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14 November 2022
Lehigh Acres Man Sentenced to Federal Prison for Straw Purchasing Firearms for A Mexican Drug CartelRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Gabriel Acosta, Jr. (28, Lehigh Acres) to 3 years and 1 month in federal prison for falsifying records relating to firearms purchases. Acosta had pleaded guilty on May 25, 2022.
According to court records, between December 2018 and March 2019, Acosta purchased multiple high-powered rifles from licensed gun dealers in Fort Myers and Cape Coral at the request of a Mexican drug cartel. For each purchase, Acosta falsely certified in ATF paperwork that he was purchasing the firearms for himself, when in truth he knew he was straw-purchasing them for a Mexican drug cartel in exchange for cash kickbacks. After the firearms were purchased, Acosta would travel to Laredo, Texas to offload the guns to a cartel associate. Since late-2019, three firearms straw-purchased by Acosta in Florida have been recovered by Mexican military personnel following firefights with suspected cartel members.
This case was investigated the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Simon R. Eth.
KS Priest & NY Businessman Indicted in Scheme to Defraud Foster Care ProgramRead the Press Release
TOPEKA, KAN. – A federal grand jury in Topeka returned an indictment charging a Kansas priest and a New York businessman in connection with a scheme to defraud a foster care organization of $10 million.
According to court documents, Robert Nelson Smith, 50, of Salina is charged with one count of conspiracy to commit wire fraud, 15 counts of wire fraud, and one count of money laundering.
William Byrd Whymark, 50, of Mount Kisco, New York, is charged with one count of conspiracy to commit wire fraud, 10 counts of wire fraud, three counts of money laundering.
Saint Francis Ministries (SFM) is a 501c(3) faith-based organization in Salina, Kansas, that provides foster care and social services in the states of Kansas, Arkansas, Mississippi, Nebraska, Oklahoma, and Texas. In 2018, the SFM board agreed to upgrade its IT systems, hardware, and software programs. As the SFM Chief Executive Officer, Robert Smith, an ordained Episcopal priest, entered into an agreement on behalf of SFM with a company owned by William Whymark. Smith is accused of approving and authorizing payments of fraudulent, overinflated invoices submitted by Whymark.
Smith is also accused of using SFM credit cards for personal, unauthorized expenditures.
Robert Smith is scheduled for his initial court appearance today at 1:30 p.m. before a U.S. Magistrate Judge of the U.S. District Court for the District of Kansas.
The Federal Bureau of Investigation (FBI) is investigating the case.
Assistant U.S. Attorneys Christine Kenney and Skipper 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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Jury Convicts Former Oregon Securities Broker of Tax EvasionRead the Press Release
PORTLAND, Ore.—After a two-week trial, a federal jury in Portland found a McMinnville, Oregon man guilty today of evading $2.5 million in income taxes by hiding his income in multiple bank accounts and submitting false financial statements to the IRS.
James Millegan, 65, was convicted of one count of tax evasion.
According to court documents, Millegan owned and operated J.W. Millegan, Inc., a small, commission-based investment advisory business that served clients in the Portland and Salem, Oregon metropolitan areas. From 1996 to 2016, the investment firm was Millegan’s only significant source of income.
Over a seven-year period from July 2009 through September 2016, Millegan evaded payment of $2.5 million in income taxes. Millegan filed tax returns each year reflecting his true income, which sometimes exceeded $1 million, and the taxes he owed on that income, which typically ranged from $125,000 to $350,000. Despite these returns, Millegan often failed to pay the IRS.
Millegan was described as a prolific spender by personal assistants hired to pay his bills. He used the proceeds of his tax evasion to fund an extravagant lifestyle that included a $4.5 million home in Portland, a $1.3 million home on the Oregon coast, Rolls Royce and Bentley automobiles for everyday use, equestrian expenses like stabling and lessons, and an attempt to establish a world-class equestrian competition center and resort near Sheridan, Oregon. Millegan also bought a classic 1938 Rolls Royce touring car, spent $800,000 restoring it, and showed it in premier car shows in the U.S., Great Britain, and Europe.
To evade the payment of his income taxes, Millegan concealed his income from the IRS by transferring it to six bank accounts he controlled, including transferring $1.4 million to the bank account of his deceased mother’s trust, which he used to pay his personal expenses. From July 2009 through September 2016, Millegan transferred $3.7 million to these accounts. To further conceal his income, Millegan submitted false financial statements to the IRS.
On November 21, 2019, a federal grand jury in Portland returned a 13-count indictment charging Millegan with tax evasion and investment churning. Later, on February 17, 2022, he was charged by superseding indictment with wire fraud and tax evasion. A jury trial on the wire fraud charges is scheduled to begin in March 2023.
Tax evasion is punishable by up to five years in federal prison. Millegan will be sentenced on April 3, 2023, by U.S. District Court Judge Karin J. Immergut.
This tax evasion case was investigated by IRS-Criminal Investigation. Seth D. Uram and Meredith D.M. Bateman, Assistant U.S. Attorneys for the District of Oregon, are prosecuting the case. Assistant U.S. Attorney Hannah Horsley assisted the trial team.
Investiture Ceremony for United States Attorney Trina A. Higgins District of UtahRead the Press Release
***MEDIA ADVISORY***
SALT LAKE CITY, Utah – At the request of the United States Attorney’s Office for the District of Utah, members of the media are invited to attend the ceremonial oath of office for the Honorable Trina A. Higgins, the first woman in Utah to be presidentially appointed to serve as United States Attorney.
WHEN: THURSDAY, NOVEMBER 17, at 2:00 p.m. MST
WHERE: United States Courthouse, 351 South West Temple, SLC, UT 84111
Courtroom 3.100
WHO: Trina A. Higgins, U.S. Attorney for the District of Utah
NOTE: One member of the media per news organization. RSVP appreciated. Media access will begin promptly at 1:30 p.m. Camera, audio and video are not permitted. All media will be subject to security screening. The ceremony will begin promptly, so please allow sufficient timing to take your seat, and consider parking. Pictures and a press release will be issued following the investiture.
Investigation of prolific fentanyl distribution ring recognized as “Outstanding” work by Director of Organized Crime Drug Enforcement Task Forces (OCDETF)Read the Press Release
Seattle – U.S. Attorney Nick Brown today congratulated law enforcement partners and members of the U.S. Attorney’s Office for its work being named the outstanding OCDETF investigation in the eleven district Pacific Northwest region. The investigation and prosecution of drug ring leader Bradley Woolard and his co-conspirators was named the top 2022 investigation in the region comprising Washington, Oregon, Idaho, Nevada, Alaska, Hawaii, Guam, the Northern Mariana Islands, and the Northern and Eastern Districts of California.
The drug ring distributed fentanyl pills in Snohomish, Skagit, and Whatcom counties. The ringleader, Woolard, 42, of Arlington, was sentenced to 20 years in prison for his conviction on 28 counts involving conspiracy to distribute controlled substances, conspiracy to commit money laundering, money laundering, illegal gun possession, and possessing drugs with the intent to distribute them. Co-defendants, Anthony Pelayo, 34, of Marysville, was sentenced to 15 years in prison, and a $150,000 fine and Jerome Isham, 40, of Everett, was sentenced to 10 years in prison.
The OCDETF Award recognizes the investigative agents from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the U.S. Marshals Service, the Drug Enforcement Administration (DEA), the U.S. Postal Inspection Service (USPIS) and the Lynnwood Police Department, Snohomish County Sheriff’s Office, and Whatcom County Sheriff’s Office. Assistant United States Attorneys Karyn Johnson and Mike Lang led a team of 13 attorneys and support staff who worked on the case for the U.S. Attorney’s Office.
The award, the highest given by the program, is intended to recognize the law enforcement team for its “extraordinary achievement of the disruption/dismantlement of a major criminal organization/network.”
Guatemalan National Arrested in Stamford Admits Illegally Reentering the U.S.Read the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JULIO BAYRON-ARRIOLA, 49, a citizen of Guatemala last residing in Stamford, pleaded guilty today in Hartford federal court to one count of illegally reentering the U.S. after being deported.
According to court documents and statements made in court, on six occasions between 2009 and 2020, Bayron-Arriola was encountered in the U.S. and subsequently removed to Guatemala. During that time, he was charged federally and convicted in the District of Arizona three times: In 2010 he was convicted of possession with intent to distribute marijuana, and in 2012 and 2017, he was convicted of illegal reentry.
On December 25, 2021, Bayron-Arriola was arrested by Stamford Police. He was subsequently convicted of a state threatening offense.
Bayron-Arriola is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on January 9, at which time his faces a maximum term of imprisonment of 10 years.
Bayron-Arriola has been detained since his arrest.
The investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, with the assistance of the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Gloster Man Sentenced to over Five Years in Prison for Possession with Intent to Distribute CocaineRead the Press Release
Jackson, Miss. – A Gloster, Mississippi man was sentenced by Senior U.S. District Judge David Bramlette, III, to 70 months in federal prison for possession with intent to distribute cocaine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Lloyd Palmer, III a/k/a Lo Lo, 48, was under investigation for cocaine distribution when, from August of 2019 through September of 2020, he sold cocaine on several occasions to a confidential source. During this period, Palmer distributed close to a quarter of kilogram of cocaine in the Wilkinson County area.
The case is the result of an extensive investigation, dubbed “Low Haul,” which began as an operation targeting illegal drug trafficking in the Jackson, Mississippi area. “Low Haul” is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Federal Bureau of Investigation and Mississippi Bureau of Narcotics - McComb District.
The case was prosecuted by Assistant United States Attorney Keesha Middleton.
Fort Myers Felon Sentenced to Federal Prison for Unlawfully Possessing A Firearm and AmmunitionRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Otis Marchman IV (28, Fort Myers) to 3 years and 5 months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Marchman to forfeit the firearm and ammunition used in the offense. Marchman had pleaded guilty on August 12, 2022.
According to court records, on December 26, 2020, officers from the Fort Myers Police Department attempted to conduct a traffic stop on a vehicle driven by Marchman on South Street in Fort Myers. Instead of stopping his vehicle, Marchman accelerated away from officers until his vehicle became disabled several blocks away. Marchman then ran from his vehicle and hid in nearby bushes before he was apprehended and arrested by the officers. Inside his vehicle, officers located Marchman’s loaded Glock .45 caliber handgun. As a convicted felon, Marchman is prohibited from possessing a firearm or ammunition under federal law. At the time of this incident, Marchman was on federal supervised release for an unrelated case, and the court ordered Marchman’s prison sentence in this case to run consecutively to a two-year prison sentence imposed in connection with his supervised release violation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Fort Myers Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Simon R. Eth.
Former Owner and General Manager of Oregon Dump Truck and Concrete Companies Pleads Guilty after Failing to Pay Employment TaxesRead the Press Release
PORTLAND, Ore.—The former owner and general manager of dump truck hauling and concrete companies based in Damascus, Oregon pleaded guilty today to willfully failing to pay employment taxes despite withholding them from employee paychecks.
Rebekah Joy Williams, 44, a resident of Damascus, pleaded guilty to one count of failing to pay over employment taxes.
According to court documents, until the third and fourth quarters of 2017, Williams owned and operated Anbasa Transport LLC and Kelaye Conrete LLC, commercial dump truck hauling and concrete companies registered in Oregon that formerly operated in both Oregon and Washington State. As the sole owner and general manager of both companies, Williams was responsible for collecting, accounting for, and paying federal income, Medicare, and Social Security taxes (also known as FICA taxes) on behalf of her employees.
