en lo que se refiere al uso de herramientas que ayudan a estudiantes que están aprendiendo inglés a entender el contenido de tales asignaturas. Además, el distrito supervisará, de manera eficaz, el progreso de los estudiantes e identificará si los estudiantes necesitan servicios o apoyos adicionales para garantizar que los estudiantes que están aprendiendo inglés tengan acceso a programas de estudiantes dotados y cursos avanzados, incluyendo las asignaturas de Advanced Placement [clases avanzadas con crédito universitario]. El Departamento supervisará el cumplimiento del distrito con el acuerdo durante un período de tres años.
Eight Burlington Individuals Charged by Federal Criminal Complaint with Drug ChargesRead the Press Release
DAVENPORT, IA – Eight Burlington individuals were charged by criminal complaint in federal court as a result of a joint federal and state investigation of a drug trafficking organization that operated out of Burlington.
Six individuals made their initial appearances in federal court at the United States Courthouse in Davenport on Thursday, December 15, 2022: Gilbert Lee Ellis, Christopher Jerome Ellis, Honesty Knotts, Hardy Pegues, Joshua Adam Townsen, and Michael Demetrius Brown. Theodis Bagby and Larry Keith Knotts were also charged with this offense but have not yet made their initial appearance.
This investigation was conducted by the Federal Bureau of Investigation and the Southeast Iowa Narcotics Taskforce with assistance from the Drug Enforcement Administration, Burlington Police Department, Des Moines County Sheriff’s Office, West Burlington Police Department, Henry County Sheriff’s Office, Iowa State Patrol, Iowa Division of Narcotics Enforcement, Lee County Task Force, Muscatine Task Force, Quad City Metropolitan Enforcement Group, Johnson County Drug Task Force, Ottumwa Drug Task Force, and the Tri-County Drug Enforcement Team in Illinois.
On December 15, 2022, federal search warrants were executed at the following locations:
• 200 block of Ballard Street, West Burlington;
• 300 block of Locust Street, Burlington;
• 3200 block of Division Street, Burlington;
• 900 block of Locust Street, Burlington;
• 1400 block of Lucas Street, Burlington;
• 1500 block of Gnahn Street, Burlington;
• 1600 block of South 14th Street, Burlington;
• 1300 block of Aetna Street, Burlington.
United States Attorney Richard D. Westphal of the Southern District of Iowa; and the Federal Bureau of Investigation and Burlington Police Department made the announcement.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
East Bay Convenience Store Owner Sentenced to More Than Three Years in Prison for Role in Food Stamp Fraud ConspiraciesRead the Press Release
OAKLAND –Ali Mugalli Hassan was sentenced to 37 months in prison for his role in multiple schemes to defraud government benefits programs, announced United States Attorney Stephanie M. Hinds and United States Department of Agriculture Office of Inspector General (USDA-OIG) Western Region Special Agent in Charge Shawn Dionida. The sentence was handed down by United States District Judge Phyllis J. Hamilton following a week-long jury trial resulting in Hassan’s conviction of the crimes.
At trial, the government presented evidence that Ali Mugalli Hassan, 32, of Alameda, defrauded the United States Department of Agriculture (USDA) by unlawfully trafficking federal food stamp benefits from 2014 through 2017. According to evidence presented at trial, Hassan owned and operated a convenience store on International Boulevard in Oakland. Members of Hassan’s family, including his father Mugalli Ahmed Hassan, 50, of Alameda, served as cashiers at the store. The convenience store was an authorized vendor for the USDA’s Supplemental Nutritional Assistance Program (SNAP) (formerly known as the Food Stamp Program) which helps economically disadvantaged persons pay for essential food items for themselves and their families. Trial evidence showed that Hassan and his family members conducted fraudulent SNAP transactions through his convenience store by charging purchases on the customers’ EBT cards when, in reality, the customers received few or no SNAP-eligible products. In addition, the evidence demonstrated Hassan kept approximately half the value of the fraudulent transactions and returned the remainder in cash to the customers. As part of the scheme, Hassan engaged in transactions in which he kept customers’ EBT cards and used the federal benefits assigned to those cards at other stores to purchase items to sell at his convenience store. At sentencing, Judge Hamilton found the loss amount from the conspiracy to be over $1 million.
On March 14, 2019, a federal grand jury indicted Ali Hassan and Mugalli Hassan, charging both with various crimes in accordance with their roles in the scheme. On June 14, 2022, Mugalli Hassan pleaded guilty to nine counts of wire fraud, in violation of 18 U.S.C. § 1343, and proceeded to trial along with Ali Hassan on several of the remaining counts pending against them. On June 29, 2022, a jury convicted both Ali Hassan and Mugalli Hassan of one count of conspiracy to commit benefits fraud and to defraud the United States, in violation of 18 U.S.C. § 371; one count of benefits fraud greater than $5,000, in violation of 7 U.S.C. § 2024(b); one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; and one count of wire fraud, in violation of 18 U.S.C. § 1343.
In addition to the prison term, Chief Judge Hamilton ordered Ali Hassan to serve three years of supervised release, to begin after his release from prison, and to pay a fine of $15,000.
Judge Hamilton scheduled Mugalli Hassan’s sentencing hearing for February 2, 2023.
Assistant U.S. Attorneys Abraham Fine and Molly Priedeman prosecuted the case at trial with the assistance of Patricia Mahoney, Kay Konopaske, and Leeya Kekona. The prosecution is the result of an investigation by the USDA-OIG with the assistance of the Oakland Police Department, U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Drug Trafficker Sentenced to Seven Years in Prison for Operating Cocaine Delivery Service in Chicago AreaRead the Press Release
CHICAGO — A drug trafficker who conspired with his father and several others to operate a cocaine delivery service in the Chicago area has been sentenced to seven years in federal prison.
TONY J. CAYUELA, also known as “Tone Kapone,” 43, of Chicago, operated a drug trafficking organization that in 2018 distributed cocaine to hundreds of customers in the Chicago area. Tony J. Cayuela packaged wholesale quantities of cocaine into one-gram bags for retail sale and dispatched drivers to complete deliveries to customers. One of the drivers was Tony Cayuela’s father, TONY F. CAYUELA, 68, of Chicago.
Federal law enforcement shut down the drug trafficking organization during a multi-year investigation known as “Operation Flawed Deal.” During the probe, authorities seized multiple bank accounts, more than a kilogram of cocaine, a Mercedes G63 sport-utility vehicle, and two handguns. All 18 defendants charged in the investigation, including the Cayuelas, pleaded guilty and admitted their roles in the trafficking operation. In addition to the drug conspiracy, Tony J. Cayuela also pleaded guilty to a money laundering charge.
U.S. District Judge Jorge L. Alonso sentenced Tony J. Cayuela on Dec. 6, 2022. The other 17 defendants were previously sentenced, including ANEES USMANI, also known as “Ace,” of Chicago, who received eight years in prison.
The case was part of an Organized Crime Drug Enforcement Task Force operation. OCDETF identifies, disrupts, and dismantles the highest-level drug trafficking organizations and other criminal networks 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.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. Valuable assistance was provided by the Chicago Police Department, Evanston, Ill., Police Department, Skokie, Ill., Police Department, Lincolnwood, Ill., Police Department, Palatine, Ill., Police Department, and Des Plaines, Ill., Police Department. Assistant U.S. Attorney Charles W. Mulaney represented the government.
“The convictions and federal prison sentences in this operation should serve as a warning to those who distribute poison in our communities: We will prosecute you to the fullest extent of the law,” said U.S. Attorney Lausch. “Our federal and local law enforcement partners in this operation performed exemplary work to dismantle a significant drug trafficking organization.”
“Operation Flawed Deal should serve as a beacon of hope to our community, a message that we won't tolerate drugs in our neighborhoods, and those who disobey the law will be brought to justice,” said FBI Acting SAC Morales. “The FBI is honored to work with our state, local, and federal partners to protect the American people every day.”
“This sentencing signals an important victory for the American public,” said IRS-CI SAC Campbell. “The role of IRS Criminal Investigation in narcotics investigations is to follow the money and financially disrupt and dismantle major drug trafficking organizations. One of the government's most powerful weapons is the ability to seize the assets associated with narcotics-related crime. We are proud to work hand-in-hand with our law enforcement partners to bring these criminals to justice.”
District Man Sentenced to Nine Years for ManslaughterRead the Press Release
Defendant Shot the Victim as the Victim Ran Away
WASHINGTON – John Philogene, 24, of Washington, DC, was sentenced to nine years in prison, followed by five years of supervised release after pleading guilty to voluntary manslaughter while armed for shooting and killing a man in Southeast Washington following a fight, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Philogene pleaded guilty and was sentenced in the Superior Court of the District of Columbia by the Honorable Marisa J. Demeo.
According to the government’s evidence, on March 27, 2021, the decedent, Evan Shawntez Wood, and a friend entered an apartment building in the Cascade Park Apartments at 4281 6th Street, Southeast, Washington, DC, and were immediately confronted by the defendant with a gun. The victim, who friends said had been in the military, lunged at the defendant and they got into a fight that sprawled from the apartment building out into the courtyard. There, the victim broke free and ran from the courtyard. As the victim ran away, Philogene stood up, chambered a round in his handgun, and shot the victim in the back of the leg. Mr. Wood kept running, making it a couple of blocks to a yard alongside a house on Forrester Street, Southeast, Washington, DC, where he sat down and died.
Philogene and another subject then warned the victim’s friend not to talk, both at the scene and again the next day by Facetime. Philogene also went to the building where the victim’s friend usually bought drugs, kicked in an apartment door, and pointed a gun at the people inside while asking where the victim and his friend were.
Philogene was arrested almost exactly a month later on April 27, 2021. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Siegerist and Victim/Witness Advocates Latrice Washington-Williams and Jenn Allen. Finally, they commended the work of Assistant U.S. Attorney Peter V. Roman and Deputy Chief Laura Bach, who investigated and prosecuted the case.
District Man Sentenced to 10 Years for Aiding and Abetting Murder in Online Robbery SchemeRead the Press Release
Defendant’s Co-conspirator Shot Victim After They Stole $225
WASHINGTON – Deandre Houston, 21, of Washington, DC, was sentenced today to 10 years in prison, followed by five years of supervised release, for second-degree murder while armed for aiding and abetting the killing of a man in Southeast Washington as part of an online robbery scheme, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Houston pleaded guilty and was sentenced in the Superior Court of the District of Columbia by the Honorable Maribeth Raffinan.
