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9 December 2022
Gun-carrying felon sentenced to maximum prison termRead the Press Release
SAVANNAH, GA: A Chatham County man with a violent criminal history has been sentenced to 10 years in prison for illegally carrying a gun.
Dontray Lewis, 43, of Savannah, was sentenced to 120 months in prison after a federal jury previously convicted him of Possession of a Firearm by a Convicted Felon, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Lewis to serve three years of supervised release after completion of his prison term. There is no parole in the federal system.
“Despite multiple trips to jail and to prison for crimes including guns, violence and drugs, Dontray Lewis has refused abundant opportunities to reform,” said U.S. Attorney Estes. “Hard time in prison will give him more time to reflect on his future activities while keeping the community safe from this violent criminal.”
A U.S. District Court jury convicted Lewis in August 2020 after a three-day trial, finding him guilty of illegally possessing a Glock semiautomatic pistol with an extended magazine. Savannah Police officers found the pistol in Lewis’ vehicle after he at first fled from a traffic stop in May 2020. As a previously convicted felon, Lewis is prohibited from possessing firearms.
“This sentence is a direct message to criminals that ATF will not allow egregious violations of our laws go unpunished. If you a felon with a gun, you will be targeted, and we will ensure that you are prosecuted and removed from our streets,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Savannah Police Department, and prosecuted for the United States by Assistant U.S. Attorney Frank M. Pennington II and Special Assistant U.S. Attorney Daron J. Hubbard.
This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer.
Georgia Man Convicted by Jury of Financial CrimesRead the Press Release
FORT WAYNE – Marcus J. Rozier, 27 years old, of Atlanta, GA, was found guilty following a four-day jury trial presided over by United States District Court Judge Holly A. Brady, announced United States Attorney Clifford D. Johnson.
Rozier was found guilty of all counts of a Superseding Indictment charging him with five counts of bank fraud and five counts of aggravated identity theft.
Rozier will be scheduled for sentencing by separate order of the Court. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.
This case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) with the assistance of the LaGrange Police Department, the LaGrange County Sheriff’s Department, the Indiana State Police, and the Indiana Department of Natural Resources. This case was prosecuted by Assistant United States Attorneys Stacey R. Speith and Brent Ecenbarger.
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Fraudster Sentenced to Eight Years in Prison for Multiple Crimes Against Senior Citizens in Northwest Washington, D.C.Read the Press Release
Defendant Also Set Fire to One Victim’s Apartment
WASHINGTON – Peter R. Dorney, 42, was sentenced today to 96 months in prison for arson and fraud charges, announced U.S. Attorney Matthew M. Graves, D.C. Attorney General Karl Racine, D.C. Fire and EMS Office of the Fire Marshal, and Robert J. Contee III, Chief of the Metropolitan Police Department.
Dorney pleaded guilty in April 2022, in the Superior Court of the District of Columbia, to felony destruction of property for a February 2021 arson, and first-degree felony fraud charges. He was sentenced by the Honorable James A. Crowell IV. Following his prison term, Dorney will be placed on supervised release for three years.
According to the government’s evidence, Dorney targeted elderly women in the commission of his crimes. On February 4, 2021, at approximately 6:10 p.m., Dorney was inside the Gateway Georgetown Apartment Complex when he used a key to enter Apartment 332, the then-vacant apartment of the 92-year-old victim. Dorney used an open flame source to set a fire inside the apartment. The fire spread, causing over $1,000 in damage to the victim’s property, including walls, furniture, and papers. Then, between March 2021 and April 2021, Dorney made more than 70 unauthorized charges on an 80-year-old victim’s credit card, obtaining a total of $4,628.06 of her money by fraudulent means. On some occasions, Dorney brazenly treated mutual friends to expensive dinners using the victim’s credit card without her knowledge. Dorney has been in custody since his May 13, 2021 arrest.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those investigating the case from the Metropolitan Police Department and D.C. Fire and E.M.S., especially Investigator Paul Gunshol. They also acknowledged the efforts of those working on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Joshua Gold, who investigated and prosecuted the case, Paralegal Specialist Debra McPherson, Victim/Witness Advocate Jennifer Clark, and Special Assistant U.S. Attorney Nina Torabzadeh, on detail from the Office of the Attorney General to handle financial crimes cases involving elderly victims.
Framingham Man Convicted of Role in Business Email Compromise SchemeRead the Press Release
BOSTON – A federal jury in Boston convicted a Framingham man today for his role in a business email compromise (BEC) scheme.
Gustaf Njei, 27, was convicted following a five-day jury trial of two counts of wire fraud, one count of structuring to avoid reporting requirements, one count of unlawful monetary transactions, and one count of money laundering conspiracy. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for March 9, 2023. A federal grand jury indicted Njei in June 2021.
The evidence at trial established that Njei conspired with others to open bank accounts in Massachusetts in the name of a sham company, to receive the criminal proceeds of a BEC scheme. A BEC scheme is a sophisticated scam often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques, to cause employees of the victim company (or other individuals involved in legitimate business transactions) to transfer funds to accounts controlled by the scammers.
Njei’s co-conspirators used hacked and spoofed email accounts to trick the victims of the scheme into wiring hundreds of thousands of dollars to a bank account under Njei’s control. Njei then transferred part of the funds to a bank account located overseas, while splitting the remaining funds with a co-conspirator in the United States.
“Online criminals spend their days targeting millions of victims with increasingly sophisticated but fraudulent emails. They just need to fool a few people into surrendering their life savings or business revenues to hit a pay day,” said United States Attorney Rachael S. Rollins. “Mr. Njei created a bank account in the name of a fake company. These victims sent hundreds of thousands of dollars and suffered real harm as a result of this cyber scheme. People deserve to feel safe and protected in their communities – whether in person or online. Today’s verdict shows that we will find and hold scammers accountable to the fullest extent of the law.”
“Last year, business email compromise scams cost consumers nationwide nearly $2.4 billion and here in Massachusetts victims reported losing almost $68 million. Gustaf Njei’s conviction today demonstrates the FBI’s commitment to holding accountable everyone who participates in these scams, which use lies and deceit to trick victims out of their hard-earned money,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division “We thank the jury for their swift verdict.”
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000, or twice the gross gain or loss, whichever is greater. The charge of structuring to avoid reporting requirements provides for a sentence of up to five years in prison, three years of supervised release and a fine up to $250,000, or twice the gross gain or loss, whichever is greater. The charge of unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release and a fine up to $250,000, or twice the gross gain or loss, whichever is greater. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement today. Assistant U.S. Attorneys William B. Brady and Benjamin A. Saltzman of Rollins’ Criminal Division are prosecuting the case.
Four People Indicted for Medicare FraudRead the Press Release
TOPEKA, KAN.– A federal grand jury in Topeka returned an indictment charging a Kansas woman and three Florida residents in connection with a scheme to defraud Medicare.According to court documents, Steven A. Churchill, 36, of Boca Raton, Florida, Samson K. Solomon, 25, of Margate, Florida, Elaine J. Balsamo, 58, of Boca Raton, Florida, and Fawn J. Lickteig, 42, of Lawrence, Kansas, are charged with:
• one count of conspiracy to commit health care fraud, mail fraud, and wire fraud; • eight counts of health care fraud; • six counts of mail fraud; and
• four counts of wire fraud.Churchill and Balsamo are also charged with four counts of money laundering.
Despite claiming to be a retail pharmacy, the defendants are accused of establishing a fraudulent mail order pharmacy. Between February 2020 and February 2021, the defendants allegedly used Freestate Pharmacy to submit false claims to Medicare for prescriptions for patients who had not spoken with the doctor and who had not requested the medication.
The U.S. Department of Health and Human Services – Office of Inspector General and the Federal Bureau of Investigation (FBI) are investigating the case.
Assistant U.S. Attorneys Christine Kenney and Skip Jacobs 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.
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Four Individuals Indicted for Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – Four individuals were indicted yesterday by a federal grand jury in Boston for their roles in a wide-ranging fentanyl trafficking conspiracy.
Angel Morales, 51, of Roslindale; Quenty Ogando, 44, of Dorchester; Erika Prado, 31, of Hyde Park; and Rahelin Reynoso, 33, of Dorchester, were indicted on one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl. Morales was also charged with one count of distribution and possession with intent to distribute 400 grams or more of fentanyl.
According to the indictment, between September 2022 and November 2022, Morales, Ogando, Prado and Reynoso conspired to distribute and to possess with intent to distribute 400 grams or more of fentanyl. As part of the fentanyl distribution conspiracy, Morales allegedly used various post offices and FedEx facilities in Boston, Randolph, Holbrook, Quincy, Mattapan, Braintree, Milton and elsewhere to mail over 150 packages containing suspected fentanyl. On one occasion, on Sept. 23, 2022, it is alleged that Morales mailed over 850 grams of counterfeit pills containing fentanyl from a FedEx location in Randolph. On Nov. 22, 2022, during a search of an apartment in Mattapan allegedly being used as stash location by the defendants, over 22 kilograms of pills containing fentanyl, over 22 kilograms of loose powder containing fentanyl, three industrial grade pill presses, as well as numerous sealed envelopes containing various amounts of pills were recovered.
The charges of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl, as well as distribution and possession with intent to distribute 400 grams or more of fentanyl, provide for a sentence of up to life, with a mandatory minimum sentence of 10 years in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge for Homeland Security Investigations in New England; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. The Boston Police Department, U.S. Postal Inspection Service, Massachusetts State Police and United States Customs and Border Protection provided valuable assistance. Assistant U.S. Attorney Jennifer Zacks of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the criminal complaint and indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four Defendants Arrested for Multimillion Dollar Fraud and Money Laundering SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Patrick Freaney, Special Agent in Charge of the New York Field Office of the United States Secret Service (“USSS”), announced today that JOEL ZUBAID, DAVID GORAN, JULIAN REBIGA, a/k/a “Iulian Rebiga,” and MARTIN MIZRAHI, a/k/a “Marty Mizrahi” (collectively, the “Defendants”), were arrested for participating in a scheme to defraud businesses, banks, and individuals of more than $9.2 million through business email compromise and credit card fraud schemes. REBIGA was presented yesterday in the United States District Court for the Central District of California, ZUBAID and GORAN will be presented today in the United States District Court for the Central District of California, and MIZRAHI will be presented today in the United States District Court for the District of Nevada. The case is assigned to U.S. District Judge J. Paul Oetken.
U.S. Attorney Damian Williams said: “Joel Zubaid, David Goran, Julian Rebiga, and Martin Mizrahi worked together on multiple schemes that included fleecing legitimate businesses by using compromised email accounts. In tricking them into sending millions of dollars to the defendants’ own bank accounts and using stolen identities and credit card information, they were able to fraudulently charge millions of dollars through business that they controlled. Today, thanks to the efforts of this Office and our law enforcement partners, they now face serious federal charges and justice.”
FBI Assistant Director in Charge Michael J. Driscoll said: “As we allege today, the defendants participated in several schemes designed to defraud multiple businesses of millions of dollars while also deliberately concealing the stolen proceeds of the frauds in a series of transactions. The FBI is determined to discover and disrupt frauds of this – and any – nature and will ensure that perpetrators are held accountable for their actions.”
USSS Special Agent in Charge Patrick Freaney said: “Cyber fraudsters continue to present a real and credible threat through their attempts at sophisticated business email compromise schemes aimed to defraud victims. As demonstrated in this case, collaboration and partnership across law enforcement results in successfully identifying those fraudsters and bringing them before our justice system. The Secret Service is proud to partner with the Federal Bureau of Investigation in having the defendants named in this indictment answer the charges brought against them in the Southern District of New York.”
As alleged in the Indictment unsealed today: [1]
From at least in or about April 2021 through at least in or about June 2021, the Defendants participated in at least three schemes to defraud businesses, banks, credit card companies, and other entities and to launder the fraud proceeds received. The Defendants participated in at least two business email compromise schemes in which co-conspirators sent email messages to victims that fraudulently asked those victims to send money to bank accounts under the Defendants’ control. As a result, the victims of the business email compromise schemes sent wire transfers worth more than $5.4 million to the bank accounts identified by the scheme participants, the majority of which went to the Defendants’ bank accounts. The Defendants, knowing that the money represented fraud proceeds, then transferred those fraud proceeds to other accounts, or converted it into cryptocurrency, in transactions designed to conceal and disguise their source, ownership, and control. When banks froze or sought to recover some of the fraud proceeds, the Defendants made multiple attempts to retain or recover control over the funds by lying to the banks about the purpose of the transfers.