Over at least a three-year period, from 2015-2017, Williams withheld these taxes from her employees’ paychecks and provided them with paystubs reflecting the withholdings. Despite doing so, IRS records showed that Williams made no payroll tax payments on behalf of either company from the third quarter of 2015 through the fourth quarter of 2017. In total, Williams failed to pay approximately $112,257 in employment taxes to the IRS.
On October 19, 2021, a federal grand jury in Portland returned a 19-count indictment charging Williams with willfully failing to collect or pay over employment taxes.
Williams faces a maximum sentence of five years in prison, a $250,000 fine or twice her gross gains resulting from the offense, and three years of supervised release. She will be sentenced on February 14, 2023, by U.S. District Court Judge Karin J. Immergut.
As part of her plea agreement, Williams has agreed to pay $725,492 in restitution to the IRS.
This case was investigated by IRS-Criminal Investigation. It was prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.
Former MLB Player Agrees to Plead Guilty to Felony Charge for Lying to Federal Agents Investigating Illegal Gambling OperationRead the Press Release
LOS ANGELES – A former Major League Baseball (MLB) player has agreed to plead guilty to a federal charge for lying to federal law enforcement officials about bets on sporting events that he placed with an illegal gambling operation, according to court documents unsealed today.
Yasiel Puig Valdés, 31, who currently plays professional baseball in South Korea, has agreed to plead guilty to one count of making false statements, a crime that carries a statutory maximum sentence of five years in federal prison.
Puig, who formerly played for the Los Angeles Dodgers and two other MLB franchises, has agreed to pay a fine of at least $55,000. Puig has agreed to make his initial appearance on November 15 in United States District Court.
“Under our system of justice, no one is above the law,” said United States Attorney Martin Estrada. “The integrity of our nation’s criminal justice system depends on people telling the truth, and those who fail to abide by this simple principle must face consequences.”
“When given the opportunity to be truthful about his involvement with Nix’s Gambling businesses, Mr. Puig chose not to,” said IRS Criminal Investigation Los Angeles Field Office Special Agent in Charge Tyler Hatcher. “Mr. Puig’s lies hindered the legal and procedural tasks of the investigators and prosecutors.”
“Lying to federal agents is a serious offense,” said HSI Los Angeles Acting Special Agent in Charge Eddy Wang. “HSI Los Angeles and our partners will actively pursue those that seek to hinder the fair administration of justice.”
According to his plea agreement, which was filed on August 29, in May 2019, Puig began placing bets on sporting events through a third party – identified in court documents as “Agent 1” – who worked on behalf of an illegal gambling business run by Wayne Joseph Nix, 46, of Newport Coast.
Puig called and sent text messages to Agent 1 with wagers on sporting events. Agent 1 then submitted the bets to the Nix gambling business on Puig’s behalf. By June 2019, Puig owed Nix’s gambling business $282,900 for sports gambling losses.
Agent 1 and another person identified in court papers as “Individual B” instructed Puig to make a check or wire transfer payable to a Nix gambling business client – identified in court papers as “Individual A” – to whom the business owed at least $200,000 in gambling winnings.
On June 25, 2019, Puig withdrew $200,000 from a Bank of America branch in Glendale then purchased two cashiers’ checks for $100,000 each that were made payable to Individual A. Puig did not immediately send the checks due to a dispute over the balance and access to Nix-controlled websites used to place sports bets. Nix refused to allow Puig access to the betting websites until Puig’s gambling debt was paid.
After Puig paid the $200,000, Nix provided Puig direct access to the betting websites. From July 4, 2019 to September 29, 2019, Puig placed 899 additional bets on tennis, football and basketball games through the websites.
In January 2022, federal investigators interviewed Puig in the presence of his lawyer. During the interview, despite being warned that lying to federal agents is a crime, Puig lied several times. During the interview, he falsely stated that he only knew Agent 1 from baseball and that he never discussed gambling with him, when in fact Puig discussed sports betting with Agent 1 hundreds of times on the telephone and via text message.
After agents showed Puig a copy of one of the cashiers’ checks he purchased on June 25, 2019, Puig falsely stated that he did not know the person who instructed him to send $200,000 in cashiers’ checks to Individual A. Puig also falsely stated that he had placed a bet online with an unknown person on an unknown website that resulted in a loss of $200,000.
In March 2022, Puig sent Individual B an audio message via WhatsApp in which he admitted to lying to federal agents during the interview two months earlier.
Nix pleaded guilty on April 11 to one count of conspiracy to operate an illegal sports gambling business and one count of filing a false tax return. His sentencing hearing is scheduled for March 8, 2023.
Federal prosecutors today also filed a plea agreement for former MLB player Erik Kristian Hiljus, 49, of Panorama City, who agreed to plead guilty to two counts of subscribing to false tax returns and will face up to six years in federal prison upon entering his guilty plea. Hiljus was an agent for Nix’s illegal gambling business but did not work with Puig.
Homeland Security Investigations (HSI) and IRS Criminal Investigation are investigating this matter. The HSI agents are part of the El Camino Real Financial Crimes Task Force.
Assistant United States Attorneys Jeff Mitchell of the Major Frauds Section and Dan Boyle of the Asset Forfeiture and Recovery Section are prosecuting these cases.
Former Kansas City, Kansas, Police Department Detective and Three Others Indicted for Conspiracy to Hold Young Women in Involuntary Servitude and Forcing Them to Provide Sexual ServicesRead the Press Release
A federal grand jury in Topeka, Kansas, returned a three-count indictment, unsealed today, charging former Kansas City Police Department detective Roger Golubski and three other men – Cecil Brooks, LeMark Roberson and Richard Robinson – with conspiring, decades ago, to hold young women in a condition of involuntary sexual servitude. Brooks, Roberson and Robinson are also charged in a substantive count with holding a young woman, identified as Person 1, in a condition of involuntary servitude; and Brooks, Roberson and Golubski are charged in a substantive count with holding another young woman, Person 2, in a condition of involuntary servitude.
According to the indictment, from 1996 through 1998, Brooks provided a location at Delevan Apartments in Kansas City, where young women were held and where Brooks, Roberson and Robinson used physical beatings, sexual assaults and threats to compel young women to provide sexual services to men. Then detective Golubski is alleged to have accepted money from Brooks; provided protection from law enforcement for the criminal activity, including sex trafficking; and forcibly raped the young woman identified as Person 2.
The first count of the indictment charges all four men with conspiring to hold young women, including Person 1 and Person 2, in a condition of involuntary servitude; the second count charges Brooks, Roberson, and Robinson with holding Person 1 in involuntary servitude and forcing her to provide sexual services to Roberson; and the third count charges Brooks, Roberson and Golubski with holding Person 2 in involuntary servitude and forcing her to provide sexual services to adult men, including Brooks, Roberson and Golubski.
If convicted, each defendant faces a maximum sentence of life in prison.
Golubski was previously charged, in a separate indictment with civil rights violations for allegedly acting under color of law to commit aggravated sexual assaults.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Duston Slinkard for the District of Kansas and Special Agent in Charge Charles Dayoub of the FBI Kansas City Field Office made the announcement.
The FBI Kansas City Field Office investigated the case in conjunction with the Kansas Bureau of Investigation. Assistant U.S. Attorney Stephen Hunting for the District of Kansas and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division are prosecuting the case.
This investigation is ongoing. Anyone with additional information is encouraged to call the FBI at 1-800-CALL-FBI.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Department of Transportation employee charged with bribery and extortionRead the Press Release
A federal grand jury in Houston has returned an indictment charging a former Department of Transportation (DOT) employee with bribery and extortion.
Patrick Gorena, 54, Lyford, is scheduled for his initial court appearance today 2 p.m.
According to the indictment, returned Nov. 2, Gorena was a border investigator for DOT’s Federal Motor Carrier Safety Administration. In exchange for minimizing purported safety violations he encountered while auditing a trucking company, which would have exposed the company to potential fines and the loss of their DOT license, Gorena allegedly demanded a $3,500 payment. The charges allege Gorena ultimately accepted a $2,000 bribe from an undercover law enforcement officer posing as a representative of the trucking company.
Gorena is charged with one count of bribery and one count of extortion under color of law.
If convicted, he faces a maximum penalty of 35 years in prison.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jennifer Lowery for the Southern District of Texas and Special Agent in Charge Todd A. Damiani of the DOT Office of Inspector General’s (DOT-OIG) Southern Region made the announcement.
The DOT-OIG and McAllen FBI Public Corruption Squad are investigating the case.
Trial Attorney Lauren Castaldi of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Richard Hanes for the Southern District of Texas are prosecuting the case.
Former Department of Transportation Employee Charged with Bribery and ExtortionRead the Press Release
A federal grand jury in Houston has returned an indictment charging a former U.S. Department of Transportation (DOT) employee with bribery and extortion.
Patrick Gorena, 54, of Lyford, Texas, is scheduled to make his initial court appearance today at 3 p.m. EST.
According to court documents, Gorena was a border investigator for DOT’s Federal Motor Carrier Safety Administration. In exchange for minimizing purported safety violations he encountered while auditing a trucking company, which would have exposed the company to potential fines and the loss of their ability to operate, Gorena allegedly demanded a $3,500 cash payment. The charges allege Gorena ultimately accepted a $2,000 bribe from an undercover law enforcement officer posing as a representative of the trucking company.
Gorena is charged with one count of bribery and one count of extortion under color of official right. If convicted, he faces a maximum penalty of 20 years in prison on the extortion count and 15 years in prison on the bribery count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jennifer Lowery for the Southern District of Texas, Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Field Office, and Special Agent in Charge Todd A. Damiani of the DOT Office of Inspector General’s (DOT-OIG) Southern Region made the announcement.
The McAllen FBI Public Corruption Squad and DOT-OIG are investigating the case.
Trial Attorney Lauren Castaldi of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Richard Hanes for the Southern District of Texas are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Auditor at Newport Beach Commercial Real Estate Agency Arrested on Complaint Alleging He Stole $2.5 Million from EmployerRead the Press Release
SANTA ANA, California – A former executive at an Orange County commercial real estate agency was arrested today on a federal criminal complaint alleging a decade-long scheme in which he stole $2.5 million by submitting fictitious invoices for companies controlled by his family and friends whose services were never performed.
Varun Aggarwal, 40, of Irvine, California, was arrested this morning by special agents with the FBI. He is scheduled to make his initial appearance this afternoon in United States District Court in Santa Ana.
Aggarwal is charged with one count of mail fraud and one count of wire fraud.
According to an affidavit filed with the complaint that was unsealed today, beginning at least in 2012 and continuing through January 2022, Aggarwal used his position at the Newport Beach-based KBS Realty Advisors to embezzle his employer’s money.
During his decade-long tenure at KBS, Aggarwal worked in the company’s internal auditing department, rising to the level of the department’s director. As a member of the company’s accounting group, Aggarwal was intimately familiar with KBS’s policies and procedures for payments to vendors. Aggarwal used his knowledge of KBS’s policies and procedures to have his friends and family perform contracting work for his groups at KBS.
After several of these companies became approved vendors for KBS, Aggarwal used these approved vendors to submit fraudulent invoices for consulting services that were not performed for the company, the complaint alleges. He then funneled the payments on the invoices from KBS to his own bank accounts – through the approved vendors – at times without informing the vendors that the invoices and the payments on the invoices were for his own benefit.
Aggarwal resigned from KBS in January 2022 after the company began investigating the invoices, the affidavit states.
A review of company, bank and tax records show that Aggarwal, using approximately six vendors, stole approximately $2,601,246 from KBS between approximately January 1, 2012, and January 13, 2022, according to the affidavit.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of both counts, Aggarwal would face a statutory maximum sentence of 40 years in federal prison.