According to the government’s evidence, Houston set up accounts on OfferUp, an online marketplace service similar to eBay, which targets local buyers and sellers and allows them to post items for sale and arrange for the sales transaction through the app. Through the app, Houston offered a non-existent 2012 MacBook Pro for sale. The decedent, Roderick Joseph Thomas, agreed to meet Houston and buy the laptop from him.
On October 11, 2018, Mr. Thomas waited in his car in the 3200 block of 12th St SE, Washington, DC to buy the laptop from Mr. Houston. Houston and an unknown co-conspirator went to meet Mr. Thomas. The co-conspirator brought a gun, which Houston knew about and had reason to believe would be used in the robbery. At the scene, Houston walked around Mr. Thomas’ car and got in the passenger seat while his co-conspirator approached the driver’s side door. They told Mr. Thomas to give them the cash, presumably intended for the laptop purchase. Houston stole the $225 from Mr. Thomas and then his co-conspirator told Mr. Thomas to get out of the car so that he could steal that too. Mr. Thomas got out of the car and fought back, but when he got back into the car, Houston’s co-conspirator shot Mr. Thomas and killed him. Houston and his co-conspirator then fled the scene with the cash.
Houston was arrested less than three weeks later, on October 31, 2018. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Siegerist and Victim/Witness Advocate Karina Hernandez. Finally, they commended the work of former Assistant U.S. Attorney Emile Thompson, Assistant U.S. Attorney Peter V. Roman, and Deputy Chief Laura Bach, who investigated and prosecuted the case.
District Man Pleads Guilty Mid-Trial to Hate Crimes ChargesRead the Press Release
WASHINGTON – Norman Wilson, 40, of Washington, D.C., pleaded guilty today, mid-trial, to charges stemming from two assaults in which he targeted Hispanic individuals based on their race and/or national origin, announced United States Attorney Matthew M. Graves.
Wilson pleaded guilty to two counts of simple assault with a bias-related enhancement for each count. The guilty plea followed a day and half of trial in the Superior Court of the District of Columbia. The Honorable Peter Krauthamer immediately sentenced Wilson to 270 days of suspended time with time served for one charge, and 200 days of suspended time with time served for the second charge. The judge also imposed 1 year of supervised probation for each count.
Mr. Wilson assaulted the first victim on May 15, 2022, at the Dupont Circle Metro Station. During this assault, Mr. Wilson targeted the victim, hit the victim with a metal object, and then made derogatory statements directed at the victim being Hispanic. The second assault took place on May 22, 2022, when Mr. Wilson targeted a Hispanic victim inside of the Friendship Heights Metro Station, kicked the victim in the back while descending the escalator, followed the victim throughout the station, and assaulted the victim a second time, all the while making derogatory comments directed at the victim’s race and/or national origin. After Mr. Wilson was arrested, he was interviewed by detectives from the Metropolitan Transit Police Department. During this interview, Mr. Wilson stated his beliefs that there are too many foreigners in America, they are not humble enough, and other similar xenophobic statements.
In announcing the sentence, U.S. Attorney Graves and Chief Michael Anzallo, of the Metro Transit Police Department, commended the work of those who investigated the case from the Metro Transit Police Department. He also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialists Christopher Lionette, Daphne Teresa Nelson, and Wanda Trice, as well as Victim/Witness Coordinator Maria Sanchez-Garcia.
Finally, he commended the efforts of Special Assistant U.S. Attorney Matthew Goldstein and Assistant U.S. Attorney Thomas Derbish, who prosecuted the case, and AUSA Bonnie Lindemann, who investigated the case.
Defendant Sentenced for Role in Sophisticated International Scheme to Steal Money from American Consumers’ Bank AccountsRead the Press Release
A U.S. citizen who previously resided in Ukraine was sentenced to 42 months in prison and five years of supervised release for conspiracy to commit bank fraud.
According to court documents, Harold Sobel, 69, was a member of an international criminal enterprise that unlawfully debited money from the bank accounts of unknowing U.S. victims. Members of the criminal enterprise created shell companies for the purpose of receiving victim funds and created fake websites for the shell companies that claimed to offer products or services, such as cloud storage. Members then executed unauthorized debits against victims’ bank accounts, while falsely representing to banks that the debits were authorized by the victims.
“The department will vigorously pursue and prosecute individuals who steal from American consumers’ bank accounts and deceive U.S. banks to conceal and continue their schemes,” said Principal Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s sentence demonstrates our commitment to bringing fraudsters to justice, even when they commit their crimes from foreign countries.”
“The Justice Department and our law enforcement partners will investigate and prosecute offenders who defraud Americans and U.S. financial institutions,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “Our office will diligently work with the Department’s Consumer Protection Branch and law enforcement to use every tool at our disposal to hold fraudsters accountable regardless of where they reside and to bring justice for victims.”
“Global criminal enterprises that span multi-continent distances and operate from beyond our borders might feel they are safe from the reach of U.S. Postal Inspectors. But they are wrong,” said Postal Inspector in Charge Eric Shen of Criminal Investigations. “Scammers who defraud American citizens and banks are in our sights. Working with our partners in the Department of Justice, we will track them down and bring them to justice.”
Unauthorized debits against victim accounts, caused by the conspirators, resulted in returned transactions and high return rates that often generated scrutiny from the banks. To both conceal and continue making these unauthorized debits, members of the criminal enterprise made misrepresentations to the financial institutions about the transactions, claiming that they were authorized. In some cases, members of the criminal enterprise caused the accounts used by the criminal enterprise to also make “micro debits” against other bank accounts controlled and funded by or for the criminal enterprise. The “micro debits” were used to artificially lower the return rates to levels that conspirators believed would reduce bank scrutiny and thereby lessen the likelihood of closure of the accounts used by the criminal enterprise. The criminal enterprise also operated a call center that fielded complaints from victims of the unauthorized debits. The call center sought to dissuade victims from making reports to the victims’ banks and to government agencies.
As part of the enterprise, Sobel opened bank accounts in the United States at the direction of a co-conspirator who organized and conducted the affairs of the enterprise from outside the United States. For example, on or about Oct. 16, 2019, Sobel opened four business deposit accounts at a bank branch in Las Vegas, Nevada. Sobel opened the accounts for a shell company called “Silver Safe Box” and listed himself as the sole member and authorized signer in the account opening documentation. The criminal enterprise then funded “micro debits,” designed to lower return rates through the Silver Safe Box accounts. Between approximately December 2019 and January 2021, the Silver Safe Box accounts funded over 800,000 “micro debits” in amounts ranging from $0.99 to $1.85. Sobel also recruited at least two associates in the United States to help the foreign co-conspirator, among other things, open additional bank accounts and register shell companies.
Sobel’s participation also involved providing support for the activities of the criminal enterprise’s call center in Ukraine. Sobel devised a script to be used in response to complaints from victims by the call center’s personnel to retain as much of the criminal enterprise’s proceeds as possible and – only on those occasions where those efforts failed – to then issue full refunds, in order to dissuade victims from making reports to the victims’ banks and government agencies. Sobel also devised a metric by which he and the foreign co-conspirator could evaluate the effectiveness of the call center’s personnel. As part of his guilty plea, Sobel admitted that more than $1.5 million in victim debits were reasonably foreseeable to him.
The U.S. Postal Inspection Service investigated the case.
Trial Attorneys Meredith Healy and Wei Xiang of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Mina Chang of the District of Nevada prosecuted the case. The U.S. Attorney’s Office for the Southern District of Texas provided substantial assistance.
Defendant Sentenced for Role in Sophisticated International Scheme to Steal Money from American Consumers' Bank AccountsRead the Press Release
LAS VEGAS – A U.S. citizen who previously resided in Ukraine was sentenced to 42 months in prison and five years of supervised release for conspiracy to commit bank fraud.
According to court documents, Harold Sobel, 69, was a member of an international criminal enterprise that unlawfully debited money from the bank accounts of unknowing U.S. victims. Members of the criminal enterprise created shell companies for the purpose of receiving victim funds and created fake websites for the shell companies that claimed to offer products or services, such as cloud storage. Members then executed unauthorized debits against victims’ bank accounts, while falsely representing to banks that the debits were authorized by the victims.
“The department will vigorously pursue and prosecute individuals who steal from American consumers’ bank accounts and deceive U.S. banks to conceal and continue their schemes,” said Principal Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s sentence demonstrates our commitment to bringing fraudsters to justice, even when they commit their crimes from foreign countries.”
“The Justice Department and our law enforcement partners will investigate and prosecute offenders who defraud Americans and U.S. financial institutions,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “Our office will diligently work with the Department’s Consumer Protection Branch and law enforcement to use every tool at our disposal to hold fraudsters accountable regardless of where they reside and to bring justice for victims.”
“Global criminal enterprises that span multi-continent distances and operate from beyond our borders might feel they are safe from the reach of U.S. Postal Inspectors. But they are wrong,” said Postal Inspector in Charge Eric Shen of Criminal Investigations. “Scammers who defraud American citizens and banks are in our sights. Working with our partners in the Department of Justice, we will track them down and bring them to justice.”
Unauthorized debits against victim accounts, caused by the conspirators, resulted in returned transactions and high return rates that often generated scrutiny from the banks. To both conceal and continue making these unauthorized debits, members of the criminal enterprise made misrepresentations to the financial institutions about the transactions, claiming that they were authorized. In some cases, members of the criminal enterprise caused the accounts used by the criminal enterprise to also make “micro debits” against other bank accounts controlled and funded by or for the criminal enterprise. The “micro debits” were used to artificially lower the return rates to levels that conspirators believed would reduce bank scrutiny and thereby lessen the likelihood of closure of the accounts used by the criminal enterprise. The criminal enterprise also operated a call center that fielded complaints from victims of the unauthorized debits. The call center sought to dissuade victims from making reports to the victims’ banks and to government agencies.
As part of the enterprise, Sobel opened bank accounts in the United States at the direction of a co-conspirator who organized and conducted the affairs of the enterprise from outside the United States. For example, on or about Oct. 16, 2019, Sobel opened four business deposit accounts at a bank branch in Las Vegas, Nevada. Sobel opened the accounts for a shell company called “Silver Safe Box” and listed himself as the sole member and authorized signer in the account opening documentation. The criminal enterprise then funded “micro debits,” designed to lower return rates through the Silver Safe Box accounts. Between approximately December 2019 and January 2021, the Silver Safe Box accounts funded over 800,000 “micro debits” in amounts ranging from $0.99 to $1.85. Sobel also recruited at least two associates in the United States to help the foreign co-conspirator, among other things, open additional bank accounts and register shell companies.
