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8 November 2022
Main Line Accountant Sentenced to More than Three Years for Tax EvasionRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Michael Goldner, 52, of Paoli, PA, was sentenced to 40 months in prison and three years of supervised release by United States District Court Judge Mark A. Kearney for his scheme to use his cash and his employer’s business bank accounts to hide his actual income and assets and therefore avoid paying his legitimate tax obligations.
In June 2022, the defendant was convicted after trial of tax evasion and failing to file tax returns in connection with this years-long tax fraud. Evidence presented at trial showed that for the tax years 2013 through 2017, Goldner reported more than $4 million in income and $1.8 million in tax due, of which he paid less than $100,000. Further, from 2016 to 2020, the defendant evaded the payment of these outstanding taxes while earning a substantial income. Instead of depositing his paychecks into a personal bank account, he cashed the checks and used his employer’s business accounts to pay hundreds of thousands of dollars of personal expenses, including rent, a second home, groceries, private school and dance lessons for his child, country club dues, and restitution from a prior fraud conviction for which he was on federal probation. For the years 2016 and 2017, the defendant filed tax returns that failed to report this additional income from his employer. For tax years 2018 and 2019, the defendant failed to file a return altogether.
“The American tax system funds government services critical to our people,” said U.S. Attorney Romero. “Every time someone cheats the system, the burden of providing vital services increases on taxpayers who pay their fair share. As a professional accountant, this defendant knew what his obligations were and willfully schemed to evade them; and for this fraud he will now spend time behind bars.”
“Our agents have the expertise and investigative tools to uncover tax and financial fraud schemes, no matter how sophisticated the scheme may be,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Goldner’s scheme served no purpose other than to enrich himself, while cheating and stealing from the American public and the government. Anyone contemplating following Goldner’s footstep is urged to take a step back and consider the consequences”
The case was investigated by Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney David Ignall and Trial Attorney Jack Morgan of the Tax Division of the Department of Justice.
MS-13 Gang Members Charged with 2015 Murder in BrentwoodRead the Press Release
A two-count indictment was unsealed earlier today in federal court in Central Islip charging three members of La Mara Salvatrucha, also known as the MS-13, Roberto Antonio Abrego-Reyes, also known as “Splinter” and “Impaciente,” Miguel Angel Alfaro-Santos, also known as “Asesino,” and Jose Benedicto Baires-Novoa, also known as “Macabro,” with the murder of 24-year-old Kenneth Evans, Jr in Brentwood, New York on November 28, 2015.
Baires-Novoa, who is a member of the Guanacos Lil Cycos Salvatruchas (Guanacos) clique of the MS-13, was arrested in Brentwood, New York on November 7, 2022 by members of the Federal Bureau of Investigation Long Island Gang Task Force (FBI LIGTF) and was arraigned before United States Magistrate Judge James M. Wicks earlier this afternoon. Baires-Novoa was ordered detained pending trial. Additionally, earlier today, Alfaro-Santos, who is also a member of the Guanacos clique of the MS-13, appeared in federal court in the Middle District of Pennsylvania, and was ordered removed to the Eastern District of New York to face charges. The third defendant, Abrego-Reyes, a member of the Indios Locos Salvatruchas (ILS) clique of the MS-13, is presently in state custody at the Nassau County Correctional Center and will be transferred to federal custody and arraigned at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the charges.
“With these arrests, we are holding the defendants accountable for senselessly shooting two innocent bystanders, striking one in the head and killing the other, leaving fear and grief in their wake,” stated United States Attorney Peace. “This should serve as a warning, that there is no amount of time that will stop this Office from pursuing justice to keep our communities safe.”
United States Attorney Peace expressed his appreciation to the members of the FBI LIGTF, as well as to the Nassau County District Attorney’s Office, for their partnership in this case.
“The senseless and gruesome acts committed in the name of MS-13 are hard to comprehend,” Suffolk County Police Commissioner Rodney K. Harrison said. “This department, along with our law enforcement partners, will never stop pursuing justice for those killed at hands of gang members. Even though seven years have passed since this murder, investigators never gave up.”
"MS-13 raises the specter of violence for communities that have experienced the terror members leave in their wake. Our work has slowed and even stopped their criminal and deadly activity; however, we could see a resurgence if we get complacent. The FBI Long Island Gang Task Force and our law enforcement partners are continuing the work and maintaining our outreach with the public to thwart this ever-present threat," stated FBI Assistant Director-in-Charge Driscoll.
