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15 December 2022
Framingham Man Arrested for Operating Unlicensed Money Transmitting BusinessRead the Press Release
BOSTON – A Framingham man was arrested this morning in connection with operating an unlicensed money transmitting business.
Luiz DaSilva, 68, was indicted on one count of operating an unlicensed money transmitting business. DaSilva will appear in federal court in Boston at 3:30 p.m. this afternoon before U.S. District Court Magistrate Judge Judith G. Dein.
According to the indictment, from in or about October 2018 through in or about October 2020, DaSilva failed to comply with the federal registration requirements for money transmitting businesses in operating his business, Mix Cell Phones, LLC.
The charge of operating an unlicensed money transmitting business 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.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Framingham Police Chief Lester Baker made announcement today. Assistant U.S. Attorney John T. Mulcahy of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four Individuals Charged with Fraudulently Obtaining Government Contracts Intended for Disadvantaged Small Business OwnersRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Scott E. Boone, age 51, of Enola, PA, Daniel E. McGuire, age 60, of Landisville, PA, Thomas E. Lauer, age 60, of Butler, PA, and Rebecca J. Davis, age 73, of Bethel Park, PA, were indicted yesterday by a federal grand jury on six counts of violating the Major Fraud Act and two counts of conspiracy to defraud the United States and to commit violations of the Major Fraud Act.
According to United States Attorney Gerard M. Karam, the indictment alleges that between 2003 and 2014, all four defendants conspired to obtain and did obtain federal government contracts reserved for companies run by socially and economically disadvantaged individuals through the U.S. Small Business Administration’s 8(a) Business Development Program. This program required socially and economically disadvantaged individuals to exercise unconditional control over their own companies. It also required these companies to commit to performing at least 15% of the cost of any contract with their own employees. When companies met these criteria, they could enter the program for a period of up to nine years and then bid on contracts reserved for companies in the 8(a) Program. These reserved contracting opportunities are often referred to as “set-aside” contracts.
Rebecca J. Davis was the president of a company called Elstner Construction Company. Davis and her company were admitted to the SBA’s 8(a) Program in 2001. Starting around 2007, she and the other defendants allegedly began conspiring to get construction contracts at Letterkenny Army Depot, a facility under the command structure of the U.S. Army Aviation and Missile Command, that were set aside for 8(a) Program participants. With the assistance of an unnamed government official working at Letterkenny Army Depot, these four individuals allegedly obtained contracts on which Davis and her existing employees played no meaningful role. Instead, Boone, McGuire, and Lauer allegedly ran all of the contract work, and Davis’s role was allegedly limited to signing checks for vendors, suppliers, and subcontractors. According to the indictment, Davis was rarely, if ever, present at Letterkenny Army Depot following an initial meeting with her codefendants and the unnamed government official in 2007.
In order to make it appear falsely that Elstner Construction was meeting the 15% self-performance requirement, she and the other defendants allegedly moved actual laborers who were on site at Letterkenny Army Depot onto the Elstner Construction payroll. The unnamed government official assisting them to secure contracts was allegedly aware of this practice and, more generally, was aware that Davis and her existing employees were not performing on-site work.
The indictment also alleges that the unnamed government official provided Boone with confidential information in an effort to assist the four defendants, acting through Elstner Construction, to win a $60 million construction contract in 2009.
The indictment alleges that the four defendants together obtained approximately $85 million in construction contracts at Letterkenny Army Depot through fraudulent means. The indictment contains forfeiture allegations against the four defendants seeking the same amount.
In addition, three defendants—Boone, McGuire, and Lauer—were indicted for conspiring to obtain and obtaining a contract at the VA Medical Center in Salem, Virginia worth approximately $5.3 million through fraudulent means. Boone, McGuire, and Lauer were able to obtain this contract because Boone qualified for a different small business development program focused on service-disabled veteran owned small businesses (SDVOSBs). Boone’s SDVOSB, Bon Secour Management, allegedly obtained this contract and then moved employees of an electrical subcontractor onto its payroll in order to make it appear that Bon Secour was complying with its own similar requirement to perform at least 15% of the labor under the contract with its own employees.
The indictment contains forfeiture allegations seeking approximately $5.3 million from Boone, McGuire, and Lauer, in addition to the approximately $85 million in forfeiture alleged against all four defendants.
“Investigating schemes that undermine the integrity of Department of Defense (DoD) procurement is a top priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Today’s announcement demonstrates our commitment to work with the Department of Justice and our law enforcement partners to ensure that the contracting process for legitimate small businesses remains fair and competitive, and that individuals who abuse set-aside programs are held accountable.”
“We are very pleased with today’s announcement,” said Special Agent in Charge L. Scott Moreland, of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office. “This is a true testament to the continued commitment of our special agents to work seamlessly with Department of Justice and our fellow law enforcement agencies to bring to justice those who attempt to defraud the U.S. Government and U.S. Army.”
“These allegations of conspiring to gain federal contracts set aside for service-disabled veterans are something the VA Office of Inspector General investigates very vigorously,” said Special Agent in Charge Christopher Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “VA OIG is committed to identifying and stopping those individuals who would misuse an opportunity meant solely for our nation’s veterans with disabilities. We appreciate the efforts of the Department of Justice, and our law enforcement partners for their work leading to today’s charges.”
The case was investigated by the U.S. Department of Defense Office of Inspector General’s Defense Criminal Investigative Service, Department of the Army Criminal Investigation Division, U.S. Department of Veterans Affairs Office of Inspector General, and the U.S. Small Business Administration Office of Inspector General. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
The maximum penalty under federal law for violations of the Major Fraud Act is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty under federal law for conspiracy is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Four Defendants Charged with Conspiring to Provide Material Support to ISISRead the Press Release
A criminal complaint was unsealed yesterday in federal court in Brooklyn charging Mohammad David Hashimi, 35, of Potomac Falls, Virginia; Abdullah At Taqi, 23, of East Elmhurst, Queens, New York; Khalilullah Yousuf, 34, of Ontario, Canada; and Seema Rahman, 25, of Edison, New Jersey, with conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS). Hashimi, Taqi and Rahman were arrested on Dec. 14 in Virginia, New York and New Jersey, respectively. Yousuf was also arrested on Dec. 14 in Canada by Canadian law enforcement pursuant to a provisional arrest request from the United States. Taqi and Rahman made their initial appearances in federal court in Brooklyn before Chief U.S. Magistrate Judge Cheryl L. Pollak. Hashimi made his initial appearance in federal court in Alexandria, Virginia, before U.S. Magistrate Judge Ivan Davis and was ordered detained pending trial.
According to court documents, Hashimi and Yousuf were members of a group chat (referred to in the complaint as Group Chat-1) on an encrypted social media and mobile messaging electronic communication service that facilitated communication between and among supporters of ISIS and other groups that adhered to similar violent jihadist ideologies. In early April 2021, members of Group Chat-1 discussed posting donation links that purported to be for humanitarian causes but that were in fact intended to help the “mujahideen,” an Arabic term that translates to “holy warriors” that is used by ISIS supporters to refer to ISIS fighters. Yousuf provided a link to a specific Bitcoin address and another member of Group Chat-1 posted a link to a PayPal campaign, both of which were controlled by an individual identified in the Complaint as Facilitator-1.
“These defendants promoted the violent extremism of ISIS by pretending to raise money for humanitarian causes only to transfer the funds to cryptocurrency accounts tied to the group,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “These arrests show the Justice Department’s unwavering commitment to bringing to justice all those who would help terrorist organization threaten harm to our people.”
“As alleged, this crowdfunding network used cryptocurrency, Bitcoin wallets, GoFundMe and PayPal to collect and raise blood money to support ISIS, not for needy families as they falsely claimed in their attempt to deceive law enforcement,” said U.S. Attorney Breon Peace for the Eastern District of New York. “I commend our prosecutors and the FBI’s New York Joint Terrorism Task Force for piercing the veil of secrecy to identify the perpetrators of this scheme, reveal the true evil nature of these virtual money transfers, and bring to justice those who seek to enable acts of violent extremism.”
“These arrests show the FBI and our partners will not tolerate those who attempt to raise money to fund ISIS or any other terrorist group,” said Assistant Director Robert R. Wells of the FBI’s Counterterrorism Division. “According to the complaint, these individuals allegedly made fundraising appeals for charitable donations to humanitarian causes and did not reveal how they planned to use the money. The FBI will continue to aggressively investigate and hold accountable those who try to assist terrorists.”
In conversations with a confidential source, Taqi and Facilitator-1 discussed giving money to support ISIS fighters. When the confidential source asked Facilitator-1 for proof that the money being donated was going to support ISIS, Facilitator-1 sent the confidential source screenshots and a video depicting tactical gear, ammunition and grenades on top of an ISIS flag. An image of one of the photographs is depicted below.
Facilitator-1 also told the confidential source that the charitable descriptions in the fundraising campaigns were in fact a “deception for the infidels” and the “words that are in the link are fake in order to deceive.”
Between February 2021 and July 2022, the defendants raised and contributed more than $35,000 to Facilitator-1 via a combination of cryptocurrency and other sources. The defendants contributed more than $24,000 to Facilitator-1’s Bitcoin address, with Yousuf contributing $20,347.89, Taqi contributing $2,769.35 and Rahman contributing $927.51. The defendants also sent more than $1,000 to the PayPal account associated with Facilitator-1, with Rahman contributing approximately $550, Taqi contributing approximately $480 and Hashimi contributing $55. In addition, both Yousuf and Rahman created multiple GoFundMe fundraising campaigns purporting to collect money for charitable causes. Hashimi contributed $364 and Taqi contributed $200 through the Yousuf-created GoFundMe campaigns, while Rahman raised approximately $10,000 through the GoFundMe campaigns that she created, and then wired the proceeds, approximately $10,024, to individuals connected to Facilitator-1 via Western Union.
Hashimi has also made statements suggesting his desire to die in combat or in a terrorist attack on behalf of, a foreign terrorist organization. For example, in November 2020, Hashimi told another confidential source over encrypted communications that “I have made up my mind I want to make Hijra to Afghanistan. To join dawla,” in other words, travel to join ISIS. In or about September 2021, Hashimi told another individual through a direct message that “I just want Jannah,” i.e., paradise or the after-life, “And to die on the battlefield.”
The defendants are each charged with conspiring to provide material support to a foreign terrorist organization, which carries a maximum statutory penalty of up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
Assistant U.S. Attorneys Douglas M. Pravda, Ian C. Richardson and Nina Gupta for the Eastern District of New York and Trial Attorneys Daniel Gardner and Alexandra Hughes of the National Security Division’s Counterterrorism Section are prosecuting the case.
Acomplaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Fort Wayne Man Sentenced to 63 Months in PrisonRead the Press Release
FORT WAYNE – Jordan Patterson, 29 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to distribution and aiding in the distribution of methamphetamine, announced United States Attorney Clifford D. Johnson.
Patterson was sentenced to 63 months in prison followed by 2 years of supervised release.
According to documents in this case, in September 2020, law enforcement purchased over 50 grams of methamphetamine from Patterson.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration with assistance from Indiana State Police, the Allen County Drug Task Force and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Stacey R. Speith.
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Former federal agent receives sentence for corruption in connection to illicit Syrian relationshipRead the Press Release
HOUSTON –A 49-year-old former special agent with Naval Criminal Investigative Service (NCIS) has been sent to prison following her conviction of obstructing justice, making false statements and accepting money and gifts for official acts, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury sitting in Houston convicted Leatrice Malika DeBruhl-Daniels June 13, following a six-day trial.
Today, U.S. District Judge Gray Miller ordered DeBruhl-Daniels to serve 108 months in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, the court cited DeBruhl’s breach of trust and deterrence.
“Leatrice DeBruhl-Daniels betrayed her badge and our country by revealing sensitive and classified information to the target of an FBI counterterrorism investigation in exchange for money, gifts and affection,” said NCIS Director Omar Lopez. “Holding her accountable will make it clear that NCIS will not tolerate corruption within our ranks.”
DeBruhl-Daniels was a veteran NCIS special agent working in Dubai, United Arab Emirates. There, she met Nadal Diya, a Syrian businessman living in Dubai looking for help in securing a visa to the United States. At that time, Diya was the target of several federal investigations.
At trial, the jury heard from 16 government witnesses, which included numerous agents and Diya himself. Testimony revealed that in 2017, DeBruhl-Daniels used her position to get certain benefits from Diya in exchange for providing information to him about his visa status. The gifts included an expensive birthday party at Diya’s home, approximately $1,400 in cash and the promise of a job for her son in Diya’s company.
The relationship with Diya eventually became sexual. During that relationship, she revealed he was a target of an FBI counterterrorism investigation, information that was classified at the time. She also told him that if he came to the United States, he would likely be arrested.
In late December 2017, federal agents had questioned Debruhl-Daniels about Diya. However, she failed to disclose her intimate relationship with him, the gifts he had given her, the job he offered her son and the classified information she provided.
Following the interview, she also visited with Diya and coached him on what to say in a subsequent interview.
Several months later in May 2018, she left Dubai for Hawaii for a highly sensitive and coveted job. However, she soon learned she would not get the new position. It was only then she confessed to superiors and investigators about her illicit relationship, the monies, party and gifts she had received and the classified information she had previously revealed.
Debruhl-Daniels testified in her own defense at trial. She claimed, among other things, that the classified information she revealed to Diya was public information. She further attempted to convince the jury she did not have a duty to reveal any of the details of her personal relationship with Diya nor her disclosures to him.
The jury did not believe her claims and found her guilty.
Diya, 50, of Dubai, was previously sentenced and has been removed from the United States.
Debruhl-Daniels will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
NCIS led the investigation with the assistance of the FBI, Homeland Security Investigations, Department of Commerce, Department of State and the Defense Criminal Investigative Service. U.S. Attorney Alamdar S. Hamdani and Assistant United States Attorney Arthur R. Jones prosecuted the case.
Former Venezuelan National Treasurer and Husband Convicted in International Bribery SchemeRead the Press Release
MIAMI – A federal jury in the Southern District of Florida has convicted the former National Treasurer of Venezuela and her husband for their roles in a billion-dollar currency exchange, bribery, and money laundering scheme.
Claudia Patricia Diaz Guillen, 49, and her spouse, Adrian Jose Velasquez Figueroa, 43, both Venezuelan citizens, were extradited from Madrid, Spain, earlier this year.
According to court documents and evidence presented at trial, Diaz and Velasquez accepted over $100 million in bribes from co-conspirator Raul Gorrin Belisario, 54, a Venezuelan billionaire businessman who owned Globovision news network. Gorrin paid bribes to Diaz, including through her husband Velasquez, in order to obtain access to purchase bonds from the Venezuela National Treasury at a favorable exchange rate, resulting in hundreds of millions of dollars in profit. The conspiracy involved bulk cash hidden in cardboard boxes, offshore shell companies, Swiss bank accounts, and international wire transfers sent by Gorrin.
“Unfortunately, people in positions of power and public trust sometimes break that trust and use their power for selfish gain,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “We will remain vigilant in our fight against corruption and prosecute guilty parties to the fullest extent.”
That sentiment is shared by the Department of Justice’s Criminal Division.
“Claudia Patricia Diaz Guillen and Adrian Jose Velasquez Figueroa laundered bribes Diaz received as the Venezuelan National Treasurer,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Diaz abused her position as a public official to line her pockets with more than a hundred million dollars, which she and her co-conspirators spent on private jets and yachts and laundered through the U.S. financial system. Whether at home or abroad, the Criminal Division and its partners are committed to vigorously fighting bribery and holding corrupt officials accountable.”
“This verdict sends a clear message to foreign kleptocrats like Diaz and Velasquez Figueroa, who are guilty of theft of billions of dollars using their positions of trust for their own personal gain” said Special Agent in Charge Michael E. Buckley of the Homeland Security Investigations (HSI) Miami Field Office. “HSI Miami’s El Dorado Task Force South will work tirelessly to pursue those individuals and organizations who are involved in this illicit practice and bring them to justice.”