Sobel’s participation also involved providing support for the activities of the criminal enterprise’s call center in Ukraine. Sobel devised a script to be used in response to complaints from victims by the call center’s personnel to retain as much of the criminal enterprise’s proceeds as possible and – only on those occasions where those efforts failed – to then issue full refunds, in order to dissuade victims from making reports to the victims’ banks and government agencies. Sobel also devised a metric by which he and the foreign co-conspirator could evaluate the effectiveness of the call center’s personnel. As part of his guilty plea, Sobel admitted that more than $1.5 million in victim debits were reasonably foreseeable to him.
The U.S. Postal Inspection Service investigated the case.
Trial Attorneys Meredith Healy and Wei Xiang of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Mina Chang of the District of Nevada prosecuted the case. The U.S. Attorney’s Office for the Southern District of Texas provided substantial assistance.
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Defendant Charged with Attempted Enticement of Nine-Year-Old BoyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced charges against EFREM ZELONY-MINDELL for attempted enticement of one minor boy in Manhattan, New York, and possession and distribution of child pornography. ZELONY-MINDELL was arrested this morning and will be presented in Manhattan federal court today before U.S. Chief Magistrate Judge James L. Cott.
U.S. Attorney Damian Williams said: “Zelony-Mindell allegedly attempted to engage in sexual activity with a nine-year-old boy. The protection of children from predation remains of critical importance to this Office, and we will continue to use our resources and work with our law enforcement partners to bring offenders to justice.”
FBI Assistant Director Michael J. Driscoll said: “As alleged, Mr. Zelony-Mindell’s actions are nearly unfathomable. Through a series of conversations with undercover FBI agents conducted on encrypted messaging platforms, he stated his desire to have sex with minor children, and he ultimately met with one of the agents who he believed would provide him an opportunity to do so. Today’s action should serve as a reminder to anyone who seeks to prey on children - the FBI Human Trafficking and Child Exploitation Task Force and our law enforcement partners will continue to aggressively pursue you and hold you accountable.”
According to the allegations in the Complaint charging ZELONY-MINDELL:[1]
On or about April 29, 2022, an individual identified to be ZELONY-MINDELL initiated a series of conversations with an undercover FBI Special Agent (“UC-1”) on an encrypted messaging service. In these conversations, ZELONY-MINDELL repeatedly expressed, in graphic and unambiguous terms, his desire to engage in sexual activity with minor children and sent UC-1 numerous images and videos containing child pornography.
On or about May 9, 2022, UC-1 sent ZELONY-MINDELL, over the encrypted messaging service, the username of a second undercover FBI Special Agent (“UC-2”), posing as the father of a nine-year-old boy. ZELONY-MINDELL contacted UC-2 over the encrypted messaging service the same day and made clear that he was interested in having sex with the nine-year-old child. Subsequently, ZELONY-MINDELL and UC-2 had numerous communications, including over the encrypted messaging service, by text message, and over the phone. During these conversations, ZELONY-MINDELL made clear that he wanted to engage in sexual activity, including specifically anal sex, with UC-2’s purported child. When told by UC-2 that the child would be “knocked out a little bit” on sleep medication during the planned sexual activity, ZELONY-MINDELL agreed to have sex with the drugged child.
UC-2 and ZELONY-MINDELL arranged to meet at on a street corner in lower Manhattan on the morning of December 16, 2022, with the understanding that they would return to UC-2’s apartment afterward and ZELONY-MINDELL would then engage in sexual activity with the child. On the morning in question, ZELONY-MINDELL met a third FBI Special Agent (“UC-3”) at the agreed-upon location, at which time law enforcement arrested ZELONY-MINDELL.
* * *
ZELONY-MINDELL, 35, of Fayetteville, Arkansas, is charged with one count of attempted enticement of a minor to engage in illegal sexual activity, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of distribution of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison; and one count of possession of child pornography, which carries a maximum sentence of 20 years in prison.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI, and, in particular, the members of the Human Trafficking and Child Exploitation Task Force.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Lisa Daniels is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Cortland Man Sentenced to 9 Years in Prison for Distributing, Receiving and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK - Jon Burns, age 58, of Cortland, New York, was sentenced today to serve 9 years in federal prison for distributing, receiving, and possessing child pornography, announced United States Attorney Carla B. Freedman, Matthew Scarpino, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York Field Office, and New York State Police Acting Superintendent Steven A. Nigrelli.
As part of his guilty plea, Burns admitted that he actively traded child pornography images and videos using a social media messaging application located on his electronic devices and that on January 4, 2022, he distributed a video file depicting sexual conduct with a child who was between 8 and 10 years old. Burns further admitted that on February 24, 2022, he received a video file depicting sexual conduct with a child who was approximately 6 years old. Finally, Burns admitted that on March 8, 2022, he knowingly possessed over 2000 image files and over 750 video files depicting child pornography on his cellular telephone, iPad, and two tablet computers.
Chief United States District Judge Brenda K. Sannes also imposed a 15-year term of supervised release, which will start after Burns is released from prison, and ordered him to pay $15,000 in restitution and a $600 special assessment. Burns will also be required to register as a sex offender.
Burns’ case was investigated by U.S. Homeland Security Investigations (HSI), and Investigators of the New York State Police, Computer Crimes Unit (NYSP-CCU). The case was prosecuted by Assistant U.S. Attorney Geoffrey J.L. Brown as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.
Convicted Felon Who Forcibly Resisted Arrest Sentenced to over Six Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Cleate Wilson (40, Tampa) to six years and six months in federal prison for forcibly resisting, opposing, impeding, and interfering with two Deputy United States Marshals (DUSMs) and possessing a firearm and ammunition as a convicted felon. Today’s sentence will run consecutive to an 18-month sentence that Wilson is currently serving for violating the terms of his supervised release on a prior federal conviction. The court also ordered Wilson to forfeit an H&K 9mm firearm and 14 rounds of 9mm ammunition. Wilson had pleaded guilty on October 4, 2022.
According to court documents, on May 5, 2022, four DUSMs went to the vicinity of East Bank Drive in Tampa to arrest Wilson, a convicted felon, on an active federal arrest warrant for violating his supervised release. The DUSMs identified themselves and Wilson attempted to flee, and a struggle ensued. Wilson resisted efforts to arrest him for approximately four minutes. Specifically, Wilson used force in his arms, legs, and torso, pushing against the DUSMS, in an attempt to escape. The deputies repeated commands during the struggle, including, “Stop resisting,” “Calm down,” and “Give me your hands,” all of which Wilson ignored. Wilson eventually stopped resisting and the DUSMs handcuffed him. Inside Wilson’s waistband, the DUSMs found an H&K 9mm handgun loaded with 14 rounds of ammunition. As a previously convicted felon, Wilson is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the United States Marshals Service, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Christopher F. Murray.
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.
Co-Founder of Multi-Billion-Dollar Cryptocurrency Pyramid Scheme “OneCoin” Pleads GuiltyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that KARL SEBASTIAN GREENWOOD, who co-founded OneCoin with RUJA IGNATOVA, a/k/a “the Cryptoqueen,” pled guilty today in Manhattan federal court to wire fraud and money laundering charges in connection with his participation in the massive OneCoin fraud scheme. OneCoin, which began operations in 2014 and was based in Sofia, Bulgaria, marketed and sold a fraudulent cryptocurrency by the same name through a global multi-level-marketing (“MLM”) network. As a result of misrepresentations that GREENWOOD, IGNATOVA, and others made about OneCoin, victims invested over four billion dollars worldwide in the fraudulent cryptocurrency. Today, District Judge Edgardo Ramos accepted GREENWOOD’s guilty plea. IGNATOVA, who was added to the Federal Bureau of Investigation’s Top Ten Most Wanted List in June 2022, remains at large.
U.S. Attorney Damian Williams said: “As a founder and leader of OneCoin, Karl Sebastian Greenwood operated one of the largest international fraud schemes ever perpetrated. Greenwood and his co-conspirators, including fugitive Ruja Ignatova, conned unsuspecting victims out of billions of dollars, claiming that OneCoin would be the ‘Bitcoin killer.’ In fact, OneCoins were entirely worthless. Greenwood’s lies were designed with one goal, to get everyday people all over the world to part with their hard-earned money — real money — and to line his own pockets to the tune of hundreds of millions of dollars. This guilty plea by the co-founder of OneCoin caps a week at SDNY that sends a clear message that we are coming after all those who seek to exploit the cryptocurrency ecosystem through fraud, no matter how big or sophisticated you are.”
According to the allegations in the Superseding Information and other filings and statements made in court:
In 2014, GREENWOOD and IGNATOVA co-founded OneCoin,[1] a company based in Sofia, Bulgaria, that marketed a purported cryptocurrency by the same name, which was in fact a fraudulent pyramid scheme. OneCoin operated as a MLM network through which members received commissions for recruiting others to purchase cryptocurrency packages. This MLM structure influenced rapid growth of the OneCoin member network. Indeed, according to OneCoin’s promotional materials, over three million people invested in fraudulent cryptocurrency packages. OneCoin records show that, between the fourth quarter of 2014 and the fourth quarter of 2016 alone, OneCoin generated €4.037 billion in sales revenue and earned “profits” of €2.735 billion.
IGNATOVA served as OneCoin’s top leader until her disappearance from public view, in October 2017. GREENWOOD was OneCoin’s “global master distributor” and the leader of the MLM network through which the fraudulent cryptocurrency was marketed and sold. In a video posted online, IGNATOVA attributed to GREENWOOD the idea of marketing and selling OneCoin through an MLM network structure. GREENWOOD earned approximately €20 million a month in his role as the top MLM distributor of OneCoin.