In addition, during the same time period, the Defendants participated in a scheme to fraudulently submit more than $3.8 million in charges using stolen credit card information, without the authorization or consent of the card holders. The charges were conducted through point-of-sale credit card machines associated with companies controlled by MIZRAHI and REBIGA.
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JOEL ZUBAID, 55, of Riverside, California, DAVID GORAN, 56, of Riverside, California, JULIAN REBIGA, a/k/a “Iulian Rebiga,” 55, of Long Beach, California, and MARTIN MIZRAHI, a/k/a “Marty Mizrahi,” 51, of Las Vegas, Nevada, are charged with conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; bank fraud, which carries a maximum sentence of 30 years in prison; conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; money laundering, which carries a maximum sentence of 20 years in prison; and aggravated identity theft, which carries a mandatory minimum sentence of two years in prison consecutive to any other prison terms imposed.
The minimum and maximum potential sentences in these cases 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 FBI and the USSS for their outstanding work on the investigation. The prosecution of this case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Benjamin Klein and Emily Deininger are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Fouad K. Zeton Charged with Wire Fraud Conspiracy for Role in Insurance Fraud and Bribery SchemeRead the Press Release
NEW ORLEANS - The United States Attorney’s Office announced that FOUAD K. ZETON was indicted on December 8, 2022 for conspiracy to commit wire fraud.
The indictment alleges that ZETON falsely claimed to his home insurer that valuable paintings were stolen from his New Orleans home. It further alleged that ZETON was aided in the scheme by a police officer with the New Orleans Police Department who agreed to document the purported theft in a police report in exchange for a share of the anticipated proceeds.
Conspiracy is punishable by up to five years imprisonment followed by up to three years supervised release, a fine of up to $250,000, and a mandatory $100 special assessment fee .
The United States Attorney’s Office reiterated that the indictment is merely a charge and that the defendant’s guilt must be proven beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Chandra Menon is in charge of the prosecution.
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Former TSA Officer Sentenced to Nearly 6 Years in Federal Prison for Attempting to Smuggle Methamphetamine Through LAXRead the Press Release
LOS ANGELES – A former Transportation Security Administration (TSA) officer was sentenced today to 70 months in federal prison for smuggling what he believed was methamphetamine through Los Angeles International Airport (LAX) in exchange for a total of $8,000 in cash.
Michael Williams, 39, of Hawthorne, was sentenced by United States District Judge Fernando L. Aenlle-Rocha.
Williams pleaded guilty on June 10 to one count of attempted distribution of methamphetamine.
In 2020, authorities conducted undercover operations involving Williams, whom they suspected of helping smuggle narcotics past security checkpoints at LAX. During the operations, Williams met several times with a drug source to receive what he thought was methamphetamine.
As a TSA employee with unscreened access to LAX, Williams agreed to deliver the “methamphetamine” in a backpack to the drug source’s accomplice in the men’s restroom past the airport terminal’s security checkpoint.
After taking possession of what he believed was real narcotics, Williams transported an unscreened package containing the fake methamphetamine beyond the TSA screening area and delivered the package to another individual. This individual, whom Williams did not know was a federal agent, on both occasions exchanged $4,000 in cash in the stalls of the men’s restroom in the airport’s secure area.
“It is critical to national security that the government agents who are charged with keeping our nation safe do not sell their access to criminals,” prosecutors argued in a sentencing memorandum.
The FBI, the Drug Enforcement Administration investigated this matter as part of the Los Angeles High Intensity Drug Trafficking Area (HIDTA) program.
Assistant United States Attorneys Jeffrey M. Chemerinsky and Jeremiah Levine of the Violent and Organized Crime Section prosecuted this case.
Former Navy Sailor Sentenced to More than 47 Years in Prison for Production and Receipt of Child PornographyRead the Press Release
FRESNO, Calif. — Christopher Jeorge Millican, 29, of Coalinga, was sentenced today to 47 years and six months in prison to be followed by a lifetime of supervised release for producing and receiving child pornography via the popular instant messaging app, Snapchat, U.S. Attorney Phillip A. Talbert announced.
According to court documents and evidence presented at trial, in July 2018, a parent reported to Snapchat that a user, later identified as Millican, had been engaging in inappropriate communications with her 11-year-old daughter. Snapchat reviewed Millican’s account and discovered images and videos depicting another, then 15-year-old minor, engaged in sexually explicit conduct. Snapchat reported the conduct to the National Center for Missing & Exploited Children, which contacted the Central California Internet Crimes Against Children Task Force in Fresno. Investigators identified the minor victim, who informed them that Millican had coerced her into creating and sending him these images. At the time of the offense conduct, Millican was on active duty with the U.S. Navy.
“Millican pursued a methodical and repetitive course of conduct, exploiting or attempting to exploit multiple minors to satisfy his own deviant sexual fantasies,” said U.S. Attorney Talbert. “Today’s significant sentence reflects the serious and harmful nature of Millican’s crimes and should deter him from engaging in similar criminal conduct in the future. The U.S. Attorney’s Office will continue to work tirelessly with its federal and local law enforcement partners to pursue all like-minded offenders and seek justice for these young victims.”
“Safeguarding children from predators like Millican is a top priority for Homeland Security Investigations,” said HSI San Francisco/NorCal Special Agent in Charge Tatum King. “As this sentence proves, these heinous crimes against children will not be tolerated. HSI works with the Central California Internet Crimes Against Children Task Force in partnership with the U.S. Attorney’s Office, the U.S. DOJ’s Child Exploitation and Obscenity Section, and the National Center for Missing and Exploited Children to relentlessly pursue anyone involved in this criminal behavior.”
This case was the product of an investigation by the Central California Internet Crimes Against Children Task Force, composed of Homeland Security Investigations, the Fresno County Sheriff’s Office, the Fresno Police Department, the U.S. Naval Criminal Investigative Service, the Hanford Police Department, and several local police agencies across the United States. Assistant U.S. Attorney David Gappa and Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Navy Sailor Sentenced for Producing Images of Child Sexual AbuseRead the Press Release
A California man was sentenced today to 47 years and six months in prison for producing and receiving images of child sexual abuse.
According to court documents and evidence presented at trial, in July 2018, a parent reported to Snapchat that a user, later identified as Christopher Jeorge Millican, 29, of Coalinga, had been engaging in inappropriate communications with her 11-year-old daughter. Snapchat reviewed Millican’s account and discovered images and videos depicting another, then 15-year-old minor, engaged in sexually explicit conduct. Snapchat reported the conduct to the National Center for Missing & Exploited Children, which contacted the Central California Internet Crimes Against Children Task Force in Fresno. Investigators identified the minor victim, who informed them that Millican had coerced her into creating and sending him these images. At the time of the offense conduct, Millican was on active duty with the U.S. Navy.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and U.S. Attorney Phillip A. Talbert for the Eastern District of California made the announcement.
The Central California Internet Crimes Against Children Task Force, composed of Homeland Security Investigations, the Fresno County Sheriff’s Office, the Fresno Police Department, the U.S. Naval Criminal Investigative Service, the Hanford Police Department, and several local police agencies across the United States, investigated the case.
Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney David Gappa for the Eastern District of California prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Hotel Employee Sentenced to 61 Total Months of Imprisonment for Attempted Wire Fraud and Aggravated Identity TheftRead the Press Release
GREENSBORO – A former hotel employee was sentenced in federal court in Winston-Salem today for attempted wire fraud and aggravated identity theft, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
AUTUMN TIARA TATIYANA NICOL WILLIAMS, age 24, of Greensboro, North Carolina, was sentenced to a total of 61 months of imprisonment by the Honorable Loretta Copeland Biggs, United States District Judge in the United States District Court for the Middle District of North Carolina. In addition to prison time, WILLIAMS was ordered to serve three years of supervised release and to pay $276,570.40 in restitution and special assessments totaling $200.00. She pleaded guilty on February 9, 2022, to attempted wire fraud, in violation of Title 18, United States Code, Section 1343, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court records, WILLIAMS, also known as “Autumn Tiara Frierson,” worked as a front-desk employee at various hotels in Winston-Salem, and Greensboro, North Carolina. In that capacity, WILLIAMS had access to the credit card information from guests of the hotels. WILLIAMS organized a scheme to defraud in which she fraudulently booked rooms using the credit card information of former guests without authorization. She frequently did so by sending the hotel a credit card authorization form, purportedly signed by the card holder. Those forms allowed the local hotel to type credit card information manually without swiping the card itself. WILLIAMS would then sell the fraudulently booked rooms for cash at a steep discount, telling buyers that she was a travel agent or hotel employee able to secure rooms cheaply. She found prospective buyers through word-of-mouth and Facebook.
The court sentenced WILLIAMS to 37 months for attempted wire fraud and 24 months for aggravated identity theft. Under federal law, a defendant convicted of aggravated identity theft must be sentenced to a 24-month term of imprisonment consecutive to any other term of incarceration.
The investigation was undertaken by the United States Secret Service with assistance from the Winston-Salem Police Department and the Greensboro Police Department. The case was prosecuted by Assistant United States Attorney Tanner Kroeger.
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Former Government Official Pleads Guilty to Conspiracy to Defraud Government Program for Disadvantaged Small Business OwnersRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 8, 2022, James A. Coccagna, age 67, of Chambersburg, Pennsylvania, pleaded guilty before United States Magistrate Judge Martin C. Carlson to a criminal information charging him with one count of conspiracy to commit violations of the Major Fraud Act.
According to United States Attorney Gerard M. Karam, between 2003 and 2014, Coccagna, then Chief of the Engineering and Planning Division in the Directorate of Public Works at Letterkenny Army Depot, in Chambersburg, worked with a number of unnamed coconspirators to defeat the rules and purpose of the U.S. Small Business Administration’s 8(a) Business Development Program. Coccagna admitted to steering federal government contracts to certain participants in the 8(a) Program, knowing that those companies and their existing employees, if any, were not playing any meaningful role in performing contracts awarded to them.
The 8(a) Program requires socially and economically disadvantaged individuals to exercise unconditional control over their own companies. It also requires these companies to commit to performing at least 15% of the cost of any contract with their own employees. When companies meet these criteria, they can enter the 8(a) 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.
Coccagna admitted to conspiring with three individuals who worked in the field of construction—known in the information as coconspirator 1, coconspirator 2, and coconspirator 3—to get set-aside contracts at Letterkenny awarded to a series of 8(a) Program participants controlled by the three unnamed individuals. These 8(a) Program participants included a company known as 8(A) company 1, which was affiliated with another unnamed individual known as coconspirator 4 in the information.
Starting around 2007, Coccagna and coconspirators 1, 2, 3, and 4 began conspiring to obtain 8(a) Program set-aside construction contracts at Letterkenny Army Depot, a facility under the command structure of the U.S. Army Aviation and Missile Command. Coccagna recommended that the Letterkenny contracting office select 8(A) company 1 for a series of contracts because he knew of 8(a) company 1’s affiliation with coconspirator 1, coconspirator 2, and coconspirator 3. Coccagna made similar recommendations for several other 8(a) Program participants, likewise on the basis of their affiliation with coconspirator 1, coconspirator 2, and coconspirator 3.
In order to make it appear falsely that 8(A) company 1 was meeting the 15% self-performance requirement, coconspirators 1, 2, 3, and 4 moved actual laborers who were on site at Letterkenny Army Depot onto the 8(A) company 1 payroll. This same practice was also carried out with the other unnamed 8(a) Program participants dating back to 2003. Coccagna was aware of this practice and, more generally, was aware that coconspirator 4 and her existing employees, if any, were not performing on-site work. Furthermore, coconspirator 4 was rarely, if ever, present at Letterkenny Army Depot following an initial meeting with Coccagna and the other unnamed conspirators in 2007.
For several years starting around 2007, coconspirators 1, 2, and 3 were simultaneously affiliated with both 8(A) company 1 and one of the other 8(a) Program companies. Their representations about which company they were affiliated with depended on which contract a job fell under. From Coccagna’s perspective, however, the day-to-day performance of the work was unaffected by which company’s name coconspirators 1, 2, and 3 were operating under.