Gorrin was charged by indictment in August 2018 and remains charged in the superseding indictment as a co-conspirator in the same money laundering scheme. He is currently a fugitive residing in Venezuela.
Diaz and Velasquez were each found guilty of one count of conspiring to commit money laundering and one count of money laundering. Velasquez also was convicted of a second count of money laundering. Diaz and Velasquez are scheduled to be sentenced on Feb. 21, 2023, and face a maximum possible penalty of 20 years in prison on each count of conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI Miami, HSI Houston, HSI Boston, FBI Miami, and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) investigated the case. The Justice Department’s Office of International Affairs provided significant assistance in this matter. The department appreciates the significant cooperation provided by authorities in Spain and Switzerland.
Assistant U.S. Attorneys Kurt Lunkenheimer and Joshua Paster for the Southern District of Florida and Trial Attorneys Paul Hayden and Michael Culhane Harper of the Criminal Division’s Fraud Section are prosecuting the case.
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 Venezuelan National Treasurer and Husband Convicted in International Bribery SchemeRead the Press Release
A federal jury in the Southern District of Florida convicted the former National Treasurer of Venezuela and her husband on Dec. 13 for their roles in a billion-dollar currency exchange, bribery, and money laundering scheme.
Claudia Patricia Diaz Guillen, 49, and her spouse, Adrian Jose Velasquez Figueroa, 43, both Venezuelan citizens, were extradited from Madrid, Spain, earlier this year.
According to court documents and evidence presented at trial, Diaz and Velasquez accepted over $100 million in bribes from co-conspirator Raul Gorrin Belisario, 54, a Venezuelan billionaire businessman who owned Globovision news network. Gorrin paid bribes to Diaz, including through her husband Velasquez, in order to obtain access to purchase bonds from the Venezuela National Treasury at a favorable exchange rate, resulting in hundreds of millions of dollars of profit. The conspiracy involved bulk cash hidden in cardboard boxes, offshore shell companies, Swiss bank accounts, and international wire transfers sent by Gorrin to purchase multiple private jets, yachts, and to fund a high-end fashion line started by Diaz and Velasquez in Southern Florida.
“Claudia Patricia Diaz Guillen and Adrian Jose Velasquez Figueroa laundered bribes Diaz received as the Venezuelan National Treasurer,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Diaz abused her position as a public official to line her pockets with more than a hundred million dollars, which she and her co-conspirators spent on private jets and yachts and laundered through the U.S. financial system. Whether at home or abroad, the Criminal Division and its partners are committed to vigorously fighting bribery and holding corrupt officials accountable.”
“Unfortunately, people in positions of power and public trust sometimes break that trust and use their power for selfish gain,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “We will remain vigilant in our fight against corruption and prosecute guilty parties to the fullest extent.”
“This verdict sends a clear message to foreign kleptocrats like Diaz and Velasquez Figueroa, who are guilty of theft of billions of dollars using their positions of trust for their own personal gain” said Special Agent in Charge Michael E. Buckley of the Homeland Security Investigations (HSI) Miami Field Office. “HSI Miami’s El Dorado Task Force South will work tirelessly to pursue those individuals and organizations who are involved in this illicit practice and bring them to justice.”
Gorrin was charged by indictment in August 2018 and remains charged in the superseding indictment as a co-conspirator in the same money laundering scheme. He is currently a fugitive residing in Venezuela.
Diaz and Velasquez were each found guilty of one count of conspiring to commit money laundering and one count of money laundering. Velasquez was also convicted of a second count of money laundering. Diaz and Velasquez are scheduled to be sentenced on Feb. 21, 2023, and face a maximum possible penalty of 20 years in prison on each count of conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI Miami, HSI Houston, HSI Boston, FBI Miami, and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) investigated the case. The Justice Department’s Office of International Affairs provided significant assistance in this matter. The department appreciates the significant cooperation provided by authorities in Spain and Switzerland.
Trial Attorneys Paul Hayden and Michael Culhane Harper of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Kurt Lunkenheimer and Joshua Paster for the Southern District of Florida are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Twitter Employee Sentenced to 42 Months in Federal Prison for Acting as a Foreign AgentRead the Press Release
A California man was sentenced yesterday to 42 months in federal prison for his role in accessing, monitoring and conveying confidential and sensitive information that could be used to identify and locate Twitter users of interest to the Saudi Royal Family.
Ahmad Abouammo, 45, formerly of Walnut Creek and currently residing in Seattle, was convicted of acting as a foreign agent without notice to the Attorney General, conspiracy, wire fraud, international money laundering and falsification of records in a federal investigation on Aug. 9 following a two-week jury trial.
“Mr. Abouammo violated the trust placed on him to protect the privacy of individuals by giving their personal information to a foreign power for profit. His conduct was made all the more egregious by the fact that the information was intended to target political dissidents speaking out against that foreign power,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We are committed to holding accountable those who act unlawfully as unregistered foreign agents and advance hidden influence campaigns on behalf of foreign regimes.”
“This case revealed that foreign governments, here, the Kingdom of Saudi Arabia (KSA) will bribe insiders to obtain the user information that is collected and stored by our Silicon Valley social media companies,” said U.S. Attorney Stephanie M. Hinds for the Northern District of California. “In handing down today’s sentence, the Court emphasized that defendant shared the user information with a foreign government known for not tolerating dissidents, and he did so while working with his even more culpable co-defendant who fled to the KSA rather than face trial. This sentence sends a message to insiders with access to user information to safeguard it, particularly from repressive regimes, or risk significant time in prison.”
“This case exposes attempts by the Kingdom of Saudi Arabia to illegally obtain personally identifiable information in order to target critics and dissidents,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “Anyone working to advance the agenda of a foreign government is required by law to register as a foreign agent of that country. Mr. Abouammo brazenly disregarded this law by exploiting his role at Twitter to not only locate and peddle user information, but to also launder money via the sale of gifts received from the Saudi Royal Family. His sentencing demonstrates the FBI’s unwavering dedication to protecting against any attempt by a foreign government to stalk, harass or intimidate the people within our borders.”
According to the evidence presented at trial, Abouammo began receiving bribes from an official of the KSA as early as December 2014. Abouammo was employed at Twitter as a Media Partnerships Manager for the Middle East and North Africa (MENA) region. Twitter policies required Abouammo to protect Twitter user information, as well as disclose conflicts of interest and report gifts from those with business with Twitter. Nevertheless, the evidence at trial demonstrated that Abouammo accepted bribes from officials of the KSA in exchange for accessing Twitter user accounts and conveying information on dissidents and critics of the KSA to their government officials and the Saudi Royal family, then lied to the FBI investigators and falsified a document when questioned about the transactions in October 2018. The official of the KSA was head of the “private office” of a royal family member who, during the relevant time, was a Minister of State and then became the Minister of Defense and Deputy Crown Prince.
The evidence showed that the foreign official met with Abouammo in London in December 2014 and provided Abouammo with a luxury Hublot watch. Abouammo later referenced the value of the watch at $42,000 when offering it for sale on Craigslist. After the meeting in London, Abouammo began repeatedly accessing private information about several Twitter accounts, at least one of which was the account of an influential user who was critical of members of the Saudi Royal Family and the KSA government. Abouammo also continued to communicate with the official of the Kingdom of Saudi Arabia, including regarding the influential critical account. Evidence at trial further showed that after Abouammo traveled to Lebanon in February 2015, a bank account was opened in the name of his father in Lebanon and Abouammo obtained access to that bank account. The account then received $100,000 in February 2015 from the foreign official and Abouammo laundered the money by sending it into the United States in small wire transfers with false descriptions. The account received another $100,000 shortly after Abouammo left Twitter for other employment, accompanied by a note from the official apologizing for the delayed payment.
In October 2018, FBI agents interviewed Abouammo at his residence about his involvement in the scheme with officials of the KSA. Evidence at trial showed that Abouammo provided false information to the FBI investigators and provided a false invoice for one of the payments he received from the foreign official.
In sentencing Abouammo, Judge Chen described Abouammo’s conduct as “serious” and “consequential” and stated that, “exposing dissident information is a serious offense.” In addition to the 42-month prison term, Judge Chen sentenced Abouammo to three years of supervision following release from prison; issued a judgment for forfeiture of $242,000, representing the watch and cash received by Abouammo as bribes; and ordered Abouammo to surrender on March 31, 2023, to begin serving his prison sentence.
The FBI investigated the case.
Assistant U.S. Attorneys Colin Sampson and Eric Cheng for the Northern District of California and Trial Attorney Christine Bonomo of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case, with the assistance of Beth Margen and Alycee Lane.
Former Twitter Employee Sentenced to 42 Months in Federal Prison for Acting as A Foreign AgentRead the Press Release
SAN FRANCISCO – Ahmad Abouammo was sentenced today to 42 months in federal prison for his role in accessing, monitoring, and conveying confidential and sensitive information that could be used to identify and locate Twitter users of interest to the Saudi Royal Family, announced United States Attorney Stephanie M. Hinds, Matthew G. Olson, Assistant Attorney General, National Security Division, and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by Senior United States District Judge Edward M. Chen who presided over the two-week trial that concluded in Abouammo’s conviction of the crimes.
“This case revealed that foreign governments will bribe insiders to obtain the user information that is collected and stored by our Silicon Valley social media companies,” said U.S. Attorney Stephanie M. Hinds. “In handing down today’s sentence, the Court emphasized that defendant shared the user information with a foreign government known for not tolerating dissidents, and he did so working with his even more culpable co-defendant who fled the country rather than face trial. This sentence sends a message to insiders with access to user information to safeguard it, particularly from repressive regimes, or risk significant time in prison.”
“Mr. Abouammo violated the trust placed on him to protect the privacy of individuals living in the US by giving their personal information to a foreign power for profit. His conduct was made all the more egregious by the fact that the information was intended to deny US persons of their lawful rights,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We are committed to holding accountable those who act unlawfully as unregistered foreign agents and advance hidden influence campaigns on behalf of foreign regimes.”
"The FBI works tirelessly to ensure foreign governments and their agents cannot interfere with the constitutionally protected right to free speech," said FBI San Francisco Special Agent in Charge Robert K. Tripp. "Today's sentence demonstrates the Bureau's dedication to following all leads to ensure perpetrators of transnational repression are brought to justice."
According to the evidence presented at trial, Abouammo, 45, formerly of Walnut Creek and currently residing in Seattle, began receiving bribes from an official of the Kingdom of Saudi Arabia (KSA) as early as December of 2014. Abouammo was employed at Twitter as a Media Partnerships Manager for the MENA region. Twitter policies required Abouammo to protect Twitter user information, as well as disclose conflicts of interest and report gifts from those with business with Twitter. Nevertheless, the evidence at trial demonstrated that Abouammo accepted bribes from officials of the KSA in exchange for accessing Twitter user accounts and conveying information on dissidents and critics of the KSA to their government officials and the Saudi Royal family, then lied to the FBI investigators and falsified a document when questioned about the transactions in October 2018. The official of the KSA was head of the “private office” of a royal family member who, during the relevant time, was a Minister of State and then became the Minister of Defense and Deputy Crown Prince.
The evidence showed that the foreign official met with Abouammo in London in December 2014 and provided Abouammo with a luxury Hublot watch. Abouammo later referenced the value of the watch at $42,000 when offering it for sale on Craigslist. After the meeting in London, Abouammo began repeatedly accessing private information about several Twitter accounts, at least one of which was the account of an influential user who was critical of members of the Saudi Royal Family and the KSA government. Abouammo also continued to communicate with the official of the Kingdom of Saudi Arabia, including regarding the influential critical account. Evidence at trial further showed that after Abouammo traveled to Lebanon in February 2015, a bank account was opened in the name of his father in Lebanon and Abouammo obtained access to that bank account. The account then received $100,000 in February 2015 from the foreign official and Abouammo laundered the money by sending it into the United States in small wire transfers with false descriptions. The account received another $100,000 shortly after Abouammo left Twitter for other employment, accompanied by a note from the official apologizing for the delayed payment.
In October 2018, FBI agents interviewed Abouammo at his residence about his involvement in the scheme with officials of the KSA. Evidence at trial showed that Abouammo provided false information to the FBI investigators and provided a false invoice for one of the payments he received from the foreign official.
Abouammo was arrested on November 5, 2019. On July 28, 2020, a federal grand jury issued a superseding indictment charging him with acting as an agent of a foreign government without providing notice to the Attorney General, in violation of 18 U.S.C. § 951; conspiracy to commit wire fraud and honest services fraud, in violation of 18 U.S.C. § 1349; six counts of honest services fraud, in violation of 18 U.S.C. § 1346; six counts of wire fraud, in violation of 18 U.S.C. § 1343; international money laundering, in violation of 18 U.S.C. § 1956(a)(2)(B)(i); falsification of records in a federal investigation, in violation of 18 U.S.C. § 1519;. On August 9, 2022, the jury acquitted Abouammo of five of the wire fraud and honest services counts and returned a verdict of guilty on all the remaining counts.
In sentencing Abouammo, Judge Chen described Abouammo’s conduct as “serious” and “consequential” and stated that, “exposing dissident information is a serious offense.” In addition to the 42-month prison term, Judge Chen sentenced Abouammo to three years of supervision following release from prison; issued a judgment for forfeiture of $242,000, representing the watch and cash received by Abouammo as bribes; and ordered Abouammo to surrender on March 31, 2023, to begin serving his prison sentence.
Assistant U.S. Attorneys Colin Sampson and Eric Cheng and National Security Division Trial Attorney Christine Bonomo prosecuted the case with the assistance of Beth Margen and Alycee Lane. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former Police Officer Pleads Guilty to Attempted Online Enticement to Engage in Sexual Activity with A MinorRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Alejandro Carmona-Fonseca (48, Green Cove Springs) has pleaded guilty to attempted online enticement of a minor to engage in sexual activity. Carmona-Fonseca faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. He has agreed to pay restitution to all of the victims of his offenses and faces a potential life term of supervised release. The court previously ordered Carmona-Fonseca detained pending the outcome of this case. Carmona-Fonseca had been employed as an officer with the Jacksonville Sheriff’s Office (JSO).
According to the plea agreement, this case began when the Clay County Sheriff’s Office (CCSO) received a report from a local gym about a gym member, Carmona-Fonseca, sending a nude photo to another gym member, who was a minor child – Minor Victim 1 (MV1). During an interview with CCSO, MVI explained that Carmona-Fonseca had requested MV1’s Snapchat account and MV1 provided it to him. MV1 told Carmona-Fonseca he was in high school. Carmona-Fonseca sent images and videos with his genitals exposed to MV1. At one point, Carmona-Fonseca sent MV1 a picture of himself in his police uniform and wrote “you can call me your police daddy.” At times, Carmona-Fonseca asked MV1 for photos of MV1 with his shirt off.
With the consent of MV1 and his parents, CCSO assumed MV1’s identity over Snapchat, and on March 3, 2022, a Homeland Security Investigations (HSI) Task Force Officer (TFO)/CCSO detective began communicating with Carmona-Fonseca using MV1’s Snapchat account. The TFO confirmed that Carmona-Fonseca was friends with MV1 and observed that Carmona-Fonseca’s location services were turned on in Snapchat. The TFO observed Carmona-Fonseca’s location numerous times during the chat. Carmona-Fonseca’s location showed him next to a JSO substation on numerous occasions, the areas where he worked as a patrol officer, near his residence, and near the gym he frequented. The TFO communicated with Carmona-Fonseca on March 3 and 4, 2022. During those conversations, Carmona-Fonseca sent a video of himself in his police uniform and another in which he was nude. Carmona-Fonseca also made several requests for nude videos of MV1 flexing and said that everything stayed between them, and that because it was Snapchat, it would disappear.
This case was investigated by the Clay County Sheriff’s Office and Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Ashley Washington. The forfeiture is being handled by Assistant United States Attorney Mai Tran.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Joplin Youth Minister Sentenced for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A former youth minister in Joplin, Mo., was sentenced in federal court today for exchanging pornographic images and videos with a child victim.