GREENWOOD and IGNATOVA conceived of and built the OneCoin business fully intending to use it to defraud investors. For example, in the summer of 2014, when GREENWOOD and IGNATOVA were developing the concept for OneCoin, they referred to the cryptocurrency in email correspondence as “trashy coin.” On June 11, 2014, IGNATOVA wrote to GREENWOOD concerning the OneCoin business plan, stating in part:
It might not be [something] really clean or that I normally work on or even can be proud of (except with you in private when we make the money) – but . . . I am especially good in this very borderline cases [sic], where the things become gray - and you as the magic sales machine - and me as someone who really can work with numbers, legal and back you up in a good and professional way - we could really make it big - like MLM meets bitch of wall street ;-)
In an August 9, 2014, email between GREENWOOD and IGNATOVA, IGNATOVA described her thoughts on the “exit strategy” for OneCoin. The first option that IGNATOVA listed was, “Take the money and run and blame someone else for this . . . .” And in a September 11, 2016, exchange with IGNATOVA’s brother, Konstantin Ignatov, GREENWOOD referred to OneCoin investors stating, “These ppl are idiots,” to which Ignatov responded, “as you told me, the network would not work with intelligent people ;)”
As a result of misrepresentations made by GREENWOOD, IGNATOVA, and other OneCoin representatives, victims throughout the world wired investment funds to OneCoin-controlled bank accounts in order to purchase OneCoin packages. OneCoin falsely claimed that the value of OneCoin was based on market supply and demand, when in fact, the value of the cryptocurrency was simply set by OneCoin itself. For example, on June 9, 2014, in an email sent by IGNATOVA to a representative of a blockchain development company, copying GREENWOOD, IGNATOVA stated, “we are building our own cryptocurrency - and would like to set up an internal exchange service for them. We would like to be able to set the price manually and automatically and also control the traded volume.” On March 21, 2015, IGNATOVA wrote an email to GREENWOOD, in which IGNATOVA stated, “We can manipulate the exchange by simulating some volatility and intraday pricing.” (bold in original). And in an August 1, 2015, email, IGNATOVA wrote to GREENWOOD, and included as part of a section of the email entitled “Goals”: “6. Trading coin, stable exchange, always close on a high price end of day open day with high price, build confidence - better manipulation so they are happy.” The purported value of a OneCoin grew steadily from €0.50 to approximately €29.95 per coin. The purported price of OneCoins never decreased in value.
GREENWOOD and other OneCoin leaders also claimed that the OneCoin cryptocurrency was “mined” using mining servers maintained and operated by the company. In fact, OneCoins were never mined using computer resources. For example, in an email to IGNATOVA dated August 11, 2014, GREENWOOD proposed, “Get members to think that they are mining their OneCoin via crunching (exchanging) tokens for OneCoin. This storey [sic] is good as ppl will then not go super crazy and just try and sell tokens all the time.” GREENWOOD emailed IGNATOVA the following day, writing, “The concept of converting tokens into OneCoin is an important phase for validity and truth behind the OneCoin. The so called ‘mining’ of coins is a concept that is very familiar in the industry and a story we can sell to the members.” IGNATOVA then wrote to GREENWOOD, “We are not mining actually - but telling people shit,” to which GREENWOOD responded, “how can this be investigated and found out?” and “Can any member (trying to be clever) find out that we actually are not investing in machines to mine but it is merely a piece of software doing this for us?”
GREENWOOD and other OneCoin leaders further claimed that OneCoin maintained a private “blockchain,” or a digital ledger identifying OneCoins and recording historical transactions. But OneCoin lacked a true blockchain, that is, a public and verifiable blockchain. Indeed, by approximately March 2015, IGNATOVA and GREENWOOD had started allocating to OneCoin members coins that did not even exist in OneCoin’s purported private blockchain, referring to those coins as “fake coins.”
GREENWOOD and IGNATOVA promoted OneCoin, including at official OneCoin events all over the globe. One such event, called “Coin Rush,” was held at Wembley Arena in London on June 11, 2016. Thousands of OneCoin members attended Coin Rush. During the event, GREENWOOD introduced IGNATOVA to the crowd, stating in part: “This is the creator, the mastermind, the founder of cryptocurrency, of OneCoin . . . Now, this will be the biggest welcoming on stage that we’ve ever done in history.” Then, to the tune of Alicia Keys’s “Girl on Fire,” and surrounded by actual onstage fireworks, IGNATOVA strode onto the Wembley Arena stage wearing a red ball gown. She proceeded to repeatedly and favorably compare her fraudulent cryptocurrency to Bitcoin, stating, among other things, “OneCoin . . . is supposed to be the Bitcoin killer” and “In two years, nobody will speak about Bitcoin anymore.”
On July 4, 2015, a federal holiday commemorating the independence of the United States, IGNATOVA announced the official opening of the United States market for OneCoin. In early July 2015, GREENWOOD sent IGNATOVA an email stating in part, “I thought this could go out tonight, problem is I don’t have the access to send out to the members,” and attaching a document which announced a July 4, 2015, online webinar hosted by IGNATOVA and others to mark the official opening of the United States market for OneCoin. Thereafter, on July 4, 2015, IGNATOVA participated in an online webinar, later posted to YouTube.com, in which IGNATOVA announced the official opening of the United States market for OneCoin. During the webinar, IGNATOVA said, among other things, “[I]f we want to go and catch Bitcoin, we never can do this without being strong in the U.S. and without being part of the community. So, um, this is actually why I am so excited about the U.S. as the market. It’s something that is about prestige. It’s a huge market. And, um, it is, I think, a place of innovation, of Wall Street, a place where we have to be if we want to be big.” Many victims in the United States invested in fraudulent OneCoin cryptocurrency packages, including residents of the Southern District of New York.
GREENWOOD was arrested at his residence on the island of Koh Samui, Thailand, in July 2018, and was extradited to the United States to face fraud and money laundering charges in October 2018. GREENWOOD has been detained since his arrest in July 2018.
On October 12, 2017, IGNATOVA was charged with OneCoin-related fraud and money laundering charges in the United States District Court for the Southern District of New York and a federal warrant was issued for her arrest. On October 25, 2017, IGNATOVA traveled on a commercial flight from Sofia, Bulgaria, to Athens, Greece, and has not been seen publicly since. IGNATOVA was added to the FBI’s Top Ten Most Wanted List in June 2022. The FBI is offering a $100,000 reward for information leading to IGNATOVA’s arrest.
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GREENWOOD, 45, a citizen of Sweden and the United Kingdom, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum potential sentence of 20 years in prison, one count of wire fraud, which carries a maximum potential sentence of 20 years in prison, and one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge. Sentencing before Judge Ramos is scheduled for April 5, 2023.
Mr. Williams praised the outstanding investigative work of the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation, which jointly conducted this investigation with Special Agents from the U.S. Attorney’s Office. Mr. Williams also thanked the Royal Thai Police for their assistance in the arrest of GREENWOOD.
If you have any information about IGNATOVA’s whereabouts, please contact your local FBI office or the nearest American Embassy or Consulate. Tips can be reported anonymously and can also be reported online at tips.fbi.gov.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Christopher J. DiMase, Nicholas Folly, Juliana N. Murray, and Kevin Mead, and Special Assistant U.S. Attorney Julieta V. Lozano of the New York County District Attorney’s Office, are in charge of the prosecution.
[1] OneCoin has operated using several corporate entities and d/b/a names, including “OneCoin Ltd.,” “OnePayments Ltd.,” “OneNetwork Services Ltd.,” “OneAcademy,” and “OneLife.” These entities and d/b/a names ar ereferred to collectively here as “OneCoin.”
Cleveland Man Charged with Carjacking, Illegally Entering Airport Runway, and Damaging Radar FacilityRead the Press Release
CLEVELAND – A Cleveland man was charged today in a six-count indictment with intentionally damaging a Cleveland Hopkins International Airport (CLE) radar facility, carjacking two vehicles, and using one to breach a gate and illegally enter the Hopkins airport runway.
Isaac Woolley, 26, was officially charged in the indictment with one count of entering aircraft or an airport area in violation of security requirements, one count of violence at international airports, two counts of destruction of aircraft or aircraft facilities, and two counts of carjacking.
According to court documents, on Nov 23. 2022, the defendant unlawfully entered a secure area maintained by the Federal Aviation Administration (FAA) and caused damage to the main CLE radar antenna tower. As a result, court documents state that the primary radar system utilized by the FAA to monitor civilian and commercial air traffic for CLE was inoperable for a period of time.
Later that day, the defendant is accused of stealing a vehicle from a victim in Fairview Park, Ohio, and using it to breach the gate at CLE. Law enforcement authorities responded to the incident and then arrested the defendant. Court documents state that due to the defendant’s alleged actions, a decision was made by airport personnel to shut down the airport runway and temporarily suspend operations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This case was investigated by the Cleveland Division of the FBI, Fairview Park Police Department, Cleveland Division of Police, and the Brookpark Police Department. This case is being prosecuted by Assistant U.S. Attorneys Brian S. Deckert and Daniel J. Riedl.
Claremore Man Sentenced to 120 Months in Prison for Child Pornography CrimesRead the Press Release
A Claremore man found to be downloading, distributing and viewing child pornography by law enforcement was sentenced in federal court, announced U.S. Attorney Clint Johnson.
Jeremy Aaron Mills, 28, was sentenced to 120 months in prison for possession of child pornography and receipt and distribution of child pornography. Following his prison term, he will spend ten years on supervised release.
As required by the Amy, Vicky, and Andy Child Pornography Victim Assistant Act of 2018, Mills was further ordered to pay restitution in the total amount of $23,000 to seven identified victims depicted in the child sexual abuse material.
“The producers of child pornography are sexually assaulting and abusing children, and individuals, like Mills, further traumatize and exploit these victims every time they download, view, and share this horrific material,” said U.S. Attorney Clint Johnson. “It takes dedicated men and women in the law enforcement community to seek out, investigate and bring these criminals to justice. It is difficult but necessary work. I want to thank them for protecting the most vulnerable members of our society.”
“The conclusion of this investigation and subsequent sentence should send a stern message to all child predators. HSI will not relent in catching the predators who produce, distribute and view child sexual abuse materials and hold them accountable for their actions," said Robert Melton, Assistant Special in Charge of the HSI Dallas - Oklahoma and Texas Panhandle Division. "We will use every resource available to ensure those involved in the sexual exploitation of children will not go unpunished while also providing victim services to those abused by these crimes."
From June 6, 2021, to Oct. 1, 2021, Tulsa Police Cyber Crimes detectives found that an IP address connected to Mills had downloaded multiple files of child sexual abuse material using peer-to-peer software.
On Oct. 1, 2021, the Tulsa Police Cyber Crimes Unit, HSI Tulsa, Oklahoma State Bureau of Investigation, Oklahoma Attorney General’s Office, Claremore Police Department, and Tulsa County Sheriff’s Office executed a federal search warrant at Mill’s Claremore residence.