Coccagna also admitted that coconspirator 1 solicited, and Coccagna unlawfully provided to coconspirator 1, confidential information in order to help coconspirators 1, 2, 3, and 4 win a $60 million construction contract in 2009.
The total value of the contracts associated with this conspiracy exceeded $100 million. Coccagna understood that there was a financial benefit to the individuals who were, on paper, the heads of the various 8(a) Program participants to which he steered maintenance and construction contracts, such as coconspirator 4.
The case was investigated by the U.S. Department of Defense Office of Inspector General, 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 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.
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Former Baltimore City Assistant State’s Attorney Pleads Guilty to Federal Charges for Unlawfully Obtaining Phone RecordsRead the Press Release
Baltimore, Maryland – Former Baltimore City Assistant State’s Attorney Adam Lane Chaudry, age 43, of Baltimore, Maryland, pleaded guilty today to two counts of fraud in connection with obtaining confidential phone records. Chaudry admitted that he committed the crime knowing that information may be used in furtherance of and with the intent to commit stalking.
The plea agreement was announced by United States Attorney for the District of Maryland Erek L. Barron; Maryland State Prosecutor Charlton T. Howard III; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to the plea agreement, from June 2009 to June 18, 2021, Chaudry worked as an Assistant State’s Attorney in the Baltimore City State’s Attorney’s Office (“BSAO”). From September 2015 until he left the BSAO Chaudry worked in the BSAO’s Homicide Division. Chaudry maintained a romantic relationship with Victim #1 from May 2005 through January 2018; and with Victim #2 from August 2017 through September 2020. Victims #3, #4, and #5 were long-time friends of Victim #1. At no point were any of the victims a witness or target of any criminal investigation or prosecution by the BSAO.
As detailed in the guilty plea, between January 3, 2019, and February 22, 2019, Chaudry caused three grand jury subpoenas to be sent to a telecommunications company in Florida requesting all subscriber information, billing information, and toll records, including incoming and outgoing calls, from October 28, 2018 through February 22, 2019, for Victim #1’s phone number. Chaudry caused the subpoenas to appear to be related to a “special investigation in the Circuit Court for Baltimore City”; to contain no identifying case number; and to further state, “The information sought in this subpoena is relevant and material to a legitimate law enforcement inquiry.” The subpoenas directed that the records be produced “as soon as possible” directly to Chaudry at his BSAO address and stated, “Any and all questions should be directed to him.” The grand jury subpoenas contained Chaudry’s signature, the name of the Grand Jury Foreperson, and the signature of the Clerk of Baltimore City Circuit Court. Other subpoenas contained similar fraudulent information.
In a similar manner, Chaudry caused grand jury and trial subpoenas to be issued to a telecommunications company in New Jersey for the telephone records of Victim #2 between February 22, 2019 and April 12, 2021; caused multiple grand jury and trial subpoenas to be issued for the telephone records of Victim #3 between March 12, 2019 and April 21, 2020; caused multiple grand jury and trial subpoenas to be issued for the telephone records of Victim #4 between March 22, 2019 and February 8, 2021; and caused multiple grand jury and trial subpoenas to be issued for the telephone records of Victim #5 between January 21, 2019 and February 18, 2020.
In addition, on March 26, 2019, an investigator at BSAO provided Chaudry information that Chaudry had previously requested including Victim #1’s home address, MVA information, and her driver’s license photograph. Chaudry then used the information, including Victim #1’s driver’s license photograph to contact a hotel to request information about Victims #1 and #4’s stays at the hotel using his BSAO email address. The hotel number appeared in Victim #1’s phone records obtained by Chaudry.
On March 4, 2020, Chaudry sent a lengthy email to Victim #1 expressing a desire to get back together. Victim #1 responded the same day, stating, in part, “It has been over a year now and I need you to move on. I was hoping by ignoring the texts, calls, and flowers, you would understand how I feel but now I will make it very clear…Please do not send me any more flowers or anything else, and please do not send anything to my job. It makes me uncomfortable as I am no longer your girlfriend… There is no future for us…Please do not stop by my house or try to “run” into me anywhere else. I will not answer the door as there is nothing more to discuss…If you persist any further I will look into other options.” Chaudry responded the same day with another email that ended, “every response you have ever given me has been out of anger and frustration when I asked you about [Victim #4]. Just level with me and tell me whether you are dating him. Yes or No.” After this email exchange, Chaudry issued a total of 23 Circuit Court subpoenas for the telephone records of Victim #1, #2, #3, and #4.
Between January 3, 2019 and April 12, 2021, Chaudry caused 33 grand jury and trial subpoenas to be issued for the telephone records of Victim #1. Using the phone records Chaudry received, he created a spreadsheet of the 67 phone number found in the phone records of Victim #1, including the name associated with each number and “relationship” to Victim #1. The spreadsheet also contained physical addresses and email addresses of some of the individuals associated with those phone numbers, as well as other “associated persons” to the phone number. The spreadsheet also tracked the method of payment for hotel room stays in Victim #1’s name.
After Victim #2 and Chaudry ended their relationship, between December 8 and December 21, 2020, Chaudry caused to be issued subpoenas for jail calls between Victim #2 and a close relative of Victim #2 who was incarcerated in another Maryland County in a case not involving the BSAO. Chaudry also caused a subpoena to be issued for Victim #2’s relative’s visitor logs. Notes on the jail calls found in Chaudry’s desk revealed sensitive information about Victim #2’s family and banking information.
On December 13, 202, a phone belonging to Chaudry captured 96 images of Victim #2’s social media account including lists of her contacts and photographs of Victim #2 and her friends and family. On February 24, 2021, Chaudry further sent a letter on BSAO letterhead for 911 calls made by Victim #2 that appeared in phone record logs he had obtained. He represented that the records were “pertinent to a legitimate law enforcement inquiry.”
In all, Chaudry caused a total of 65 fraudulent grand jury and trial subpoenas to be issued for the telephone records of the five victims.
Chaudry faces a maximum sentence of 15 years in federal prison for each of the two counts of fraud in obtaining records. U.S. District Judge Richard D. Bennett has scheduled sentencing for March 9, 2023 at 2:30 p.m.
United States Attorney Erek L. Barron commended the FBI and State Prosecutor’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Sean R. Delaney and Special Assistant U.S. Attorney Sarah R. David, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Foreign National Sentenced to 36 Months and Ordered to Pay over $199,000 in Restitution for Gas Skimming Scheme in Utah and IdahoRead the Press Release
SALT LAKE CITY, Utah – A foreign national was sentenced to three years in a U.S. federal prison after pleading guilty to Conspiracy to Commit Bank Fraud and Aggravated Identity Theft in a gas skimming scheme that took place in Utah and Idaho.
Yofre Napoleon Almonte, 49, a Salt Lake City resident was ordered to pay $199,122.18 in restitution, jointly and severally with his co-defendants by a United States District Court Judge.
According to court documents, Almonte, participated in a scheme to defraud gas station customers and their banks using skimming equipment to surreptitiously steal the customers’ credit card information. Unlike traditional “skimming” operations that use an “overlay” type of molding placed on top of the ATM or gas pump targeted for “skimming,” Almonte and his alleged co-defendants used a Bluetooth wireless device that is installed onto the computer motherboard of the internal computer that controls the ATM/gas pump. The defendants could then initiate a wireless Bluetooth connection and download all the digital credit card/ATM card information sored by the device. Almonte and others then created cloned cards with stolen information and used those cards to fraudulently purchase over $200,000 worth of gasoline and other items.
Assistant U.S. Attorneys, Aaron Clark and Ruth Hackford-Peer, for the District of Utah prosecuted the case. The case was investigated by the FBI Salt Lake City Field Division.
Following High-Speed Pursuit on I-75, Metro Atlanta Resident Sentenced to Prison for Methamphetamine DistributionRead the Press Release
MACON, Ga. – A metro-Atlanta resident who was trafficking nearly one kilogram of methamphetamine through the Middle District of Georgia from an Atlanta source when he attempted to flee police on I-75 was sentenced to serve more than 17 years in federal prison this week for his crime.
Wesley Bailey, Jr., 32, of Ellenwood and Duluth, Georgia, was sentenced to serve 210 months in prison to be followed by five years of supervised release by Chief U.S. District Judge Marc Treadwell on Dec. 6 after he previously pleaded guilty to possession with intent to distribute methamphetamine. There is no parole in the federal system.
“Wesley Bailey created a dangerous situation for the public when he fled police, driving in excess of 140 miles per hour in the rain on a busy highway while directing a passenger to dump a kilo of methamphetamine out of his vehicle,” said U.S. Attorney Peter D. Leary. “I commend the responding local law enforcement agencies for bringing the defendant safely into custody and helping bring a methamphetamine trafficker to justice.”
“I want to commend my deputies for a job well done and thank the United States Attorney’s Office and the Drug Enforcement Administration for investigating and prosecuting this case,” said Butts County Sheriff Gary Long. “Law enforcement is sending a very strong message that drug traffickers are not wanted in the middle Georgia area to include Butts County and that they will be held accountable and face strong sentences their crimes.”
“Fleeing law enforcement at these ludicrous speeds puts everyone in danger,” said Monroe County Sheriff Brad Freeman. “This defendant was not only putting people at risk when he tried to evade law enforcement, he was attempting to distribute a significant amount of methamphetamine. My hope is that this stiff sentence sends a message to others that would try the same.”
According to court documents, a Butts County Sheriff’s Office deputy attempted to conduct a traffic stop after observing Bailey commit multiple traffic violations on I-75 on April 9, 2019. Bailey first pulled over, then fled police. In rainy conditions, Bailey drove the vehicle in speeds of more than 140 miles per hour, cutting off motorists and passing cars using the emergency lane. At the same time, a Tupperware container containing nearly one kilogram of methamphetamine was thrown out of Bailey’s vehicle. Monroe County Sheriff’s Office deputies joined the pursuit, and Bailey eventually stopped his vehicle in the middle of the interstate, exited the car and was immediately detained. Methamphetamine was found in the car and the Tupperware container contained 811.4 grams of methamphetamine. Bailey admitted that he obtained the methamphetamine from a source in Atlanta and directed his passenger to throw the drugs out of the window during the pursuit.
The case was investigated by the Butts County Sheriff’s Office, the Monroe County Sheriff’s Office and DEA.
Assistant U.S. Attorney Joy Odom prosecuted the case for the Government.
Florida Man Indicted for Fraud Involving Small Business Administration Disaster FundsRead the Press Release
BOSTON – A Florida man was indicted yesterday by a federal grand jury in connection with a conspiracy to use stolen identities to fraudulently obtain disaster loans from the Small Business Administration (SBA) and to launder the funds.
Hector Garcia, 51, of Ocala, Fla., was charged with one count of conspiracy to commit wire fraud, three counts of wire fraud and two counts of aggravated identity theft. He will appear in federal court in Boston at a later date. Garcia was previously arrested and charged in August 2021.
According to charging documents, Garcia conspired with others to use stolen identity information of United States citizens to apply for SBA Economic Injury Disaster Loans. It is alleged that Garcia used stolen identity information of a United States citizen to open a fraudulent bank account, which was then linked to other fraudulent bank accounts set up to receive the SBA funds. Garcia and his co-conspirators allegedly used debit cards associated with those accounts to launder the funds by purchasing iPhones for re-sale. It is also alleged that Garcia and other co-conspirators wired a portion of the funds to the Dominican Republic.
It is further alleged that over $452,000 in SBA funds were fraudulently obtained in connection with the scheme. Approximately $250,000 of this money was used to purchase iPhones in Massachusetts and New Hampshire.
The charges of wire fraud and conspiracy to commit wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of aggravated identity theft provides for a mandatory two-year sentence that must run consecutively to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England made the announcement. Valuable assistance was also provided by Homeland Security Investigations in Orlando, Fla.; Small Business Administration, Office of the Inspector General; Department of Housing and Urban Development, Office of the Inspector General; Social Security Administration, Office of the Inspector General; Department of Labor, Office of the Inspector General; Department of State; U.S. Postal Inspection Service; Massachusetts State Police; New Hampshire State Police; and the Acton, Nashua (N.H.), Manchester (N.H.) and Ocala (Fla.) Police Departments. Assistant U.S. Attorneys Elianna J. Nuzum and Adam W. Deitch of the Rollins’ Criminal Division are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Five Aryan Brotherhood Members Charged in Superseding Indictment with Murder in Aid of RacketeeringRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a superseding indictment Thursday that adds four counts of murder in aid of racketeering against defendants alleging that the four murders were committed in furtherance of criminal acts perpetrated by the California Aryan Brotherhood, a white supremacist prison gang, U.S. Attorney Phillip A. Talbert announced.