Nicholas Lane Stephens, 25, was sentenced by U.S. District Judge M. Douglas Harpool to six years in federal prison without parole. The court also sentenced Stephens to 15 years of supervised release following incarceration.
On March 15, 2022, Stephens pleaded guilty to receiving and distributing child pornography. Stephens was formerly the youth minister at St. Paul’s United Methodist Church in Joplin.
The investigation began when a Children’s Division investigator received a hotline call reporting that Stephens, a volunteer at the church, was involved in inappropriate relationships with minor females at the church, including the 17-year-old victim identified in court documents as “Jane Doe.”
Jane Doe told investigators she sent nude images to Stephens via Snapchat in December 2019. Stephens sent Jane Doe several pornographic images of himself, as well as pornographic FaceTime videos. Examiners discovered a dozen images and one video of child pornography of Jane Doe on Stephens’s cell phone. There were also numerous messages between Jane Doe and Stephens.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Southwest Missouri Cyber Crimes Task Force, and the Joplin, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Insys Sales Representative Sentenced in Kickback ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge William H. Jung has sentenced Daniel Tondre (52, Tampa) to four years in federal prison for his role in a health care fraud kickback conspiracy. The court also ordered him to forfeit $483,000, the proceeds of his offenses and to pay a $25,000 fine. On May 24, 2022, a federal jury had found Tondre and Dr. Steven Chun (59, Sarasota) guilty of conspiring to pay and receive kickbacks and bribes, in the form of speaker fees, in return for prescribing the fentanyl spray, Subsys. Both were convicted of five separate substantive counts of paying and receiving kickbacks, and Tondre was also convicted of two counts of identification fraud. Chun was sentenced to three years and six months’ imprisonment on December 5, 2022.
According to evidence presented during the 10-day trial, Tondre was employed as a sales representative with Insys Therapeutics, Inc., the company that manufactured and sold Subsys, an expensive form of liquid fentanyl designed to be applied under the tongue (sublingual spray) allowing it to rapidly enter the bloodstream to help relieve break-through pain in certain cancer patients. Tondre was the Subsys sales representative assigned to Chun’s Sarasota pain management medical practice in Sarasota. Chun prescribed a large volume of Subsys. Insys, through its sales representative, Tondre, actively marketed Subsys to Chun by holding bogus and sham speaker events, and paid Chun $2400 to $3000 per speaker event in return for Chun writing more and higher dosages of Subsys prescriptions. Tondre facilitated sham speaker programs that were often only attended by Chun’s family and friends, or repeat attendees, and included many sign-in sheets that Tondre falsified or forged with signatures of physicians who did not attend. The sham speaker programs were designed to conceal and disguise kickbacks and bribes paid to Chun to induce him to prescribe Subsys.
According to the evidence, Tondre earned over $737,000 in salary and sales commissions over a period of two and half years. Insys paid Chun over $278,900 in illegal kickbacks and bribes via the sham speaker programs over a period less than three years. Medicare Part D paid over $4.5 million for Subsys prescriptions written by Chun.
“This corrupt medical professional ignored patient care and instead inflicted financial pain,” said FBI Tampa Division Special Agent in Charge David Walker. “The FBI and its law enforcement partners work hard to ensure our nation’s federally funded healthcare system is protected from deception and greed.”
“Contrary to proper patient care, the defendants repeatedly disregarded opportunities to promote legitimate, suitable pain management for beneficiaries to instead pursue personal gain,” said Special Agent in Charge Omar Pérez Aybar with the U.S. Department of Health and Human Services Office of Inspector General. “It is a top priority of our agency and law enforcement partners to bring to justice individuals who exploit their proximity to patients to defraud federal health care programs.”
“This sentence demonstrates the effectiveness of the Defense Criminal Investigative Service, our law enforcement partners, and the U.S. Attorney's Office, in holding corrupt medical providers accountable when they fraudulently divert Defense Health Agency funds, putting their own greed before patient welfare,” said Special Agent in Charge Darrin Jones of the Defense Department's Inspector General, Defense Criminal Investigative Service, Southeast Field Office. “DCIS and our partners are committed to rooting out fraud and corruption and safeguarding the precious Taxpayer funding intended for the healthcare of our military members and their families.”
This case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services—Office of Inspector General, the Defense Criminal Investigative Service, and by the Opioid Fraud Abuse and Detection Unit at the United States Attorney’s Office, which focuses on opioid-related fraud and abuse by medical and health care professionals who have contributed to the prescription opioid epidemic. It was prosecuted by Assistant United States Attorneys Kelley C. Howard-Allen and Jennifer L. Peresie.
Former Green Haven Correction Officer and Former Supervisor Charged in Connection with 2020 Assault on InmateRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Superseding Indictment charging TAJ EVERLY, a former correction officer at Green Haven Correctional Facility (“Green Haven”), and ROSITA ROSSY, a former sergeant at the same facility, in connection with EVERLY’s May 28, 2020, assault of an inmate at Green Haven.
In October 2022, EVERLY was charged in a one-count indictment alleging that he falsified records in connection with the May 28, 2020, assault. The Superseding Indictment – in addition to charging EVERLY with falsifying records – charges EVERLY with deprivation of rights under color of law and charges ROSSY with falsifying records, witness tampering, and conspiracy to falsify records.
ROSSY was arrested this morning and was presented before Magistrate Judge Andrew E. Krause. EVERLY is released on bail and will be arraigned on the Superseding Indictment at a later date. The case is assigned to U.S. District Judge Nelson S. Román.
U.S. Attorney Damian Williams said: “Correction Officer Taj Everly allegedly assaulted an inmate in his charge. Instead of upholding his duty to guard and protect that inmate, he deprived him of a constitutional right to be free from excessive force. Afterwards, Everly and his supervisor, Sergeant Rosita Rossy, attempted to cover up the assault by falsifying their reports, and in Rossy’s case, directing other correction officers under her supervision to do the same. Today’s Superseding Indictment underscores our Office’s unwavering commitment to protecting the civil rights of all individuals, including those repaying their debt to society in prison.”
FBI Assistant Director in Charge Michael J. Driscoll said: “As previously alleged, Mr. Everly violated his oath to conceal his malicious actions – actions we allege today deprived the victim of his constitutional rights. We further allege Ms. Rossy made false reports – and instructed correctional officers she supervised to make similarly false reports – in a concerted effort to conceal Mr. Everly’s actions. The FBI will continue to work to ensure those in positions of trust who misuse their authority are made to face the consequences of their abuses in the criminal justice system.”
According to the allegations in the Superseding Indictment unsealed today in White Plains federal court:[1]
On May 28, 2020, EVERLY, who was then a correction officer at Green Haven, located in Stormville, New York, assaulted an inmate in the care and custody of the New York State Department of Corrections and Community Supervision (“DOCCS”) (“Inmate-1). As Inmate-1 exited a room at Green Haven, EVERLY approached Inmate-1 and, without provocation, punched Inmate-1, causing both EVERLY and Inmate-1 to fall to the ground. EVERLY’s actions deprived Inmate-1 of his constitutional right to be free from excessive force amounting to cruel and unusual punishment.
After the assault, EVERLY, ROSSY, and other correction officers prepared reports describing the incident. In EVERLY’s report (the “Everly Report”), EVERLY falsely stated that Inmate-1 had first punched him and that EVERLY responded with force. Despite receiving information from multiple correction officers that contradicted EVERLY’s statements, ROSSY also prepared a report that mirrored the statements made in the Everly Report. ROSSY further directed at least two other correction officers — both of whom reported to ROSSY — to prepare similarly false and misleading reports.
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EVERLY, 32, of Cortlandt Manor, New York, is charged with one count of deprivation of rights under color of law, which carries a maximum sentence of 10 years in prison, and one count of falsifying records in connection with a federal investigation, which carries a maximum sentence of 20 years in prison.
ROSSY, 49, of Monticello, New York, is charged with one count of falsifying records in connection with a federal investigation, which carries a maximum sentence of 10 years in prison, two counts of witness tampering, which each carry a maximum sentence of 20 years in prison, and one count of conspiracy to falsify records, which carries a maximum sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI and the DOCCS Office of Special Investigations.
The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorneys Lindsey Keenan and Kaiya Arroyo are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Baltimore Police SWAT Officer Sentenced to 25 Years in Federal Prison for Sexual Exploitation of a Child to Produce Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Donald Hildebrandt, age 52, of Bel Air, Maryland, yesterday to 25 years in federal prison, followed by lifetime supervised release, for sexual exploitation of a child to produce child pornography, and possession of child pornography. The indictment was returned on June 3, 2021. Hildebrandt is a former Special Weapons and Tactics (SWAT) officer with the Baltimore Police Department.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Harford County Sheriff Jeffrey R. Gahler; Lieutenant Paul Marziale of the Harford County Sheriff’s Office, Director of the Harford County Child Advocacy Center; and Harford County State’s Attorney Albert J. Peisinger, Jr.
According to his plea agreement, between 2018 and 2020, Hildebrandt purchased at least three “spy” cameras, which he hid in a shared bathroom in his home to secretly record minors showering and using the bathroom. Hundreds of videos of minors in various stages of undress were made, and the minors who were recorded were between the ages of three and 16. At least 10 children were recorded in videos taken in the bathroom and dozens of videos were produced that depicted children with exposed genitals, including at least five minors, four of whom were under 12 years of age.
As detailed in the plea agreement, Hildebrandt placed the cameras slightly above the seat of the toilet and at other location at a height designed to capture the victims’ genitals while getting in and out of the shower, and while using the toilet. In order to record as many victims as possible, visitors were instructed to change clothes only in the bathroom and not in the bedrooms. The images recorded in the videos were located on Hildebrandt’s computer which was seized during a search on October 20, 2021. Additional images depicting children engaged in sexually explicit conduct were found on other electronic media seized during the search.
One day prior to the execution of the search warrant, Hildebrandt was notified that he was the subject of a child exploitation investigation, through a witness and when he was contacted by a member of Child Protective Services. Sometime after that, but before the execution of the search warrant, Hildebrandt admitted that he performed a factory reset of his tablet. Investigators also did not locate any “spy” cameras in the residence.
Finally, it was also proved that Hildebrandt sexually abused a minor, demanding that the victim engage in sex acts with him.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended HSI, the Maryland State Police, the Harford County Sheriff’s Office, the Harford County Child Advocacy Center, and the Harford County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorneys Paul E. Budlow and Mary Setzer, who prosecuted the federal case.
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First person referred from new anti-gang center ordered to prisonRead the Press Release
LAREDO, Texas – A 51-year-old Laredo resident has been sentenced for illegal firearms possession, announced U.S. Attorney Alamdar S. Hamdani.
Hector Agustin Esparza pleaded guilty Sept. 12.
Today, U.S. District Judge Diana Saldana ordered him to serve the statutory maximum of 10 years in federal prison to be immediately followed by three years of supervised release. In imposing the sentence, she noted that what Esparza did was very dangerous and that he could have killed members of law enforcement.
On June 15, law enforcement responded to a “be-on-the-lookout” for a car in relation to a burglary call, located it and attempted to conduct a traffic stop. Esparza was driving and refused to stop. A chase soon ensued through several Laredo streets and parking lots.
At one point, he pulled into a Sam’s Club parking lot and stopped. However, Esparza then fired at authorities and then fled again. He disregarded a traffic light and ultimately collided with another vehicle.
Law enforcement took him into custody, at which time they recovered a .40 caliber pistol from the car.
Esparza admitted to being the shooter during the police chase and claimed to be an ex-Mexican Mafia gang member. Esparza admitted he had recently been released from prison after serving four years for an aggravated robbery. A criminal records check confirmed that Esparza had seven prior felony convictions and was also under indictment at the time.
As a convicted felon, he is prohibited from possessing a firearm per federal law.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted investigation as part of the Texas Anti-Gang Center (TAG) Program with the assistance of the Laredo Police Department. The Laredo TAG became operational in mid-2022, and Esparza was the first person referred for federal prosecution. Nine other cases charging 14 others with drug and firearm charges are pending trial or sentencing in federal court.
These such cooperative matters provide for the establishment of permanent multi-agency teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to combat the shared threat of criminal organization operating in Laredo and surrounding area. Additional information about the TAG Program can be found on the www.stoplaredogangs.org website.
Fifteen Defendants Charged in a Multi-State Drug Trafficking OrganizationRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on December 13, 2022, a federal grand jury sitting in Milwaukee returned a Superseding Indictment charging fifteen defendants with offenses related to a drug-trafficking organization that obtained kilogram quantities of fentanyl, heroin, methamphetamine, cocaine, and marijuana from California for distribution in the Milwaukee, St. Paul, Minneapolis, and Chicago areas. Many of the individuals were also charged in a money laundering conspiracy based upon their alleged use of business accounts to conceal drug proceeds. Multiple defendants also are charged with possessing firearms in furtherance of the drug trafficking conspiracy.
Included among the defendants is Phillip Daniels, Sr., also known as “Dr. Phil,” who is alleged to be the current leader of the organization. According to a criminal complaint, Phillip Daniels, Sr. obtained fentanyl, heroin, methamphetamine, cocaine, and marijuana from suppliers in California and arranged to have the substances shipped to addresses in Milwaukee and the St. Paul/Minneapolis area. The organization also is alleged to have obtained and sold counterfeit oxycodone pills, which contained fentanyl or methamphetamine. According to court records, a financial investigation revealed that members of the drug trafficking organization funneled over two million dollars in proceeds into bank accounts associated with various businesses.
The defendants charged in the Superseding Indictment are as follows:
Name
Residence
Phillip Daniels, Sr. (age 46)
Milwaukee, WI
Roy Henton, a/k/a “Pops”(age 64)
Milwaukee, WI
Joathan I. Colula (age 30)
Los Angeles, CA
Julio Barraza (age 48)
Chino Hills, CA
Deonte Edwards (age 27)
Van Nuys, CA
Jimmy Gonzalez-Macias (age 25)
Anaheim, CA
Jameel Bradley, Sr., a/k/a “Chris,” a/k/a “Black” (age 37)
Forest Park, IL
Michael O. Williams (age 41)
Brooklyn Park, MN
Joelle Massey (age 30)
Milwaukee, WI
Kevin Nelson (age 47)
Milwaukee, WI
Ramona Fryer (age 28)
Eagan, MN
Carla Smith (age 46)
North St. Paul, MN
Itzel Cruz-Gonzalez (age 26)
Forest Park, IL
Dominique Lewis (age 27)
Milwaukee, WI
Betty J. Daniels (age 46)
Lomira, WI
According to court records, on November 29, 2022, federal, state, and local law enforcement officers executed search warrants in Milwaukee, Chicago, Minnesota, and California, resulting in the seizure of over 10 kilograms of fentanyl (comprised of over 5 kilograms of pressed fentanyl and over 5 kilograms of fentanyl in pill form), approximately 7 ½ kilograms of cocaine, more than one kilogram of methamphetamine (comprised of crystal methamphetamine and methamphetamine pills), nearly 2 kilograms of heroin, ecstasy, oxycodone, approximately 170 pounds of marijuana, marijuana edibles, over $450,000, and 19 firearms.
“The charges announced today are the direct result of the tireless work and collaboration of dozens of dedicated law enforcement professionals from federal, state, and local law enforcement in Wisconsin and across the country,” stated U.S. Attorney Haanstad. “Ingesting just two milligrams of fentanyl can be fatal for some users, and law enforcement’s work resulted in seizing over 10 kilograms of this lethal substance from alleged members of this organization in a single day. I commend the efforts of all involved in this incredibly important effort.”
“The DEA is grateful for the collaboration and partnership of our local and federal law enforcement agencies,” said John G. McGarry, Assistant Special Agent in Charge of the Drug Enforcement Administration Milwaukee District Office. “Engaging our local partners, especially through the task force officer model, is vital to bringing dangerous drug traffickers to justice.”