During the search, investigators located a Samsung cellphone in Mill’s bedroom, which Mills confirmed was his own. On the phone, investigators located numerous images of child sexual abuse material, with at least ten videos depicting toddlers and prepubescent females and males being sexually abused.
Mills was interviewed at the scene and admitted to downloading child pornography as recently as the previous night. Further, he admitted that he conducted searches using terms associated with child pornography. He also stated that he watched hundreds of videos of children between the ages of 14 and 18 and approximately 50 of children younger than 14 years old engaging in sexually explicit conduct.
In his plea agreement, Mills again admitted to possessing and viewing the child sexual abuse material and to receiving and distributing the visual depictions using internet file sharing programs, which caused the depictions to travel in interstate and foreign commerce.
Homeland Security Investigations and the Tulsa Police Department investigated the case with assistance from the Oklahoma State Bureau of Investigation, Oklahoma Attorney General’s Office, Claremore Police Department, and Tulsa County Sheriff’s Office. Assistant U.S. Attorney Leah Paisner prosecuted the case.
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 identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Central Valley Optometrist Pleads Guilty to over $500,000 in Health Care FraudRead the Press Release
FRESNO, Calif. — Carole Sachs, 78, an optometrist in Modesto and Turlock, pleaded guilty today to committing over $550,000 in health care fraud, United States Attorney Phillip A. Talbert announced.
According to court documents, from November 2016 through February 2021, Sachs billed Medicare for over $550,000 in optometry services that she did not actually provide to her patients, including the insertion of amniotic membranes, and received more than $295,000. Amniotic membranes are round discs machide from a combination of tissue and cells that are inserted into patients’ eyes to treat dry eyes and other medical conditions. Sachs paid the money back in restitution prior to entering her guilty plea.
This case is the product of an investigation by the Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and the California Department of Health Care Services. Assistant United States Attorney Joseph Barton is prosecuting the case.
Sachs is scheduled to be sentenced by United States District Judge Jennifer L. Thurston on March 6, 2023. She faces a maximum penalty of 10 years in prison and $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Cedar Rapids Meth Dealer Sentenced to Federal PrisonRead the Press Release
A Cedar Rapids man who worked with others to distribute over four pounds of methamphetamine was sentenced December 13, 2022, to more than 14 years in federal prison.
Mathew Shepherd, age 37, from Cedar Rapids, Iowa, received the prison term after a May 31, 2022, guilty plea to one count of possession with intent to distribute a controlled substance.
Information disclosed at sentencing showed that, in May 2020, Shepherd was paroled from state custody related to a 2018 state conviction for possession with intent to deliver methamphetamine. Almost immediately after he was paroled, Shepherd began working with others to distribute methamphetamine in the Cedar Rapids, Iowa, area. On September 11, 2020, law enforcement executed a search warrant at Shepherd’s residence and recovered over 62 grams of methamphetamine, $273 in cash, a digital scale, and a drug ledger. Law enforcement also executed a search warrant on Shepherd’s cell phone, which revealed numerous messages related to Shepherd’s distribution of methamphetamine. At the time of sentencing, Shepherd had been convicted 29 times as an adult, including two arson convictions and several assault‑related convictions.
Shepherd was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Shepherd was sentenced to 176 months’ imprisonment, and he must also serve a 5‑year term of supervised release after the prison term. There is no parole in the federal system.
Shepherd is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Sixth Judicial District Department of Correctional Services.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-00030.
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California Attorney Pleads Guilty to Selling Unregistered SecuritiesRead the Press Release
BOSTON – A California attorney pleaded guilty yesterday in federal court in Boston in connection with the illegal sale of over $1.3 million worth of unregistered shares of a Massachusetts-based health care company.
Daniel V. Martinez, 63, of Yuba City, Calif., pleaded guilty to one count of sale of unregistered securities. U.S. District Court Judge Patti B. Saris scheduled sentencing for April 13, 2023. Martinez was charged by an Information on Sept. 30, 2022.
Between 2013 and 2016, Martinez served as a real-estate attorney for Avtar Singh Dhillon, who was then chairman of the Massachusetts-based biotechnology company, Arch Therapeutics, Inc. Dhillon and Martinez placed 2.75 million Arch Therapeutics shares that Dhillon beneficially owned into a limited liability company that Martinez created and for which Martinez was the sole manager. At Dhillon’s direction, Martinez then sold the shares in the open market without a valid exemption under the relevant securities laws and distributed the approximately $1.34 million in proceeds. Martinez distributed the proceeds primarily to third parties for Dhillon’s benefit, taking a small portion directly for himself.
On Dec. 8, 2022, Dhillon pleaded guilty to one count of willful failure to disclose stock sales, one count of aiding and abetting the sale of unregistered securities, and one count of touting compensation nondisclosure conspiracy before U.S. Senior District Court Judge Douglas P. Woodlock, who scheduled sentencing for April 18, 2023.
The charge of sale of unregistered securities provides for a sentence up to five years in prison, three years of supervised release and a fine of $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office made the announcement. Valuable assistance was provided by SEC’s headquarters and Boston regional office. Assistant U.S. Attorney James R. Drabick of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Brooklyn Center Man Sentenced to 124 Months in Prison for Methamphetamine TraffickingRead the Press Release
ST. PAUL, Minn. – A Brooklyn Center man was sentenced to 124 months in prison, followed by five years of supervised release for methamphetamine trafficking, announced United States Attorney Andrew M. Luger.
According to court documents, in May 2020, law enforcement began investigating Matthew Hines, 37, of Brooklyn Center and his co-defendant Chue Xiong, 39, of St. Paul. As part of a drug trafficking conspiracy, Hines and Xiong coordinated and facilitated the distribution of methamphetamine, as well as collected drug proceeds to send back to their supplier. On May 11, 2020, law enforcement observed Xiong leave Hines’s residence with a brown bag in his hand. Law enforcement conducted a traffic stop of Xiong’s vehicle and found approximately 1.4 kilograms of methamphetamine inside the brown bag, 614 grams of methamphetamine in the driver’s side door pocket and a 9mm handgun underneath the floor mat on the driver’s side. Xiong was also wearing a holster. On May 12, 2020, law enforcement executed a search warrant at Hines’s residence and vehicle. Inside Hines’s garbage they found a total of 419 grams of methamphetamine. Law enforcement also found an additional 2.6 kilograms of methamphetamine in the back seat of Hines’s vehicle, $24,434 in cash and several cell phones.
Hines pleaded guilty on May 6, 2021, to conspiracy to distribute methamphetamine. He was sentenced yesterday in U.S. Court by Senior Judge Donovan W. Frank.
On March 30, 2021, co-defendant Xiong pleaded guilty to conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and possession with intent to distribute methamphetamine. On May 26, 2022, Xiong was sentenced in U.S. District Court by Senior Judge Donovan W. Frank to 156 months in prison, followed by five years of supervised release.
This case was the result of an investigation conducted by the Drug Enforcement Administration, the Ramsey County Violent Crime Enforcement Team, and the Minnesota State Patrol.
Assistant U.S. Attorney Allen A. Slaughter prosecuted the case.
Brookhaven Man Re-Tried and Convicted of Possessing Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Javier Perez, 44, of Brookhaven, PA, was convicted at trial of possessing child pornography arising from the recovery of videos of child pornography from his personal computer.
In 2014, the FBI executed a search warrant at Perez’s residence and seized Perez’s desktop computer, which contained several videos of child pornography that he downloaded using an online peer-to-peer network. The defendant was arrested and charged, and the case was tried in 2016 after which the defendant was convicted of possession of child pornography and sentenced to four years in prison. Earlier this year, the defendant’s conviction was vacated pursuant to a petition which found that his previous trial counsel was ineffective. Perez was retried on the possession charge this week, and was once again convicted.
“This verdict sends a strong message that those who victimize our most vulnerable will be held accountable,” said U.S. Attorney Romero. “Thank you to the prosecutors and agency partners who remained determined to identify, prosecute and convict this defendant.”
“Those who seek out images of child sexual abuse help drive a demand for such depraved material, resulting in the continued exploitation of young children,” said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division. “This conviction holds Javier Perez accountable for his actions and underscores the solid work of the FBI's Child Exploitation Task Force, committed to its mission of protecting vulnerable children from harm.”
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Veronica J. Finkelstein.
Bookkeeper from Pollock Sentenced for Committing Wire FraudRead the Press Release
ALEXANDRIA, La. - United States Attorney Brandon B. Brown announced that Deonne Drawdy, 50, of Pollock, Louisiana, was sentenced today by United States District Judge David C. Joseph to 24 months in prison, followed by 3 years of supervised release, for committing wire fraud. Drawdy was also ordered to pay restitution in the amount of $374,331.30.
According to evidence presented to the court, Drawdy was employed at the architectural firm of Barron, Heinberg, and Brocato (BH&B) in Alexandria, Louisiana from approximately 2007 to 2020 as the bookkeeper and financial director. Some of her duties as an employee there included issuing checks to vendors.
In 2020, BH&B noticed suspicious activity in the firm’s accounts and an audit was conducted. Law enforcement agents with the United States Secret Service joined in the investigation. Their investigation revealed that on or about January 7, 2019, Drawdy issued a check on the firm’s bank account made payable to Meyer, Meyer, Lacroix & Hixson. Drawdy fraudulently endorsed the check and deposited it into her personal bank account on January 10, 2019 and converted those funds for her own personal use.
The case was investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney Brian C. Flanagan.
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Big Pine Key Resident Charged with Killing Endangered Key DeerRead the Press Release
MIAMI – South Florida federal prosecutors have charged Big Pine Key resident Wendy C. Kilheffer, 77, with violating the Endangered Species Act (ESA) by shooting and killing a key deer in November.
Congress enacted the ESA to conserve threatened and endangered species, as well as the ecosystems upon which they depend. “Endangered species” means any species, or part thereof, which is in danger of extinction throughout all or a significant portion of its range. The Florida Key deer (Odocoileus viginianus clavium) is included within the list of designated endangered species set forth in federal regulations.
The defendant faces a possible term of imprisonment of up to one year if convicted and would also be subject to a fine of up to $100,000 and a period of supervised release of up to one year.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Resident Agent in Charge David Pharo, U.S. Fish & Wildlife Service (FWS), Office of Law Enforcement, Miami Field Office, made the announcement.
FWS and officers of the Florida Fish & Wildlife Conservation Commission investigated this case with support from the National Fish & Wildlife Service Forensics Laboratory in Ashland, Ore., and the Monroe County State Attorney’s Office. Assistant U.S. Attorney Thomas Watts-FitzGerald is prosecuting the case.