The FBI investigated this matter.
Assistant United States Attorney Brett A. Sagel of the Santa Ana Branch Office is prosecuting this case.
Florida Birth-Related Neurological Injury Compensation Plan and Association to Pay $51 Million to Resolve False Claims Act AllegationsRead the Press Release
The Florida Birth-Related Neurological Injury Compensation Plan and its administrator, the Florida Birth-Related Neurological Injury Compensation Association (collectively, “NICA”), have agreed to pay $51 million to resolve allegations that they violated the False Claims Act by causing NICA participants to submit their healthcare claims to Medicaid rather than NICA, in violation of Medicaid’s status as the payer of last resort under federal law.
The civil settlement resolves a lawsuit filed and pursued by Veronica N. Arven and the estate of Theodore Arven III against NICA under the qui tam or whistleblower provisions of the False Claims Act, which permit a private party (known as a relator) to file a lawsuit on behalf of the United States and receive a portion of any recovery. Although the United States did not intervene in this case, it continued to investigate the whistleblowers’ allegations, provided substantial assistance to the whistleblowers in defending against a motion to dismiss, and negotiated the settlement announced today. The Arvens will receive $12,750,000 as their share of the recovery in this case.
“Health care plans may not shift the payment of claims to federally funded programs like Medicaid,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to ensuring that federal health care dollars are spent appropriately.”
“The Medicaid program provides a safety net for our most vulnerable populations that do not have access to traditional healthcare coverage,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “My office is dedicated to protecting critical government healthcare programs, like Medicaid, that serve the elderly and disabled. The misuse of Medicaid funds will not be tolerated.”
“When Medicaid is improperly billed for services that should be covered by other funding sources, the integrity of this safety net program is undermined,” said Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to investigate such schemes to protect federal health care programs and those served by them.”
The Florida Legislature established NICA in 1988 as an alternative to the traditional tort system. NICA was intended to provide compensation, on a no-fault basis, for the medical, rehabilitative and custodial care of children who suffered certain categories of birth-related neurological injuries. Under Florida law, once a child is admitted into NICA’s program, NICA is responsible for the payment of medical and other expenses incurred because of a birth-related neurological injury. Medicaid is a joint federal-state healthcare program that provides coverage and benefits to low-income and disabled individuals. Under federal law, Medicaid is generally the payer of last resort.
The qui tam case is captioned United States ex rel. Arven v. The Florida Birth-Related Neurological Injury Compensation Ass’n, et al., Case No. 19-cv-61053-WPD (S.D. Fla.). This case was handled by the U.S. Attorney’s Office for the Southern District of Florida, with assistance from the Civil Division’s Commercial Litigation Branch and the U.S. Department of Health and Human Services Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was investigated by Assistant U.S. Attorney Rosaline Chan for the Southern District of Florida and Fraud Section Attorney Seth Greene.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Federal grants to Seattle and King County focus resources on opioid abuse and reentry from criminal justice systemRead the Press Release
Seattle – U.S. Attorney Nick Brown today highlighted Department of Justice grants awarded to Seattle and King County to assist with issues of opioid abuse and reentry to the community for those involved in the criminal justice system. The three awards total more than $4 million.
“More and more, opioid addiction impacts our friends, neighbors, and loved ones. And anyone walking in our city today sees the harm of opioid addiction in those who live on our streets with little hope of a better life,” said U.S. Attorney Nick Brown. “These grant funds from the Justice Department are for locally designed programs to help with the addiction crisis.”
The largest grant is to the city of Seattle -- $1,597,836 -- for a program that will provide transitional housing and other services to women who have substance use disorder and are transitioning out of jails and prisons. The Seattle Police Department will work with the Department of Corrections and case managers to address the multiple needs of women reentering the community.
King County is awarded $1,586,310 to support the creation of an Overdose Fatality Review process in King County that can serve as a community-based rapid response network to develop strategies for the treatment and prevention of overdose. The grant will help fund naloxone kits for law enforcement and first responders. Grant funds will also be used to help establish networks to provide education and information about emerging drug trends.
King County’s Department of Adult and Juvenile Detention also received $842,851 to improve educational opportunities in the correctional setting. The funding is aimed at enhancing educational services at the county corrections facilities by using technology and programs tailored to the inmates’ language and educational level.
All three grants are from DOJ’s Bureau of Justice Assistance.
Federal Jury Finds Grand Junction Truck Driver Guilty of Sexually Abusing Two ChildrenRead the Press Release
Grand Junction – The United States Attorney’s Office for the District of Colorado announces a federal jury today found Michael Tracy McFadden, age 51, of Grand Junction, guilty of crossing state lines with intent to engage in a sexual act with a minor under the age of 12, and transportation of a minor with intent to engage in sexual activity.
According to facts presented at trial, McFadden was a long-haul truck driver who took at least two children on multiple trips out of state. Over a span of at least six years, McFadden repeatedly sexually assaulted the children, both in his home in Grand Junction and in his semitruck in other states. Two of his victims bravely testified at trial, relating to the jury the countless times McFadden abused them.
Judge Christine M. Arguello presided over the five-day trial. The jury returned its guilty verdict on November 14, 2022. Sentencing is set for March 7, 2023. McFadden faces a mandatory minimum sentence of 30 years in prison and may be sentenced up to life in prison.
McFadden was previously charged and convicted in state court with sexual assault of six separate children. However, his convictions were overturned on appeal due to a speedy trial violation, preventing any further state court prosecution. Upon learning this, the Federal Bureau of Investigation (FBI) Denver Division immediately launched an investigation into potential federal violations. McFadden was indicted by a federal grand jury in 2019, and rearrested on federal charges.
“The U.S. Attorney’s Office is honored to be a small part of bringing justice for the victims in this case. These victims, despite setbacks and delays, courageously faced their abuser and described convincingly the abuses they suffered more than ten years ago. Their bravery and resilience are inspiring. No matter how long it takes, or how difficult the process, our office will continue to seek justice for all victims,” said U.S. Attorney Cole Finegan.
The investigation in this case was conducted by the FBI Denver Division with substantial assistance from the Grand Junction Police Department and the 21st Judicial District Attorney’s Office. The prosecution was handled by Assistant United States Attorneys Jeremy Chaffin and Andrea Surratt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
CASE NUMBER: 19-CR-243
Fort Washakie Man Sentenced in Assault by Strangulation CaseRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that RELAND LEONARD -HIWALKER, A/K/A/ RELAND FERRIS, age 37, of Fort Washakie, Wyoming was sentenced by United States District Court Judge Alan B. Johnson on October 19, 2022, for assault by strangulation to 24 months’ imprisonment with three years of supervised release, and was ordered to pay a $100 special assessment.
The sentence was in connection with a May 10, 2022, assault in which FERRIS strangled the victim with his hands around the victim’s neck multiple times, leaving the victim unconscious on one occasion.
This crime was investigated by the Federal Bureau of Investigation with assistance from the Bureau of Indian Affairs. Assistant United States Attorney Kerry J. Jacobson prosecuted the case.
Case No. 22-CR-00071-ABJ
Former Adams County, Colorado Sheriff’s Deputy Sentenced for Child PornographyRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that CHRISTOPHER MARK HAENEL, 41, of Sheridan, Wyoming, was sentenced by United States District Court Judge Alan B. Johnson on November 7, 2022, for accessing with intent to view child pornography. Haenel was sentenced to 41 months in prison followed by 5 years of supervised release, and ordered to pay a $5,000 special assessment pursuant to the Victims of Sex Trafficking Act of 2015; a $500 special assessment and mandatory restitution of at least $3,000 per requesting victim pursuant to the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018; and a $100 special assessment.
Haenel, a retired Adams County, Colorado, sheriff’s deputy, came to the attention of law enforcement when Kik, a social media platform, reported that he was sharing child pornography using its service.
This case was investigated by the Homeland Security Investigations Internet Crimes Against Children Task Force (ICAC) and the Wyoming Division of Criminal Investigation ICAC. Assistant United States Attorney Christyne M. Martens prosecuted the case.
This case is part of the Project Safe Childhood initiative. Project Safe Childhood is a nationwide initiative to combat child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Learn more.
Case No. 22-00063-ABJ
Española man sentenced to two years in prison for involuntary manslaughter in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Douglas Smith, 71, of Española, New Mexico, was sentenced on Nov. 10 to two years and three months in prison. On June 18, 2021, a federal jury convicted Smith of involuntary manslaughter in Indian Country.
In the early morning hours of May 5, 2018, Smith shot a woman he believed was trying to break into his mother’s camper trailer. Smith walked outside his residence to investigate a motion sensor alarm, armed with a .22 caliber handgun. When he saw someone at the door of the camper trailer, he fired multiple rounds, one of which struck the victim in the upper left temple, killing her. No weapons or burglary tools were located near the victim.
The incident occurred on the Pueblo of Santa Clara and the victim was an enrolled member of the Santa Clara Pueblo. Smith is non-Indian.
Upon his release from prison, Smith will be subject to two years of supervised release.
The Santa Fe Resident Agency of the FBI investigated this case with assistance from the Española Police Department. Assistant U.S. Attorneys Novaline Wilson and Kyle Nayback prosecuted the case.
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Eastern District of California Completes Prosecution of 20 Defendants in DMV Corruption CasesRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney Phillip A. Talbert announced today the completion of prosecutions of 20 defendants in a series of DMV corruption cases charged in the Eastern District of California. Charges against the defendants included bribery of public officials, identity fraud, unauthorized access of computers, and conspiracies to commit those offenses. The defendants included corrupt DMV employees who took bribes, trucking school owners and affiliates who bribed them, and others who participated in the conspiracies. The criminal activities charged in these cases took place throughout California, including the Central Valley, Los Angeles Basin, and as far north as Eureka.
Defendants helped put unqualified commercial drivers on the nation’s highways operating large commercial vehicles even though those drivers had not passed the necessary written and driving tests. DMV employees accepted bribes to enter fraudulent test scores for applicants who had not even taken the tests or who could not pass them. Various trucking schools in California looked for corrupt DMV employees they could bribe to help failing or unqualified students get their commercial licenses anyway. In total, hundreds of fraudulent commercial driver license permits and licenses were issued as a part of these schemes, jeopardizing public safety.
Every defendant charged in the cases has now been convicted and sentenced, except for one who passed away prior to trial. The convicted defendants and their sentences are:
Defendant’s Name
Case Number
Sentence
Shawana Harris
2:17-cr-210 TLN
60 months
Robert Turchin
2:15-cr-161 WBS
51 months
Mangal Gill
2:15-cr-161 WBS
51 months
Andrew Kimura
2:15-cr-161 WBS
46 months & $7,500 fine
Lisa Terraciano
2:17-cr-187 KJM
40 months & $500 fine
Jagpal Singh, aka “Paul”
2:17-cr-210 TLN
39 months
Donald Freeman
2:17-cr-207 KJM
37 months
David Sun
2:17-cr-223 KJM
37 months
Kari Scattaglia
2:17-cr-187 KJM
32 months & $1,000 fine
Rahim Mahboob
2:17-cr-213 GEB
27 months & $58,500 fine
Damanpreet Singh
2:18-cr-89 GEB
24 months
Emma Klem
2:15-cr-139 GEB
23 months
Aaron Gilliam
2:17-cr-200 KJM
22 months
Kulwinder Dosangh Singh, aka“Sandhu” and “Sodhi”
2:15-cr-146 GEB
19 months
Juan Arturo Arroyo Gomez
2:17-cr-207 KJM
12 months
Pavitar Dosangh Singh
2:15-cr-161 WBS
10 months
Parminder Singh
2:17-cr-210 TLN
Time served with 11 months home confinement
Poya Khanjan
2:17-cr-212 JAM
Time served with 6 months home confinement & $9,500 fine
Ruvila “Ruby” Lima
2:17-cr-212 JAM
Time served & $500 fine
Tajinder Singh
2:17-cr-210 TLN
Time served with 7 months home confinement & $5,500 fine
Defendants Terraciano and Sun later had their sentences reduced during the COVID-19 pandemic under the CARES Act.