Thirteen defendants are charged in a conspiracy to distribute at least 400 grams or more of fentanyl, 500 grams or more of methamphetamine, 1 kilogram or more of heroin, 5 kilograms or more of cocaine, and 100 kilograms or more of marijuana. If convicted, the defendants face a mandatory minimum of 10 years in prison and up to life in prison. One defendant is charged with possession with intent to distribute fentanyl and cocaine and faces a mandatory minimum of 5 years in prison and up to 40 years in prison. Certain defendants are also charged in a conspiracy to launder money. Furthermore, certain defendants are charged with possession of a firearm in furtherance of drug trafficking.
If convicted of those charges, the defendants face a mandatory minimum of five years in prison and up to life in prison. Two of the defendants are also charged with possessing an automatic firearm in furtherance of drug trafficking, which if they are convicted of those counts, face a mandatory minimum of 30 years in prison and up to life in prison.
The defendants were charged based on a long-term investigation, “Operation Platinum Ghost,” led by law enforcement agents and officers from the Milwaukee Metropolitan Drug Enforcement Group and the North Central High Intensity Drug Trafficking Area (HIDTA), the Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigations, the Wisconsin Department of Justice, Division of Criminal Investigations, U.S. Department of Homeland Security, Homeland Security Investigations, all of whom were assisted by the Milwaukee Police Department, including the Special Investigations Division, the Tactical Enforcement Unit, Districts Two, Four, and Seven, the United States Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Service, the Federal Bureau of Investigation, the West Allis Police Department, the Dodge County Police Department, the Milwaukee County Sheriff’s Office, the South Shore Joint Tactical Unit, the Wisconsin Department of Corrections, the Greenfield Police Department, the Brookfield Police Department, the City of Waukesha Police Department, the Waukesha County Sheriff’s Department, the Dakota County Drug Unit, the Apple Valley Police Department, the Minnesota Bureau of Apprehension, the Los Angeles Police Department, the Anaheim Police Department, Los Angeles HIDTA Groups 44, 50, 51, and 52, and the Los Angeles Sheriff’s Major Narcotics Bureau.
Assistant United States Attorneys Elizabeth Monfils and Erica Lounsberry are prosecuting the case.
The public is cautioned that a Superseding Indictment is merely a charge and the defendants are presumed innocent until and unless proven guilty.
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For Additional Information Contact:
Public Information Officer Kenneth Gales
414-297-1700
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Federal Jury Finds Saint Paul Man Guilty of Large-Scale Marijuana Trafficking ConspiracyRead the Press Release
ST. PAUL, Minn. - A Saint Paul man was found guilty by a federal jury of conspiracy to distribute marijuana and possession with the intent to distribute marijuana, announced United States Attorney Andrew M. Luger.
Following a three-day trial before U.S. District Senior Judge Paul A. Magnuson, Danny William Gehl, Jr, 40, was convicted on December 14, 2022, of one count of conspiracy to distribute marijuana and one count of possession with the intent to distribute marijuana. A sentencing hearing has not yet been scheduled.
As proven at trial, from 2016 through June 2021, Danny William Gehl, Jr., along with co-conspirators Douglas Robert Finch, David William Gehl, Frank Joseph Kittleson, Patrick Thomas Maykoski and Daniel Richard Thomas conspired to distribute more than 1,000 kilograms of marijuana. The defendants and others were part of a drug trafficking operation (DTO) that shipped marijuana from California to Minnesota. Members of the DTO routinely sent shipping crates from a warehouse in St. Paul, Minnesota, to a warehouse in North Highlands, California. The DTO members would fly from Minnesota to California to purchase the marijuana, fill the crates with marijuana and then load them on a delivery truck for shipment back to Minnesota. Once the shipment arrived in Minnesota, the DTO members unpacked the crates, repackaged the marijuana, and placed the marijuana in large garbage bags and boxes for distribution. Members of the DTO then transported the marijuana from the Minnesota warehouse to various locations for storage and packaging pending distribution to customers.
This case is the result of an investigation conducted by Homeland Security Investigations, the IRS-Criminal Investigation Division, Ramsey County Sheriff’s Office, the Saint Paul Police Department, the BCA and the Violent Crime Enforcement Team.
Assistant U.S. Attorneys Thomas M. Hollenhorst and Albania Concepcion are prosecuting the case.
Federal Jury Convicts Louisville Man of Conspiring to Distribute Heroin, Marijuana and Illegally Possessing a FirearmRead the Press Release
Louisville, KY –Last week a federal jury convicted a local man of conspiring to possess with the intent to distribute heroin and marijuana and possession of a firearm by a convicted felon. The jury found him not guilty of using or carrying a firearm during and in relation to a drug trafficking crime resulting in murder and of conspiracy to obstruct justice-witness tampering.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, Special Agent in Charge Bryant Jackson of the Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, Special Agent in Charge Rob Holman of the United States Secret Service, Chief Erika Shields of the Louisville Metro Police Department, Chief Richard Sanders of the Jeffersontown Police Department, and Commissioner Phillip Burnett, Jr. of the Kentucky State Police made the announcement.
According to court documents and evidence presented at trial, Charles O. Cater, 47, conspired with his co-defendants, Javier Rodriguez, and Dwayne Castle, to possess with the intent to distribute one kilogram or more of heroin and less than fifty kilograms of marijuana. During a week and a half of trial, evidence of Cater’s involvement in the drug distribution conspiracy was proven through multiple intercepted cell phone calls and text messages; evidence collected from multiple search warrants and business records; video evidence; and the testimony of numerous witnesses. Cater also illegally possessed a Sig Sauer, Model P220, .45 caliber semi-automatic pistol after having previously being convicted of a felony, including robbery in the first degree, complicity to kidnapping an adult, and complicity to unlawful imprisonment in the first degree.
On August 19, 2019, Castle pled guilty to conspiring to possess with the intent to distribute controlled substances and to using or carrying a firearm during and in relation to a drug trafficking crime resulting in murder. On October 18, 2022, Rodriguez pled guilty to conspiring to possess with the intent to distribute controlled substances and to using or carrying a firearm during and in relation to a drug trafficking crime resulting in murder.
Sentencing for Cater is scheduled for March 22, 2023, in the United States District Court for the Western District of Kentucky. Sentencing for Rodriguez is scheduled for March 15, 2023. Sentencing for Castle will be set by further order of the court. All defendants remain in custody pending sentencing. Each defendant faces a mandatory minimum sentence of 10 years and a maximum of life in prison. There is no parole in the federal system.
Assistant U.S. Attorneys Mac Shannon and Rob Bonar prosecuted the case with the assistance of paralegal Adela Alic.
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FBI and Local Drug Task Forces Make One of the Largest-Ever Drugs Seizures in Eastern Washington HistoryRead the Press Release
Richland – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that the FBI’s Southeast Washington Safe Streets Task Force, in partnership with multiple local law enforcement agencies, executed a series of federal search warrants at several residential locations in the Tri-cities area.
According to court documents, these drugs were seized on December 14, 2022 as part of an investigation into the use of the United States Postal Service to traffic multiple-pound quantities of dangerous controlled substances, including fentanyl-laced pills and methamphetamine. In total, the FBI and its local law enforcement partners seized more than 100,000 fentanyl-laced pills (to include pink and rainbow-colored pills), more than 50 pounds of methamphetamine, and approximately 1 kilogram of cocaine. The FBI and its local partners also seized approximately $15,000 in U.S. Currency and several money counters, which typically are used by banks to count large amounts of U.S. Currency. More than 20 firearms were seized, along with a significant amount of ammunition.
According to public court documents, several individuals have been charged in connection with the investigation. On December 6, 2022, Angel Ramon Barajas-Zarate was indicted by a federal grand jury on one count of Attempted Possession with Intent to Distribute 50 Grams or More of Actual Methamphetamine. Hector Sanchez-Mendez was charged with Possession with Intent to Distribute 500 Grams or More of Methamphetamine in a complaint filed on December 15, 2022. A separate complaint filed on December 15, 2022, charges Jeremy Obediha Hendricks and Nichole Diane Holland with Possession with Intent to Distribute 50 Grams or More of Actual (Pure) Methamphetamine.
U.S. Attorney Waldref commended the joint efforts of law enforcement for removing such a large quantity of illegal narcotics from the community. U.S. Attorney Waldref stated, “Illegal narcotics, and fentanyl in particular, have become a scourge across the United States. I’m grateful to the FBI and our critical Safe Streets Task Force partners for working together to combat this dangerous poison. Without their combined efforts, more than 100,000 deadly fentanyl-laced pills and more than 50 pounds of methamphetamine would not have been removed from the community. As a result, our neighborhoods and communities are safer and stronger.”
This ongoing case is being investigated by the FBI Task Force, along with the United States Postal Inspection Service. The FBI Task Force has been assisted by multiple local law enforcement entities, including the Benton County Sheriff’s Office, Richland Police Department, Kennewick Police Department, Pasco Police Department, West Richland Police Department, Franklin County Sheriff’s Office, the METRO Drug Task Force, and the Washington State Department of Corrections. The Drug Enforcement Administration and the United States Border Patrol also provided assistance. These cases are being prosecuted by Assistant United States Attorneys Stephanie Van Marter and Caitlin Baunsgard.
An indictment and a complaint are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
4:22-CR-6052-SAB
4:22-MJ-7217-ACE
4:22-MJ7218-ACE
Eleven Men Face Drug and Firearm Charges, Including for Sale of “Switches” That Turn Semi-Automatic Pistols into Fully Automatic Machine GunsRead the Press Release
Joint investigation led by FBI and involved ten other federal, state, local, and tribal law enforcement agencies
GRAND RAPIDS, MICHIGAN — At a 3:00 p.m. press conference in Benton Harbor this afternoon, U.S. Attorney Mark Totten was joined by several local, state, federal, and tribal law enforcement officials to announce that, earlier today, eleven men from Benton Harbor and Grand Rapids, Michigan were charged with drug trafficking and firearms crimes. Five were arrested this morning, and five were in custody on prior charges. Seven men face charges related to the possession and transfer of firearm conversion devices, known as “switches,” which transform ordinary semi-automatic pistols into fully automatic machine guns. According to a criminal complaint filed in the case, a switch can be installed with little technical knowledge in approximately one minute. Once installed, it can enable a semi-automatic pistol to fire over 1,000 rounds per minute with a single trigger pull.
“Today’s action represents a major step forward in our efforts to combat the rise of violent crime in Michigan,” said Mark Totten, U.S. Attorney for the Western District of Michigan. “The destructive capacity of a firearm equipped with a switch is staggering. These devices are an emerging threat to our communities, our children, our law enforcement officers, and anyone who stands in the path of their indiscriminate spray.” Totten also commended the joint law-enforcement effort behind today’s action: “These charges represent a remarkable, multi-agency effort that involved the FBI and ten other federal, state, local, and tribal law enforcement partners working together to keep West Michigan families safe.”
Approximately 200 law enforcement officers executed the arrest and search warrants early this morning in Benton Harbor, Grand Rapids, and St. Joseph, Michigan, as well as Port St. Lucie, Florida. The charges include:
Name
Resident
Age
Charge
Evorion Anderson
Benton Harbor
20
Distribution of methamphetamine;
conspiracy to distribute methamphetamine
Jayvon Anthony
Benton Harbor
21
Possession or transfer of a machine gun; conspiracy to possess or transfer a machine gun; felon in possession of a firearm
Earl Austin IV
Benton Harbor
21
Distribution of methamphetamine; conspiracy to distribute methamphetamine; possession or transfer of a machine gun; conspiracy to possess or transfer a machine gun
Quincy Bowman
Benton Harbor
25
Conspiracy to possess or transfer a machine gun
Omarion Branch
Benton Harbor
19
Felon in possession of a firearm
Torez Burnett
Benton Harbor
20
Conspiracy to possess or transfer a machine gun
Nicholas Hallo
Grand Rapids
32
Felon in possession of a firearm
Demetrius Seuell
Benton Harbor
22
Possession or transfer of a machine gun and conspiracy to possess or transfer a machine gun
Timothy Thomas
Benton Harbor
25
Felon in possession of a firearm and ammunition
Armando Villanueva
Grand Rapids
22
Conspiracy to possess or transfer a machine gun
Eric Williams
Grand Rapids
23
Conspiracy to possess or transfer a machine gun
“Fighting violent crime requires approaches tailored to the needs of individual communities. That is why our approach to disrupting this conspiracy to distribute firearms, switches, and drugs involved the kind of coordination you see here today,” said James A. Tarasca, Special Agent in Charge of the Federal Bureau of Investigation in Michigan. “I believe it is the sacred duty of the FBI and our law enforcement partners to ensure people can live free from fear in their own homes and neighborhoods, and we will all continue to do everything we can to protect our communities from violent crime.”
“Conversion devices are not simple firearms parts or metal accessories, as commonly advertised. When a person uses an illegally converted weapon that shoots multiple rounds by a single function, it poses an even more serious threat to public safety,” said Craig Kailimai, Assistant Special Agent in Charge for the Detroit Field Division. “The collaborative effort and commitment between the U.S. Attorney’s Office, our Federal, State of Michigan, and Local partners to investigate and prosecute these cases protects our communities from this violent threat.”
The complaint included these photographs of uninstalled and installed switches as illustrations:
The investigation was led by the FBI, acting in cooperation with the Michigan State Police Southwest Enforcement Team (“SWET”), ATF, Drug Enforcement Administration, Department of Homeland Security, Benton Harbor Department of Public Safety, Benton Township Police Department, Berrien County Sheriff’s Office, Pokagon Band of Potawatomi Indians Tribal Police, Michigan Department of Corrections, and United States Postal Inspection Service.
The charges in a complaint are merely accusations, and all defendants are presumed innocent until and unless proven guilty in a court of law.
A copy of the criminal complaint can be found here.Law enforcement continues to search for Eric Williams. Members of the public with information as to Williams’s whereabouts are encouraged to contact the United States Marshals Service at (616) 456-2438. He is believed to be located in either Benton Harbor or Grand Rapids, Michigan.
Eric Williams
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Dorchester Man Sentenced to 12 Years in Prison for Racketeering ConspiracyRead the Press Release
BOSTON – A Dorchester man was sentenced yesterday for racketeering (RICO) conspiracy stemming from his involvement in the Boston-based street gang, NOB.
Darius Bass, a/k/a “Tre” or “Trigga Tre,” 28, was sentenced by U.S. District Court Judge Leo T. Sorokin to 12 years in prison and three years of supervised release. On June 3, 2022, Bass pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, commonly known as RICO conspiracy.
Bass is one of 10 defendants indicted together in June 2020, as part of a broader federal sweep targeting numerous NOB street gang members and associates in which 31 total defendants were charged. All of Bass’ co-defendants have pleaded guilty to various charges and are awaiting sentencing.
According to court documents, NOB – an abbreviation for the Norton/Olney/Barry streets in Dorchester – is a violent criminal enterprise whose members and associates are involved in numerous types of criminal activities throughout Massachusetts, including murders, attempted murders, armed robberies, drug trafficking, sex trafficking and illegal firearms offenses. During the investigation, numerous contraband items were seized including 11 firearms, over one kilogram of fentanyl (including over 2,000 fentanyl pills manufactured to appear as commercial oxycodone pills), a commercial pill press, over 15 pounds of marijuana and approximately $36,000 in cash.
Bass was an active, central and violent member of the NOB gang who personally committed, planned and supported various crimes on behalf of the gang. The Court determined that Bass was responsible for two attempted murders and took those into consideration at sentencing. Specifically, in October 2016, individuals exchanged gunfire on the University of Massachusetts at Dartmouth campus in a public parking lot near campus housing. Later, in January 2017, several shots were fired at a target’s residence in a residential neighborhood in Randolph.
First Assistant United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Brian A. Kyes, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; New Bedford Police Chief Joseph C. Cordeiro; Quincy Police Chief Paul Keenan; Randolph Police Chief Anthony Marag; Brockton Police Chief Brenda Perez; Stoughton Police Chief Donna McNamara; Suffolk County District Attorney Kevin Hayden; Suffolk County Sheriff Steven W. Tompkins; Plymouth County Sheriff Joseph D. McDonald, Jr.; Bristol County District Attorney Thomas M. Quinn III; and Norfolk County Sheriff Patrick W. McDermott made the announcement today. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit prosecuted the case.