An information is an accusation and a defendant is innocent unless and until found guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Baton Rouge Man Sentenced to 170 Months for Attempted Coercion and Enticement of a Minor and Possession of Child PornographyRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Robert James Lowry, age 41, of Baton Rouge, Louisiana, to 170 months in federal prison following his convictions for attempted coercion and enticement of a minor and possession of child pornography. Following his term of imprisonment, Lowry will have to serve 8 years of supervised release and register as a sex offender for life.
According to admissions made during his plea, on June 21, 2021, Lowry began communicating with an FBI undercover agent (UC) who was posing as a stepdad of a 10-year-old female through a social media application's direct messenger feature. Lowry expressed an interest in engaging in sexual activity with the minor. From June 22, 2021, through June 30, 2021, Lowry began communicating with the UC over a second social media application. During these communications, Lowry again expressed interest in engaging in sexual activity with the minor and asked the UC to send a picture of her. On June 30, 2021, Lowry asked if he could meet the stepdaughter that evening and arranged to meet at a location designated by UC in Baton Rouge. Lowry was arrested when he showed up at the designated location. After being contacted by law enforcement and ordered to show his hands, Lowry put his hands outside the vehicle and stated, "I wasn't going to do it." During an interview after being arrested, Lowry admitted that he intended to have sex with the minor on the evening of June 30, 2021.
This matter was investigated by the Federal Bureau of Investigation, the Department of Homeland Security, the East Baton Rouge Sheriff’s Office, Louisiana Bureau of Investigation, and the Louisiana State Police. It was prosecuted by Assistant United States Attorney Eli J. Abad.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Baltimore Man Sentenced to 15 Years in Federal Prison for Two Armed Carjackings and an Attempted Armed RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Daquan Murphy, age 20, of Baltimore, Maryland, today to 15 years in federal prison, followed by five years of supervised release, for carjacking and brandishing a firearm during a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Interim Chief Dennis J. Delp of the Baltimore County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from February 3 to February 10, 2021, Murphy committed two armed jackings and the attempted armed robbery of a convenience store. In all three instances, Murphy pointed a firearm at the victims. Specifically, early in the morning on February 3, 2021, Murphy approached Victim 1 at a Randallstown, Maryland gas station and asked the victim for a ride to his mother’s house. The victim agreed to give Murphy a ride and followed Murphy’s directions, purportedly to his mother’s house.
During the drive, Murphy told the victim to go to a specific intersection and when they arrived there, Murphy pulled a firearm from his waistband, pointed it at Victim 1, and ordered Victim 1 to get out of the car. Fearing for his life, the victim complied with Murphy’s demands. Murphy also ordered the victim to empty his pockets and surrender his valuables, including a smartphone. Murphy then fled in Victim 1’s car.
Hours later, law enforcement located the stolen car on Brune Street in Baltimore and found a CashApp card bearing Murphy’s username in the car and located a latent fingerprint belonging to Murphy in the car’s center console. Additionally, a search of the car’s telematics system revealed that Murphy connected a cell phone to the car’s system.
As detailed in the guilty plea, on February 10, 2021, Murphy approached Victim 2, who was sitting in his car in the 2900 block of Stranden Road in Baltimore, pointed a gun at Victim 2, then ordered Victim 2 to get out of the car and get on the ground. Fearing for his safety, Victim 2 complied with Murphy’s demands. Murphy fled in Victim 2’s car, which contained Victim 2’s valuables, including a cell phone.
Later that day, Murphy attempted to rob a convenience store in Dundalk, Maryland. During the robbery attempt, Murphy pointed his firearm at the store clerk (Victim 3) and demanded money. Victim 3 told Murphy to “come get the money” and that he also had a gun. Murphy ran to the front of the store, again pointing his firearm in the direction of Victim 3. Murphy fled in the vehicle that he had carjacked from Victim 2 earlier that day and did not obtain any money from the convenience store.
That same day, law enforcement saw Murphy operating Victim 2’s stolen car and pursued Murphy. Murphy eventually stopped the vehicle and attempted to run away. He was ultimately apprehended by officers.
United States Attorney Erek L. Barron commended the FBI, the Baltimore County Police Department, and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Bakersfield Man Charged with Being a Felon in Possession of AmmunitionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment yesterday against Myron Raphael Tucker, 33, of Bakersfield, charging him with being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 10, 2022, members of the Pacific Southwest Regional Fugitive Task Force were attempting to take Tucker into custody for outstanding charges when he fled on foot to evade capture. As Tucker ran, officers saw him throw a loaded firearm into a pile of furniture in the backyard of a residence. The firearm was loaded with five rounds of Winchester ammunition that was not manufactured in California and an unidentified round of ammunition. Tucker has prior felony convictions for second degree robbery, assault with a firearm, and recklessly evading arrest.
This case is the product of an investigation by the U.S. Marshals Service Pacific Southwest Regional Fugitive Task Force, Bakersfield Division. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Tucker faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Assistant Dean of Students at Local College Sentenced for Child PornographyRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced yesterday to 6 years in prison for receiving images of child sexual abuse material (CSAM).
According to court documents, Robert Morris, 37, used a file-sharing program to provide more than 500 files depicting the sexual abuse of minors—including children as young as infants—to detectives in the Virginia Beach Police Department in December 2021. Detectives obtained a search warrant for his home, where they seized a laptop computer containing additional files depicting the sexual abuse of minors, which had been obtained from social messaging applications. At the time of his arrest, Morris was an assistant dean of students and systems administrator at Wave Leadership College, a religious institution in Virginia Beach. He was previously administratively separated from the U.S. Navy for misconduct, including sexual harassment.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek W. Gordon, Acting Special Agent in Charge of U.S. Homeland Security Investigations (HSI); and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Elizabeth Wilson Hanes.
Assistant U.S. Attorney Rebecca Gantt prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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.justice.gov/psc
In 2021, EDVA launched “UnMasked,” a community-based educational outreach and prevention program in Virginia dedicated to raising awareness and educating the community about the prevalence of online sexual exploitation involving children and young adults. UnMasked is a multi-disciplinary partnership of local, state, federal, and non-profit stakeholders. The core curriculum is provided by the National Center for Missing and Exploited Children’s (NCMEC) NetSmartz program. To report an incident involving online sexual exploitation, call 1-800-843-5678 or submit a report at report.cybertip.org. To request an UnMasked event at your school or organization, please contact EDVA’s Community Outreach Coordinator at [email protected].
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-81.
Another Defendant from New Orleans Pleads Guilty in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that TROYLYNN BROWN (“BROWN”), age 35, agreed to plead guilty on December 14, 2022 to count one (1) of her indictment, charging Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371. In pleading guilty, the defendant faces a maximum penalty of five (5) years’ imprisonment; a term of supervised release of up to three (3) years; and a fine of up to $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571, as well as a mandatory special assessment fee of $100.00. Today’s guilty plea brings the total number of defendants convicted in Operation Sideswipe to forty-four (44).
As part of her plea, BROWN admitted to conspiring to commit mail fraud in connection with a staged automobile collision. The government’s evidence showed that the defendant conspired with Roderick Hickman (“Hickman”), Herbert Allen (“Allen”), and others to intentionally collide Allen’s Chevrolet Impala with a tractor-trailer in the area of Tchoupitoulas Street and Calliope in New Orleans on June 28, 2017. BROWN later lied in her civil deposition. She falsely claimed that Allen drove the car that collided with the tractor-trailer, when in fact Hickman drove the car and intentionally hit the tractor-trailer.
Sentencing in this matter is set for March 29, 2022 before United States District Judge Sarah S. Vance.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brandon S. Long; Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Maria M. Carboni; and Assistant U.S. Attorney Edward J. Rivera.
Addict in Possession of a Firearm SentencedRead the Press Release
Acting United States Attorney Steven Russell announced that Anthony L. Taylor, 34, was sentenced today in federal court in Omaha, Nebraska, as an addict in possession of a firearm. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Taylor to 30 months’ imprisonment. There is no parole in the federal system. After his release from federal prison, he will begin a 3-year term of supervised release.
On April 10, 2020, at the 40th block of Curtis Ave, Omaha, a confidential source working for the Bureau of Alcohol, Tobacco, Firearms and Explosive, purchased a Taurus handgun and THC vape cartridges from Taylor. During this time period, Taylor was a regular user of illegal drugs including marijuana, which prohibited him from being in possession of a firearm or ammunition.
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. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosive and the Omaha Police Department.
15 December 2022
Utica Man Admits to Possessing Cocaine for Distribution and Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
SYRACUSE, NEW YORK – Edgar Tejada, age 35, of Utica, New York, pled guilty today to possession with the intent to distribute cocaine, and to possessing a firearm in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Carla B. Freedman, Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division and Thomas Fattorusso, Special Agent in Charge of U.S. Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.
As part of his guilty plea, Tejada admitted to possessing over 500 grams of cocaine at his residence in Utica, as well as a loaded Ruger handgun. Tejada admitted that he possessed the firearm to protect himself and the cocaine he kept at his residence.
Tejeda faces at least five years and up to life in prison, a fine of up to $1,000,000.00 and a term of post-imprisonment supervised release of at least three years and up to life, when he is sentenced on April 19, 2022, by United States District Judge David N. Hurd. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the U.S. Drug Enforcement Administration (DEA), U.S. Internal Revenue Service-Criminal Investigation (IRS-CI), the New York State Police, the Oneida County Sheriff’s Office, the Oneida County District Attorney’s Office, the City of Utica Police Department, the City of Syracuse Police Department, the City of Rome Police Department, U.S. Homeland Security Investigations (HSI), U.S. Immigration and Customs Enforcement and Removal Operations (ICE-ERO), the Onondaga County Sheriff’s Office, the Onondaga County District Attorney’s Office, the New York Army National Guard Counter Drug Program, the Village of Yorkville Police Department, and the Village of Whitesboro Police Department, and is being prosecuted by Assistant U.S. Attorney Tamara Thomson.