According to court filings, on the evening of November 28, 2015, Abrego-Reyes, Alfaro-Santos and Baires-Novoa agreed with other MS-13 members to “put in work” for the gang – that is, to go out hunting for rival gang members to target and kill. The MS-13 members armed themselves with a .38 caliber handgun and a 9mm handgun, and drove around the Brentwood area looking for potential targets. While driving in the vicinity of Gibson Avenue in Brentwood, the three defendants and their fellow MS-13 co-conspirators observed three males, one of whom was Evans, walking along the street. Although the three males were not personally known to the MS-13 members, they were wrongly presumed to be members of a rival gang and were immediately targeted.
Alfaro-Santos and another MS-13 member, who were each armed with a handgun, got out of the car and approached the victims, while Abrego-Reyes, who was driving the vehicle, Baires-Novoa, and another MS-13 member remained in close proximity, watching for police presence in the area and waiting to drive the shooters away from the scene. Alfaro-Santos and the other MS-13 member walked just behind the three victims and began shooting. Evans was struck multiple times and died from his wounds. A second victim was shot in the head but survived the attack. The third man escaped injury. Following the shooting, the MS-13 members in the car picked up the two shooters, and all fled the scene.
If convicted, each defendant faces mandatory life in prison or the possibility of the death penalty.
This indictment is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI LIGTF, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution.
The Defendants:
ROBERTO ANTONIO ABREGO-REYES (“Splinter” and “Impaciente”)
Age: 28
Flushing and Hempstead, NYMIGUEL ANGEL ALFARO-SANTOS (“Asesino”)
Age: 26
Flushing, NYJOSE BENEDICTO BAIRES-NOVOA (“Macabro”)
Age: 26
Flushing and Brentwood, NYE.D.N.Y. Docket No. 22-CR-499 (JMA)
Local man convicted of conspiracy to transport people in truck bedRead the Press Release
CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has returned a guilty verdict against a 44-year-old man for conspiring to transport illegal aliens, announced U.S. Attorney Jennifer B. Lowery.
The Jury deliberated for approximately 30 minutes before convicting Ernest Mario Gutierrez following a two-day trial.
On Aug. 5, 2020, law enforcement learned of a vehicle in which people were being loaded on Highway 281. Shortly thereafter, they found and began following a suspicious white pickup truck believed to be involved to a Stripes gas station.
There, they discovered two undocumented individuals in the bed of the truck and one in the cab.
At trial, the jury heard from law enforcement that Gutierrez has been a passenger of the vehicle and attempted to avoid detection by entering the gas station.
The defense attempted to convince the jury Gutierrez did not know that the driver of the truck was going to pick up aliens. The jury was not convinced and found him guilty as charged.
U.S. District Judge Nelva Gonzalez Ramos presided over the trial and set sentencing for Feb. 1, 2023. At that time, Gutierrez faces up to 10 years in prison and a possible $250,000 maximum fine.
Gutierrez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigation with the assistance of the Texas Department of Public Safety. Assistant U.S. Attorney Amanda L. Gould is prosecuting the case.
Lexington Man Sentenced to 100 Months for Fentanyl Trafficking and Possession of Firearm by Convicted FelonRead the Press Release
LEXINGTON, Ky. – Eyron Smith, 31, of Lexington, was sentenced in federal court on Monday, to 100 months in prison, by Chief U.S. District Judge Danny C. Reeves for possession with intent to distribute 40 grams or more of fentanyl and possession of a firearm by a convicted felon.
According to his plea agreement, on November 5, 2021, law enforcement executed a search warrant on Smith’s residence and vehicle and found him in possession of a loaded pistol and bags of heroin and fentanyl. Smith admitted that he possessed the drugs, and that he was a convicted felon and could not posses a firearm.
Smith pleaded guilty to the current charges in July 2022. Smith was previously convicted of complicity to wit reckless homicide in November 2016.
Under federal law, Smith must serve 85 percent of his prison sentence. Upon his release, he will be under supervision by the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Office; Lawrence Weathers, Chief of the Lexington Police Department; and Todd Justice, Chief of the Nicholasville Police Department, jointly announced the sentence.
The investigation was conducted by ATF, Lexington Police Department, and Nicholasville Police Department. The United States was represented by Assistant U.S. Attorney Cynthia Rieker.
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Jury convicts truck driver of illegally transporting peopleRead the Press Release
CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has convicted a 52-year-old Texan for transporting illegal aliens within the United States, announced U.S. Attorney Jennifer B. Lowery today.
The jury deliberated for approximately two hours before convicting Rodolfo Cazares, San Juan, following a two-day trial
At trial, the jury heard on June 19, 2021, Cazares drove a tractor trailer to the Sarita Border Patrol (BP) checkpoint. At initial inspection, a K-9 alerted law enforcement to the tractor. They subsequently discovered four undocumented individuals hidden within various parts of the vehicle.
The individuals admitted to being in the country illegally. They also described to authorities how they were loaded into the trailer earlier that night.