Doctor and Office Manager Indicted in Scheme to Defraud Medicare, Manufacture and Distribute FentanylRead the Press Release
For Further Information, Contact: Assistant U. S. Attorneys Owen Roth and David Chu
SAN DIEGO – Dr. David J. Smith, a pain management physician, and his office manager, Julia Ann Oertle, are charged in a federal grand-jury indictment with perpetuating a long-running scheme to commit healthcare fraud and to manufacture and distribute adulterated fentanyl.
Smith made his initial appearance today before U.S. Magistrate Judge Bernard G. Skomal. Smith’s bond was set at $1 million, secured by real property, with a limitation on his ability to practice medicine. Oertle was still at large.
According to allegations in the indictment, Smith purports to specialize in the installation and maintenance of intrathecal pain pumps which are surgically placed in a patient’s stomach with two catheters implanted on the spine; pain medicine is then infused into a reservoir in the pump periodically, and meted out directly into the spine.
Beginning in December 2017, Smith and Oertle began compounding fentanyl citrate into vials, in a room at Smith’s principal medical practice, San Diego Comprehensive Pain Management Center. According to the indictment, this compounding practice was grossly improper and resulted in the production of adulterated fentanyl. Smith nevertheless directed administration of this fentanyl to patients repeatedly.
The indictment alleges that beyond providing patients with adulterated fentanyl, Smith violated the applicable standards of care by, among other things, prescribing materially excessive quantities of fentanyl, prescribing unnecessary oral opioid medications in conjunction with pain-pump medication, and installing pain pumps in patients without proper assessments for patient need. Smith then had false and fraudulent reimbursement claims submitted to Medicare for these administrations. Among other things, the claims were inflated by nearly 60 percent; they sought reimbursement for large volumes of unnecessarily manufactured fentanyl; they falsely represented that excess fentanyl had been discarded, when in fact it was used; and they did not disclose that the fentanyl was adulterated.
According to the indictment, Oertle illegally ordered fentanyl citrate for compounding; compounded fentanyl with Smith; and helped direct the illegal billing practices.
“We are supposed to be able to trust our doctors with our lives,” said U.S. Attorney Randy Grossman. “This office will use all its resources to protect vulnerable patients from doctors who use them to make money, with no regard for their safety.” Grossman thanked the prosecution team, the FBI, the DEA, the FDA, and the other members of the investigative team for their excellent work on the case.
“Criminal misconduct within the healthcare system is not only deceitful, but also destructive,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office.
“David Smith and Julia Oertle allegedly abused their positions of trust by manufacturing and propagating this toxic poison to patients over an extended period of time, further unraveling the fentanyl crisis our country is experiencing. This investigation clearly demonstrates that the threat of the opioid crisis extends far beyond street level dealing. The FBI will continue to work with our law enforcement partners to protect our communities and ensure justice is served.”
"The DEA is committed to bringing to justice doctors that take the public’s trust and abuse it for their own purposes,” said DEA Special Agent in Charge Shelly S. Howe. “We are grateful for our relationships with the U.S. Attorney’s Office, the FBI and the other agencies who worked to bring these defendants to justice.”
“U.S. consumers must be able to trust that their medicines meet FDA’s required standards of safety and effectiveness,” said Acting Special Agent in Charge Christopher M. Alston, FDA Office of Criminal Investigations Los Angeles Field Office. “Our office will continue to pursue and bring to justice those who jeopardize the public’s health and the public’s trust.”
“According to allegations in the indictment, these defendants were trusted with the medical care of their patients but instead used treatments that were not medically necessary in order to gain financially,” stated Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation’s Los Angeles Field Office. “We will continue to serve the public and help put a stop to schemes like this that take advantage of our medical system and put patients’ care at risk.”
In California, patients receiving treatment at this practice who feel they want to change providers may contact their primary care provider for continued care. Individuals seeking access to primary care or pain management service can find a provider through a local Federal Qualified Health Center. Patients with insurance should contact their health insurance company. Those who are struggling with their intake of opioids can find local providers at Choose Change CA or 1-800-879-2772. Those needing emergency access to substance-use treatment or who are experiencing opioid withdrawal can visit a California Bridges Emergency Room.
In Nevada, patients receiving treatment at this practice who feel they want to change providers may contact their primary care provider for continued care. Individuals needing access to primary care or pain management service can find a new provider through a local Federal Qualified Health Center. Patients with insurance should contact their health insurance company. Those who are struggling with opioid addiction may contact the Nevada Substance Abuse Help Line: 1-775-825-4357 or toll free 1-800-450-9530. Individuals can also contact the Nevada 24-hour help line at 1-800-273-8255 or Text CARE to 839863.
DEFENDANTS Case Number 22-CR-
David James Smith Age: 62 Rancho Santa Fe, California
Julia Ann Oertle Age: 52 Las Vegas, Nevada
SUMMARY OF CHARGES
Conspiracy –18 U.S.C. § 371
Conspiracy to Manufacture and Distribute Controlled Substances –21 U.S.C. §§ 841(a), 841(b)(1)(C), 846
Healthcare Fraud – 18 U.S.C. § 1349
False Claims – 18 U.S.C. § 287
Manufacture of Controlled Substances – 21 U.S.C. § 841(a)
Adulteration of Fentanyl – 21 U.S.C. §§ 331, 333
Maximum penalty: Life in prison and a mandatory minimum term of 10 years in prison; a $10,000,000 fine; supervised release for a maximum of life, and a mandatory minimum term of 5 years; $100 special assessment per count of conviction.
AGENCIES
Federal Bureau of Investigation
Drug Enforcement Administration
Food and Drug Administration
U.S. Department of Health and Human Services
U.S. Marshal Service
Internal Revenue Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Developer Sentenced to 4 Years in Federal Prison for Offering a Million-Dollar Bribe to Secure a $45 Million L.A. County LeaseRead the Press Release
LOS ANGELES – A real estate developer was sentenced today to 48 months in federal prison for offering to buy a million-dollar home for a Los Angeles County public official in exchange for the official’s assistance securing a $45 million county lease for the developer.
Arman Gabaee, 61, a.k.a. “Arman Gabay,” of Beverly Hills, was sentenced by United States District Judge George H. Wu, who also ordered him to pay a fine of $1,149,000.
Gabaee pleaded guilty on May 2 to one count of bribery.
Gabaee was a co-founder and co-managing partner of the Charles Company, a Hollywood-based commercial and residential real estate development firm. The then-county employee whom Gabaee bribed was Thomas M. Shepos, 72, of Palmdale. Shepos was a high-level official in Los Angeles County’s Real Estate Division involved in awarding contracts to real estate developers.
In the years leading up to his million-dollar bribe offer, from approximately 2010 to April 2017, Gabaee paid Shepos bribes and kickbacks of approximately $1,000 every month in exchange for county leases, preferential contract terms, non-public information and other benefits. Shepos began cooperating with the FBI in December 2016. From then until April 2017, Gabaee paid Shepos $6,000 in cash bribes during recorded meetings in cars, restaurants and men’s restrooms, prosecutors said.
After years of paying cash bribes, Gabaee in 2016 “sought to further exploit the corrupt arrangement, this time soliciting Shepos’s help obtaining a $45 million county lease for his Hawthorne Mall property – a lease he believed would increase the value of his property ten-fold,” prosecutors said in sentencing papers. In recordings, Gabaee offered to buy Shepos a million-dollar home in exchange for his assistance securing a 10-year, $45 million county lease for office space in the Hawthorne Mall, which Gabaee owned and was redeveloping. Gabaee admitted in his plea agreement to placing two offers on a Northern California home, first for $1,035,000 and later for $1,065,000, as a bribe for Shepos in exchange for the $45 million lease.
Wiretap calls showed that with a long-term, reliable tenant like the county anchoring the mall, Gabaee believed he could get bank loans to redevelop the property, attract other tenants, and ultimately increase the mall’s assessed value from $17 million to $500 million. With the county lease, Gabaee was considering selling the mall to capitalize on its increased value, wiretap calls showed.
“This defendant gamed the system during a seven-year bribery spree designed to expand his real estate empire,” said United States Attorney Martin Estrada. “The scheme culminated in a massive million-dollar bribe that was motivated by Mr. Gabaee’s immense greed. By facilitating this pay-to-play system, Mr. Gabaee undermined confidence in the integrity and fairness of our public institutions.”
Shepos pleaded guilty in November 2018 to one count of making false statements to federal investigators who were investigating his financial relationship with Gabaee and one count of subscribing to a false tax return related to payments he received from Gabaee. Shepos is scheduled to be sentenced on January 19, 2023.
The FBI investigated this matter.
Assistant United States Attorneys Lindsey Greer Dotson and Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section prosecuted this case.
Correctional Officer Pleads Guilty to Accepting Bribes and Smuggling Contraband into NEOCCRead the Press Release
CLEVELAND – A Northeast Ohio Correctional Center (NEOCC) correctional officer pleaded guilty on Wednesday, Dec. 14, 2022, to accepting bribes in return for supplying marijuana, tobacco, and narcotics to inmates at the facility.
According to court documents, from February 2017 to July 2019, Terry Terrigno, 30, of Canfield, Ohio, maintained a post-office box and regularly received portions of tobacco, marijuana, and Suboxone through the mail from the associates of inmates entrusted to his care.
Court documents state that Terrigno then smuggled the contraband into the NEOCC and redistributed it to the inmates in his care. In return, Terrigno received electronic bribery payments made through a mobile phone application.
In total, Terrigno received more than $8,650 in bribery payments.
This case was investigated by the Department of Justice Office of the Inspector General (DOJ OIG) and the Cleveland FBI. This case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould.
Connecticut Physician and Urgent Care Practice Pay over $4.2 Million to Settle False Claims Act AllegationsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General, today announced that JASDEEP SIDANA, M.D. and DOCS MEDICAL GROUP, INC. (doing business as Docs Medical), DOCS MEDICAL INC., DOCS URGENT CARE LLP, LUNG DOCS OF CT, P.C., EPIC FAMILY PHYSICIANS, LLP, and CONTINUUM MEDICAL GROUP, LLC (collectively, “DOCS”), have entered into a civil settlement agreement with the federal and state governments in which they will pay a total of $4,267,950.21 to resolve allegations that they submitted false claims for payment to Medicare and the Connecticut Medicaid program for medically unnecessary allergy services, unsupervised allergy services, and services improperly billed as though provided by Sidana. The agreement also resolves allegations that Sidana and DOCS improperly billed for certain office visits associated with COVID-19 tests.
Sidana is a physician who specializes in pulmonology and is the owner and Chief Executive Officer of DOCS, a medical practice with more than 20 facilities throughout Connecticut that offers a variety of services to its patients, including primary and urgent care, allergy testing and treatment, and COVID testing.
Medicare and Connecticut Medicaid pay only for services or items that are medically necessary. Some services also have supervision requirements, and allergy tests and the preparation of allergy immunotherapy must be directly supervised by a physician. Direct supervision requires the supervising physician to be present in the same office suite, and immediately available to render assistance if needed.
In early 2014, DOCS and Sidana started providing allergy testing and treatment services to their patients. The government alleges that between October 1, 2016, and September 30, 2017, DOCS and Sidana submitted false claims to Medicare and Medicaid for immunotherapy services that were not medically necessary, and were not directly supervised by a physician. The allegations also involve claims to Medicare and Medicaid for medically unnecessary annual re-testing of allergy patients between January 1, 2014, and November 11, 2018.
The government also alleges that between January 1, 2014, and January 1, 2019, DOCS and Sidana submitted claims for medical services performed by Sidana on dates of service when he was traveling internationally and did not perform or supervise the services. Instead, the services were actually performed by lower-level providers, who typically receive a lower reimbursement rate from Medicare and Medicaid for such services.
Finally, the government contends that when administering tests for COVID, DOCS and Sidana improperly billed Medicare and Connecticut Medicaid for certain evaluation and management (“E&M”) services, commonly referred to as office visits. The government alleges that between April 1, 2020, and December 31, 2020, on the same dates that patients received COVID-19 tests, DOCS and Sidana submitted claims for moderately complex “level 3” E&M services, when those level 3 office visits were not in fact provided.
“Depriving Medicare and Medicaid programs of federal funds that have been set aside for the care and treatment of beneficiaries is disgraceful,” said U.S. Attorney Avery. “Medical services billed to Medicare and Medicaid must be provided based on each patient’s individual medical needs. Providers who participate in government programs must only bill for medically necessary services, and must accurately bill for the services provided. This office is committed to vigorously pursuing health care providers who submit false or fraudulent claims to federal health care programs.”
“Healthcare providers are expected to closely follow Medicare rules and bill properly — nothing more, nothing less,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “When that obligation is violated, government health care programs – and American taxpayers – pay the price. We are committed to pursuing these types of allegations along with our law enforcement partners as we work to protect the integrity of our federal healthcare system.”
As part of this settlement, DOCS and Sidana have entered into a three-year Integrity Agreement with the Department of Health and Human Services, Office of the Inspector General that is designed to ensure future compliance with the requirements of federal healthcare programs.
This matter was investigated by the Office of the Inspector General for the Department of Health and Human Services, and the Connecticut Office of the Attorney General. This case was prosecuted by Assistant U.S. Attorney Sara Kaczmarek, with the assistance of Auditor Kevin Saunders, and by Deputy Associate Attorney General Gregory O’Connell of the Attorney General’s Office.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Task Force at (203) 777-6311.
Charleston County Man Indicted for Wire FraudRead the Press Release
CHARLESTON, SOUTH CAROLINA — A federal grand jury returned a three-count indictment against Jonathan Ramaci, 58, of Charleston, for wire fraud.
Count One of the Indictment alleges that Ramaci diverted at least $600,000 of investor funds that had been raised for his company, Elements of Genius, to another company he controlled, Mobile Life Labs, which were then used for his personal use. Counts Two and Three allege that Ramaci submitted fraudulent documents to the Small Business Administration and approved third party lenders to receive Payroll Protection and Emergency Injury Disaster Relief loans.
Ramaci faces a maximum penalty of twenty years for each count. A detention hearing is scheduled for 3:00 pm on December 15, 2022, before United States Magistrate Judge Molly H. Cherry.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The case was investigated by the Federal Bureau of Investigation in coordination with the Securities Division of the Office of the South Carolina Attorney General. Assistant U.S. Attorney Amy F. Bower is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Centralia, Illinois, Man Sentenced to 15 Years of Imprisonment for Drug and Gun ChargesRead the Press Release
SPRINGFIELD, Ill. – A Centralia, Illinois, man, Charles R. Hays, 45, of the 400 block of Clarida Drive, was sentenced on December 14, 2022, to 15 years of imprisonment after pleading guilty to possession with the intent to distribute 50 or more grams of actual methamphetamine; possession with the intent to distribute 5 or more grams of actual methamphetamine; and possession of a firearm in furtherance of a drug trafficking crime.
At the sentencing hearing in front of U.S. District Judge Sue E. Myerscough, the government presented evidence that on October 15, 2019, Hays was arrested following a traffic stop near Owaneco, Illinois, and found in possession of 60.3 grams of 94% pure methamphetamine. Several weeks later, on November 27, 2019, Hays was again arrested following a second traffic stop in Taylorville, Illinois, and found in possession of 8.8 grams of 94% pure methamphetamine and a Smith and Wesson .38 Special, Model 36 revolver, loaded with five rounds of ammunition. Hays has prior felony convictions and was previously sentenced to the Illinois Department of Corrections for possession of a controlled substance with the intent to distribute and unlawful possession of a firearm by a convicted felon.
Hays was indicted in March 2020 and pleaded guilty to all three charges in October 2021.
The Illinois State Police; Taylorville Police Department; and the Drug Enforcement Administration, Springfield Division investigated the case. Assistant U.S. Attorney Timothy A. Bass represented the government in the prosecution.
Cartersville businessman sentenced to federal prison for filing a false tax returnRead the Press Release
ROME, Ga. - Mohammed Ajmal, a Cartersville businessman, has been sentenced for making and subscribing a false tax return. Ajmal failed to report income from over two million dollars in “kickback” payments from the use of coin-operated amusement machines in his service stations and convenience stores.