Upshur County man sentenced for firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Bo D. Beckner, of Buckhannon, West Virginia, was sentenced today to 46 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Beckner, 42, pleaded guilty in June 2022 to one count of “Unlawful Possession of a Firearm.” Beckner, a person prohibited from having firearms because of prior convictions, admitted to having a 12-guage shotgun in April 2021 in Upshur County.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and West Virginia State Police investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Underboss of Philadelphia Mafia Sentenced to Five Years After Pleading Guilty to Leading Racketeering, Loan-Sharking and Extortion ConspiraciesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Steven Mazzone, 59, of Philadelphia, PA, was sentenced to five years in prison, three years of supervised release by United States District Judge R. Barclay Surrick, for his role in several conspiracies to commit racketeering, making extortionate extensions of credit, and conducting an illegal gambling business, all while serving as the underboss of the Philadelphia La Cosa Nostra (“LCN”), also known as the Philadelphia “mafia” or “the mob.”
In June 2022, Mazzone pled guilty to five counts in a Superseding Indictment, thereby admitting his guilt as a leader of the Philadelphia mafia who directed a vast network of criminal activity that spanned Philadelphia and parts of New Jersey. His conduct involved conspiracies to commit crimes involving extortion, illegal gambling, drug dealing, and loansharking. As the underboss, the defendant set rules for LCN members and associates and collected profits from illegal activity that was siphoned upward through the LCN command structure to ensure the enterprise continued to exist. Mazzone also organized the composition of smaller groups of members and associates, or “crews,” which reported to management, or “capos,” who in turn reported to Mazzone.
The investigation into the organization, conducted by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Philadelphia Police Department, utilized wiretap interceptions of cellular phones used by LCN members and associates to conduct illegal sports betting and loansharking in the Philadelphia area. The wiretap evidence established that Mazzone financed high-interest loans to customers of the sportsbook who were unable to pay their debts, resulting in the collection of interest rates on loans of as much as 264%. Members of the LCN made several threats of violence to debtors who did not pay, including one threat to make a victim “disappear” for nonpayment on a loan.
The defendant’s command and control over the LCN was made apparent in a recorded conversation at a “making ceremony” to induct new members into the mob in South Philadelphia in 2015, at which time an LCN member announced that “We’re all in the family now,” to which Mazzone added, “Nobody break this chain . . . I know you were explained the rules already.” Mazzone also discussed his co-conspirators’ efforts to extort bookmakers and loan sharks in and around Atlantic City, New Jersey, while he coached his underlings in their methods of intimidation and collection of gambling proceeds. At that same meeting, the defendant declared, “We got to get a hold back on Atlantic City, buddy! That’s what I want. That’s what I want. We have to get that back. I mean we have a few guys out there, you know, right now. You’re going to have a couple more guys out there with you. . . . I want you, I want you to do something.”
This case represents Mazzone’s second federal conviction for criminal activity in connection with the LCN. He had previously committed similar offenses in Philadelphia over 20 years ago as a member of the organization. In 2000, when he was in his early 30s, Mazzone was convicted in this District for conspiracy to commit racketeering and illegal sports bookmaking. In that case, Mazzone was captured on intercepted wiretap conversations discussing the extortion. One of the victims was shot and seriously injured during the course of the extortion. Mazzone was ultimately sentenced to nine years in prison for that conviction.
“Even though the Philadelphia mob has been weakened over the decades due in large part to persistent law enforcement efforts, the LCN and its criminal activities are still very much a problem and are damaging the communities in which it operates,” said U.S. Attorney Romero. “The U.S. Attorney’s Office is committed to prosecuting anyone who is committing serious federal crimes like these, and we will not rest until the mob is nothing but a memory that lives on in movies.”
“The Department of Justice has long been committed to dismantling LCN across the country and reducing its reach and influence,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “In this case, the defendant used his role as the underboss of the Philadelphia organized crime family to try to revive its fortunes, extorting victims in Pennsylvania and New Jersey. As this prosecution demonstrates, the department remains steadfast in its commitment to eradicating organized crime from our communities.”
“Steven Mazzone has been here before, previously convicted in an LCN case and sentenced to federal prison,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “When he got out, he went right back to the same streets and same old rackets — overseeing loansharking, illegal gambling, and extortion. Mazzone and co. need to accept that the FBI is just as committed to shutting down organized crime here as ‘the family’ has been to sustaining it.”
The case was investigated by the Federal Bureau of Investigation the Pennsylvania State Police, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Jonathan Ortiz and Justin Ashenfelter, and U.S. Department of Justice Trial Attorney Alexander Gottfried, Organized Crime and Gang Section.
Underboss of Philadelphia Mafia Sentenced for Leading Racketeering Conspiracy Engaged in Loansharking, Gambling, and ExtortionRead the Press Release
A Pennsylvania man was sentenced today to five years in prison for conspiring to participate in the affairs of a racketeering enterprise, including making extortionate extensions of credit and conducting an illegal gambling business, all while serving as the underboss of the Philadelphia mafia family.
According to court documents, Steven Mazzone, 59, of Philadelphia, was the underboss of the Philadelphia organized crime family of La Cosa Nostra (LCN), aka the “mafia,” and directed a vast network of criminal activity that spanned Philadelphia and parts of New Jersey. As the underboss, Mazzone set rules for LCN members and associates in the Philadelphia mafia and collected profits from illegal activity that was siphoned upward through the LCN command structure. Mazzone also organized the composition of smaller groups of members and associates, or “crews,” which reported to middle managers, or “capos,” who in turn reported to Mazzone.
“The Department of Justice has long been committed to dismantling LCN across the country and reducing its reach and influence,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “In this case, the defendant used his role as the underboss of the Philadelphia organized crime family to try to revive its fortunes, extorting victims in Pennsylvania and New Jersey. As this prosecution demonstrates, the department remains steadfast in its commitment to eradicating organized crime from our communities.”
The investigation utilized court-ordered wiretap interceptions of cell phones used by LCN members and associates to conduct illegal sports betting and loansharking in the Philadelphia area. The wiretap evidence established that Mazzone financed high-interest loans to customers of the sportsbook who were unable to pay their debts, resulting in the collection of loans with interest rates as high as 264%. LCN members and associates made threatened debtors who did not pay with violence, including one threat to make a victim “disappear” for nonpayment on a loan.
“Even though the Philadelphia mob has been weakened over the decades due in large part to persistent law enforcement, the LCN and its criminal activities are still very much a problem and are damaging the communities in which it operates,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “The U.S. Attorney’s Office is committed to prosecuting anyone who is committing serious federal crimes like these, and we will not rest until the mob is nothing but a memory that lives on in movies.”
“The FBI is dedicated to eliminating transnational organized crime groups like La Cosa Nostra who continue to threaten our national and economic security,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “We will continue to work with our law enforcement partners to seek justice against organized criminal threats and alliances and protect our communities.”
This case represents Mazzone’s second federal conviction for criminal activity in connection with the LCN. He had previously committed similar offenses in Philadelphia over 20 years ago as a inducted member in the Philadelphia mafia. In 2000, Mazzone was convicted of conspiracy to commit racketeering and illegal sports bookmaking. In that case, Mazzone was captured on intercepted wiretap conversations discussing an extortion. One of the victims was shot and seriously injured during the course of the extortion. Mazzone was ultimately sentenced to nine years in prison for that conviction.
The FBI, Pennsylvania State Police, and Philadelphia Police Department investigated the case.
Trial Attorney Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Jonathan Ortiz and Justin Ashenfelter for the Eastern District of Pennsylvania prosecuted the case.
Two Men Plead Guilty to Lying About A Murder as Jury Selection in Their Trial Was About to Get UnderwayRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Dartwon Brooks, 29, and Jaemer Smith a/k/a Glizz a/k/a Jack Glizz, 20, both of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. as jury selection was set to begin in their federal trial. Brooks pleaded guilty to criminal contempt and faces a maximum penalty of life in prison. Smith pleaded guilty to obstructing a federal proceeding, obstruction of justice, and making false declarations before a grand jury, which carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorneys Jeremiah E. Lenihan and Misha A. Coulson, who are handling the case, stated that the defendants provided false information to law enforcement as part of an ongoing investigation into the murder of Renecameren Tucker a/k/a CJ. This false information specifically involved who was responsible for Tucker’s murder. Brooks and Smith pleaded guilty as jury selection was set to begin in their trial.
The pleas are the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia and the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Michael Stansbury.
Sentencing for Brooks and Smith is scheduled for April 18, 2023, before Judge Sinatra.
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Two Accused of St. Louis CarjackingRead the Press Release
ST. LOUIS – Two men from East St. Louis, Illinois have been accused of a St. Louis carjacking last month, using a vehicle that had been carjacked a week earlier.
Quinn Turner, 20, and Jaylen Mays, 25, were indicted Wednesday in U.S. District Court in St. Louis on one count of carjacking and one count of possession and brandishing of a firearm in furtherance of a crime of violence. Mays was also indicted on one count of being a felon in possession of a firearm.
The indictment says they aided and abetted each other and others known and unknown to the grand jury to steal a 2017 GMC Terrain on November 13. On that same date, Mays was in possession of a firearm despite being a convicted felon, the indictment says.
A detention motion says the GMC was stolen from a gas station at the northwest corner of Russell Boulevard and South 7th Street in the Soulard neighborhood by men in a Nissan Rogue and a Chevrolet Malibu.
Three men, including two armed men, rushed the driver of the GMC, ordered him to the ground and took his wallet and keys. All three vehicles were then driven away.
Detectives assigned to the St. Louis Metropolitan Police Department's Anti-Crime Task Force utilized spike strips to stop the Malibu. Quinn, Mays and a juvenile that matched the description of one of the armed men were inside the car with a Glock .40 caliber semiautomatic pistol, the motion says. The juvenile was in possession of the victim’s wallet and the Malibu had been taken in a carjacking in the downtown business district just a week earlier, the motion says.
The carjacking and felon in possession charges carry a potential penalty of up to 15 years in prison. The firearm charge carries a mandatory minimum sentence of seven years in prison.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Matthew Martin is prosecuting the case.
Tucson Man Sentenced to 24 Months for Assault by StrangulationRead the Press Release
TUCSON, Ariz. – Andrew Barthalomew Trujillo, 38, of Tucson, Arizona, was sentenced December 5, 2022, by United States District Judge John C. Hinderaker to 24 months in prison. Trujillo previously pleaded guilty to Assault by Strangulation.
Evidence presented at trial disclosed that Trujillo strangled the victim by placing his hands around her throat and applied enough pressure that the victim lost consciousness. Both Trujillo and the victim are enrolled members of the Pascua Yaqui Tribe.