These cases were the product of an investigation by the California Department of Motor Vehicles, Office of Internal Affairs; the Federal Bureau of Investigation; Homeland Security Investigations; and the Department of Transportation, Office of Inspector General. Assistant U.S. Attorneys Rosanne L. Rust and Christopher S. Hales prosecuted the cases.
Easley Man Sentenced to More Than Three Years in Prison on Federal Gun ChargeRead the Press Release
GREENVILLE, SOUTH CAROLINA --- Virgil Anthony Delord Greggs, 45, of Easley, was sentenced to more than three years in federal prison after pleading guilty to being a felon in possession of a firearm.
Evidence presented to the Court showed that agents with the Carolina Regional Fugitive Task Force went to a hotel on Calhoun Memorial Highway to arrest Greggs on an outstanding warrant. While taking Greggs into custody, agents saw evidence of illegal drug use and secured a search warrant. While executing the warrant, they located a Taurus .380 pistol in a bookbag with Greggs’s belongings.
Greggs was indicted for being a felon in possession of a firearm and was detained without bond. Greggs pleaded guilty, and U.S. District Judge Donald C. Coggins, Jr. sentenced him to 41 months in federal prison to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
Greggs’s criminal history includes prior state convictions for assault and battery, criminal domestic violence, possession of crack cocaine and methamphetamine, and committing or attempting a lewd act on a child less than 16 years old.
This case was prosecuted as part of the joint federal, state, and local 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.
The case was investigated by the Bureau of Alcohol Tobacco Firearms & Explosives (ATF) and Carolina Regional Fugitive Task Force. Assistant U.S. Attorney Chris Schoen prosecuted the case.
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Drug Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that on November 10, 2022, ANGEL LUIS RODRIGUEZ, also known as “Lou Rock,” 45, last residing in Newington, was sentenced by U.S. District Judge Vanessa L. Bryant in Hartford to 120 months of imprisonment, followed by five years of supervise release, for trafficking cocaine. Judge Bryant also ordered Rodriguez to pay a $3,000 fine.
According to court documents and statements made in court, the Drug Enforcement Administration’s Hartford Task Force first identified Rodriguez’s connection to drug trafficking in January 2018 when a DEA undercover agent posing as a money broker picked up $118,070 in heroin trafficking proceeds from an individual who was subsequently identified as Rodriguez. In April 2018, the undercover agent picked up $130,950 in drug trafficking proceeds from Rodriguez’s associate, Ismael Roman, also known as “Poochie” and “Pete.” On May 1, 2019, after investigators observed Rodriguez and Roman meet at an associate’s apartment in Enfield, they stopped Roman’s car and seized $27,000 in suspected narcotics proceeds. That same day, investigators searched the associate’s apartment and seized more than $1.1 million in cash.
During the investigation, investigators learned that Rodriguez and Roman conspired to traffic cocaine, and that Rodriguez used tractor trailer drivers to transport narcotics to Connecticut. On December 1, 2020, Rodriguez arranged with a tractor trailer driver to pick up approximately 15 kilograms of cocaine in the Chicago area, transport the cocaine back to Connecticut, and then return to Chicago with payment for the cocaine. On December 3, 2020, the individual picked up 15 brick-shaped packages of cocaine, weighing a total of approximately 14.5 kilograms, at a truck stop in the Chicago area. Rodriguez and Roman were arrested the next day.
Rodriguez has been detained since his arrest on December 4, 2020. On July 15, 2022, he pleaded guilty to attempting to distribute, and to possess with intent to distribute, cocaine.
Roman, 43, of Hartford, pleaded guilty to conspiracy to distribute cocaine and, on October 13, 2022, was sentenced to 41 months of imprisonment.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The investigation was assisted by the DEA Chicago Field Division and the Newington Police Department.
This case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Dominican Drug Lord Pleads Guilty to Importing Tons of Cocaine into the United StatesRead the Press Release
SAN JUAN, Puerto Rico –Dominican drug lord Cesar Emilio Peralta-Adamez, also known as “El Abusador,” plead guilty to drug trafficking charges, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
On November 28, 2018, a Federal Grand Jury in the District of Puerto Rico returned an indictment against Peralta, charging him with conspiracy to import heroin and cocaine into the customs territory of the United States (Counts One and Two) and with distributing five kilograms or more of cocaine for purposes of unlawful importation into the United States (Count Three). Subsequently, Peralta was arrested in Colombia and extradited to Puerto Rico.
On November 4, 2022, Peralta plead guilty pursuant to a plea agreement to Count Two of the Indictment which charged that:
From in or about and between 2007 through June 2017, both dates being approximate and inclusive, from the countries of the Dominican Republic, Venezuela, Colombia, the Netherlands Antilles, Cesar Emilio Peralta, the defendant herein, did intentionally and knowingly combine, conspire, and agree with other persons known and unknown to the Grand Jury, to import into the customs territory of the United States, from places outside thereof, five (5) kilograms or more of a mixture or substance containing a detectable amount of cocaine, a Schedule II Controlled Substance. All in violation of Title 21, United States Code, Sections 952, 960, and 963.
As part of the proceedings, Peralta also entered a plea of guilty for Count One of an Indictment stemming from the Southern District of Florida (SDFL) which was transferred to the District of Puerto Rico for sentencing purposes. In SDFL, Peralta was charged with Distribution of Cocaine for purpose of unlawful importation.
Peralta was the leader of a transnational criminal organization (TCO) based in the Dominican Republic. This TCO transported multi-ton shipments of cocaine from Colombia and Venezuela to Puerto Rico and the continental United States.
“This conviction demonstrates the Department of Justice’s commitment to disrupting and dismantling transnational criminal organizations,” said U.S. Attorney Muldrow. “We will continue to maximize our multi-agency efforts to bring to justice those who disregard our laws and smuggle drugs into Puerto Rico and the continental United States.”
The defendant agreed to forfeit four properties and one business in the Dominican Republic that were controlled by Peralta:
1. Flow Gallery Lounge in Santo Domingo;
2. La Koura Club in Santo Domingo;
3. Aqua Club, in Santo Domingo;
4. Al Panino, in Santo Domingo; and
5. Peralta Investment, SA.
This prosecution is part of the Organized Crime Drug Enforcement Task Force (OCDETF), which identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The Attorney General designated Peralta as an OCDETF Consolidated Priority Organizational Target (CPOT) in 2017. The Attorney General’s (AG) Interagency CPOT list is comprised of leaders who exercise “command and control” of the elements of the most prolific drug trafficking/money laundering organizations that have the greatest impact on the United States’ illicit drug supply. The CPOT list represents the “most wanted” of the cartel leadership and ensures that the full capabilities of the U.S. government are focused, in a coordinated and clear manner, on a group of agreed-upon high-level targets.
Since 2017, the Peralta Drug Trafficking Organization (DTO) has been investigated by agents assigned to the Caribbean Corridor Strike Force (CCSF). The CCSF is a multi-agency OCDETF strike force comprised of federal and state law enforcement agencies, including the Drug Enforcement Administration (DEA), Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE), Federal Bureau of Investigation (FBI), U.S. Coast Guard Investigative Service (CGIS), and the U.S. Marshals Service, with the collaboration from the Puerto Rico Department of Public Safety, the Puerto Rico Police Bureau, FURA, U.S. Customs and Border Protection, U.S. Border Patrol, and the IRS.
Peralta’s DTO was also investigated by the U.S. Department of the Treasury. On August 20, 2019, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) identified Peralta and his Drug Trafficking Organization as significant foreign narcotics traffickers pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act).
The case is being prosecuted by Assistant U.S. Attorney Max J. Pérez-Bouret, Chief of the Transnational Organized Crime Section, and Assistant U.S. Attorney Jawayria Z. Auchter.
Peralta faces a possible sentence of 10 years and up to life in prison. The sentencing hearing is scheduled for May 5, 2023 at 2:00 pm before Judge Pedro A. Delgado Hernández.
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Daleville Man Sentenced to 130 Months in Prison Following Second Conviction for Possessing Child PornographyRead the Press Release
Montgomery, Alabama – Today, Nathan Alan Westbrook, a 44-year-old resident of Daleville, Alabama, received a 130-month prison sentence for possession of child pornography, announced United States Attorney Sandra J. Stewart.
According to court records, in 2015, Westbrook was convicted in federal court for possessing child pornography. At that time, he received a 33-month prison sentence. Westbrook completed that sentence in September of 2017 and was under the supervision of the United States Probation Office. In December 2021, after deception was detected during a polygraph examination, Westbrook’s probation officer began to suspect that Westbrook had been viewing child pornography. Westbrook’s internet-accessible devices were then seized from his Daleville residence pursuant to the terms of his supervised release. Analysis of the devices confirmed that Westbrook had collected images and videos of children who were engaging in sexually explicit conduct.
The probation officer then filed a petition to revoke Westbrook’s supervised release. Westbrook was arrested shortly thereafter. In June of 2022, based on the probation officer’s findings, a federal grand jury indicted Westbrook for possession of child pornography. Westbrook pleaded guilty to the new charge on August 16, 2022. In his plea agreement, Westbrook specifically admitted to using the dark web to view child pornography and that “some images were of prepubescent minors who had not yet attained 12 years of age.” Images were provided to the National Center for Missing and Exploited Children (NCMEC) to identify victims.
The judge sentenced Westbrook to 120 months on the new charge and ordered this sentence to run consecutively to the 10-month sentence he received for violating the terms of his supervised release. Following his prison sentence, Westbrook will be on supervised release for the remainder of his life. There is no parole in the federal system. The judge also ordered that Westbrook pay $60,000.00 to identifiable victims that have requested restitution payments.
This case was investigated by the Middle District of Alabama’s United States Probation Office, with assistance from the FBI and NCMEC. Assistant United States Attorney MaryLou E. Bowdre prosecuted the case.
Convicted Felon Charged with Federal Firearms OffensesRead the Press Release
BOSTON – A previously convicted felon was indicted by a federal grand jury in Worcester today for allegedly manufacturing and selling firearms – including ghost guns – and unlawfully possessing ammunition.
Mickie Simmons, 31, of Brookfield, was indicted on one count of conspiracy to deal firearms without a license, one count of dealing firearms without a license and two counts of being a felon in possession of ammunition. Simmons will appear in federal Court in Worcester on Nov. 15, 2022. Simmons was previously arrested and charged by criminal complaint on May 25, 2022.
According to the charging documents, on two separate occasions between March and May 2022, Simmons sold a confidential source ammunition and ghost guns – firearms that have been manufactured by an individual and not by a firearms manufacturing company. It is alleged that during a later search of Simmons’ residence, at least five ghost guns, including an AR-15 short-barrel rifle, 15 ghost gun kits, numerous rounds of ammunition, components of assault-style rifles, several other firearms and more than $25,000 in cash was seized.
Due to a 2014 state conviction for breaking and entering, larceny and conspiracy for which he was sentenced to 18 months in prison, Simmons is prohibited from possessing firearms and ammunition.