“Ajmal exploited his relatives in his plan to cheat the IRS out of hundreds of thousands of dollars,” said U.S. Attorney Ryan K. Buchanan. “Ajmal is now headed to federal prison and will be required to pay full restitution as part of his sentence.”
“Consumed by greed, Mohammed Ajmal utilized his family members to hide income generated from kickbacks and filed a false tax return because he failed to report the income,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation will continue to pursue anyone who commits tax fraud. Those harboring ideas on cheating the tax system, take note that prison time is a consequence for such actions.”
“The GBI Commercial Gambling Unit investigated this case along with federal and local partners. This defendant seeking to defraud the government by evading taxes is being held accountable,” said Michael J. Register, Director, the Georgia Bureau of Investigation.
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Ajmal owned several gas stations and convenience stores in the Cartersville, Georgia, area through various corporations. Many of the stores contained coin-operated amusement machines, known as “COAMs.” COAMs are regulated by the Georgia Lottery Corporation.
Between 2013 and 2015, the Georgia Lottery Corporation issued administrative regulations under Georgia law, which resulted in Ajmal receiving less revenue from the COAMs. In response, Ajmal contacted the company holding the master license for the COAMs and conveyed that the company must pay him additional money, or kickbacks, if the company wished to continue operating COAMs on Ajmal’s properties.
To disguise the kickback payments, Ajmal told the company to write checks to his relatives. Ajmal then used the monies for his own benefit, including to build a new home. From 2015 through 2018, the amount of the kickbacks totaled $2,292,847. Ajmal did not report any of this income on his tax returns for 2015 through 2017. So Ajmal paid less federal tax than he actually owed for those years.
Mohammed Ajmal, 49, of Cartersville, Georgia, has been sentenced to two years in prison to be followed by one year of supervised release and ordered to pay restitution in the amount of $734,232.05. Ajmal was convicted of making and subscribing a false tax return on July 12, 2022, after he pleaded guilty.
This case was investigated by Internal Revenue Service Criminal Investigation and the Georgia Bureau of Investigation, with valuable assistance provided by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Cartersville Police Department, Bartow County Sheriff’s Office, and the Georgia Lottery Corporation.
Assistant U.S. Attorneys Alana Black and Michael Herskowitz prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Carriere Woman Sentenced to Prison for Possession of a Firearm with an Obliterated Serial NumberRead the Press Release
Gulfport, Miss. – A Carriere, Mississippi woman was sentenced to 48 months in federal prison for possession of a firearm with an obliterated serial number, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Sonya Bradstreet, 47, was sentenced today in U.S. District Court in Gulfport.
According to court documents, in January of 2022, DEA task force officers were called to a residence in Lumberton, Mississippi, due to a suspected overdose death. An investigation into the death revealed that the decedent had recently purchased narcotics. A search warrant was obtained for the home of Sonya Bradstreet and three firearms were recovered as part of the search. One of the firearms was located in plain view in the laundry room of the home and it had an obliterated serial number.
Bradstreet was indicted by a federal grand jury on February 23, 2022. She pled guilty on August 17, 2022, to possession of a firearm with an obliterated serial number.
The case was investigated by the Drug Enforcement Agency.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Canadian Father and Son Indicted for Fraudulently Obtaining over $8 Million in COVID-19 Relief FundsRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the unsealing of a six-count indictment charging Evan Edwards (64, New Smyrna Beach) and Joshua Edwards (30, New Smyrna Beach) with federal offenses related to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act and visa fraud. Specifically, Evan and Joshua Edwards are each charged with conspiracy to commit bank fraud, bank fraud, and visa fraud. Joshua Edwards is also charged with making a false statement to a lending institution. If convicted on the conspiracy to commit bank fraud and bank fraud charges, each faces a maximum penalty of 30 years in federal prison on each count. If convicted on the visa fraud charges, each faces a maximum penalty of 10 years in federal prison per count. Joshua Edwards also faces a maximum penalty of 30 years’ imprisonment on the false statement offense. The indictment also notifies the defendants that the United States intends to forfeit any property constituting, or derived from, proceeds obtained directly or indirectly as a result of these violations. The United States previously obtained seizure warrants and recovered more than $8 million in proceeds from the charged criminal conduct.
According to the indictment, beginning approximately April 3, 2020, and continuing through about September 17, 2020, Evan and Joshua Edwards conspired to commit bank fraud and committed bank fraud by submitting a fraudulent Paycheck Protection Program (“PPP”) loan application to an FDIC insured lending institution on behalf of Aslan International Ministry, Inc. (“Aslan”) – a not-for-profit corporation that purportedly provided religious services. In the loan application, the defendants significantly overstated the number of employees and average monthly payroll for Aslan, claiming that it had almost 500 employees and over $2 million in average monthly payroll expenses. They also falsely certified in the loan application that the PPP funds would be used to maintain payroll and for other authorized purposes. Based on the false representations made in the loan application, the defendants received into their bank account approximately $8,417,200 in PPP loan funds, a portion of which they used to make a down payment for the attempted purchase of a multi-million-dollar residence for themselves.
Additionally, in June 2022, Evan and Joshua Edwards each made a materially false statement in certain immigration documents, including their Form I-485 Applications to Register as Permanent Resident or Adjust Status.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the U.S. Secret Service, U.S. Customs and Border Protection, the Volusia County Sheriff’s Office, and the New Smyrna Beach Police Department. It is being prosecuted by Assistant United States Attorney Kara M. Wick.
This case is being prosecuted as part the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act relief programs. The CARES Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of the PPP program, which was administered by the Small Business Administration (the “SBA”). The purpose of PPP loans was to help small businesses that were suffering from economic downturn to continue to pay salary or wages to their employees. The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the crisis.
Buffalo Man Pleads Guilty to Cocaine and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney Trini E. Ross announced today that Luis Miguel Cruz Del Moral, 38, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute cocaine and being a felon in possession of firearms and ammunition. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Meghan E. Leydecker, who is handling the case, stated that in October 2004, Cruz Del Moral was convicted of Attempted Robbery in Puerto Rico and is legally prohibited from possession firearms and ammunition. On September 17, 2021, investigators executed a search warrant at Cruz Del Moral’s Ontario Street residence. During the search, they recovered five firearms and ammunition, and drug paraphernalia. At the same time, a search warrant was also executed at a residence on South Lane in Buffalo, where SWAT Team members encountered Cruz Del Moral. During that search, they recovered a ripped-open plastic bag from a toilet and observed the toilet bowl lined with suspected cocaine. Investigators also recovered a loaded firearm, a quantity of cocaine, two cocaine presses, a digital scale, and $7,111 in U.S. currency. Law enforcement then search Cruz Del Moral’s vehicle and found another firearm, ammunition, and glassine envelopes.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division; the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Acting Special Agent-in-Charge Michael Stansbury; and the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia.
Sentencing is scheduled for May 22, 2023, at 11:30 a.m. before Judge Arcara.
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Bronx Man Sentenced to 15 Years in Prison for Using Illegal Gun to Shoot Two VictimsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that BATISE BOYCE was sentenced to 15 years in prison by U.S. District Judge Lewis J. Liman. BOYCE pled guilty on September 8, 2022, to one count of possessing a firearm after having previously been convicted of a felony and one count of possessing a firearm in a school zone.
U.S. Attorney Damian Williams said: “Today’s sentence demonstrates the importance and success of the Triggerlock program in bringing together state, local, and federal law enforcement to ensure that repeat firearm offenders receive appropriate sentences for their crimes. I greatly appreciate our law enforcement partners as they work with us to ensure that deadly firearms and violent offenders stay off the streets of our communities.”
According to the allegations in the Indictment and statements made during court proceedings and filings:
BOYCE, 45, of the Bronx, New York, possessed an illegal semiautomatic handgun from at least August 2, 2020, until November 6, 2020, when he was arrested with the gun by officers of the New York City Police Department. Prior to possessing the gun, BOYCE had been convicted of at least six prior felonies, including robbery, an assault with a firearm, and a slashing attack with a knife. On August 2, 2020, BOYCE used the gun to shoot a victim in the head, although the victim fortunately survived. The next night, during an argument, BOYCE struck a second victim in the face with the gun, causing him to bleed, then shot the victim in the back as he attempted to walk away. One of the victim’s legs was amputated as a result.
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Mr. Williams praised the outstanding work of the New York City Police Department.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Hagan Scotten is in charge of the prosecution.
Birmingham Business Owner Pleads Guilty to Tax FraudRead the Press Release
BIRMINGHAM, Ala. – The owner of a Birmingham business pleaded guilty today to tax fraud for failing to pay employment taxes to the Internal Revenue Service that he withheld from employees’ wages over a number of years, announced U.S. Attorney Prim Escalona and Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office James E. Dorsey.
JAMES MARK BURKETT, 65, of Birmingham, pleaded guilty before U.S. District Judge Anna Manasco to one count of failure to account for and pay over trust fund taxes to the IRS. As part of his plea, he agreed to pay restitution in the amount of $1,592,746.92. Burkett is scheduled for sentencing on April 23, 2023.
“Burkett willfully disregarded his tax obligation,” U.S. Attorney Escalona said. “Payroll taxes fund Social Security and Medicare and are a large source of revenue for the federal government. My office will hold accountable anyone who fails to comply with their tax obligations.”
“Employers have a known legal duty to collect and turn over employment taxes from their employees to the IRS,” SAC Dorsey said. “James Burkett’s guilty plea today should be a warning to employers who willfully fail to comply with their tax responsibilities.”
According to the plea agreement, Burkett is the owner of Superior Coil Service, Inc., a company that manufactures coils for the electric motor repair industry. The IRS reviewed eight quarters for tax years 2016 and 2017. During that time, Superior Coil Service, Inc. paid wages of $1,411,677.23 to employees. From these wages, Burkett withheld federal income, Social Security, and Medicare taxes totaling $273,342.28—none of which were paid to the IRS on behalf of the company or its employees. Burkett also failed to file required forms 941, W-2, W-3, or Transmittal of Wage and Tax statements for the quarters under review.
The maximum penalty for tax fraud is five years in prison.
The IRS-CI investigated the case. Assistant United States Attorney Catherine Crosby is prosecuting the case.
Berkeley County man admits to role in drug trafficking conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Eliseo Jerome Rozas, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Rozas, 44, pleaded guilty today to one count of “Unlawful Use of Communication Device.” Rozas admitted to using a phone to help distribute cocaine base in November 2020 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Albuquerque man charged in drug, firearms investigationRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Gerardo Rafael Lara-Yanez was charged in federal court with intent to distribute 400 grams and more of fentanyl, possession with intent to distribute 50 grams and more of a mixture and substance containing methamphetamine, conspiracy, being a felon in possession of a firearm, being an unlawful drug user in possession of a firearm, and possession of firearm in furtherance of a drug trafficking crime. Lara-Yanez, 24, of Albuquerque, will remain in custody pending trial, which has not been scheduled.
According to the complaint, in October the FBI Violent Gangs Task Force (VGTF) were investigating Jeffrey Alan Chavez, 35, of Albuquerque, for overseeing drug sales from at least three drug houses in southeast Albuquerque. Chavez allegedly employed Lara-Yanez to run one of the drug houses. In November, an FBI undercover employee (UCE) made contact with Lara-Yanez and Chavez, and Chavez allegedly indicated he could supply methamphetamine and fentanyl. The UCE met Lara-Yanez and Chavez at a drug house, where they allegedly provided 141.4 grams of methamphetamine and 550.1 grams of fentanyl pills in exchange for $9,250. During the transaction, Lara-Yanez allegedly handled multiple firearms, including a short-barreled shotgun and multiple pistols.
Lara-Yanez was arrested on Dec. 12. A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Lara-Yanez faces a minimum of ten years and up to life in prison.
Chavez is charged with possession with intent to distribute 400 grams and more of fentanyl, possession with intent to distribute 50 grams and more of a mixture and substance containing methamphetamine, conspiracy, being a felon in possession of a firearm and ammunition, being an unlawful drug user in possession of a firearm, and possession of firearm in furtherance of a drug trafficking crime. Chavez will remain in custody pending trial, which has not been scheduled.
Assistant United States Attorney Paul J. Mysliwiec is prosecuting the case.
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Adair Chief of Police Charged with Getting Machine Guns Through False Statements to the ATFRead the Press Release
DES MOINES, IA – A federal grand jury in Des Moines returned an indictment on December 14, 2022, charging Adair Chief of Police Bradley Wendt with unlawfully obtaining and possessing machine guns.
According to unsealed court documents, Wendt, age 46, exploited his position as the Adair Chief of Police to acquire 10 machine guns purportedly for the official duties and responsibilities of the Adair Police Department, but later resold several of those machine guns at a significant profit. Wendt also acquired 13 machine guns for his Denison-based gun store, BW Outfitters, through false statements to the ATF that the machine guns were being demonstrated for future potential purchase by the Adair Police Department.
Wendt also exploited his position as the Chief of Police to obtain 10 machine guns for Williams Contracting LLC, a federal firearms licensee operated by his friend, Robert Williams, age 46, of Manning. Williams solicited false documentation from Wendt indicating the Adair Police Department wanted a demonstration of each of the machine guns for future potential purchase by the Adair Police Department.
Between July 2018 and August 2022, Wendt sought to demonstrate or purchase approximately 90 machine guns for the Adair Police Department, which serves a town of less than 800 people. Wendt and Williams hosted public machine gun shoots, where they charged patrons money to shoot machine guns registered to their gun stores and the Adair Police Department. Wendt and Williams intended to stockpile machine guns to later sell at a personal profit.
FBI Omaha Special Agent in Charge Eugene Kowel said “Brad Wendt is charged with exploiting his position as chief of police to unlawfully obtain and sell guns for his own personal profit. The FBI is committed to working with our law enforcement partners to investigate and hold accountable those who violate their oath of office to enrich themselves.”
“This case demonstrates the importance of ATF’s vigilance in regulating federal firearms licensees and bringing to justice those who willfully circumvent federal law in favor of personal profit and abuse public trust. Today’s indictment is the result of seamless collaboration by ATF and our law enforcement partners,” said Fred Winston, Special Agent in Charge, ATF - Kansas City Field Division.
Both defendants are charged with conspiracy to make false statements and defraud the ATF. Wendt is charged with 18 counts of making a false statement to the ATF and one count of illegal possession of a machine gun. Williams is charged with three counts of making a false statement and aiding and abetting a false statement to the ATF. The Indictment is attached below.
If convicted, Wendt faces a maximum term of imprisonment of ten years. Williams faces a maximum term of imprisonment of five years.