Cazares attempted to convince the jury he did not know the individuals were in the tractor. The jury ultimately did not believe his claims and found Cazares guilty as charged.
U.S. District Judge David Morales presided over trial and set sentencing for Jan. 30, 2023. At that time, Cazares faces up to five years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
BP conducted the investigation. Assistant U.S. Attorneys Roland Swanson and Tyler Foster are prosecuting the case.
Indianapolis Man Sentenced to 151 Months in Federal Prison for Transporting Child Sexual Abuse MaterialRead the Press Release
INDIANAPOLIS– Brian Greenlee, 36, of Indianapolis, was sentenced to 151 months in federal prison after pleading guilty to transportation of child sexual abuse material.
According to court documents, on January 15, 2021, law enforcement officers learned Greenlee was trafficking in child sexual abuse material. Greenlee had been arrested on an unrelated outstanding warrant in Hendricks County, Indiana and was in the custody of the Hendricks County Jail. Greenlee had a cellular telephone and a backpack containing multiple digital devices when he was arrested. On January 16, 2021, officers obtained a warrant to search Greenlee’s property at the jail and seized his smartphone and the backpack containing digital devices.
Law enforcement officers were able to execute the warrant and obtain access to the data stored on Greenlee’s devices. They found multiple images and videos of minors engaged in sexually explicit conduct on his devices, some depicting the sexual abuse of infants as young as six months to 1 year old. Greenlee’s smartphone had the MEGA cloud-storage application installed, which also allows users to chat within the application. Law enforcement officers found thousands of sexually explicit videos of children on Greenlee’s smartphone and stored in his MEGA account. Greenlee discussed his sexual interest in children with others in conversations over text message, social media messaging, and the MEGA application. Greenlee sent others links to the child sexual abuse material he stored on his MEGA account during these conversations.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office made the announcement.
The FBI investigated the case. The Indianapolis Metropolitan Police Department provided valuable assistance. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Greenlee be supervised by the U.S. Probation Office for 10 years following his release from federal prison and ordered Greenlee to pay $76,000 in restitution the child victims. Greenlee must also register as sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kristina M. Korobov who prosecuted this case.
This investigation was conducted by the Indiana Internet Crimes Against Children (ICAC) Task Force, a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse. In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
Indian national sentenced for government impersonation call center scamRead the Press Release
HOUSTON – A 38-year-old Indian citizen who was illegally residing in Houston has been ordered to prison for conspiracy to commit mail fraud, announced U.S. Attorney Jennifer B. Lowery.
Waseem Maknojiya pleaded guilty Sept. 13, 2021.
Today, U.S. District Judge U.S. District Judge Lynn N. Hughes ordered him to serve 60 months in federal prison. Not a U.S. citizen, Maknojiya is expected to face removal proceedings following his imprisonment.
Between April and October 2019, Maknojiya was involved in a telemarketing scheme via Indian call centers to extort money from victims in the United States. Maknojiya acted as a runner in these schemes, using aliases and fake identification documents to pick up more than 70 parcels containing cash the scheme’s victims had mailed.
One common script used in the scheme involved coercing victims into believing federal agents were investigating them. The “agent” on the phone would convince the victim the only way to clear his or her name from investigation was to send cash in a parcel shipped through FedEx to a name and address they provided. Runners in the United States like Maknojiya would then pick up the parcels.
At the time of his plea, Maknojiya agreed to pay restitution to the scheme’s identified victims.
Maknojiya will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Social Security Administration - Office of Inspector General (SSA-OIG) and Department of Homeland Security - OIG conducted the investigation with the assistance of the Houston Police Department and the Treasury Inspector General for Tax Administration. Assistant U.S. Attorneys Stephanie Bauman and Eun Kate Suh prosecuted the case.
The SSA consistently warns people of similar scams.
Houston Man Guilty of Attempting to Use Drone to Drop Contraband into Beaumont Federal Prison ComplexRead the Press Release
BEAUMONT, Texas – A Houston man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Davien Phillip Turner, also known as Davien Phillip Mayo, 44, pleaded guilty to owning or operating a drone that is not registered, today before U.S. District Judge Marica A. Crone.
Prisons around the country have faced the problem of individuals using drones to fly over prison complexes and drop contraband items to the prison population. According to information presented in court, on May 19, 2022, law enforcement officials in Jefferson County, Texas were alerted that a person was operating a drone on the property of the Federal Correctional Complex in Beaumont. Law enforcement officers responded and eventually found Turner in the area where the drone was being operated. Near Turner, officers discovered a DJI Matrice 600 Pro Drone. Law enforcement officers also discovered several bags near the drone that Turner had planned to drop into the prison complex via the drone. Inside those bags were tobacco, cell phones, cell phone chargers, various tools, vape pens, and other items. Those items were to be sold by inmates within the prison. Under federal law, this type of drone was required to be registered with the Federal Aviation Administration, and Turner had failed to do so. Furthermore, to operate a drone under these circumstances, a certificate was needed, which Turner also had not obtained.