The charges of conspiracy to deal firearms without a license and dealing firearms without a license each provide for a sentence of up to five years in prison, three years of supervised release and a fine of up to a $250,000. The charges of being a felon in possession of ammunition each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to a $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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement today. Assistant U.S. Attorneys Danial E. Bennett and Brendan O’Shea of Rollins’ Worcester Branch Office are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Construction Company Owner Pleads Guilty to Bid Rigging and BriberyRead the Press Release
A construction company owner became the third person to plead guilty for his role in a bid-rigging and bribery scheme involving California Department of Transportation (Caltrans) improvement and repair contracts.
According to a plea agreement filed today in the U.S. District Court for the Eastern District of California in Sacramento, Bill R. Miller engaged in a conspiracy, from April 2015 through at least December 2019, to thwart the competitive bidding process for Caltrans contracts on numerous occasions in order to ensure that companies controlled by co-conspirators or himself submitted the winning bid and would be awarded the contract. As part of the conspiracy, Miller recruited others to submit sham bids on Caltrans contracts, including co-conspirator William D. Opp, a former business partner who pleaded guilty in the case on Oct. 3, 2022.
In addition to pleading guilty to bid rigging, Miller also pleaded guilty for paying bribes to Choon Foo “Keith” Yong, the former Caltrans contract manager who managed the contracts involved on behalf of Caltrans, a California state agency that receives significant federal funding. On April 11, 2022, Yong pleaded guilty to his role in the bid-rigging and bribery scheme. According to Yong’s plea agreement, Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits Yong received exceeded $800,000.
“This construction company owner is the third person to plead guilty and the highest-level contractor to face justice in the Antitrust Division’s investigation into bribery and bid rigging at Caltrans,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Transportation infrastructure is critical to our nation, so punishing bid-rigging and bribery schemes that target public works remains a top priority for the division and its Procurement Collusion Strike Force partners.”
“California has many government projects that obligate taxpayer money, making it important to root out corruption and protect the integrity of the contracting process,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “My office is committed to investigating and prosecuting those who attempt to bribe public officials or who engage in other acts of public corruption that undermine the public’s confidence in the integrity of the government.”
Miller is scheduled to be sentenced on Feb. 6, 2023, by U.S. District Judge Kimberly J. Mueller. For the bid-rigging conspiracy, Miller faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $1 million or twice the gross pecuniary loss resulting from the offense. For bribery concerning programs receiving federal funds, Miller faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $250,000 or twice the gross pecuniary loss resulting from the offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and U.S. Sentencing Guidelines. In addition to his guilty plea, Miller has agreed to pay restitution.
Today’s guilty plea is the result of a joint investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California and the FBI’s Sacramento Division as part of the Justice Department’s Procurement Collusion Strike Force (PCSF).
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending go to https://www.justice.gov/procurement-collusion-strike-force.
Construction Company Owner Pleads Guilty to Bid Rigging and BriberyRead the Press Release
SACRAMENTO, Calif. — A construction company owner became the third person to plead guilty for his role in a bid-rigging and bribery scheme involving California Department of Transportation (Caltrans) improvement and repair contracts.
According to a plea agreement filed today in the U.S. District Court for the Eastern District of California in Sacramento, Bill R. Miller engaged in a conspiracy, from April 2015 through at least December 2019, to thwart the competitive bidding process for Caltrans contracts on numerous occasions in order to ensure that companies controlled by co-conspirators or himself submitted the winning bid and would be awarded the contract. As part of the conspiracy, Miller recruited others to submit sham bids on Caltrans contracts, including co-conspirator William D. Opp, a former business partner who pleaded guilty in the case on Oct. 3, 2022.
In addition to pleading guilty to bid rigging, Miller also pleaded guilty for paying bribes to Choon Foo “Keith” Yong, the former Caltrans contract manager who managed the contracts involved on behalf of Caltrans, a California state agency that receives significant federal funding. On April 11, 2022, Yong pleaded guilty to his role in the bid-rigging and bribery scheme. According to Yong’s plea agreement, Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits Yong received exceeded $800,000.
“This construction company owner is the third person to plead guilty and the highest-level contractor to face justice in the Antitrust Division’s investigation into bribery and bid rigging at Caltrans,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Transportation infrastructure is critical to our nation, so punishing bid-rigging and bribery schemes that target public works remains a top priority for the division and its Procurement Collusion Strike Force partners.”
“California has many government projects that obligate taxpayer money, making it important to root out corruption and protect the integrity of the contracting process,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “My office is committed to investigating and prosecuting those who attempt to bribe public officials or who engage in other acts of public corruption that undermine the public’s confidence in the integrity of the government.”
Miller is scheduled to be sentenced on Feb. 6, 2023, by U.S. District Judge Kimberly J. Mueller. For the bid-rigging conspiracy, Miller faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $1 million or twice the gross pecuniary loss resulting from the offense. For bribery concerning programs receiving federal funds, Miller faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $250,000 or twice the gross pecuniary loss resulting from the offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and U.S. Sentencing Guidelines. In addition to his guilty plea, Miller has agreed to pay restitution.
Today’s guilty plea is the result of a joint investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, and the FBI’s Sacramento Division as part of the Justice Department’s Procurement Collusion Strike Force (PCSF). Assistant U.S. Attorney Lee S. Bickley and Antitrust Division Trial Attorneys Christopher Carlberg and Tai Snow Milder are prosecuting the case.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: Global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending go to https://www.justice.gov/procurement-collusion-strike-force.
Connecticut Man Sentenced to 84 Months of Imprisonment for Drug Distribution from Rutland ApartmentRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Brownswell Cedano (a.k.a. “Twin,” “T,” and “J”), 28, of Hartford, Connecticut was sentenced to 84 months of imprisonment on November 10, 2022 in United States District Court in Rutland by Chief Judge Geoffrey W. Crawford. Cedano previously pleaded guilty to possession with intent to distribute cocaine base. Judge Crawford also ordered that Cedano serve three years of supervised release by the U.S. Probation Office after he serves his term of imprisonment.
Cedano’s three codefendants, Ralph Mariani, of West Hartford, Connecticut, Rashane Wedderburn, of Hartford, Connecticut, and Jasmine Wendell, of West Rutland, Vermont, have all pleaded guilty to drug trafficking offenses. Chief Judge Crawford previously sentenced Mariani to 70 months’ imprisonment. Wedderburn and Wendell are awaiting sentencing.
According to court records, on November 18, 2020 law enforcement executed a federal search warrant for an apartment at Traverse Place in Rutland, Vermont. Cedano, Mariani, Wedderburn, and Wendell were all present at the time of this search. Law enforcement seized approximately 50 grams of powder cocaine, 34 grams of cocaine base, 69 bags of fentanyl, 52 Oxycodone pills, and four firearms, including a loaded 9mm pistol located on the living room couch. Law enforcement also seized over six thousand dollars in cash: $1,880 from Cedano, $2,380 from Mariani, and $2,134 from Wedderburn.
According to court records, Cedano’s offense involved drug trafficking for profit, possession of firearms, violence, and threats of violence, including his participation of an assault of a female drug addict by Mariani to coerce her into dealing drugs for them in the Rutland area. In addition, Cedano was also trafficking heroin and cocaine base in Orleans County, Vermont. Finally, Cedano was on probation for a Connecticut drug offense while he was traveling to Vermont to sell drugs.
United States Attorney Nikolas Kerest commended the joint efforts of the Vermont State Police (Narcotics Investigation Unit), the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Rutland City Police, and Homeland Security Investigations of the Department of Homeland Security in this investigation. This case was prosecuted by Assistant U.S. Attorney Joseph Perella. Cedano is represented by Allan Sullivan, Esq. of Manchester, Vermont.
Concord Man Arrested for Possession of Child Sexual Abuse MaterialsRead the Press Release
CONCORD – Scott Wilkinson, 38, of Concord, New Hampshire, was charged in a criminal complaint today with one count of possession of child pornography, United States Attorney Jane E. Young announced today.
Wilkinson was arrested on Friday, November 11, 2022, and made an initial court appearance in the District of New Hampshire today at 3:00 pm. The defendant was detained and a detention hearing has been scheduled for November 17, 2022 at 2:30 pm.
The criminal complaint filed in court alleges that Wilkinson traveled from New Hampshire to New Jersey to engage in sexual intercourse with a 13-year-old female victim and used his phone to video the act which occurred in the back of his car. In addition, internet activity reported by Google, Inc. indicated that files depicting apparent child sexual abuse materials were uploaded to Wilkinson’s Google Drive account from the IP address associated with his residence in Concord.
The charges in the criminal complaint are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Federal Bureau of Investigation with assistance from the Concord Police Department and the New Hampshire Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant U.S. Attorneys Mark Zuckerman and Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Columbia Man Pleads to Federal Firearm and Drug ChargesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Dakota F. Brown, 36, of Columbia, pleaded guilty in federal court to being a felon in possession of a firearm and ammunition, and to possession with intent to distribute heroin, fentanyl, methamphetamine, and amphetamine.
Evidence presented to the court showed that on January 4, 2021, a Richland County Sheriff’s Department deputy stopped Brown’s vehicle. Brown exited the vehicle and removed a fanny pack from across his chest, laying it in the driver’s seat before walking back to talk to the deputy. The deputies smelled marijuana and searched the vehicle. The search revealed a loaded 9mm firearm, heroin, fentanyl, methamphetamine, and amphetamine within the fanny pack. Brown admitted that the items were his and that he had bought the gun off the street in December.
A ballistics analysis through the National Integrated Ballistic Information Network (NIBIN) linked the firearm to shell casings recovered from December 2020 shooting in Richland County. Local authorities have arrested another individual for that shooting and have no evidence linking Brown to the incident. NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
Brown, who has been in custody since his January 2021 arrest, is prohibited from possessing firearms and ammunition based upon his prior felony state convictions, which include strong arm robbery, possession of crack cocaine, criminal domestic violence of a high and aggravated nature, and possession with intent to distribute marijuana. Additionally, at the time of this incident, Brown was on federal supervised release after serving a 108 months sentence from a 2011 federal felon in possession of a firearm conviction. As a result of the January 4, 2021, arrest, Brown’s term of federal supervised release was revoked and he was sentenced to 24 months imprisonment, which is separate from the sentence he will receive as a result of his guilty plea to these current charges.
Brown faces a maximum penalty of 10 years in federal prison and a fine of $250,000 on the firearm/ammunition charge and a maximum penalty of 30 years imprisonment and a fine of $2,000,000 on the drug charge. After service of the term of imprisonment, Brown will also face a term of supervised release of up to six years. United States District Judge Sherri A. Lydon accepted the guilty plea and will sentence Brown after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Richland County Sheriff’s Department. Assistant U.S. Attorney Stacey D. Haynes is prosecuting the case.
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Colombian National Living in Illinois Charged with Unlawful Transportation of Foreign Nationals in VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Sebastian Buitrago-Valero, 23, of Chicago, Illinois, was indicted by a federal grand jury on November 10, 2022 on a charge of unlawfully transporting individuals he knew to have entered the United States illegally. Buitrago-Valero was arraigned on that charge this afternoon in United States District Court in Burlington, and he entered a plea of not guilty. The defendant remains detained pending further proceedings pursuant to a prior detention order issued by U.S. Magistrate Judge Kevin J. Doyle.