Thursday’s indictment expands the original 2019 charges by adding four new murder in aid of racketeering counts against five defendants: Ronald Yandell, 58; William Sylvester, 53; Brant Daniel, 46; Pat Brady, 50; and Jason Corbett, 49.
“This superseding indictment strikes at the heart of the Aryan Brotherhood prison gang with five defendants now facing murder charges that carry with them the possibility of the death penalty,” said U.S. Attorney Talbert. “This white supremacist gang plagues our communities inside and outside prison and are responsible for some of the most brutal crimes committed within prison walls. We will continue to use every law enforcement tool to protect the communities impacted by this gang’s violence and criminal activities.”
“Prison gangs, like the Aryan Brotherhood, cannot hide behind bars and commit heinous act of violence without impunity,” said Drug Enforcement Administration Acting Special Agent in Charge Bob P. Beris. “These additional charges deal another significant blow to this criminal organization and sends the message that we are relentless in our pursuit of those who perpetuate violence.”
“I am proud of the dedication and hard work that the California Department of Corrections and Rehabilitation staff put into this investigation while working cooperatively alongside federal investigators and prosecutors,” Chief of CDCR’s Office of Correctional Safety (OCS) Derrick Marion said. “Our agents shared their expertise and strong investigative abilities in an effort to combat the dangerous influence of prison gangs both inside and outside of our institutions.”
According to court documents, between 2011 and 2016, Aryan Brotherhood (AB) members and associates engaged in racketeering activity, committing multiple acts involving murder and drug trafficking offenses. Yandell and Sylvester oversaw a significant heroin and methamphetamine trafficking operation from their shared cell. They used smuggled-in cellphones to direct their drug trafficking activity from their prison cell to the streets of Sacramento and other California cities. Using a contraband cellphone, Yandell and Sylvester communicated with AB members and associates to direct drug trafficking activities, membership in the AB, order murders, and oversee other criminal activities.
The new charges allege that the five AB members murdered four other inmates as part of their gang activities and conspired to murder several others. The indictment charges that on Oct. 7, 2011, Sylvester murdered an inmate at Folsom State Prison and, on Aug. 12, 2015, Yandell ordered AB associates to carry out an order to murder a rival prison gang member at Folsom State Prison. In addition, the new indictment alleges that AB member Daniel killed an inmate at Salinas Valley State Prison on Oct. 29, 2016, and AB members Corbett and Brady murdered an inmate on July 20, 2018, at High Desert State Prison as part of their role in the gang.
This case is the product of an investigation by the DEA with substantial investigative assistance from the CDCR, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office.
If convicted on the murder in aid of racketeering charges, each of the five defendants face a mandatory life sentence, or the possibility of the death penalty. The Attorney General will decide whether to seek the death penalty at a later time. Should the Attorney General determine that the circumstances of the offense are such that a sentence of death is justified, the law requires that notice be filed with the court at a reasonable time before trial. The indictment’s other charges include a range of maximum sentences, including up to life in prison, and a number of defendants also face a range of mandatory minimum sentences of five to 10 years in prison. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Federal Grand Jury Indicts Louisville Men for Possession of Machine GunsRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment this week, charging two local men with illegally possessing machine guns.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division, and Chief Barry Wilkerson of the St. Matthews Police Department made the announcement.
According to court documents, on May 27, 2022, Clayton Hodges, 22, and Timothy Martin, 22, each knowingly possessed a machine gun, a Glock switch bearing no serial number. Additionally, Hodges was charged with possession of a firearm by a convicted felon. In 2019, Hodges was convicted of the following felonies: criminal attempt robbery in the first degree and wanton endangerment in the first degree.
A “Glock switch” device allows a semi-automatic handgun to function as an automatic. Glock switches are defined as machine guns under federal law.
Hodges and Martin are currently in state custody, and they will be scheduled for their initial appearances before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky once they are transferred to federal custody. If convicted, Martin faces a maximum sentence of 10 years in prison, and Hodges faces a maximum sentence 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. There is no parole in the federal system.
The ATF and the St. Matthews Police Department are investigating the case.
Special Assistant U.S. Attorney Emily Lantz is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Ex-Wall Street Trader Convicted of Fraud in Precious Metals Spoofing SchemeRead the Press Release
A federal jury in the Northern District of Illinois convicted a former trader at JPMorgan Chase and Credit Suisse today of fraud in connection with a spoofing scheme in the gold and silver futures markets.
According to court documents and evidence presented at trial, Christopher Jordan, 51, of Mountainside, New Jersey, was an executive director and trader on JPMorgan’s precious metals desk in New York from 2006 to 2009, and on Credit Suisse’s precious metals desk in New York in 2010. Between 2008 and 2010, Jordan placed thousands of spoof orders, i.e., orders that he intended to cancel before execution, to drive prices in a direction more favorable to orders he intended to execute on the opposite side of the market. Jordan engaged in this deceptive spoofing strategy while trading gold and silver futures contracts on the Commodity Exchange (COMEX), which is a commodities exchange operated by the CME Group. These deceptive orders were intended to inject false and misleading information about the genuine supply and demand for gold and silver futures contracts into the markets.
Jordan was convicted of wire fraud affecting a financial institution. He is scheduled to be sentenced at a later date and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Four other former JPMorgan precious metals traders were previously convicted in related cases. In August 2022, Gregg Smith and Michael Nowak were convicted after trial in the Northern District of Illinois of wire fraud affecting a financial institution, commodities fraud, attempted price manipulation, and spoofing. In October 2018, John Edmonds pleaded guilty in the District of Connecticut to one count of commodities fraud and one count of conspiracy to commit wire fraud, commodities fraud, price manipulation, and spoofing. In August 2019, Christian Trunz pleaded guilty in the Eastern District of New York to one count of conspiracy to engage in spoofing and one count of spoofing. Smith, Nowak, Edmonds, and Trunz are awaiting sentencing.
In September 2020, JPMorgan admitted to committing wire fraud in connection with (1) unlawful trading in the markets for precious metals futures contracts and (2) unlawful trading in the markets for U.S. Treasury futures contracts and in the secondary (cash) market for U.S. Treasury notes and bonds. JPMorgan entered into a three-year deferred prosecution agreement pursuant to which it paid more than $920 million in criminal monetary penalties, criminal disgorgement, and victim compensation, with parallel resolutions by the Commodity Futures Trading Commission and the Securities Exchange Commission announced on the same day.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI New York Field Office investigated the case.
Trial Attorneys Matthew Sullivan, Lucy Jennings, and Christopher Fenton of the Criminal Division’s Fraud Section are prosecuting the case.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website at https://www.justice.gov/criminal-vns/case/jpmorgan-chase-co-deferred-prosecution-agreement for more information.
Estill County Man Sentenced to 71 Months for Illegal Possession of a Firearm as Convicted FelonRead the Press Release
LEXINGTON, Ky. – An Irvine, Ky., man, Farrell Marcum, 58, was sentenced on Friday to 71 months in federal prison, by Chief U.S. District Judge Danny Reeves, for possession of a firearm as a convicted felon.
According to his plea agreement, on March 29, 2021, law enforcement received a call from a local hospital that a man had been shot. It was later discovered that the man had been shot at Marcum’s residence, where Marcum told him to get off his property and then shot the man while he was leaving the property in his car. At the residence, law enforcement found Marcum in possession of the firearm. Marcum admitted that he knew he was a convicted felon and was prohibited from possessing a firearm.
Marcum was previously convicted of being a felon in possession of a firearm and possession of a stolen firearm. Marcum pleaded guilty to the current charge in August 2022.
Under federal law, Marcum must serve 85 percent of his prison sentence. He will be under the supervision of the U.S. Probation Office for three years after his release from prison.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Division; and Sheriff Christ Flynn, Estill County Sherriff’s Office, jointly announced the sentence.
The investigation was conducted by ATF and the Estill County Sherriff’s Office. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Detroit Street Gang Leader Faces Mandatory Life Sentence Following Convictions at Trial for Racketeering and MurderRead the Press Release
DETROIT – A federal jury convicted the leader of the “It’s Just Us” (IJU) street gang of racketeering and murder, United States Attorney Dawn N. Ison announced today. These convictions conclude a two-week trial held in Port Huron before U.S. District Judge Robert H. Cleland.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Federal Bureau of Investigation.
Detroit resident Duane Peterson, 38, was convicted by the jury on all counts of the indictment, including engaging in a racketeering conspiracy, murder in aid of racketeering, and narcotics trafficking conspiracy involving over one kilogram of heroin. Evidence at trial showed that Peterson led the IJU street gang for years. At its height, IJU membership reached close to 40 members. IJU terrorized the Detroit community from 2014 through the beginning of 2019 by engaging in violent acts—including murder and attempted murder—obstruction of justice, and witness intimidation. IJU also trafficked fentanyl-laced heroin to Jackson, Flint, West Virginia, Kentucky, and Ohio.
Eight defendants were charged in the case. Seven previously pleaded guilty; only Peterson proceeded to trial.
“Today’s verdict sends a message to would-be gang members and violent offenders that we will not tolerate acts of violence in our community,” stated United States Attorney Ison. “This verdict is a result of the collaboration between multiple state, local, and federal law enforcement agencies, and it vindicates our efforts to focus on the most dangerous criminals and their organizations.”
“Duane Peterson was a violent, dangerous man who terrorized the Detroit area for years, trafficking drugs, committing murder, and participating in a number of non-fatal shootings,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The actions of Peterson and his associates had a devastating effect on the safety of the community. This case underscores how the FBI and our law enforcement partners work together to target and dismantle violent gangs using our collective resources.”
Peterson is facing a mandatory life sentence for his convictions.
This case was investigated by various federal and state agencies, including the Drug Enforcement Administration, Detroit Police Department, and the Federal Bureau of Investigation. It was prosecuted by AUSAs Eaton Brown and Maggie Smith.Charlo man admits illegal killing of grizzly bearRead the Press Release
MISSOULA — A Charlo man who today admitted to illegally killing a grizzly bear in 2018 was ordered to pay $5,000 restitution and sentenced to two years of federal probation, U.S. Attorney Jesse Laslovich said.
Kevin Moll, 31, pleaded guilty to an information charging him with unlawful taking of a threatened species.
U.S. Magistrate Judge Kathleen L. DeSoto presided.
The government alleged in court documents that an investigation began on Sept. 26, 2018, when a sow grizzly bear’s collar went to “zero,” indicting the grizzly bear was dead. Law enforcement located the dead grizzly bear on a bone pile at the Perry Dairy near Charlo and found that the bear’s collar and ear tag had been removed.
Moll admitted he shot the grizzly bear from his vehicle and knew it was a grizzly before taking the shot. Moll shot the bear a second time in the neck. After walking up to the bear, Moll saw it had a collar. Moll used a front-end loader to pick up the grizzly and drop it on the bone pile. Approximately two days later, Moll saw biologists searching for the grizzly bear from a helicopter. He admitted he returned to the grizzly bear he’d killed, cut off the collar and ear tag and threw the items into Crow Creek. Law enforcement recovered the bear’s collar. Moll acknowledged he knew grizzlies were protected before pulling the trigger, and that he did not have a permit from the U.S. Fish and Wildlife Service to kill the grizzly bear.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the U.S. FWS.
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Cedar Rapids Man Caught on Wiretap Pleads Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
A man who conspired to distribute large quantities of methamphetamine pled guilty on December 7, 2022, in federal court in Cedar Rapids.
Calub Joseph Storlie, age 35, from Cedar Rapids, Iowa, was convicted of one count of conspiracy to distribute methamphetamine.
Evidence at a prior hearing showed that in October 2020 a car being transported from Arizona to Iowa on a car hauler was searched by law enforcement in New Mexico. During the search, officers found an after‑market compartment behind the back seat of the car. The compartment contained approximately 30 pounds of ice methamphetamine. Paperwork inside the car showed that the insurance was in Storlie’s name.