The Federal Bureau of Investigation and Pascua Yaqui Police Department conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-1602-TUC-JCH-DTF
RELEASE NUMBER: 2022-222_Trujillo# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Topeka Man Indicted for Child PornRead the Press Release
TOPEKA, KAN.– A federal grand jury returned an indictment charging a Kansas man with producing, receiving, and distributing child pornography.
According to court documents, Andrew Joseph Greeve, 20, of Topeka was indicted on three counts of sexual exploitation of a child – production of child pornography, one count of sexual exploitation of a minor – distribution of child pornography, one count of sexual exploitation of a minor – receipt of child pornography, one count of sexual exploitation of a mnor – possession of child pornography, and two counts of commission of sex offense by registered offender.
The Federal Bureau of Investigation (FBI) and the Kansas Bureau of Investigation (KBI) are investigating the case.
Assistant U.S. Attorney Sara Walton is prosecuting the case.
Anyone with additional information related to this investigation please contact the FBI Topeka Office at 785-231-1700 or tips.fbi.gov.
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 https://www.justice.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###Three Rivers, Michigan Woman Ordered to Pay $801,128.23 in Restitution and $233,854 in TaxesRead the Press Release
SOUTH BEND – Kristina M. Harshberger, 45 years old, of Three Rivers, Michigan, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to one count of wire fraud and three counts of filing false tax returns, announced United States Attorney Clifford D. Johnson.
Harshberger was sentenced to 18 months in prison followed by 1 year of supervised release, and was ordered to pay $801,128.23 in restitution to the victims of the offense as well as $233,854.00 to the Internal Revenue Service.
According to documents in the case, starting in 2015, Harshberger used her position as a controller and general manager of a business in Elkhart, Indiana, to make unauthorized, personal charges to a business credit card. Harshberger continued the fraud for three years through 2018. She embezzled over $800,000.00 in total and did not report the income on her taxes for the years 2015, 2016, and 2017.
This case was investigated by the Internal Revenue Service-Criminal Investigation Division with the assistance of the Elkhart Police Department. This case was prosecuted by Assistant United States Attorney Jerome W. McKeever and former AUSA Geovanny E. Martinez.
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Texas Man Indicted for Threatening Doctor Affiliated with the National LGBTQIA+ Health Education CenterRead the Press Release
BOSTON – A federal grand jury returned an indictment today charging a Texas man with threatening a Boston doctor because the doctor provided care for members of the transgender community.
Matthew Jordan Lindner, 38, of Comfort, Texas, was charged with interstate transmission of threatening communication, and selecting the victim because of the gender identity of persons for whom the victim provided medical care. Lindner was arrested on Dec. 2 and subsequently released on bond by a U.S. Magistrate Judge in San Antonio. He will appear in federal court in Boston on Dec. 22 before U.S. District Court Magistrate Judge Donald L. Cabell.
According to the indictment, in August 2022, inaccurate information spread online regarding procedures at Boston Children’s Hospital for gender nonconforming children. It is alleged that on Aug. 31, 2022, Lindner called the Boston-based National LGBTQIA+ Health Education Center and left a threatening voicemail targeting one of the Center’s affiliated doctors. In that voicemail, Lindner allegedly said: “You sick motherf*****s, you’re all gonna burn. There’s a group of people on their way to handle [victim]. You signed your own warrant, [victim]. Castrating our children. You’ve woken up enough people. And upset enough of us. And you signed your own ticket. Sleep well, you f******, c***.”
In August 2022, U.S. Attorney Rollins announced the creation of the “End Hate Now” hotline – 1-83-END-H8-NOW (1-833-634-8669) – for reporting hate-based incidents or potential criminal activity. Massachusetts residents and visitors are encouraged to call the hotline to report concerning or troubling incidents of hate, potential hate crimes, or concerns regarding individuals believed to be espousing the hate-filled views or actions we learn of far too often in the wake of mass shootings and/or acts of hate-based violent extremism. Callers are encouraged to leave their contact information but may remain anonymous. At this time, the hotline is available in English, Spanish, Cantonese and French.
The charge of interstate transmission of threatening communication provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rachael A. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Brian A. Fogerty of Rollins’ Human Trafficking & Civil Rights Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
St. John the Baptist Resident Sentenced for Failure to Report International Travel as a Sex OffenderRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced that GENE MURRAY, age 49, was sentenced on December 14, 2022 for failing to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA) 18 U.S.C. § 2250(b).
United States District Judge Jane Triche Millazo imposed a sentence of 24 months imprisonment. Following his term of imprisonment, MURRAY will be placed on supervised release for a period of three years. MURRAY must also pay a $100 mandatory special assessment fee. A fine was not imposed.
U.S. Attorney Evans praised the work of the United States Marshals Service. Assistant United States Attorneys Spiro G. Latsis and Rachal Cassagne are in charge of the prosecution.
Social Security Administration Employee Accused of Fraud and Money LaunderingRead the Press Release
DENVER - The U.S. Attorney’s Office for the District of Colorado announces Justin Skiff, age 36, of Castle Pines, appeared in U.S District Court today to face one count each of wire fraud, social security fraud, and money laundering.
According to the information filed in this case, beginning in August 2019 and continuing through September 2021, it is alleged Skiff used his position as a claims specialist with the Social Security Administration (SSA), to fraudulently obtain money from the SSA. Skiff is alleged to have filed fictious claims for benefits using false identities and the identity of an actual individual to collect proceeds from these claims. According to court documents, Skiff’s actions ultimately led to the theft of approximately $310,601.44 from the SSA.
Skiff made his initial appearance before Magistrate Judge Kristen L. Mix on December 15, 2022. Wire fraud carries a penalty of up to 20 years in prison and a fine of $250,000. Social Security fraud carries a penalty of up to 5 years in prison and a fine of $250,000. Money laundering carries a penalty of up to 20 years in prison and a fine of $500,000 or twice the value of the property involved in the transaction. If convicted, Skiff must also forfeit any property derived from proceeds traceable to the scheme.
This case was investigated by the Social Security Administration, Office of the Inspector General and the Internal Revenue Service, Criminal Investigation. This case is being prosecuted by Special Assistant U.S. Attorney Sonia J. Dave.
The charges contained in the information are allegations, and the defendant is presumed innocent until proven guilty.
Six Suspected Niagara Falls Crips Members Indicted on Firearms and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an 18-count indictment charging defendants Cameron Lee, Michael Pryor, Shawn Pryor a/k/a Ghost, Melanie Pryor, Thomas Pryor, and Ahmadja Green with conspiracy to possess with intent to distribute, and distribute, 40 grams or more of fentanyl, heroin, cocaine, and crack cocaine. This charge carries a minimum penalty of five years in prison and a maximum of 40 years, and a $5,000,000 fine. In addition:
• Michael Pryor is charged with four counts of distributing cocaine and/or fentanyl within 1,000 feet of a school or a public housing facility, which carry a maximum penalty of 40 years in prison and a fine of $2,000,000.
• Cameron Lee is charged with possession with intent to distribute 50 grams or more of methamphetamine, fentanyl, and marijuana, being a felon in possession of a firearm and possessing a firearm in furtherance of drug trafficking, which carry a maximum penalty of life in prison, and a $5,000,000 fine.
• Defendant Lee, Melanie Pryor, and Ahmadja Green are also charged with possession of more than 40 grams of fentanyl, heroin, and buprenorphine, which carries a maximum penalty of 40 years in prison and a $5,000,000.Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the indictment, in January 2022, the FBI Safe Streets Task Force, Niagara Falls Police Department, and Niagara County Sheriff's Office began investigating a criminal street gang known as the “Crips,” operating in and around Niagara Falls and Rochester, NY. Lee, Michael Pryor, Shawn Pryor, and Greene were identified as members/associates of the Crips, who conspired to sell crack cocaine, fentanyl, and heroin. Between March and July 2022, investigators conducted seven controlled purchases from the defendants. In addition, between August and October 2022, investigators conducted six controlled purchases from Michael Pryor and between August and September 2022, they conducted three controlled purchases from Shawn Pryor. The investigation also determined that during the conspiracy, Michael Pryor and Shawn Pryor pistol whipped and beat a person believed to be involved in narcotics trafficking.
On October 13, 2022, a search warrant was executed Cameron Lee’s Orleans Avenue residence, during which investigators seized more than 70 grams of heroin and fentanyl, a quantity of buprenorphine, jewelry, three cellular telephones, and approximately $19,000 in United States currency.
The indictment is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Acting Special Agent-in-Charge Michael Stansbury, the Niagara Falls Police Department, under the direction of Chief John Faso, and the Niagara County Sheriff's Office, under the direction of Sheriff Michael Filicetti.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Several Houston men arrested for drug and firearm violationsRead the Press Release
HOUSTON – A total of 14 people are now in custody for various violations to include drug trafficking, possessing a “Glock switch” and being a felon in possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Those taken into custody yesterday include Houston residents Anthony Ketchum, 35, Anthony Yezeno-Hopkins, 38, Brandon Milson, 32, Hassani Mills, 34, Jaylyn Pinson, 29, Josue Rodriguez, 32, Keith Moore, 34, Michael Henry, 32, Myles Smith, 23, Robert Thomas, 29, Sterling Brumant, 26, Titus Baisey, 35 and Toree White, 27.
Henry, Baisey and Smith are expected to make their initial appearances at 2 p.m. today before U.S. Magistrate Judge Christina Bryan. Brumant was arrested in California and ordered detained pending further criminal proceedings.
Also charged is Julian Herrera, 26, was previously in custody on related charges. He made his appearance yesterday in Houston along with the other nine men.
Detention hearings are set to begin Dec. 19 at 9 a.m.
A federal grand jury returned the 11-count indictment Dec. 7.
With the exception of Thomas and Rodriguez, the remaining men are charged with possession with intent to deliver meth. They face up to life in prison and could be ordered to pay fines up to $10 million. Moore faces an additional charge of possession with intent to deliver heroin which carries a maximum of 40 years in prison.
The indictment also alleges Thomas unlawfully possessed a firearm - a device made and intended to convert a semi-automatic pistol to being fully automatic aka Glock auto switch. If convicted, he faces a 10-year possible sentence.
Rodriguez is alleged to have been in possession of a firearm - Ruger 5.7 mm. As a convicted felon, he is prohibited from federal law of such and could also be sentenced to a maximum of 10 years if found guilty.
The arrests come on the heels of another case involving violent crime as well as a joint announcement on the surge of resources to fight violent crime in Houston.
The FBI and Houston Police Department conducted the investigation.
Assistant U.S. Attorney Lisa Collins is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.