According to public documents in the case, on the evening of October 27, 2022, Border Patrol Agents were notified by the Royal Canadian Mounted Police that two individuals had just entered the United States near Ballard Road—a remote and rural location in the town of Highgate Center, Vermont. A United States Border Patrol Agent responded to the area and observed a blue Hyundai sedan with an out-of-state registration stop at the intersection of Ballard Road and Rollo Road, approximately one-half mile south of the international border. The agent then observed two individuals emerge from a ditch near the intersection and enter the sedan. The agent stopped the vehicle and identified its driver as Sebastian Buitrago-Valero. The agent determined that Buitrago-Valero was a Colombian citizen who had been arrested upon illegally entering the United States in November 2021, but he was thereafter released into the United States pending immigration court proceedings. The agent identified the two passengers in the vehicle and determined both were Colombian citizens who had just entered the United States illegally from Canada. Agents later determined that both passengers had also illegally entered the United States and been arrested earlier in 2022.
The U.S. Attorney’s Office emphasizes that an indictment is an accusation only and that the defendant is presumed innocent until and unless proven guilty. As currently charged, Buitrago-Valero would face up to 5 years of imprisonment if convicted. Any sentence in the case will be advised by the United States Sentencing Guidelines.
Assistant U.S. Attorney Matthew Lasher represents the United States in this case. Buitrago-Valero is represented by Assistant Federal Public Defender Mary Nerino.
Clearfield County Man Pleads Guilty to Drug and Gun Charges in DEA-Led InvestigationRead the Press Release
PITTSBURGH, PA – A former resident of Woodland, Pennsylvania, pleaded guilty in federal court to violation of federal narcotics and firearms laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
Justin Zeruth, age 35, pleaded guilty on Thursday to one count of conspiracy to distribute and possesses with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine and one count of possession of a firearm by a convicted felon before United States District Judge Christy Criswell Wiegand. Zeruth was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that Zeruth was a distributor who purchased at least a pound of methamphetamine from Hillebrand that he then redistributed. On March 24, 2021, Zeruth, a felon precluded from possessing a firearm, was stopped while driving a vehicle. Officers searched the vehicle and seized a firearm.
Judge Wiegand scheduled sentencing for Zeruth on March 8, 2023, at 10:00 a.m. The law provides for a sentence of not less than five years to a maximum of forty in prison, a fine not to exceed $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The court ordered that the defendant remain detained pending sentencing.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion
Borough Police Department.This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
CityXGuide Owner Sentenced to 8+ Years in Prison for Reckless Disregard of Sex Trafficking, Racketeering ConspiracyRead the Press Release
The owner of CityXGuide.com – a leading source of online ads for sex trafficking victims – was sentenced today to more than eight years in federal prison and ordered to forfeit more than $15 million in assets, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Wilhan Martono, 48, was arrested on June 19, 2020, the same day CityXGuide and its sister websites were seized by Homeland Security Investigations.
He pleaded guilty on Aug. 24, 2021 to one count of promotion of prostitution and reckless disregard of sex trafficking and one count of conspiracy to engage in interstate transportation in aid of racketeering enterprises - facilitating prostitution. The plea was the first ever entered under the Allow States and Victims to Fight Online Sex Trafficking Act (FOSTA), the 2018 law that allows the federal government to prosecute websites that facilitate sex trafficking.
He was sentenced Monday to 97 months in federal prison by Chief U.S. District Judge David Godbey, who also ordered him to forfeit more than $15 million in assets, including more than $2 million in silver bullion and almost $1 million in cryptocurrency.
“The owner of CityXGuide intentionally disregarded the blatant sexual abuse occurring on his platform. He profited off of the exploitation of vulnerable women and children, just like the traffickers advertising them on his website did,” said U.S. Attorney Chad Meacham. “Human trafficking is one of the most despicable crimes we prosecute. The Justice Department and its partners will not rest until sites like this are eliminated and their creators brought to justice.”
“Thanks to the investigative efforts of our law enforcement partners on the HSI Dallas led North Texas Trafficking Task Force, the largest digital market place for sex trafficking and prostitution no longer exists,” said Lester R. Hayes Jr., Special Agent in Charge of Homeland Security Investigations Dallas. “This defendant’s greed and trafficking of those who were exploited through the commercial sex websites he created has cost him his freedom and the forfeiture of the criminal proceeds he obtained while committing these crimes. HSI will not relent until those who conspire in these illegal activities are brought to justice.”
“Today’s sentencing illustrates the Secret Service’s steadfast commitment to investigating financial crimes that take place in the ever-evolving cyber domain,” said Secret Service Special Agent in Charge of the Dallas Field Office William Smarr. “We are thankful for the tireless work of our local, state, and federal law enforcement partners as we worked together to bring this case to justice.”
According to court documents, Mr. Martono admitted that he created, owned, and operated CityXGuide and a suite of related websites, including Backpage.co, CAPleasures.com, and BodyRubShop.com, among others.
He registered the domain names for several of the sites on April 8, 2018 — just one day after the feds shut down Backpage.com, then the internet’s leading source of commercial sex advertisements. Like Backpage, Mr. Martono’s sites allowed users, including traffickers, to post hundreds of thousands of commercial sex advertisements worldwide.
In plea papers, Mr. Martono admitted that he turned a blind eye to the illegal sex trafficking occurring on CityXGuide.
Despite terms of use purportedly forbidding the advertisement of illegal sexual services, CityXGuide and its affiliated websites allowed brothels, pimps, and prostitutes to post hundreds of thousands of advertisements for sexual services, which users could then filter by geography and preference. The sites allowed advertisers to select from a pre-populated list of “intimate activities,” then add nude photographs, descriptions, work hours, methods of payment, and contact information for the women being advertised. In order to secure premium placement, the websites offered paid “upgrades,” which could be purchased in Bitcoin or in exchange for gift cards from Walmart, Best Buy, Amazon, and other retailers.
Mr. Martono then used CardCash, a third party gift card reseller, to exchange these gift cards for U.S. currency. He used a VPN to mask his IP address while conducting these CardCash transactions, then funneled proceeds though a network of business and personal bank accounts.
Despite receiving numerous emails from federal, state, and local law enforcement informing him that CityXGuide and its companion websites were being used to facilitate sex trafficking and child exploitation, he continued to operate those sites in the United States and around the world.
In court documents, prosecutors estimated that Mr. Martono netted more than $21 million off his websites, which users described as “taking over from where Backpage left off.”
The North Texas Trafficking Task Force conducted the investigation, led by Homeland Security Investigations’ Dallas Field Office, the United States Secret Service’s Dallas Field Office, and the Colleyville Police Department, with assistance from HSI’s El Paso and San Jose Field Offices as well as the Texas Department of Public Safety. Assistant United States Attorneys John de la Garza, Sid Mody (fmr), and Rebekah Ricketts (fmr) prosecuted the case.
Buffalo Man Charged with Conspiracy to Possess and Smuggling Machine GunsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Angel Flores, 34, of Buffalo, NY, was arrested and charged by complaint with conspiracy to possess machine guns and smuggling machine guns, which carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that according to the complaint, on October 27, 2022, Customs and Border Protection officers intercepted a parcel, sent from China, at the FedEx facility at the Memphis International Airport in Memphis, Tennessee. The contents of the parcel were described as “plastic spring buckles used for clothes,” but an examination of the parcel found that it actually contained parts for several Machine Gun Conversion Devices (MCDs), which were concealed in a bag comingled among black plastic drawstring clips. The parcel, addressed to a residence on Sweet Avenue in Buffalo, was seized and turned over to Homeland Security Investigations. Subsequent investigation determined Flores resides at the Sweet Street address.
On November 9, 2022, an investigator delivered the parcel, without the MCDs, to the front steps of the Sweet Avenue residence. A short time later, Flores took the parcel inside before exiting the residence, at which time he was taken into custody.Flores made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was detained.
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Bristol Man Sentenced to 70 Months in Prison for Trafficking Cocaine from Puerto Rico to ConnecticutRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that on November 10, 2022, JORGE FREYTES, 37, of Bristol, was sentenced by U.S. District Judge Victor A. Bolden in Bridgeport to 70 months of imprisonment, followed by four years of supervised release, for trafficking cocaine from Puerto Rico to Connecticut through the U.S. Mail.
According to court documents and statements made in court, the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service developed evidence regarding a drug trafficking organization that was sending USPS parcels containing kilograms of cocaine from Puerto Rico to Connecticut and Massachusetts. Between July and December 2018, law enforcement intercepted and seized five suspect parcels that were being mailed to addresses in Bristol, Meriden and Burlington, Connecticut, and in Worcester, Massachusetts. All five of the suspect parcels contained multiple kilogram-sized bricks of cocaine. On several occasions, investigators conducted surveillance of the delivery of suspect parcels and the scheduled delivery of seized parcels. During surveillance, investigators observed Freytes and others picking up or attempting to pick up parcels that had been seized. The investigation revealed that the cocaine was being sent from Puerto Rico by another member of the conspiracy
On January 9, 2019, investigators arrested Freytes and other members of this drug trafficking organization and seized approximately 2.5 kilograms of cocaine, items used to process and package narcotics, and more than $150,000 in cash.
Freytes has been detained since November 1, 2021, after his bond was revoked following his arrest on narcotics distribution charges while he was awaiting trial in his federal case. On November 4, 2021, he pleaded guilty in federal court to conspiracy to distribute 500 grams or more of cocaine. His state charges are pending.
This case is being investigated by the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service. The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The DEA Puerto Rico Caribbean Corridor Strike Force and U.S. Postal Inspection Service, Newark Division, San Juan (P.R.) Office, have assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Beebe Man Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
LITTLE ROCK—A Beebe man was sentenced yesterday afternoon for production of child pornography. United States District Court Judge Lee P. Rudofsky sentenced Joshua Sweat, 30, to 25 years in federal prison.
In April 2019, police in Allen, Texas, notified the Little Rock Police Department that they had located messages between an individual they were investigating in Texas and Joshua Sweat, who lived in Arkansas. In the messages, Sweat stated he was caring for a “little boy” each day and began sending nude images of the child, who appeared to be approximately three years old.
Law enforcement located and interviewed Sweat, who told them he babysat locally and had access to small children. Sweat confessed to law enforcement that he had images of child sexual abuse on his phone that included children under the age of 10 engaging in oral and anal intercourse. Sweat also admitted to taking photos of the victim and texting them to others.
Sweat was indicted in May 2019 and pleaded guilty in May 2022. In addition to the prison term, Sweat was sentenced to a lifetime of supervised release following his imprisonment. The investigation was conducted by the FBI; the Allen, Texas Police Department; and the Little Rock Police Department. The case was prosecuted by Assistant United States Attorney Kristin Bryant.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Athens Man Who Fired at Repo Workers and Fled Arrest Sentenced to Maximum Prison TermRead the Press Release
ATHENS, Ga. – An Athens resident with a violent criminal history who shot at two people attempting to repossess a vehicle and then led police on a high-speed chase was sentenced to the maximum prison term allowed under federal guidelines for illegally possessing a firearm.
Ceddrick Demon Mercery aka Stunt, 30, of Athens, Georgia, was sentenced to serve 120 months in prison by U.S. District Judge C. Ashley Royal on Nov. 9 after he previously pleaded guilty to possession of a firearm by a convicted felon. There is no parole in the federal system.
“Prosecuting repeat offenders who are responsible for the greatest gun violence in our communities is our office’s highest priority,” said U.S. Attorney Peter D. Leary. “Working with our law enforcement partners, we will continue to hold convicted felons with violent pasts accountable at the federal level when they possess, or especially use, a firearm.”
“Career criminals who carry guns are a threat to the safety of our neighborhoods,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This case is another example of how the FBI and our law enforcement partners in the Project Safe Neighborhoods program are dedicated to keeping the sanctity and security of our communities a priority.”