During a wiretap investigation conducted by the Drug Enforcement Administration in Cedar Rapids in late 2021 and early 2022, Albert Bailey was discovered to be a driver for a group of individuals who were purchasing ice methamphetamine in California and selling it in eastern Iowa. Bailey traveled to California and then drove between 30 and 60 pounds of methamphetamine back to Iowa, where other individuals would sell it. In February 2022, intercepted communications over the wiretap indicated that Bailey would be transporting methamphetamine from California to Iowa. Investigators tracked Bailey’s vehicle and stopped it in York County, Nebraska. During a search of the vehicle, investigators located and seized approximately 60 pounds of ice methamphetamine. Immediately following the seizure of the methamphetamine in Nebraska, Storlie was intercepted on the wiretap speaking to other members of the conspiracy about the seizure and how to cover it up. Evidence at the prior hearing showed that Storlie had previously gone on similar trips to California for the same individuals as Bailey.
In other intercepted conversations, another individual discussed Storlie bringing him firearms and ammunition. During a search of Storlie’s residence on March 8, 2022, investigators found and seized a Glock 9mm pistol and an AR‑15‑style rifle. At the plea hearing, Storlie admitted that he was an unlawful user of marijuana and THC at the time he possessed the firearms found in his house.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Storlie remains in custody of the United States Marshal pending sentencing. Storlie faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,250,000 fine, and a lifetime of supervised release following any imprisonment. Nine other individuals charged along with Storlie are pending trial.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the DEA Task Force in Cedar Rapids and the Federal Bureau of Investigation. The DEA Task Force in Cedar Rapids consists of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement. The case is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 22‑CR‑39‑CJW‑MAR‑7.
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Castroville Man Sentenced for Firearm Violations Involving Two Drive-By ShootingsRead the Press Release
SAN ANTONIO – A Castroville man was sentenced Thursday to 151 months in prison for firearm violations.
According to court records, a search warrant was executed on May 10, 2019 at the Medina County residence of Christopher Gonzales, 25, where three semi-automatic pistols were located along with marijuana and drug paraphernalia. Prior to the search, on April 22 and 23, 2019, Gonzales went on a crime spree, which included two drive-by shootings in San Antonio and an armed robbery of an individual. Vehicles were struck by gunfire in one of the shootings. In the second drive-by, Gonzales pointed a laser-equipped pistol at a victim and then fired several shots into the air.
Gonzales pleaded guilty on May 4, 2022, to one count of possession of a firearm by a convicted felon and one count of possession of a firearm in furtherance of a drug trafficking crime.
Gonzales has been in federal custody since his arrest on Sept. 10, 2019.
The U.S. Attorney for the Western District of Texas and Special Agent in Charge Fred J. Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Houston Field Division.
The ATF, San Antonio Police Department and Medina County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Eric Yuen prosecuted 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. Anonymous tips involving gang crime and wanted fugitives can be submitted at www.stopsanantoniogangs.org.
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California Man Sentenced in Anabolic Steroids and Pill Distribution ConspiracyRead the Press Release
Acting United States Attorney Steven Russell announced that Fernando Lopez-Reyes, 35, of Colton, California, was sentenced today in federal court in Omaha, Nebraska, for conspiracy to distribute and possess with intent to distribute anabolic steroids, methamphetamine, N-Ethylhexedrone, and Alprazolam, and conspiracy to launder money. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Lopez-Reyes to imprisonment for a term of 96 months. There is no parole in the federal system. After his release from prison, Lopez-Reyes will begin a 3-year term of supervised release.
Lopez-Reyes was a member of a drug trafficking organization (DTO) that produced and distributed anabolic steroids and other controlled substances to customers throughout the country using a private Facebook group as an online storefront and the United States Postal Service to ship the drugs to locations throughout the country. In addition to anabolic steroids, the DTO marketed and sold pharmaceutical drugs described as Xanax and Adderall. Legitimately prescribed pharmaceutical Adderall is a Schedule II controlled substance containing amphetamine salts. However, laboratory testing revealed that the pills marketed as “Adderall” by the DTO were counterfeit and contained methamphetamine, also a Schedule II controlled substance. The “Xanax” distributed by the DTO contained N-Ethylhexedrone, a Scheduled I controlled substance. “Xanax” is a brand name for Alprazolam, a Schedule IV controlled substance. Alprazolam was also confirmed by laboratory testing to be present in substances recovered by investigators.
Lopez-Reyes operated a clandestine laboratory from an apartment he maintained in Colton, California, specifically for that purpose of producing finished anabolic steroids. Lopez-Reyes also imported anabolic steroid precursors and other controlled substances from China. Sentencing is pending for Lopez-Reyes’s codefendants.
Customers purchasing controlled substances from the DTO were required to use cryptocurrency and cash to pay. The DTO used peer-to-peer digital payments platforms to accept payments for controlled substances from customers and to transfer funds among and between themselves. In addition to the use of digital payment platforms, the DTO used various other methods designed to protect the memberships’ anonymity and to provide security for the criminal organization from law enforcement and other criminal organizations.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. This case was investigated by the Omaha offices of the Drug Enforcement Administration, the Internal Revenue Service, and the United States Postal Inspection Service.
Brookings Man Charged with Counterfeit U.S. Currency FraudRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Brookings, South Dakota, man for two counts of Making Counterfeit U.S. Currency and two counts of Passing Counterfeit U.S. Currency.
Julian Huffman, age 27, was indicted in December of 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on December 8, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, three years of supervised release, and up to $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between on or about September 9, 2022, and November 21, 2022, Huffman falsely made, forged, and counterfeited five counterfeit $20.00 Federal Reserve Notes.
The Indictment also alleges that on or about November 17, 2022, and November 20, 2022, Huffman passed and uttered, and attempted to pass and utter, five counterfeit $20.00 Federal Reserve Notes which Huffman knew to be falsely made, forged, and counterfeited.
The charges are merely accusations and Huffman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Secret Service, the Brookings Police Department, and the Brookings County Sheriff’s Office. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Huffman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Bridgeport Man Sentenced to 69 Months in Prison for Illegal Gun Possession, Violating Supervised ReleaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CHARLES YOUNG, also known as “Cash,” 36, of Bridgeport, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 69 months of imprisonment, followed by three years of supervised release, for unlawfully possessing a firearm by a felon, and for violating the conditions of his supervised release that followed a conviction in 2016 for unlawful possession of a firearm by a felon.
According to court documents and statements made in court, on February 25, 2015, Young was arrested after he had engaged law enforcement officers in a high-speed car chase that began in Bridgeport’s east end, continued on I-95 South and ended when Young crashed into a snowbank after exited the highway in Fairfield. During the chase, a witness saw Young throw something from his car in the vicinity of Exit 24 in Fairfield. A search of the area revealed a loaded Glock 22 .40 caliber firearm. Young pleaded guilty in federal court to possession of a firearm by a felon and, on May 16, 2016, was sentenced by Judge Shea to 50 months of imprisonment and three years of supervised release. In association with this incident, Young was also sentenced in state court to five years of imprisonment for violating his probation that followed a 2010 conviction for criminal possession of a firearm and possession of a weapon in a motor vehicle.
Young was released from federal prison in July 2019.
On December 28, 2020, Bridgeport Police officers, who were on high alert following the murder of a well-known gang member the day before, were patrolling the area of the PT Barnum housing complex in order to thwart retaliatory criminal activity. After observing an Audi SUV roll through a stop sign, officers attempted to stop the vehicle. The SUV sped away, crashed into two cars, and both the driver, Cole Hernandez, and passenger, Charles Young, fled on foot. Young ran eastbound on Fairfield Avenue where he was apprehended after he attempted to forcibly enter a vehicle that was stopped at a traffic light.
A search of the SUV revealed a .45 caliber semi-automatic pistol with an extended and partially loaded 50-round magazine, and 50 glassine envelopes containing fentanyl. Investigators also found a 9mm semi-automatic pistol with a mounted light and laser attachment and a fully loaded 17-round magazine on the ground next to the passenger door of the SUV.
DNA analysis of the seized firearms connected the .45 caliber pistol to Hernandez and the 9mm pistol to Young.
Young has been detained since his arrest. On April 27, 2022, he pleaded guilty to possession of a firearm by a felon.
Hernandez has been detained since his arrest on May 12, 2021. On January 12, 2022, he pleaded guilty to possession of a firearm by a felon, and possession with intent to distribute fentanyl. He is scheduled to be sentenced on December 13.
This matter has been investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, with the assistance of the Connecticut Department of Emergency Services and Public Protection, Division of Scientific Services. This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Beverly Hills Woman Pleads Guilty to Theft of Deceased Father’s Social Security BenefitsRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Dawn Rae Dempsey (52, Beverly Hills) has pleaded guilty to theft of government funds. Dempsey faces up to 10 years in federal prison. She had been indicted on September 13, 2022. Her sentencing hearing is scheduled for March 9, 2023.
According to court documents, Dempsey’s late father received monthly benefit payments from the Security Administration (SSA) Retirement and Survivors Insurance (RSI). Her father passed away in November 2015. Dempsey did not notify the SSA of her father’s death, which resulted in benefit payments continuing to be electronically deposited into his bank account. From December 3, 2015, until February 3, 2021, the SSA deposited 63 payments totaling $112,661. Dempsey withdrew the funds and used them for her own expenses. She also took more than $167,000 in Coast Guard retirement benefits that had been deposited into the same account. By March 2021, the account was overdrawn. When confronted by investigators, Dempsey admitted to stealing the money.
This case was investigated by the Social Security Administration - Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
Bayou La Batre Man Sentenced to Eighty-Four Months Imprisonment for Possessing a Firearm as a Previously Convicted FelonRead the Press Release
Winston Alexander Thatch, of Bayou La Batre, was sentenced today to eighty-four months imprisonment for being a felon in possession of a firearm. The sentence was handed down by United States District Court Judge Kristi K. DuBose. Thatch previously pled guilty to violating Title 18, United States Code, Section 922(g)(1), Felon in Possession of a Firearm.
Documents filed with the guilty plea established that on November 24, 2021, Thatch was stopped by a Bayou La Batre police officer for running a stop sign in the City of Bayou La Batre. Officers discovered the vehicle had a switched tag. When the officer got to the driver side door, he noticed that Thatch had a rubber hose in his lap. Subsequent investigation showed that Thatch had methamphetamine in his pocket, a marijuana blunt in the ashtray of the vehicle, and a loaded High Standard, Double-Nine Convertible, .22 caliber, revolver in a bag in the vehicle, The firearm was loaded with eight (8) rounds. Officers also found an extra revolver cylinder, and 67 extra .22 caliber rounds, and other drugs in the vehicle. All told, the police recovered 2.84 grams of crack cocaine, 3.81 grams of methamphetamine, and 22.48 grams of marijuana from the vehicle.
Further investigation by the Bayou La Batre Police Department revealed that the firearm was stolen out of the City of Bayou La Batre. Thatch was convicted of prior felony offenses for Receiving Stolen Property 1st Degree, on November 18, 2019, in the Circuit Court of Mobile County, Alabama, and Assault 2nd Degree, on November 18, 2019, in the Circuit Court of Mobile County, Alabama.
U.S. Attorney Sean P. Costello praised the outstanding work of the City of Bayou La Batre Police Department and the ATF. Costello added that when convicted felons carry loaded weapons and drugs on the public streets it poses a great danger to the community and some dedicated and alert police work eradicated the danger in this case. Costello also praised the constant work of ATF in partnering with our local jurisdictions in further investigating these cases and presenting them for federal prosecution.
This case was investigated by the City of Bayou La Batre Police Department and the Bureau of Alcohol Tobacco Firearms and Explosives. The case was prosecuted by Assistant United States Attorney George F. May.
Baton Rouge Man Indicted for Wire FraudRead the Press Release
A federal grand jury recently returned a four-count indictment charging Michael D. Hopwood, Jr., age 39, of Baton Rouge, Louisiana, with wire fraud. Hopwood appeared for his arraignment and pled not guilty to the pending charges.