The prosecution is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Federal Bureau of Investigation (FBI). The investigation remains ongoing.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. Assistant U.S. Attorneys Mikaela Shotwell and Ryan Leemkuil are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
14 December 2022
中华人民共和国公民因跟踪缠扰行为被捕Read the Press Release
波士顿 – 伯克利音乐学院的一名中国留学生因涉嫌威胁和骚扰一名张贴支持中国民主传单的人而被逮捕并指控。
25岁的吴啸雷被指控一项跟踪缠扰罪，将于今天下午在波士顿联邦法院首次出庭。吴在伯克利音乐学院进修期间居于波士顿，今天下午三点将到联邦法院出庭。
起诉书指出，2022年10月22日，有人在伯克利音乐学院波士顿校园或附近张贴写着“与中国人民站在一起”、“我们要自由”和“我们要民主”的传单。据称，大约在2022年10月22日至2022年10月24日期间，吴通过微信、电邮和Instagram给发布传单的受害者发送了一系列信息，其中包括“再贴给你丫手剁了。”吴还告诉受害者，他已向中国公安机关举报了受害者的行为，中国公安机关将会“问候”受害者的家人。 吴还被指控招揽其他人查明受害者的住处，并公开发布受害者的电邮地址，希望其他人在网上骚扰受害者。
“司法部会永远捍卫言论自由和政治表达的权利。我们认为吴先生的威胁和骚扰行为并不是言论自由，相反，这些行为是企图压制和恐吓异议人士表达与中国不同的观点。”联邦检察官蕾切尔·罗林斯(Rachael S. Rollins) 表示。“我们不会容忍针对那些和平宣传想法、从事工作或表达意见的人士的威胁，骚扰或其他任何的镇压行为或企图。言论自由是美国的宪法权利，我们会不惜一切代价保护和捍卫这项权利。”
“今天，美国联邦调查局逮捕了吴啸雷,因为他屡次威胁和侵犯一名公开反对中国执政共产党的人士的权利。我们认为吴先生跟踪和骚扰受害者、并向中国执法部门举报受害者对民主自由的支持，可能导致受害者及其家人受到调查。被控的行为令人极其不安，同时亦完全违背了我们国家的民主价值观。”联邦调查局波士顿分局局长约瑟夫·博纳沃隆塔(Joseph R. Bonavolonta)声称。“此案还突出表明了联邦调查局一直致力于保护所有公民行使言论自由的权利。我们也努力将任何企图侵犯这项权利的人绳之以法。”
跟踪缠扰罪最高可判处五年监禁、三年监管释放，以及最高25万美元的罚款。判决由联邦地区法院法官依据美国管辖刑事案件的判决准则和法规作出。
美国检察官罗林斯和联邦调查局分局局长博纳沃隆塔(Bonavolonta)今天发布此公告。罗林斯下属国家安全科的美国助理检察官蒂蒙席·吉斯特纳（Timothy H. Kistner）负责起诉此案。
指控文件中的细节仅为指控，被告推定为无罪, 除非并直到在法庭上排除合理怀疑被证明有罪。
Young Laredoan admits to transporting fentanyl disguised as oxycodoneRead the Press Release
LAREDO, Texas – A 19 year-old Laredo resident has entered a guilty plea to transporting approximately 1.42 kilograms of fentanyl, announced U.S. Attorney Alamdar S. Hamdani.
Ivan Eleodoro Garcia admitted that on Sept. 29, he was driving a 2014 Ford Taurus sedan and stopped for an immigration inspection at the I-35 Border Patrol checkpoint north of Laredo. There, a K-9 positively indicated to concealed humans or narcotics in the rear of the vehicle.
Further investigation led to the discovery of a custom installed hidden compartment between the trunk and passenger area of the sedan where authorities found 13 bags containing 1.42 kg. of blue pills. They initially believed the pills were oxycodone hydrocholoride due to an embossed “M” on each pill. However, a field test later revealed the pills were counterfeit and contained fentanyl.
Garcia has been and will remain in custody pending his sentencing at a later date before U.S. District Judge Diana Saldana. At that time, Garcia faces a minimum of 10 years and up life in prison as well as a possible $10 million maximum fine.
The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
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Woman Pleads Guilty to $2.6 Million Commodity Futures Trading SchemeRead the Press Release
A Southern California woman pleaded guilty yesterday to her involvement in an investment fraud scheme that caused more than $2.6 million in losses to investors.
According to court documents, Sharief Deona McDowell, 57, of Loma Linda, defrauded at least 28 investors by falsely representing that she would invest their money in commodity futures and options contracts. In actuality, McDowell did not trade with the investors’ money and instead misappropriated the funds for her personal use. McDowell also provided investors with fabricated trade confirmations and account statements to falsely indicate that their investments were generating returns. In addition, McDowell used money provided by new investors to repay earlier investors – a tactic often used to conceal and prolong Ponzi and other investment fraud schemes. McDowell had a history of defrauding investors and committed this fraud in violation of a prior judicial order.
McDowell pleaded guilty to one count of wire fraud. She is scheduled to be sentenced on March 10, 2023, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Martin Estrada for the Central District of California, and Assistant Director in Charge Don Alway of the FBI Los Angeles Field Office made the announcement.
The FBI is investigating the case.
Trial Attorney Lauren Archer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Byron Tuyay for the Central District of California are prosecuting the case.
Williamsburg Woman Sentenced for Social Security FraudRead the Press Release
LONDON, Ky. – A Williamsburg, Ky., woman, Jennifer Lee West, 60, was sentenced Tuesday to 4 months in federal prison, by U.S. District Judge Robert Wier, for committing Social Security fraud.
According to court documents, in December 2005, West requested to be the representative payee for a “Lorene Bryant,” who was receiving SSI benefits through the Social Security Administration. However, that person did not exist; this was actually a false alternative identity of the defendant’s mother. The defendant, with knowledge that this was not a real person, was fraudulently approved as the representative payee and falsely represented herself to be the child of the false identity. From 2006 through 2020, the Defendant perpetuated the fraud, by annually completing false Representative Payee Reports. The total loss of taxpayer funds from the fraud was $117,615.
West was also ordered to pay $117,615 in restitution.
Following her release from prison, West will be under the supervision of the U.S. Probation Office for two years. Her supervised release conditions also include two months of home detention and 40 hours of community service per year.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky, and Marvin D. Mauldin, Resident Agent-in-Charge, SSA Office of the Inspector General, jointly announced the sentence.
The investigation was conducted by SSA-OIG. The United States was represented by Special Assistant U.S. Attorney James Chapman.
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Wilkes-Barre Man Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ernesto Richards, age 36, formerly of Wilkes-Barre, Pennsylvania, was charged yesterday by a federal grand jury with narcotics trafficking, firearms, and false statement offenses.
According to United States Attorney Gerard M. Karam, the indictment alleges that Richards conspired to distribute cocaine and crack cocaine in Luzerne County between February and September 2022. During that time, it is alleged that Richards also conspired to import cocaine from foreign countries, and possessed firearms, including a stolen firearm, in relation to his drug trafficking activities. In addition to being charged with a narcotics conspiracy, Richards also was charged with three counts of distributing and possessing with intent to distribute cocaine and crack cocaine. Richards further was charged with possessing firearms in furtherance of his drug trafficking activities, and with possessing firearms and ammunition despite being prohibited as a convicted felon. Richards was also charged with lying to federal agents about his drug trafficking activities.
The case was investigated by Homeland Security Investigations and the Pennsylvania State Police. Assistant U.S. Attorney Phillip J. Caraballo 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.
The penalties under federal law for the most serious narcotics charges are a minimum of five years and maximum 40-year term of imprisonment, a term of supervised release following imprisonment, and a fine. The most serious firearms charge carries a mandatory five-year term of imprisonment and maximum term of life, to run consecutive to any other term of imprisonment imposed, a term of supervised release following imprisonment, and a fine. The false statement charges carry up to a five-year term of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Wildlife Trafficker Sentenced to 57 Months for Large-Scale Trafficking of Rhinoceros Horns and Elephant IvoryRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that AMARA CHERIF, a/k/a “Bamba Issiaka,” a citizen of Guinea, was sentenced to 57 months for conspiring to traffic in millions of dollars in rhinoceros horns and elephant ivory, both endangered wildlife species, which involved the illegal poaching of more than approximately 35 rhinoceros and more than 100 elephants. The sentence was imposed by U.S. District Judge Gregory H. Woods. CHERIF’s co-conspirators, MOAZU KROMAH, a/k/a “Ayoub,” a/k/a “Ayuba,” a/k/a “Kampala Man,” a citizen of Liberia, and MANSUR MOHAMED SURUR, a/k/a “Mansour,” a citizen of Kenya, were previously sentenced to prison terms of 63 months and 54 months, respectively, by Judge Woods.
U.S. Attorney Damian Williams said: “Amara Cherif, Moazu Kromah, and Mansur Mohamed Surur decided that their profit was more important than the protected wildlife and natural resources that they chose to traffic, and two endangered species suffered because of that repugnant decision. These sentences show that this Office takes seriously our responsibility to use every tool at our disposal to do our part in reducing threats to the survival of endangered animals by bringing their poachers and traffickers to justice.”
According to the charging and other documents filed in the case, as well as statements made in court proceedings:
KROMAH, CHERIF, and SURUR were members of a transnational criminal enterprise (the “Enterprise”) based in Uganda and surrounding countries that was engaged in the large-scale trafficking and smuggling of rhinoceros horns and elephant ivory, both protected wildlife species. Trade involving endangered or threatened species violates several U.S. laws, as well as international treaties implemented by certain U.S. laws.
From at least in or about December 2012 through at least in or about May 2019, KROMAH, CHERIF, and SURUR conspired to transport, distribute, sell, and smuggle at least approximately 190 kilograms of rhinoceros horns and at least approximately 10 tons of elephant ivory from or involving various countries in East Africa, including Uganda, the Democratic Republic of the Congo, Guinea, Kenya, Mozambique, Senegal, and Tanzania, to buyers located in the United States and countries in Southeast Asia. Such weights of rhinoceros horn and elephant ivory are estimated to have involved the illegal poaching of more than approximately 35 rhinoceros and more than approximately 100 elephants. In total, the estimated average retail value of the rhinoceros horn involved in the conspiracy was at least approximately $3.4 million, and the estimated average retail value of the elephant ivory involved in the conspiracy was at least approximately $4 million.
Typically, the defendants exported and agreed to export the rhinoceros horns and elephant ivory for delivery to foreign buyers, including a buyer represented to be in Manhattan, in packaging that concealed the rhinoceros horns and elephant ivory in, among other things, pieces of art such as African masks and statues. The defendants received and deposited payments from foreign customers that were sent in the form of international wire transfers, some of which were sent through U.S. financial institutions, and paid in cash.
On or about March 16, 2018, law enforcement agents intercepted a package containing a black rhinoceros horn sold by the defendants that was intended for a buyer represented to be in Manhattan. From in or about March 2018 through in or about May 2018, the defendants offered to sell additional rhinoceros horns of varying weights, including horns weighing up to approximately seven kilograms. On or about July 17, 2018, law enforcement agents intercepted a package containing two rhinoceros horns weighing over five kilograms sold by the defendants that were intended for a buyer represented to be in Manhattan.
Separately, from at least in or about August 2018 through at least in or about May 2019, SURUR conspired with others to distribute and possess with intent to distribute a large quantity of heroin to a buyer represented to be located in New York.
KROMAH was arrested in Uganda on June 12, 2019, and expelled to the United States on June 13, 2019. CHERIF was arrested in Senegal on June 7, 2019, and extradited to the United States on April 2, 2020. SURUR was arrested in Kenya on July 29, 2020, and extradited to the United States on January 25, 2021. The defendants have been detained since their arrest and arrival in this country.
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KROMAH, 52, of Liberia; CHERIF, 57, of Guinea; and SURUR, 62, of Kenya, each pled guilty to one count of conspiracy to commit wildlife trafficking. In addition, KROMAH and CHERIF both pled guilty to two counts of wildlife trafficking, and SURUR also pled guilty to one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin.
Mr. Williams praised the outstanding investigative work of the U.S. Fish and Wildlife Service and the U.S. Drug Enforcement Administration, and he thanked law enforcement authorities and conservation partners in Uganda and Kenya, including the Uganda Wildlife Authority, the Uganda Office of the Director of Public Prosecution, the Uganda Police Force, the Kenya Directorate of Criminal Investigations, and the Kenyan Office of the Director of Public Prosecutions, for their assistance in this investigation. Mr. Williams also thanked the U.S. Department of State and the U.S. Department of Justice’s Office of International Affairs for their assistance.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sagar K. Ravi and Jarrod L. Schaeffer are in charge of the prosecution.
Washington Man Charged with Hate Crimes for Arsons of Jehovah’s Witness Kingdom HallsRead the Press Release
A Washington man was indicted by a federal grand jury in Seattle in connection with three arsons that damaged or destroyed Jehovah’s Witness Kingdom Halls.
Mikey Diamond Starrett, aka Michael Jason Layes, 50, of Olympia, Washington, was charged in a superseding indictment with three counts of damage to religious property, including the use of fire, and three counts of using fire to commit a federal felony. The defendant was previously charged with one count of damage to religious property, including the use of a dangerous weapon, and one count of use of a firearm during and in relation to a crime of violence, in connection with a shooting that damaged a separate Jehovah’s Witness Kingdom Hall. The defendant was also previously charged with one count of unlawful possession of an unregistered firearm.
According to the superseding indictment, the defendant set fire to three Jehovah’s Witness Kingdom Halls: the Kingdom Hall of Tumwater, Washington on March 19, 2018; the Kingdom Hall of Olympia, Washington on March 19, 2018; and the Kingdom Hall of Olympia, Washington, on July 3, 2018. The superseding indictment alleges the defendant defaced, damaged and destroyed religious real property at the Kingdom Halls because of the religious character of the properties.
If convicted, Starrett faces a sentence of up to 20 years in prison on each charge of damage to religious property. Starrett faces up to 10 years in prison if convicted on the unlawful possession of an unregistered firearm charge. If convicted, Starrett faces a mandatory minimum of 10 years in prison to run consecutive to any sentence imposed for each of the remaining offenses.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Nick Brown for the Western District of Washington made the announcement.
The ATF Seattle Field Division, the FBI Seattle Field Office, the Tumwater, Washington Police Department, and the Olympia Police Department investigated the matter. Trial Attorney Matthew Tannenbaum of the Civil Rights Division’s Section and Assistant U.S. Attorney Rebecca S. Cohen for the Western District of Washington are prosecuting the case.
For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law
Violent felon sentenced for illegal firearms conviction following shootingRead the Press Release
CORPUS CHRISTI, Texas – A 48-year-old Aransas Pass resident has been ordered to federal prison for possessing a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Kenny Don Jones pleaded guilty Sept. 21.
Today, U.S. District Judge Drew B. Tipton handed Jones a sentence of 90 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Jones changed his story with investigators about the shooting over the course of two interviews. In handing down the sentence, the court noted his significant criminal history, including a previous murder conviction and convictions for shooting two other individuals.
On July 20, 2021, authorities learned of a suspicious death. They traveled to the scene and met with the property owner where they found a deceased male subject on the property with a single casing from a discharged round near him in a milk crate.
Jones was also present and eventually reported that the firearm was his and that the deceased male had taken the firearm from his bag and pointed it at him. Jones claimed he he wrestled the firearm away from him and took a step back with the gun in hand. According to Jones, the victim lunged at him and Jones fired a round that struck the victim in between the eyes.
Following the shooting, Jones drove to Rockport where he threw the .9mm Smith & Wesson pistol out of his vehicle. He said he knew he was not supposed to have guns.
Law enforcement later obtained the gun Jones described.
Jones has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol Tobacco Firearms & Explosives conducted the investigation with the assistance of the Aransas Pass Police Department. Assistant U.S. Attorney Joel Dunn prosecuted the case.
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Violent drug trafficker and debt collector sentenced to 11 years in prisonRead the Press Release
Seattle – 26-year-old Kent, Washington man was sentenced today in U.S. District Court in Seattle to 11 years in prison for his role as a drug trafficker and debt collector for a cartel-connected drug distribution ring, announced U.S. Attorney Nick Brown. Jorge Mondragon pleaded guilty in July 2022 to conspiracy to distribute controlled substances and being a felon in possession of a firearm. At the sentencing hearing U.S. District Judge John C. Coughenour said, the sentence was driven by Mondragon’s involvement with “firearms and threats of violence.”
“Not only did Mr. Mondragon deal large amounts of meth and heroin, he also used violence and threats of violence on behalf of the drug ring,” said U.S. Attorney Brown. “These drugs not only destroy the lives of those who use them, they also destroy the lives of the users’ families and friends who are forced to watch the toll these drugs take on their son, their daughter, their mother, their father, their friend.”
As early as 2020, investigators repeatedly intercepted calls and surveilled Mondragon dealing in large quantities of methamphetamine and heroin. They also intercepted Mondragon in multiple conversations about the possession and sale of firearms and engaging in acts of violent debt collection on behalf of the drug trafficking organization. At one point, investigators heard Mondragon plotting with others to kidnap another dealer.
“The efforts by all our partners in this investigation show our collective commitment to keep our communities free of illegal controlled substances and safe by preventing violent individuals like Mr. Mondragon from carrying out the acts he planned and conspired to commit,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division.