“Ceddrick Mercery is a career violent offender who is now removed from the streets of Athens and our community is safer for it,” said Chief Jerry Saulters, Athens-Clarke County Police Department. “I want to thank the U.S. Attorney’s Office and FBI for their assistance in this case. It is important that we continue to work with our state and federal partners to make Athens safe.”
According to court documents, two individuals seeking to lawfully repossess a Honda Accord located on Loblolly Road in Athens on Sept. 23, 2020, were nearly struck by the same vehicle as Mercery sped away from them driving the car. Mercery then drove toward Freeman Drive, made a wide right turn, stopped, rolled down the window and fired three shots at the individuals, who took cover from the gunshots and were not struck. An Athens-Clarke County Police Department (ACCPD) officer spotted the Honda Accord being driven by Mercery on Commerce Road and attempted to pull him over. Mercery fled at a high rate of speed through a residential complex and then abandoned the car, running away. Officers found heroin and methamphetamine in the vehicle. The following day, a loaded .40 caliber pistol was found discarded in front of an apartment building on College Avenue, which was along the route that Mercery had driven while fleeing apprehension. Ballistics tests confirmed this gun had been used in the shooting
FBI and ACCPD tracked Mercery to an apartment complex on Berlin Street and took him into custody on Oct. 26. Prior to his arrest, Mercery was armed with a pistol and was pacing inside the apartment, voicing displeasure that the police were outside the apartment. Mercery was taken into custody without incident. Agents found a loaded Glock .40 caliber pistol with an extended magazine and a laser sight inside the apartment. Mercery’s cell phone was also located inside the apartment; it had been broken and placed in a toilet. Mercery has a lengthy criminal history which prohibits him from possessing a firearm, including prior felony convictions for hit and run, possession of cocaine and aggravated stalking.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities and measuring the results.
The case was investigated by the FBI Athens Middle Georgia Safe Streets Gang Task Force, Northeast Georgia Regional Drug Task Force and the Athens-Clarke County Police Department Gang Unit.
Assistant U.S. Attorney Mike Morrison prosecuted the case.
11 November 2022
Maryland U.S. Attorney Erek L. Barron Announces End of Year Strategies to Reduce Violent CrimeRead the Press Release
Baltimore, Maryland – At a press conference yesterday, U.S. Attorney Erek L. Barron, joined by federal, state, and local partners announced new initiatives to fight violent crime in Maryland. These efforts build on previous successes and are intended to prevent and reduce violent crime in Baltimore City. Partners at yesterday’s announcement included:
U.S. Attorney Erek L. Barron; Governor Larry Hogan; Colonel Woodrow W. “Jerry” Jones III, Superintendent, Maryland State Police; Colonel Kevin Anderson, Chief, Maryland Transportation Authority Police; Colonel Joseph Conger, Baltimore County Police Department; and
Deputy Chief Gerard Fleming, Anne Arundel County Police Department.This announcement was also following consultation with federal, state, and local partners including Baltimore Mayor Brandon Scott and Baltimore Police Commissioner Michael Harrison.
U.S. Attorney Erek Barron stated, “I have consulted and discussed these plans with Baltimore Mayor Brandon Scott, who provided ideas regarding strategy and implementation. I have also been in close communication with Baltimore Police Commissioner Michael Harrison who welcomed these new initiatives and our ongoing partnership.”
As discussed at the press conference, as part of our continued partnership with federal, state, and local law enforcement, we are initiating a Feeder Route Task Force, which draws upon the federal resources of the United States Attorney’s Office in tandem with the Maryland State Police, the Maryland Transportation Authority Police, Anne Arundel County Police and Baltimore County Police. If you are driving with a gun or drugs on a Maryland road know that task force members will be on the lookout. Prosecutors in the United States Attorney’s Office will screen any related traffic stops for potential federal prosecution.
One of the cornerstones of the Department of Justice’s Project Safe Neighborhoods is Community Outreach and Prevention. U.S. Attorney Barron, Governor Hogan, and Secretary Green of the Department of Public Safety and Correctional Services also announced a new strategy focusing on a “knock and talk” initiative involving unannounced home visits to parolees by a team that includes law enforcement and a social worker, to provide opportunities for education and job training and to connect parolees and their families with needed services while in their communities.
In addition, the U.S. Attorney’s Office is sponsoring and attending reentry events for returning citizens; participating in call-ins for those at risk of re-offending; and engaging the community members and youth through gang and internet safety training.
“All of us in law enforcement are committed to trying new and innovative ways to reduce violent crime. As we end 2022, we must continue to focus on preventing and reducing violent crime,” U.S. Attorney Barron concluded.
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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Baltimore Man Pleads Guilty to Federal Charge for Illegal Possession of a Firearm in a School ZoneRead the Press Release
Baltimore, Maryland – Malcolm Goods, age 31, of Baltimore, Maryland, pleaded guilty yesterday to a federal charge for illegal possession of a firearm within a school zone.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Goods’ guilty plea, on September 12, 2021, Baltimore Police officers received a call for an armed person at the intersection of Pennsylvania and Cumberland Avenues in Baltimore. The person was carrying a gun, wearing a white construction hat and orange safety vest, and riding a bicycle. An officer monitoring a closed-circuit television camera located an individual, later identified as Goods, matching that description in the 600 block of Cumberland Avenue.
When officers arrived on scene, Goods got on a bicycle and rode on the sidewalk for a few blocks. Near the 1600 block of N. Carey Street, officers pulled over next to Goods told Goods to stop. They needed to speak with him because riding his bicycle on the sidewalk was prohibited by a local ordinance. The area is about one block away from Sandtown-Winchester Achievement Academy, a Baltimore public elementary and middle school. Goods initially agreed to stop, then rode away on the bicycle.
After briefly losing sight of Goods, officers found him knocking on someone’s front door and placed him into custody. An officer saw the grip of a firearm in Goods’ waistband and recovered a.40 caliber pistol with an obliterated serial number, loaded with 15 rounds of ammunition. During his arrest, including after he was read his Miranda rights, Goods made several spontaneous, incriminating statements which indicated that he was aware that he possessed a firearm.
Goods and the government have agreed that, if the Court accepts the plea agreement, Goods will be sentenced to two years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for March 3, 2023 at 2:00 p.m.
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.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Brandon Moore and Special Assistant U.S. Attorney Sarah Simpkins, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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10 November 2022
Wormleysburg Man Sentenced for Theft from Federal Courthouse Construction SiteRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christopher Gontaryk, age 47, of Wormleysburg, Pennsylvania, was sentenced yesterday by U.S. District Court Judge Jennifer P. Wilson, to 18 months of imprisonment, to be followed by a three-year term of supervised release. Judge Wilson also ordered Gontaryk to pay $9,919.61 in restitution.
According to United States Attorney Gerard M. Karam, Gontaryk stole $9,919.61 worth of construction materials belonging to the United States from the site of the U.S. Courthouse being constructed in Harrisburg, Pennsylvania on October 11, 2021. The following day, he sold copper and brass construction materials that he had stolen at a metal scrapyard located in Pottsville, PA.
Gontaryk also faces an additional pending charge for stealing and retaining construction materials from the courthouse construction site in March 2022. Gontaryk has pleaded not guilty to that offense and is awaiting trial.
The case was investigated by the U.S. Department of Homeland Security, Federal Protective Service. Assistant U.S. Attorney Ravi Romel Sharma prosecuted the case.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Wood County Constable Federally Indicted for Use of Excessive ForceRead the Press Release
SHERMAN, Texas – A federal grand jury has returned an indictment charging an East Texas law enforcement official with federal violations in the Eastern District of Texas.
Kelly Jason Smith, 46, was named in the indictment returned by a federal grand jury on Nov. 10, in Sherman, Texas, charging him with deprivation of rights under color of law.
According to the indictment, on July 25, Smith, the Wood County Precinct 2 Constable, directed his police dog to bite a suspect who did not pose a threat that warranted use of the police dog. These actions resulted in unnecessary bodily injury to the suspect.
If convicted, Smith faces up to 10 years in federal prison.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Brit Featherston for the Eastern District of Texas and FBI Acting Special Agent in Charge James J. Dwyer made the announcement.
The FBI Dallas Field Office is investigating the case and the case is being prosecuted by Assistant U.S. Attorney Tracey Batson for the Eastern District of Texas.
A grand jury 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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Wichita Man Sentenced for Felon in Possession of a FirearmRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced on November 8, 2022 to 24 months in prison for illegally possessing a firearm. On August 22, 2022, William McGold, 47, of Wichita pleaded guilty to one count of possession of a firearm by a prohibited person.In April 2021, Sedgwick County Sheriff’s deputies pulled McGold over in a traffic stop. McGold was unable to produce a driver’s license, and deputies discovered that the vehicle he was driving had been reported as stolen. McGold was arrested, and the vehicle was searched. During the search, deputies discovered a safe under the driver’s seat, and a key to the safe was located on McGold’s key chain. When the safe was opened, deputies found a loaded firearm, which McGold admitted was his.
McGold was prohibited from possessing a firearm due to his prior felony conviction.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Sedgwick County Sheriff’s Department investigated the case.
Assistant U.S. Attorney Alan Metzger prosecuted the case.
OTHER SENTENCINGS
Raul Galindo-Martha, 41, of Mexico, pleaded guilty to re-entry of a removed alien and was sentenced to 46 months. U.S. Immigration and Customs Enforcement (ICE) investigated the case. Assistant U.S. Attorney Alan Metzger prosecuted the case.
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Waxahachie Woman Charged in $1.2 Million Paycheck Protection Program, Economic Injury Disaster Loan Program FraudRead the Press Release
A Waxahachie woman who allegedly defrauded pandemic-era financial programs out of more than $1.2 million has been federally charged, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Annette Bryant, 63, was indicted last Tuesday on one count of wire fraud, eight counts of making false statements to a bank, and one count of engaging in monetary transactions in property derived from unlawful activity. She made her initial appearance before U.S. Magistrate Judge Toliver on Monday.
According to the indictment, Ms. Bryant – the sole owner and operator of a number of limited liability companies, including Processing Services, Inspirational Tax Services LLC, Neighborhood TX Inspections LLC, JJ&JJ Remodeling and Roofing LLC, and JAM Business and Tax Services – fraudulently applied for and obtained six Paycheck Protection Program (PPP) loans totaling $848,586 and four Economic Injury Disaster Loan (EDIL) Program loans totaling $359,500. She also allegedly attempted to obtain two additional PPP loans worth $411,160 that were never funded.
The indictment alleges that Ms. Bryant included false statements in PPP loan applications submitted to financial institutions administering PPP, including InterBank, Comerica, Regions Bank, and others. She allegedly inflated her businesses’ employee counts, inflated their payroll, and even lied about the number of businesses she owned. She also allegedly included false statements in EIDL loan applications submitted to the Small Business Administration, misrepresenting her businesses’ gross revenues.
Ms. Bryant allegedly went so far as to send the financial institutions tax documents she claimed were submitted to the IRS but which were never actually filed. These sham forms, including IRS Form 1040 (Individual Income Tax Return), IRS Form 940 (Employer’s Annual Federal Unemployment Tax Return), and IRS Form 941 (Employer’s Quarterly Federal Tax Return) allegedly contained false information about her businesses and about her personal income.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Ms. Bryant is presumed innocent until proven guilty in a court of law.
If convicted, she faces up to 30 years in federal prison on each count of making a false statement to a bank, 20 years on the count of wire fraud, and 10 years on count of engaging in monetary transactions in property derived from unlawful activity. Upon conviction, she will be required to forfeit the financial proceeds of the scheme or property traceable to it.