According to the indictment, Hopwood was entrusted to provide assistance with certain financial matters to a permanently disabled relative. After obtaining the victim’s personal identifiable information for the purpose of setting up automatic bill pay, Hopwood knowingly and fraudulently made unauthorized purchases, transfers, and withdrawals from the victim’s account for his personal benefit, without the victim’s knowledge, approval, or consent. This scheme was conducted from approximately November 2019 through approximately February 2020 and resulted in a loss of over $300,000.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Harley W. Ferguson and Lyman E. Thornton III.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Arizona Man Sentenced to 11 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Steven Russell announced that Jared B. Cain, 41, of Phoenix, Arizona, was sentenced December 9, 2022, in federal court in Lincoln, Nebraska. United States District Judge John M. Gerrard sentenced Cain to 132 months in prison for one count of possession with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine and 50 grams or more of actual methamphetamine. After serving his sentence, Cain will be placed on supervised release for 5 years. There is no parole in the federal system.
On November 11, 2021, a Nebraska state trooper on Interstate 80 in Hamilton County, Nebraska stopped a black sedan for traffic violations. Jared Cain was the passenger and had rented the vehicle. Cain consented to a search of the vehicle, and about 33 pounds of suspected methamphetamine was found in a duffle bag in the trunk. The suspected methamphetamine was sent to the lab, and the lab determined that there was a total of about 14,713 grams of methamphetamine mixture in the packages. Some of the packages were tested for purity, and they were found to contain at least 4.7 kilograms of actual methamphetamine.
This case was investigated by the Nebraska State Patrol.
Arizona Man Arrested for Role in Bank Fraud & Money Laundering ConspiraciesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Tempe, Arizona, man for Conspiracy to Commit Bank Fraud and Conspiracy to Launder Monetary Instruments.
Emilio Herrera, age 22, was indicted in September of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 1, 2022, and pleaded not guilty to the Superseding Indictment.
The maximum penalty upon conviction is up to up to 30 years in custody for Bank Fraud Conspiracy, 20 years in custody for Money Laundering Conspiracy, and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution and forfeiture may also be ordered.
According to the Superseding Indictment, in 2020 and continuing until April 2022, Herrera, along with his co-conspirators, agreed to knowingly conduct and attempt to conduct bank fraud and associated financial transactions, including money laundering. Herrera’s and his co-conspirators’ conduct adversely impacted financial institutions throughout the Sioux Falls area and elsewhere, including, but not limited to, First Premier Bank, Wells Fargo Bank, Levo Credit Union, First National Bank, First Bank and Trust, U.S. Bank, American Bank and Trust, American State Bank, Navy Federal Credit Union, Pima Federal Credit Union, JP Morgan Chase, and Security National Bank of South Dakota. These defendants, as alleged, schemed to obtain money, funds, and other property owned by, and under the custody and control of, the aforementioned financial institutions, by means of false or fraudulent pretenses, representations, and promises. After obtaining funds through fraud, the co-conspirators and others engaged in depositing, transferring, wiring, and withdrawing currency and funds at financial institutions. These transactions involved the proceeds of the bank fraud identified above.
The charges are merely accusations and Herrera is presumed innocent until and unless proven guilty.
The investigation is being conducted by IRS Criminal Investigation, Homeland Security Investigations, Sioux Falls Police Department, SD Highway Patrol, and the U.S. Postal Service.
Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Herrera was released pending trial. A trial date of February 7, 2023, has been set.
Albuquerque trio facing drug, weapons charges after FBI bustRead 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 Jeffrey Alan Chavez and Estevan Antonio Ramirez appeared in federal court facing drug trafficking and firearms charges. They will remain detained pending preliminary and detention hearings scheduled for Dec. 12.
Chavez, 35, of Albuquerque, 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.
Ramirez, 18, of Albuquerque, is charged with possession with intent to distribute alprazolam (Xanax), being an unlawful drug user in possession of a firearm, possession of machineguns, and possession of a firearm in furtherance of a drug trafficking crime.
A third defendant, Gerardo Rafael “Alex” Lara-Yanez, 24, of Albuquerque, is currently wanted for arrest.
According to criminal complaints filed in court, in October the FBI Violent Gangs Task Force (VGTF) were investigating Chavez 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 Chavez and Lara-Yanez, and Chavez allegedly indicated he could supply methamphetamine and fentanyl. The UCE met Chavez and Lara-Yanez 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.
Later in November, the UCE communicated with Chavez to request a pound of methamphetamine. Chavez allegedly agreed to supply a pound of methamphetamine, as well as additional fentanyl pills because the earlier amount sold had been short. The UCE met Chavez at a local restaurant to complete the transaction. However, Chavez allegedly arrived with the wrong order, instead bringing eight ounces of methamphetamine and 8,000 fentanyl pills. Chavez allegedly sold the methamphetamine and fentanyl pills to the UCE for $2,690.
On Dec. 7, the FBI along with the New Mexico State Police, Albuquerque Police Department, and Bernalillo County Sheriff’s Office executed seven federal search warrants. One of the premises searched was an apartment on High Street SE in Albuquerque, where agents located Ramirez in his bedroom. In the bedroom, agents found 1,312 Xanax tablets, two machineguns, 11 full-automatic selector switches, 4 full-automatic drop-in auto sear devices, several high-capacity ammunition magazines, drug packaging materials and $3,000 in U.S. currency.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty.
Assistant United States Attorney Paul J. Mysliwiec is prosecuting the case.
Wanted by the FBI: Gerardo Rafael “Alex” Lara-Yanez
Race: Hispanic
Age: 24
Height: 6'1
Weight: 150 pounds
Eyes: Brown
Hair: Black
Tattoos on forearms
Last known address: 8100 block Kathryn Street SE, Albuquerque, NM 87108
Vehicles:
Silver 2009 Audi 4 door, NM 22T-059274
White 2003 lnfini 4 door, NM ARHR09
Caution: Should be considered armed and dangerous
Anyone with information on this suspect’s whereabouts is asked to immediately contact the FBI at 1-800-CALL-FBI.
Gerardo Rafael “Alex” Lara-Yanez is charged in a federal criminal complaint 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, being an unlawful drug user in possession of a firearm, and possession of firearm in furtherance of a drug trafficking crime.
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8 December 2022
Worcester Man Sentenced for Attempting to Purchase Jeep Using Counterfeit CheckRead the Press Release
BOSTON – A Worcester man was sentenced yesterday in connection with attempting to purchase a $56,000 Jeep Wrangler Rubicon with a counterfeit check.
David Hogan, 58, was sentenced by U.S. District Court Judge Timothy S. Hillman to two years of probation, with four months spent in home confinement. The government recommended a sentence of six months in prison. On April 25, 2022, Hogan pleaded guilty to one count of wire fraud.
On March 31, 2021, Hogan visited a car dealership in Newton, where he agreed to purchase a Jeep Wrangler Rubicon for $56,208. Hogan tendered a check from Charles Schwab bank in the amount of the purchase price, took possession of the Jeep and drove it off the lot. When the car dealership attempted to cash the check, the bank did not honor it because the bank account had been frozen. The dealership contacted Hogan and advised that the check was not valid.
On April 9, 2021, using the dealership’s electronic chat app, Hogan promised the dealership that he would wire the money to the bank. Hogan did not ultimately wire any funds and the vehicle was repossessed by the dealership. A subsequent investigation revealed that the Charles Schwab account was opened using a stolen identity.
Hogan later admitted that the phony check he used when attempting to purchase the Jeep had been printed by Brandon Brouillard who was charged separately with two counts of bank fraud and one count of aggravated identity theft in connection with using two victims’ identities to open bank accounts and attempting to purchase an $83,000 Chevrolet Camaro. On Sept. 13, 2022, was sentenced by Judge Hillman to 47 months in prison and five of supervised release.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Boston, Braintree, Natick, Newton, Norwood, Worcester and Scottsdale (Ariz.) Police Departments. Assistant U.S. Attorney John T. Mulcahy of Rollins’ Criminal Division prosecuted the case.
Worcester Man Indicted for Role in Drug Distribution ConspiracyRead the Press Release
BOSTON – A Worcester man was indicted today by a federal grand jury in connection with his alleged role in a cocaine distribution conspiracy.
Luis Torres, 45, was indicted on one count of conspiring to possess with the intent to distribute more than five kilograms of cocaine and one count of use of a communication facility to facilitate a drug felony. Torres was initially arrested and charged on June 21, 2022 and has remained in custody since. He will appear in federal court in Boston at a later date.
In or about June 2022, Torres allegedly conspired with others to possess and distribute more than 5 kilograms of cocaine. According to the charging documents, Torres was previously convicted of drug trafficking and served more than a year in state prison.
The charge of conspiring to distribute five or more kilograms of cocaine provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Matthew Millhollin, Special Agent in Charge for Homeland Security Investigations in New England; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Kaitlin Brown of Rollins’ Worcester Branch Office is prosecuting the case.
The details contained in the court documents are allegations. The defendant is presumed innocent unless and until proved guilty beyond a reasonable doubt in a court of law.
Wilmington Man Pleads Guilty to Drug Distribution and Weapon OffensesRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Carnell Roberts, age 37, of Wilmington, DE, pled guilty yesterday to possession with intent to distribute methamphetamine and two counts of possession of a firearm by a felon. U.S. District Judge Maryellen Noreika accepted the plea.
According to court documents, on August 3, 2020, Safe Streets Task Force officers conducted a search of the defendant’s residence where they recovered over 50 grams of methamphetamine, a loaded .22 caliber semi-automatic handgun, and $3,577 in cash. Following his release for the August 3 offense, Mr. Roberts was found in possession of another handgun, a loaded, 9MM semi-automatic.
Roberts faces a minimum mandatory five years in prison, and a maximum of 60 years in prison when sentenced on April 13, 2023. Judge Noreika will determine Roberts’ sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors, including the mandatory minimum.
U.S. Attorney Weiss stated, “All too often, when convicted felons choose to illegally possess firearms, this leads to violence in Wilmington and our surrounding communities. In this case, Mr. Roberts now faces federal prison. I wish to commend federal, state, and local law enforcement for their diligence in investigating this case.
“This arrest and plea, and the sentence that will follow, underscores our efforts to ensure harsh penalties for those who carry firearms illegally in our City,” said Wilmington Police Chief Robert J. Tracy. “We will remain steadfast in our efforts to address gun violence and firearm offenses as we continue to work to make Wilmington safer.”
“Felons who continue to participate in crime, showing no intent to change the path of their lives and no concern for the safety of their community, must be held accountable for their actions,” said ATF Baltimore Special Agent in Charge Toni M. Crosby. “We will continue to work along our partners in law enforcement and the U.S. Attorney’s Office to ensure re-offenders like this are taken off the streets so they cannot pose a threat to law-abiding citizens anymore.”
Special Assistant U.S. Attorney Michael McTaggart is prosecuting the case. This case was investigated by Probation and Parole Operation Safe Streets, Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
West Warwick Man Pleads Guilty to Conspiracy, Production, and Possession of Child PornographyRead the Press Release
PROVIDENCE – A West Warwick man today pleaded guilty in federal court to multiple child pornography charges, announced United States Attorney Zachary A. Cunha.
According to charging documents, Russell C. Trafford, 55, conspired with others to produce child pornography through the sexual abuse of a female known to the defendant and his family. Trafford began producing sexually explicit photographs of the victim when she was four years old. The abuse lasted for fourteen years, during which time Trafford created images of the victim engaged in sexually explicit conduct with himself and with other adult men.
Sexually explicit images created by Trafford were seized by members of the Rhode Island State Police Internet Crimes Against Children Task Force and the FBI during an April 2022 court-authorized search of Trafford’s residence.
Today, Trafford pleaded guilty to conspiracy to produce child pornography, production of child pornography, and possession of child pornography. He is scheduled to be sentenced on March 8, 2023.
Conspiracy to produce child pornography and production of child pornography are each punishable by statutory penalties of 30 years in federal prison, with a mandatory term of incarceration of 15 years; possession of child pornography is punishable by up to 20 years of incarceration. The defendant’s sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney Sandra R. Hebert.
Trafford, detained at the ACI, is charged in Rhode Island state court with two counts of first-degree child molestation and one count of first-degree sexual assault.