In asking for an eleven-year prison sentence prosecutors wrote to the court, “Mondragon’s extensive involvement in gun possession and violence places him among the most violent individuals in this conspiracy. During the four months that law enforcement intercepted Mondragon’s activities, he engaged in multiple plots to kidnap and otherwise harm debtors, procured a seemingly endless supply of firearms for himself and organization leaders, was arrested three times for crimes (all of which involved gun possession), and agreed to “wheelchair” an individual for money – a plan he appeared intent on executing when he was intercepted by law enforcement with a loaded gun on his way to do the job.”
Mondragon will be on supervised release for five years following his prison term.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF
The investigation was conducted by the U.S. Drug Enforcement Administration’s (DEA) Tacoma Resident Office in partnership with Tahoma Narcotics Enforcement Team (TNET), Kent Police Department, Homeland Security Investigations, SeaTac Police Department, Thurston County Narcotics Team (TNT), the Federal Bureau of Investigation, and the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF).
The case is being prosecuted by Assistant United States Attorneys Amy Jaquette and C. Andrew Colasurdo.
Venezuelan Man Pleads Guilty to Cocaine PossessionRead the Press Release
St. Thomas – United States Attorney Delia L. Smith announced today that Erickson Bolivar, 32, of Venezuela, pleaded guilty before Magistrate Judge Ruth Miller to Conspiracy to Possess with Intent to Distribute Cocaine. Bolivar was one of three men charged with smuggling 41 kilograms of cocaine into the Territory.
According to court documents, on November 21, 2021, at approximately 4:37 a.m., Customs and Boarder Protection Air and Marine and Homeland Security Investigations agents detected a vessel on the northwest coast of St. Thomas, VI. The agents launched their interceptor vessel and later stopped the target vessel traveling west towards Puerto Rico without navigation lights. Onboard were Bolivar, the captain of the vessel, and two other occupants. Bolivar told agents that they were going fishing, but agents only found two fishing rods without any bait or lures. The vessel and its occupants were transported to Fajardo, PR, for further investigation. There, agents discovered brick-shaped objects containing a powder substance concealed in a hidden compartment in the stern of the vessel. A Drug Enforcement Administration laboratory analysis confirmed that the power substance was cocaine weighing approximately 41 kilograms.
The case was investigated by Homeland Security Investigations, Customs and Border Protection and Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Kyle Payne. This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCEDTF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transactional criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Venezuelan Boat Captain Apprehended Near St. Croix Sentenced in Conspiracy to Possess Cocaine on Board a Vessel CaseRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Vicent Mata Anyelo a/k/a Vicent Mata, age 33, the captain and last to be sentenced of eleven Venezuelan nationals apprehended at sea off the coast of St. Croix, was sentenced on December 13, 2022 to 65 months imprisonment followed by 2 years supervised release by U.S. Judge Wilma Lewis on the charge of conspiracy to possess with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States. In addition, he must pay a $100 special assessment fee and is subject to deportation.
According to court documents, on the evening of September 25, 2019, the United States Coast Guard (USCG) Cutter Donald Horsley intercepted a suspicious 55-foot vessel named La Gran Tormenta displaying Venezuelan nationality indicia approximately 38 nautical miles south of St. Croix. Occupants of the La Gran Tormenta failed to respond to USCG’s efforts to engage in questioning of the crew, and upon detection, the La Gran Tormenta changed course and began jettisoning packages. Crew members from the USCG Cutter Donald Horsley subsequently retrieved two bales from the water. The two jettisoned bales contained packages with brick-shaped objects which were subsequently laboratory tested and found to contain approximately 49 kilograms of cocaine hydrocholoride (powder cocaine).
After requesting and receiving permission to stop the vessel from Venezuela, the flag state, USCG personnel attempted a right-of-visit boarding which was ineffective because crew on the La Gran Tormenta disregarded the USCG’s instructions. Eventually, USCG personnel obtained control of the La Gran Tormenta through use of an entanglement tactic which stopped the vessel’s engine. A USCG counter-drug boarding team later encountered 11 persons, including the defendant.
The case was investigated by the U.S. Coast Guard, U.S. Drug Enforcement Administration, and Customs and Border Protection. It is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz. This prosecution is part of an Organized
Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.Unlicensed Firearms Dealer Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Today, Desmon Taylor Moore, 24, of Charlotte, was sentenced to 37 months in prison followed by three years of supervised release on multiple firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, between 2021 and March 2022, Moore engaged in the manufacturing and sale of firearms without a license. ATF agents investigating Moore determined that Moore illegally sold conversion devices (commonly known as “Glock switches”) which enable a semi-automatic handgun to function as an automatic.
Moore also engaged in the sale of multiple firearms and privately-made firearms (or “Ghost guns”), some of which had been converted into machineguns using the illegal conversion devices. Federal law prohibits the possession of machineguns and defines “machinegun” to include parts designed or intended for use in converting a weapon into a machinegun. According to court records, two undercover ATF agents also attended a class Moore taught on how to build privately-made firearms and install Glock switches.
On July 26, 2022, Moore pleaded guilty to multiple firearms offenses, including dealing and manufacturing firearms without a license, and possession and transfer of machineguns. Moore is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons.
In making today’s announcement, U.S. Attorney King thanked the ATF for their investigation of the case.
Assistant U.S. Attorney David Kelly, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
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U.S. Navy Veteran Indicted for Allegedly Swindling Navy Members in Investment Fraud SchemeRead the Press Release
CHICAGO — A United States Navy veteran has been indicted on federal criminal charges for allegedly swindling retired and active-duty Navy members in an investment fraud scheme.
ROBERT L. MURRAY, JR, 43, of Chicago, was charged with four counts of wire fraud in an indictment returned Monday in U.S. District Court in Chicago. Arraignment is set for Dec. 16, 2022, at 11:30 a.m. before U.S. District Judge Manish S. Shah.
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. Attorney Brian Havey.
The indictment alleges that after retiring from the Navy, Murray occasionally traded securities online from his residence. He later founded an investment fund called Deep Dive Strategies LLC, which purported to invest in publicly traded securities. Murray solicited investors, including retired and active-duty Navy members, by portraying himself on social media as a skilled and successful options trader with an effective algorithm for trading securities, the indictment states.
The indictment alleges that Murray failed to invest or trade with all of the money provided to him by investors, instead using a portion of their funds to pay his personal expenses, including shopping, restaurant, and travel expenses. With the investor funds that Murray did use to conduct trades, he lost most of those funds by placing a highly risky bet on the “meme stock” GameStop, the indictment alleges. When investors later requested an accounting of their funds, Murray disregarded or refused their requests, the indictment states.
As a result of the scheme, investors lost all of the funds they entrusted to Murray to invest on their behalf, an amount totaling more than $342,000, the indictment states.
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 wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
U.S. Attorney Announces Fraud and Money Laundering Charges Against the Founders and Promoters of Two Cryptocurrency Ponzi SchemesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of the Department of Homeland Security (“HSI”), announced charges in two separate Indictments against the founders and promoters of two cryptocurrency Ponzi schemes known as IcomTech and Forcount (and later known as Weltsys). United States v. David Carmona, et al., 22 Cr. 551 (JLR), charges DAVID CARMONA, MARCO RUIZ OCHOA, MOSES VALDEZ, JUAN ARELLANO, DAVID BREND, and GUSTAVO RODRIGUEZ with conspiracy to commit wire fraud based on their involvement with IcomTech from in or about mid-2018 until in or about the end of 2019. United States v. Francisley da Silva, et al., S1 22 Cr. 622 (AT), charges FRANCISLEY DA SILVA, JUAN TACURI, and ANTONIA PEREZ HERNANDEZ with conspiracy to commit wire fraud and wire fraud based on their involvement with Forcount from in or about mid-2017 until at least in or about the end of 2021. SILVA and TACURI are also charged with conspiracy to commit money laundering, and HERNANDEZ is also charged with making false statements.
U.S. Attorney Damian Williams said: “With these two indictments, this Office is sending a message to all cryptocurrency scammers: We are coming for you. Stealing is stealing, even when dressed up in the jargon of cryptocurrency. Thanks to the efforts of federal, state, and international law enforcement, IcomTech and Forcount’s founders and promoters are being held to account.”
HSI Special Agent in Charge Ivan J. Arvelo said: “The excitement around cryptocurrency and the potential to make huge profits attracted would-be investors to the alleged schemes run by the individuals indicted today. With high end clothes and cars, these individuals are alleged to have presented a life of luxury to potential investors, but instead of a lucrative investment opportunity, the victims were fleeced of their savings and left with nothing to show for it. Homeland Security Investigations works tirelessly to uncover financial crimes and bring perpetrators to justice.”
As alleged in the Indictments:[1]
IcomTech and Forcount were both purported cryptocurrency mining and trading companies that promised to earn their respective victim-investors (“Victims”) profits in exchange for their purchase of purported cryptocurrency-related investment products. The founders and promoters of each scheme falsely promised their respective Victims, among other things, that profits from the companies’ cryptocurrency trading and mining would result in guaranteed daily returns on Victims’ investments and the doubling of those investments within six months. In reality, neither company was engaging in cryptocurrency trading or mining, and the founders and promoters of both schemes were using Victim funds to pay other Victims, to further promote the schemes, and to enrich themselves.
Both the IcomTech and Forcount defendants fraudulently induced their victims to invest in sham cryptocurrency activities using similar methods. The founders and promoters of the two schemes traveled throughout the United States and internationally where they hosted lavish expos and small community presentations aimed at luring Victims to invest in the schemes, including in the Southern District of New York. During larger-scale events, the schemes’ promoters would present the schemes’ investment products and compensation plan, encourage Victims to invest as a means of achieving financial freedom, and boast about the amount of money they were earning. The schemes’ promoters often showed up at larger-scale events in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from the schemes. The atmosphere of these events was festive and designed to generate excitement about the schemes.
Victims invested in the IcomTech and Forcount schemes by purchasing investment products from promoters using cash, checks, wire transfers, and actual cryptocurrency. Following a Victim’s investment, they would be provided with access to an online portal where they could monitor their purported returns. While Victims saw “profits” accumulate on the schemes’ respective online portals, most Victims were unable to withdraw any of these so-called profits and ultimately lost their entire investments. By contrast, IcomTech and Forcount’s promoters siphoned off, in some cases, hundreds of thousands of dollars in Victim funds, which they withdrew as cash, spent on promotional expenses for the schemes, and used for personal expenditures such as luxury goods and real estate.
At least as early as August 2018 with respect to the IcomTech scheme, and in or about April 2018 with respect to the Forcount scheme, Victims who attempted to withdraw money from their online portal accounts had difficulty doing so and, when they complained to promoters, they were met with excuses, delays, and hidden fees, if they were able to make any withdrawals at all. Despite these complaints, IcomTech and Forcount’s promoters, including the defendants, continued to promote their respective fraudulent schemes and accept Victims’ investments. As complaints mounted in both schemes, IcomTech and Forcount both began offering proprietary crypto-tokens for sale as a means of injecting liquidity into the schemes. Promoters of the schemes claimed that these tokens, known as “Icoms” in the IcomTech scheme and “Mindexcoin” in the Forcount scheme, would eventually be worth a significant amount of money when they were accepted by companies for payment for goods and services. This was false. In reality, they were essentially worthless and resulted in further financial loss to Victims. By in or about the end of 2019 with respect to IcomTech, and in or about 2021 with respect to Forcount, the schemes had stopped making payments to Victims and their chief promoters, including the defendants, stopped promoting the schemes, and, in some instances, stopped responding to Victims’ complaints altogether.
In addition to promoting the Forcount scheme, SILVA and TACURI also sought to conceal their fraud by laundering Victim funds through shell companies and making large personal expenditures on things like real estate and bulk cellphone purchases. On or about June 27, 2022, law enforcement officers with HSI stopped and interviewed HERNANDEZ as she was returning to the United States from Mexico. During the interview, HERNANDEZ falsely denied, among other things, being a Forcount promoter, recruiting investors, and taking money from them.
On November 8, 2022, United States v. David Carmona, et al., 22 Cr. 551 (JLR), was unsealed. As alleged in the Carmona indictment, CARMONA was the founder of IcomTech; OCHOA, VALDEZ, ARELLANO, and BREND were promoters of the scheme; and RODRIGUEZ was hired by CARMONA to build and maintain IcomTech’s website and online portal. On November 8, 2022, CARMONA was arrested in Queens, New York, and presented before United States Magistrate Judge Sarah L. Cave of the Southern District of New York; OCHOA was arrested in the District of New Hampshire; VALDEZ, ARELLANO, and RODRIGUEZ were arrested in the Central District of California; and BREND was arrested in the Middle District of Florida. The Carmona matter has been assigned to United States District Judge Jennifer L. Rochon.
On December 14, 2022, United States v. Francisley da Silva, et al., S1 Cr. 622 (AT), was unsealed. As alleged in the Silva indictment, SILVA was the founder of Forcount and TACURI and HERNANDEZ were promoters of the scheme. On December 14, 2022, TACURI was arrested in the Southern District of Florida. SILVA, a Brazilian national, has been in custody in Brazil since on or about November 3, 2022. HERNANDEZ remains at large. The Silva matter has been assigned to United States District Judge Analisa Torres.
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A chart containing the names of the defendants who were charged today and the charges and maximum penalties they face is attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of HSI, particularly HSI New York El Dorado Task Force/Securities Investigations Group, HSI Brasilia, HSI Tampa, and HSI Orlando; the New York City Police Department; the New York City Sheriff’s Office; the Bureau of Insurance Fraud, Property, and Casualty in the Division of Investigative and Forensic Services of the Florida Department of Financial Services; and the Florida Office of Financial Regulation. Mr. Williams also thanked the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Brazilian Federal Police for their assistance.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Benjamin A. Gianforti and Cecilia Vogel are in charge of the prosecution of the Carmona matter. AUSA Gianforti is also in charge of the prosecution of the Silva matter.
The charges contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The United States Attorney’s Office for the Southern District of New York is committed to protecting the rights of crime victims. If you believe you are a victim of the IcomTech and/or Forcount schemes, our Victim/Witness Unit can make sure that you are notified of important stages of these cases to help you exercise your rights. In addition, our Victim/Witness Unit is available to answer questions you might have about these cases and can refer you to available resources.
Wendy Olsen Clancy
Victim/Witness Coordinator
United States Attorney’s Office
One St. Andrew’s Plaza
New York, New York 10007
(866) 874-8900
United States v. David Carmona, et al., 22 Cr. 551 (JLR)
Defendant
Age
Charges
Maximum Penalties
DAVID CARMONA,
Queens, NY
39
Count 1: Conspiracy to commit wire fraud
20 years in prison
MARCO RUIZ OCHOA,
Nashua, NH
34
Count 1: Conspiracy to commit wire fraud
20 years in prison
MOSES VALDEZ,
Hesperia, CA
26
Count 1: Conspiracy to commit wire fraud
20 years in prison
JUAN ARELLANO,
Chino, CA
46
Count 1: Conspiracy to commit wire fraud
20 years in prison
DAVID BREND,
Tampa, FL
48
Count 1: Conspiracy to commit wire fraud
20 years in prison
GUSTAVO RODRIGUEZ,
North Hollywood, CA
46
Count 1: Conspiracy to commit wire fraud
20 years in prison
United States v. Francisley da Silva, et al., S1 22 Cr. 622 (AT)
FRANCISLEY DA SILVA, Curitiba, Brazil
37
Count 1: Conspiracy to commit wire fraud
Count 2: Wire fraud
Count 3: Conspiracy to commit money laundering
20 years in prison
20 years in prison
20 years in prison
JUAN TACURI,
Orlando, FL
44
Count 1: Conspiracy to commit wire fraud
Count 2: Wire fraud
Count 3: Conspiracy to commit money laundering
20 years in prison
20 years in prison
20 years in prison
ANTONIA PEREZ HERNANDEZ,
Tampa, FL
47
Count 1: Conspiracy to commit wire fraud
Count 2: Wire fraud
Count 4: False statements
20 years in prison
20 years in prison
Five years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.