The U.S. Treasury Inspector General for Tax Administration, the Dallas Field Office of the Federal Deposit Insurance Corporation’s Office of Inspector General (FDIC-OIG), and the Small Business Administration’s Office of Inspector General (SBA-OIG) conducted the investigation. Assistant U.S. Attorneys Marty Basu and Fabio Leonardi are prosecuting the case.
Both the Paycheck Protection Program (PPP) and the expanded Economic Injury Disaster Loan (EIDL) Program were authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted on March 29, 2020, to provide emergency financial assistance to Americans suffering economic hardship due to the COVID-19 pandemic. The PPP provided forgivable loans to small businesses to cover payroll, rent, and other certain expenses; EIDL provided quickly-issued, partially-forgivable loans to small business to cover operational expenses, including accounts payable, as well as payroll, mortgages, and other bills.
Waterville Man Indicted for Conspiring to Provide Material Support to Terrorists, Possessing Unregistered Destructive DevicesRead the Press Release
BANGOR, Maine: A Waterville man was charged with conspiracy to provide material support to terrorists and possession of unregistered destructive devices, U.S. Attorney Darcie N. McElwee announced.
A federal grand jury charged Xavier Pelkey, 19, in a two-count superseding indictment returned on November 9. Pelkey was originally indicted on April 15, 2022.
According to the superseding indictment and other court records, between November 2021 and February 2022, Pelkey conspired with other individuals to conduct a violent attack on a Shia mosque in the Chicago area. The indictment also alleges that on February 11 of this year, Pelkey possessed destructive devices, specifically three homemade explosive devices that were not registered to him in the National Firearms Registration and Transfer Record.
If convicted, Pelkey faces up to 15 years in prison on the material support charge and 10 years in prison on the destructive device charge.
The FBI investigated the case.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Watertown Man Arrested in Connection with African Sports Investment Fraud SchemeRead the Press Release
BOSTON – A Watertown man was arrested today for allegedly defrauding investors who believed they were financing lucrative short-term sports ventures in Africa.
Adrian Kawuba, 33, was charged with one count of wire fraud. Kawuba will appear in federal court in Boston at 2:30 p.m. today before United States Magistrate Judge M. Page Kelley.
According to the charging documents, Kawuba told his investors that he would invest their money in short-term financing of sports ventures in Africa and elsewhere overseas and that he would personally guarantee their investments. It is alleged however, that Kawuba did not invest any of the funds he received from victim investors. Instead, Kawuba allegedly used the money to pay for luxury goods and to pay purported returns to his investors – in some instances paying back an investor’s earlier investment with money that investors had just sent Kawuba for a new investment.
The charge of wire fraud provides a sentence of up to 20 years in prison, up to three years of supervised release, a fine of $250,000 or twice the monetary loss or gain, whichever is greater, restitution and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Watertown Police Department provided valuable assistance. Assistant U.S. Attorney Kriss Basil of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Waterloo Man Who Bought Guns for Other People Sentenced to over Six Years in Federal PrisonRead the Press Release
A Waterloo man who purchased at least 38 guns for other people was sentenced November 8, 2022, to over six years in years in federal prison.
Joshua William Butler, age 35, from Waterloo, Iowa, received the prison sentence after a May 3, 2022 guilty plea to false statement during purchase of a firearm and possession of a firearm by a drug user.
Evidence at the plea and sentencing hearings showed that in 2020, Butler purchased at least 38 firearms from different retailers in the Waterloo and Cedar Falls area. When Butler filled out the forms to purchase the firearms, he indicated that the guns were for him and that he did not use controlled substances. However, it was later determined that Butler purchased the firearms for others. In January 2021, police officers searched Butler’s Waterloo residence. During their search, officers found a Glock 9mm firearm, ammunition, a 33-round extended magazine, marijuana, and 62 ecstasy pills. The Glock 9mm had a serial number that someone had attempted to scratch off. Officers also searched a storage unit belonging to Butler and found another gun. Officers believe that only ten of the firearms purchased by Butler have been recovered. The majority of the firearms were recovered in the Chicago area. Many of the firearms were recovered from people who were lawfully prohibited from possessing firearms, including one individual who was out on bond at the time for murder charges.
“Keeping guns out of the hands of criminals saves lives. Our partners in this case, the ATF, FBI, and the Waterloo Police Department, successfully devoted their time and effort to put an end to Butler’s illegal activities,” said United States Attorney Timothy Duax. “As a result, our community is safer. To those who would act as straw purchasers and provide guns to convicted criminals, I can only say look at Mr. Butler, and ask whether you want to share his fate. The United States Attorney’s Office, its law enforcement partners, and the law-abiding public are committed to enforcing our firearms laws, and keeping guns out of the hands of violent criminals.”
ATF Special Agent in Charge, Fred Winston said: “Firearms trafficking is never a victimless crime and this case highlights ATF’s commitment to restrict the flow of firearms to the violent criminals. There is no way to know the number of violent crimes that were prevented by disrupting Mr. Butler’s firearms trafficking scheme, but we do know that this investigation not only put a trafficker behind bars, but also made our communities safer by limiting criminals access to firearms.”
Butler was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Butler was sentenced to 78 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term and pay a $100 special assessment fee. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorneys Ashley Corkery and Kyndra Lundquist. This case was brought as part of Project Safe Neighborhoods (PSN) through a cooperative effort of the Waterloo Police Department, FBI Safe Streets Task Force, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. PSN is 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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2020.
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Vladimir Natera Abreu Sentenced to 15 Years in Prison and Eight Years of Supervised ReleaseRead the Press Release
SAN JUAN, Puerto Rico – Vladimir Natera Abreu was sentenced to 15 years in prison for drug trafficking by United States District Court Judge Silvia Carreño Coll.
Defendant Natera-Abreu was one of the main leaders in the drug trafficking organization known as “Las FARC,” (Las FuerzasArmadas Revolucionarias de Cantera).
According to court documents, Natera Abreu pleaded guilty on August 9, 2022 to one count of conspiracy to possess with intent to distribute crack, heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising the Villa Kennedy, Las Casas, El Mirador and Las Margaritas Public Housing Projects, and other areas, and within 1,000 feet of schools and playgrounds located in the Municipality of San Juan, Puerto Rico. The object of the conspiracy was the large-scale distribution of controlled substances for significant financial gain and profit.
The defendant also pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime and one count of money laundering.
The defendant agreed to forfeit to the United States any drug proceeds or substitute assets derived from proceeds generated or traceable to the drug trafficking offense, to include: $75,947,040 in U.S. currency, and the real estate properties as described in Count seven of the indictment.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico; Joseph González, Special Agent in Charge of the FBI, San Juan Field Office; and Special Agent in Charge of the DEA, Denise Foster made the announcement.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service, and the Puerto Rico Police Bureau (PRPB), San Juan Strike Force, were in charge of the investigation.
Assistant U.S. Attorneys Alberto López-Rocafort, Joseph L. Russell, R. Vance Eaton, and María L. Montañez-Concepción prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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U.S. Postal Service Mail Carrier Pleads Guilty to Stealing from CustomersRead the Press Release
Assistant U. S. Attorney Andrew Sherwood (619) 546-9690
NEWS RELEASE SUMMARY – November 9, 2022
SAN DIEGO – Former U.S. Postal Service mail carrier Breanna Wares pleaded guilty in federal court, admitting that she stole approximately $2,700 worth of gift cards, cash and jewelry from customers.
According to her plea agreement, Wares stole these items from approximately 20 customers along her route near Camp Pendleton at the Brooks Street Station in Oceanside. Most of the addresses on her route were located on the U.S. Marine Corp Base Camp Pendleton and many of the victims were active members of the military.
A customer along Wares’ route reported that she mailed two gift cards to two different people and neither person received them. This report prompted agents from the Office of Inspector General to launch an investigation and discover that there were several other complaints of missing mail along Wares’ route.
Through the course of the investigation, agents determined that Wares unlawfully redeemed over 30 Target gift cards that had been placed in the mail, totaling more than $1,400. During a search of Ware’s personal vehicle, agents discovered more than 40 gift cards valued at more than $1,300. Agents also found sheets of stamps, jewelry, foreign currency, rifled and unrifled First Class Mail greeting card envelopes. Agents also found a Trader Joe’s gift card in Wares’ wallet.
When interviewed by agents from the Office of Inspector General, Wares admitted to stealing mail from customers for over a year.
Wares has agreed to pay restitution to her victims and a condition of her felony guilty plea is that she is prohibited from working in the mail, package, receipt and/or delivery industry.
“The defendant stole from those who entrusted their confidence in the delivery system,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office is committed to working with the U.S. Postal Service to protect the integrity of the system and bring justice to the victims of these crimes. Grossman thanked the prosecution team and the U.S. Postal Service Office of Inspector General for their excellent work on this case.
“The U.S. Postal Service employs over 630,000 men and women who are dedicated public servants,” said U.S. Postal Service Office of Inspector General, Western Pacific Area Field Office, Executive Special Agent-in-Charge Glenn San Jose. “For over two centuries, the Postal Service has honored its fundamental commitment to protect the sanctity of the U.S. Mail. Today’s guilty plea demonstrates that theft of U.S. Mail, committed by a Postal Service employee, will not be tolerated. The public we serve can rest assured that the Postal Service Office of Inspector General, U.S. Attorney’s Office, and our partner law enforcement agencies, remain committed to safeguarding the integrity of the U.S. Mail and ensuring the accountability and integrity of U.S. Postal Service employees.”
DEFENDANTS Case Number 22cr1465
Breanna Wares Age: 39 San Diego, CA
SUMMARY OF CHARGES
Theft of Mail by Postal Employee – Title 18, U.S.C., Section 1709
Maximum penalty: Five years in prison and $250,000 fine
AGENCY
United States Postal Service - Office of Inspector General
U.S. Attorney's Office Reaches ADA Settlement with Portland Motel Lacking Accessible Entrances or Guest RoomsRead the Press Release
PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that it has reached a settlement with Studio 6, a Portland motel, to resolve allegations that the motel lacked accessible entrances, rooms, and other facilities.
The settlement resolves an Americans with Disabilities Act (ADA) complaint filed by an individual with a mobility impairment who alleged that Studio 6 did not have an available guest room to accommodate persons with mobility-related disabilities, including wheelchair users; had no accessible entrances or internal routes from the motel’s lobby to its guest rooms; and that the motel’s only accessible parking space was being used for other purposes and its reservation service failed to sufficiently identify and describe the property’s accessible guest rooms.
Under the ADA, inns, hotels, and motels may not exclude individuals with disabilities by failing to provide accessible accommodations and accurately describing their accessible features in enough detail to reasonably permit individuals with disabilities to assess whether a property will meet their accessibility needs.
Under the settlement agreement, Studio 6 has agreed to make certain modifications to improve accessibility at its property, including installing an exterior wheelchair ramp to the main entrance, providing three accessible guest rooms and parking spaces, altering the lobby area and first floor to increase overall accessibility, and conducting annual ADA staff training.
“Our office is committed to working with any property owners, public or private, to help obtain compliance with the ADA,” said Natalie Wight, U.S. Attorney for the District of Oregon.
Studio 6 cooperated with the U.S. Attorney’s Office during this investigation.
The United States was represented in this matter by Michael Jeter and Joshua Keller, Assistant U.S. Attorneys for the District of Oregon.
Individuals in Oregon who believe their civil rights may have been violated may submit complaints online by visiting https://civilrights.justice.gov. For more information on the ADA, or to access publications available to assist entities in complying with the ADA, visit ada.gov or call the Justice Department’s toll-free ADA information line at 1-800-514-0301 or 1-800-514-0383 (TDD).