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Watervliet Felon Sentenced for Possessing a Firearm and AmmunitionRead the Press Release
ALBANY, NEW YORK – Calvin Strong, age 30, of Watervliet, New York, was sentenced today to 85 months in prison for possessing a handgun and ammunition as a previously convicted felon. The announcement was made by United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
As part of his prior guilty plea, Strong admitted that on November 23, 2021, he possessed a Glock Model 23CGEN4, .40 caliber pistol and 15 rounds of ammunition that were recovered during a search of his Watervliet residence by the United States Probation Office for the Northern District of New York. Strong was prohibited from possessing the firearm and ammunition due to a previous felony conviction involving a firearm.
Senior United States District Judge Frederick J. Scullin Jr. also ordered Strong to pay a $7,500 fine and imposed a 3-year term of supervised release, which will start after Strong is released from prison.
This case was investigated by the ATF with assistance from the United States Probation Office for the Northern District of New York, the U.S. Marshals Service, and the Watervliet Police Department, and was prosecuted by Assistant U.S. Attorney Rick Belliss.
Washington man convicted of bringing meth, fentanyl to Rocky Boy’s Indian Reservation sentenced to more than 10 years in prisonRead the Press Release
GREAT FALLS — A Washington man convicted by a federal jury of drug trafficking crimes for bringing methamphetamine and fentanyl to the Rocky Boy’s Indian Reservation for distribution was sentenced today to 10 years and eight months in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
A jury on Aug. 17 found Aaron Ramirez Espinoza, 37, of Yakima, Washington, guilty of conspiracy to distribute and to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances,
Chief U.S. District Judge Brian M. Morris presided.
In court documents and at trial, the government alleged that in May 2021, law enforcement seized fentanyl pills from a witness, who identified his suppliers as a group of men from Yakima. The investigation led to Espinoza being identified as a member of this group. Law enforcement further learned that Espinoza was bringing drugs to Montana, and the Rocky Boy’s Indian Reservation in particular, for distribution, and that he had made repeated drug runs to Montana for more than a year. On May 12, 2022, officers arrested Espinoza at a Great Falls business’ gas station and found in his jacket pocket a pouch containing a bag of meth and two bags of fentanyl pills. Espinoza later said he had been going to meet someone at the business but that they never showed up and that he was “trying to make a living.”
Assistant U.S. Attorney Ethan R. Plaut prosecuted the case, which was investigated by the FBI, Russell Country Drug Task Force and Great Falls Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Washington County Man Sentenced to over 12 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Washington County, Arkansas, man was sentenced today to 151 months in prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, on or about October 22, 2021, an officer with the Tontitown police department initiated a traffic stop on a vehicle operated by Luis Gabriel Cardenas, age 35, for speeding. Cardenas attempted to flee the stop by speeding away and later attempted to crash with the pursuing officer. While attempting to turn a corner at high speed, Cardenas's vehicle overturned.
The officer approached the vehicle but was unable to see Cardenas because of the tinted windows. The officer asked Cardenas if there was a gun in the vehicle to which Cardenas responded "yes." The officer broke the driver's side window to communicate with Cardenas who appeared trapped in the vehicle and injured. The officer asked Cardenas for the location of the gun and Cardenas stated it was in a bag. The officer was able to see a backpack near Cardenas and pulled it from the vehicle.
A search of the backpack revealed a loaded firearm, multiple plastic baggies containing suspected methamphetamine and miscellaneous drug paraphernalia.
The suspected methamphetamine was subsequently sent to the Homeland Security Investigations Crime Laboratory where it tested positive for methamphetamine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Tontitown Police Department and the Fourth Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney Hunter Bridges prosecuted 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.
Victims sought in relation to violent robberies of transgender victimsRead the Press Release
HOUSTON – A 28-year-old Houston man remains in custody pending trial on federal hate crime charges allegedly motivated by gender identity and sexual orientation, announced U.S. Attorney Jennifer B. Lowery.
The charges allege Salih Alhemoud used Grindr, a social media application for members of the LGBTQ community, to set up a date with a transgender victim whom he subsequently assaulted.
According to court records, authorities are also investigating a series of other similar incidents they believe Alhemoud committed this past summer.
A photo of Alhemoud is attached. If you believe you are a victim, or have any information regarding any such potential victims, please contact the FBI Houston Field Office at 713-693-5000.
Alhemoud is charged with committing a hate crime, kidnapping, and possessing a firearm during a crime of violence. Court records allege Alhemoud used Grindr to set up a date on Aug. 29 with his transgender victim at her apartment. Upon arrival, he allegedly pulled out a gun and demanded her money and property. She was unable to produce any cash, so Alhemoud hit her with his pistol and stomped her on the face and chest, according to the charges. He also allegedly told her she was going to die and made statements such as “my religion considers you a demon,” and that she “was a demon like the others, all you trans people,” among other homosexual and transgender slurs.
A federal grand jury returned the three-count indictment Oct. 26. At a detention hearing following his arrest, he was found to be a danger to the community and ordered into custody pending further criminal proceedings. If convicted, he faces up to life in prison.
The FBI and Houston Police Department are jointly conducting this investigation. Assistant U.S. Attorneys Sharad Khandelwal and Christine Lu are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Utica Man Pleads Guilty to Large Fentanyl Conspiracy and Money LaunderingRead the Press Release
SYRACUSE, NEW YORK – Ivan Jose Rodriguez, age 46, of Utica, New York, pled guilty yesterday to one count of conspiring to possess with intent to distribute fentanyl and distribution of fentanyl, and one count of money laundering, announced United States Attorney Carla Freedman, Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, and Thomas Fattorusso, Executive Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.
As part of his guilty plea, Rodriguez admitted that from May 2020 through October 2021, he, together with his co-conspirators, acquired more than three (3) kilograms of fentanyl from a source of supply, which he and others acting on his behalf, redistributed in the Utica, New York area. Rodriguez also admitted using a straw purchaser to acquire numerous vehicles, including a 2021 BMW M4, with cash payments using money earned from the drug conspiracy.
Sentencing is scheduled for April 6, 2023, before United States District Judge David N. Hurd. Rodriguez faces a minimum of 10 years in prison, a maximum of life imprisonment, a fine of up to $10 million, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the United States Drug Enforcement Administration (DEA), the United States Internal Revenue Service-Criminal Investigations (IRS-CI), the New York State Police, the Oneida County Sheriff’s Office, the Oneida County District Attorney’s Office, the City of Utica Police Department, the City of Syracuse Police Department, the City of Rome Police Department, United States Homeland Security Investigations (HSI), United States Immigration and Customs Enforcement and Removal Operations (ICE), the Onondaga County Sheriff’s Office, the Onondaga County District Attorney’s Office, the New York Army National Guard Counter Drug Program, the Village of Yorkville Police Department, and the Village of Whitesboro Police Department, and is being prosecuted by Assistant U.S. Attorney Tamara Thomson.
Utica Man Pleads Guilty to Large Fentanyl ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Eric Ares, age 37, of Utica, New York, pled guilty yesterday to one count of conspiring to possess with intent to distribute fentanyl and to distribute fentanyl, and one count of possession with the intent to distribute fentanyl, announced United States Attorney Carla Freedman, Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division and Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office,
In pleading guilty, Ares admitted that from May 2020 through October 2021, he, together with his co-conspirators in the Rodriguez drug trafficking organization, possessed with intent to distribute and distributed fentanyl in the Utica, New York area. Ares admitted to making numerous trips to the New York City area to purchase fentanyl, which he then drove back to the Utica area where he and others re-distributed it. Ares admitted that on September 20, 2021, he drove to the New York City area and received 3 kilograms of fentanyl for redistribution. Law enforcement officers stopped the vehicle Ares was driving and recovered 3 kilograms of fentanyl hidden inside a speaker in the trunk.
Sentencing is scheduled for April 6, 2023, before United States District Judge David N. Hurd. Ares faces a minimum of 10 years in prison, a maximum of life imprisonment, a fine of up to $10 million, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the United States Drug Enforcement Administration (DEA), the United States Internal Revenue Service-Criminal Investigations (IRS-CI), the New York State Police, the Oneida County Sheriff’s Office, the Oneida County District Attorney’s Office, the City of Utica Police Department, the City of Syracuse Police Department, the City of Rome Police Department, United States Homeland Security Investigations (HSI), United States Immigration and Customs Enforcement and Removal Operations (ICE), the Onondaga County Sheriff’s Office, the Onondaga County District Attorney’s Office, the New York Army National Guard Counter Drug Program, the Village of Yorkville Police Department, and the Village of Whitesboro Police Department, and is being prosecuted by Assistant U.S. Attorney Tamara Thomson.
Two-Armed Career Criminals Sentenced to Federal Prison for Firearm OffensesRead the Press Release
GAINESVILLE, FLORIDA – Two Alachua County men, each with multiple prior felony convictions, were sentenced on December 6, 2022, to federal prison terms ranging from 18 to 19.5 years followed by supervised release for possession of a firearm and ammunition by a convicted felon. The sentences were announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“The collaborative efforts of our partners in the Gainesville Gun Violence Initiative continue to produce impactful results, and we will continue working tirelessly to make North Florida safer,” said U.S. Attorney Coody. “These sentences ensures that our community will be safer and sends a message that there are real and severe consequences for federal firearm offenses.”
“The Alachua County Sheriff’s Office will continue to work tirelessly in cooperation with our fellow law enforcement agencies to eradicate gun violence in our community,” said Alachua County Sheriff Clovis Watson, Jr.
Keith Dawayne Puryear, 42, of Gainesville, was sentenced to 18 years in federal prison followed by a term of supervised release. Puryear was observed by a Gainesville Police Department (GPD) officer running a stop sign just before 3:30 a.m. on the morning of April 13, 2022. When the officer attempted to conduct a traffic stop, Puryear pulled onto a residential street and then quickly exited the driver’s seat and fled on foot through residential yards in the neighborhood. The GPD officer observed that Puryear was carrying a pistol in his hand as he fled. A K9 officer responded to the scene and conducted a track, ultimately locating Puryear hiding inside a doghouse in another residential backyard, where he was apprehended. Puryear is a multi-time convicted felon and had outstanding felony arrest warrants out of Marion County. Officers located a Crown Royal bag near one of Puryear’s shoes along his path of flight which was found to contain crack cocaine. The firearm was not located that night, but an officer went back to the scene after sunrise and located a loaded 10-millimeter pistol that had been discarded by Puryear during the chase. This pistol had been reported stolen out of Lake County, Florida. DNA consistent with Puryear was recovered from the firearm. The Bureau of Alcohol, Tobacco and Firearms conducted a follow-up investigation. Puryear had prior felony convictions including Sale of Cocaine (x4), Possession of Cocaine with Intent to Sell (x4), Possession of a Firearm by a Convicted Felon (x3), Sale of Cannabis, Possession of Cannabis with Intent to Sell (x4), Fleeing or Attempting to Elude Eluding Law Enforcement (x3), Possession of Cocaine (x5), Possession of Alprazolam, Grand Theft Auto, and Felony Driving While License is Suspended (x4).
Alphonso Columbus Richardson, 43, of Gainesville, was sentenced to more than 19.5 years in federal prison followed by a term of supervised release. Richardson matched the physical description of a wanted subject that was driving a relative’s vehicle without authorization. An Alachua County Sheriff’s Office (ACSO) deputy located the vehicle at a gas station in Gainesville on the night of January 5, 2022. The deputy observed Richardson get into the driver’s seat and another man get into the front passenger seat. When Richardson started to drive through the parking lot, the deputy conducted a traffic stop on the vehicle. Richardson initially attempted to flee the scene but was boxed in by other deputies responding to assist. Richardson then attempted to flee on foot but got tangled in the seat belt and then made furtive movements back into the area of the driver’s seat. Deputies detained him and eventually observed a revolver wedged between the driver’s seat and the center console. Deputies confirmed he was a convicted felon and arrested him. During a search of his person, deputies located an additional ten (10) rounds of ammunition and during a later search of Richardson’s person, they located multiple baggies of suspected methamphetamine, cocaine, MDPV, and marijuana. DNA consistent with Richardson was recovered from the firearm. The Bureau of Alcohol, Tobacco and Firearms conducted a follow-up investigation. Richardson had prior felony convictions including Sale of Cocaine (x3), Possession of Cocaine with Intent to Sell (x3), Sale of a Controlled Substance, Possession of Cannabis with Intent to Sell, Possession of Ammunition by Convicted Felon (x2), Felony Battery – Repeat Offender, Burglary of a Dwelling, Resisting an Officer with Violence, Sale of Substance in Lieu of Controlled Substance, Grand Theft Auto (x2), Possession of Cocaine (x2), Possession of MDMA, and Possession of a Controlled Substance without a Prescription.
Assistant United States Attorney Chris Elsey prosecuted the cases, which were investigated by the Gainesville Police Department, the Alachua County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms, all member agencies of the Gainesville Gun Violence Initiative.
These federal convictions result from the joint efforts of local, state, and federal law enforcement agencies that form the Gainesville Gun Violence Initiative (GVI). The Gainesville GVI was established in April 2019, by the United States Attorney’s Office for the Northern District of Florida in an effort to stem the escalating gun violence in Gainesville and the surrounding area. As GVI partners, the State Attorney’s Office for the Eight Judicial Circuit, the Bureau of Alcohol, Tobacco and Firearms, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Gainesville Police Department, the Alachua County Sheriff’s Office, the Alachua Police Department, the University of Florida Police Department, and the Florida Department of Corrections share this commitment to protecting public safety.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Two Individuals Arrested for Pharmacy Health Care Fraud Kickback SchemesRead the Press Release
Two New York women were arrested today on criminal charges related to their alleged participation in schemes to pay illegal kickbacks and bribes to Medicare beneficiaries and Medicaid recipients for medically unnecessary prescriptions filled by various pharmacies in New York that resulted in more than $10.5 million in total losses to Medicare and Medicaid.
“As alleged, the defendants repeatedly paid illegal bribes and kickbacks to be able to fill medically unnecessary prescriptions at pharmacies in Brooklyn and Queens, costing Medicare and Medicaid millions of dollars,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Together with our partners, the department is committed to tackling these illicit relationships that defraud federal health care programs designed to assist some of our most vulnerable citizens.”
According to court documents and proceedings, Hua Huang, 47, of Fresh Meadows, and Huiling Wu, 40, of Brooklyn, were separately charged by complaint for their roles in schemes to defraud Medicare and Medicaid through the submission of claims for prescription drugs that were induced by illegal health care kickbacks and bribes at three pharmacies in Brooklyn and Queens.
“The payment of kickbacks in Medicare serves only to enrich the complicit parties at the jeopardy of the program’s integrity and the expense of the taxpayers,” said Acting Special Agent in Charge Susan A. Frisco of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agency and law enforcement partners remain strong in our resolution to investigate and pursue individuals who allegedly operate counter to laws protecting federal health care programs.”
Huang was an employee of NY Elm Pharmacy Inc. (NY Elm), located in Flushing. She allegedly referred an individual to a podiatrist who signed prescriptions – including for durable medical equipment and Diclofenac Epolamine – that NY Elm and other entities with common ownership then billed to Medicare and Medicaid. Huang provided the individual with supermarket gift certificates for each prescription brought to the pharmacy and also provided the individual with cash in exchange for the individual’s monthly insurance allowance for over-the-counter products. Federal law enforcement agents executed a search of NY Elm concurrent with Huang’s arrest.
Wu was an owner and employee of 888 Pharmacy Inc. (888 Pharmacy), located in Brooklyn. She allegedly referred an individual to specific podiatrists who signed prescriptions that 888 Pharmacy then billed to Medicare and Medicaid. Wu provided the individual with store credit for each prescription brought to 888 Pharmacy. She also provided the individual with supermarket gift certificates in exchange for the individual’s monthly insurance allowance for over-the-counter products. Federal law enforcement agents executed a search of 888 Pharmacy concurrent with Wu’s arrest. Two additional pharmacies were searched, one in Brooklyn and one in Hawaii.
“The defendants allegedly participated in schemes designed to defraud Medicare and Medicaid through a coordinated system of kickbacks and bribes for unnecessary prescriptions,” said Assistant Director in Charge Michael J. Driscoll of the FBI York Field Office. “The FBI along with our law enforcement partners remain resolute in our efforts to protect government sponsored health care programs designed to aid members of our community in need. Individuals willing to scam these programs will be held accountable for their actions in the criminal justice system.”
If convicted, Huang and Wu each face a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The HHS-OIG and FBI New York Regional Offices are investigating the case.
Trial Attorney Patrick J. Campbell and Assistant Chief Miriam Glaser Dauermann of the Criminal Division’s Health Care Fraud Strike Force are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Illinois Men Charged in Fraudulent Payment Processing SchemeRead the Press Release
A federal grand jury in Chicago returned an indictment charging two Illinois men with bank fraud in connection with payment processing companies they operated.
According to court documents, Michael D’Ambrose, 62, of Chicago, and Scott Apgar, 43, of Roscoe, operated a group of payment processing companies that deposited checks on behalf of merchant-clients. The checks typically were “remotely created checks” (RCCs), which were not signed by the account holder whose account was debited.
The indictment alleges that D’Ambrose and Apgar deceived banks about the nature of the payment processing companies’ business and financial transactions in order to open and maintain bank accounts and to allow for the processing of tens of millions of dollars of RCCs, which were purportedly authorized by consumers.
D’Ambrose and Apgar allegedly used those bank accounts to deposit RCCs on behalf of merchant clients despite warning signs of fraud, including indications that merchant-clients were initiating unauthorized debits from the accounts of purported customers. As alleged in the indictment, the warning signs of fraud included consumer complaints and law enforcement and bank inquiries about unauthorized debits. The indictment further alleges that D’Ambrose and Apgar intentionally recruited clients that were having difficulty finding and keeping payment processing services elsewhere and, when seeking clients, touted their companies’ low standards for accepting clients.
According to the indictment, D’Ambrose and Apgar fraudulently manipulated the rates of returned deposits associated with the payment processing companies’ accounts. They allegedly did so by making small-dollar deposits known as micro-transactions, which increased the volume of deposits in an account, thereby causing the percentage of returned RCCs to appear smaller than it actually was. The defendants also allegedly submitted to banks documents that defendants knew contained false and fraudulent information about the nature of the payment processing companies’ operations.
Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois, Acting Inspector in Charge Kai Pickens of the U.S. Postal Inspection Service Chicago Division and Special Agent in Charge Kathy A. Enstrom of the Federal Deposit Insurance Corporation-Office of Inspector General, Chicago Regional Office, made the announcement.
The indictment charges D’Ambrose and Apgar with 16 counts of bank fraud. If convicted, the defendants face a maximum term of imprisonment of 30 years for each count of bank fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Postal Inspection Service and Federal Deposit Insurance Corporation-Office of Inspector General are investigating the case.
Trial Attorneys Daniel Zytnick and Timothy Finley of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Edward A. Liva Jr. for the Northern District of Illinois 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.
Trio of Tampa Fraudsters and Identity Thieves Sentenced to Federal PrisonRead the Press Release
MOBILE, AL – Three defendants from Tampa, Florida were sentenced to federal prison for engaging in a scheme to commit bank fraud and identity theft involving counterfeit checks and stolen mail.
According to court documents and evidence presented at a jury trial, Timothy Howard Buchanan, 39, Tyre Dayshawn Crawford, 31, and Jaleeshia Deanna Robinson, 33, were arrested by deputies with the Baldwin County Sheriff’s Office during a traffic stop in February 2022. The defendants were traveling northbound on I-65 when deputies stopped them after noticing that their rental car had illegal tint applied to its side windows. During the stop, deputies saw drugs in plain view in the car, which led them to search it. Inside the car, deputies found dozens of counterfeit and stolen checks worth more than $348,000. The checks corresponded to victims in multiple states who had their checks stolen from the mail in Alabama and Florida. Deputies also recovered fake and stolen driver’s licenses, a scanner/printer, a check encoder, and a stack of hundreds of sheets of blank check paper.
Deputies and agents with the U.S. Secret Service and the U.S. Postal Inspection Service interviewed the defendants, each of whom confessed to their roles in the scheme, which involved defrauding banks by attempting to cash counterfeit checks using fake and stolen driver’s licenses. The counterfeit checks contained the personal identifying information of numerous victims, including names, addresses, bank account numbers, and signatures. The defendants admitted that they would share illicit proceeds of the fraud scheme, which they committed over a period of several months in 2021 and 2022. Crawford and Buchanan had prior felony convictions involving check fraud and use of fraudulent identifications in Hillsborough County, Florida.
At an August 2022 trial, a federal jury convicted Buchanan of bank fraud conspiracy, unlawful possession of fake and stolen identification documents, possession of counterfeit and forged checks, aggravated identity theft, and possession of stolen mail. Crawford and Robinson each pleaded guilty to bank fraud conspiracy and aggravated identity theft before trial.United States District Judge Kristi K. DuBose sentenced Buchanan to 116 months in federal prison. Crawford and Robinson received prison sentences of 87 months and 18 months, respectively. The court ordered each of the defendants to serve multi-year terms of supervised release upon their release from prison, during which time they will undergo drug testing and treatment and will be subject to credit restrictions. The court did not impose a fine, but Judge DuBose ordered the defendants to pay a total of $44,129.79 in victim restitution and a total of $900 in special assessments.
U.S. Attorney Sean P. Costello said, “This case exemplifies our office’s commitment to rooting out and prosecuting fraudsters who prey on the hardworking citizens of our District. The keen eyes, sharp skills, and professional excellence of our partners at the Baldwin County Sheriff’s Office, the United States Secret Service, and the United States Postal Inspection Service led to this positive result. Our office will continue working alongside our law enforcement partners to bring financial criminals to justice and to send a loud and clear message: crime doesn’t pay.”
“The Secret Service has a long and storied history of safeguarding America’s financial and payment systems from criminal exploitation. These conspirators took great efforts in fraudulently obtaining innocent victims’ information, then using that information to defraud various businesses and financial institutions,” said Patrick M. Brown, Special Agent in Charge, U.S. Secret Service, Birmingham Field Office. “Identity theft is often a costly and long-lasting threat to every victim who encounters it. This case demonstrates the effective collaboration with our local law enforcement partners in identifying, apprehending, and fully prosecuting those who prey on innocent victims. The success of this case is the result of the partnerships between the Baldwin County Sheriff’s Office, U.S. Postal Inspection Service, and the U.S. Secret Service.”
The U.S. Secret Service, the U.S. Postal Inspection Service, and the Baldwin County Sheriff’s Office investigated the case.
Assistant U.S. Attorneys Justin Roller and Lydia Lucius prosecuted the case on behalf of the United States.
Taylor County woman admits to role in drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kayla Marie Cline, of Flemington, West Virginia, has admitted to her role in a drug trafficking operation, United States Attorney William Ihlenfeld announced.
Cline, 31, pleaded guilty today to one count of “Possession with Intent to Distribute Fifty Grams or more of Methamphetamine.” Cline admitted to having more than 50 grams of methamphetamine, also known as “crystal” and “ice,” in April 2022 in Taylor County.
Cline faces at least 10 years and up to life in prison and a fine of up to $10 million. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Stash house owner sentenced after people found hidden in load of watermelonRead the Press Release
CORPUS CHRISTI, Texas – A 35-year-old San Benito man has been ordered to federal prison for conspiring to transport illegal aliens within the United States, announced U.S. Attorney Jennifer B. Lowery.
Elias Lopez III pleaded guilty July 26 for his role in a conspiracy to transport illegal aliens from South Texas through the Border Patrol checkpoint near Sarita.
Today U.S. District Judge Nelva Gonzales Ramos sentenced Lopez to 33 months to be immediately followed by two years of supervised release.
On Dec. 10, 2021, authorities discovered 24 undocumented aliens hidden among a load of watermelon in a commercial trailer at the checkpoint near Sarita.
The investigation revealed some had crossed into the United States a few weeks prior and had been kept in a “stash house” until the arrangement of transportation through the checkpoint.
Two women identified Lopez and his wife as the owners and caretakers of the stash house. They also gave information about the house and where it was located. The women stayed in the house with Lopez and his wife for approximately three weeks while waiting to be transported.
Earlier in the evening on Dec. 10, Lopez drove them from the house to a dark, brushy lot where the tractor trailer was waiting. The trailer doors were open and the lights were on. The women were loaded into the trailer and told to hide among the pallets of watermelon. The trailer did not stop again until it reached the checkpoint.
Lopez’s wife was also charged and pled guilty to the offense. She is set to be sentenced in March 2023. The driver of the tractor trailer was also charged with the offense, and he is currently a fugitive.
Lopez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Ashley Martin prosecuted the case.