Turner was indicted by a federal grand jury on July 12, 2022. He faces up to three years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the FBI, the Bureau of Prisons, the Jefferson County Sheriff’s Office, and the Federal Aviation Administration. This case is being prosecuted by Assistant U.S. Attorney Russell James.
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Hennepin County Man Sentenced to 9.5 Years in Prison for Violent Armed CarjackingRead the Press Release
MINNEAPOLIS – A Hennepin County man has been sentenced to 115 months followed by five years of supervised release for a violent armed carjacking, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 5, 2021, Jerome Lee Swanson, 21, approached an individual who was driving a 2005 Buick LaCrosse in Minneapolis. Swanson asked for a ride to a nearby location and,. when the victim and Swanson arrived, Swanson pulled out a pistol and pointed it at the victim, and demanded they give Swanson the vehicle. A struggle ensued and the victim was shot in the hip. Swanson fled from the scene driving the victim’s vehicle. Swanson was later apprehended with the vehicle and the pistol used to facilitate the carjacking.
Swanson pleaded guilty on July 8, 2022, before U.S. District Chief Judge John R. Tunheim to one count of carjacking and one count of brandishing a firearm during and in relation to a crime of violence.
This case is the result of an investigation conducted by the FBI and the Minneapolis Police Department
Assistant U.S. Attorney David P. Steinkamp prosecuted the case.
Grand Junction Woman Sentenced to 37 Months for Wire Fraud and Filing False Tax ReturnsRead the Press Release
Denver - The United States Attorney’s Office for the District of Colorado announces Debra Campbell, age 66, of Grand Junction, Colorado, was sentenced today to 37 months in prison and ordered to pay $410,889 in restitution for wire fraud and filing false tax returns.
According to the plea agreement, from 2009 through April 2018, Campbell owned and operated a company called A Better Alternative Management (ABAM), which was hired by homeowners’ associations (HOAs) to manage their finances. Campbell had access to, and signatory authority for, the HOAs’ bank accounts. Campbell collected and deposited payments from HOA members and paid administrative expenses on behalf of the HOAs. Through these management relationships, Campbell became aware of which HOA boards did not monitor their HOA’s bank account and finances. Starting in March 2015, Campbell began making unauthorized transfers to ABAM’s bank accounts from some of the HOAs’ bank accounts and used that money for her personal expenses. Campbell selected HOAs whose boards did not monitor their HOA’s bank account or finances.
In order conceal and perpetuate her theft, Campbell regularly altered the HOAs’ bank statements, so they did not reflect the unauthorized transfers and falsely reflected a higher balance than actually existed in the account. In this manner, between March 2015 and April 2018, Campbell stole more than $250,000 from 23 of her client HOAs.
Campbell also failed to include the income gained from her scheme on her 2014-2017 tax returns, substantially underreporting her income and resulting in a tax loss to the federal government of more than $150,000. Campbell signed and filed these returns knowing that they substantially underreported her taxable income and knowing that she had a legal obligation to report and pay taxes on all of her taxable income.
U.S. District Court Judge Christine M. Arguello sentenced the defendant on November 8, 2022. The prison term will be followed by 3 years of supervised release.
“This defendant wrongfully thought she could line her own pockets with money belonging to her clients who placed their trust in her to manage their finances,” said U.S. Attorney Cole Finegan. “We commend our partners at IRS-CI for their work to hold fraudsters accountable for their actions.”
“Campbell took advantage of her clients and further compounded her greed by attempting to hide her ill-gotten gains from the IRS,” said Andy Tsui, Special Agent in Charge, IRS-CI Denver Field Office. “This sentencing should serve as a reminder to small businesses and HOAs about the importance of having financial safeguards in place to avoid becoming a victim of fraud.”
The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation. The prosecution was handled by Assistant United States Attorney Pegeen Rhyne.
CASE NUMBER: 21-cr-00113-CMA
Gloucester County Man Admits Fraudulently Obtaining More Than $400,000 in Unemployment Insurance BenefitsRead the Press Release
NEWARK, N.J. – A Gloucester County, New Jersey, man today admitted that he illegally obtained more than $400,000 in unemployment insurance benefits, U.S. Attorney Philip R. Sellinger announced.
Willie Carter, 23, of Paulsboro, New Jersey, pleaded guilty by videoconference before U.S. District Judge Reneé Marie Bumb to an information charging him with wire fraud.
According to documents filed in the case and statements made in court:
From July 2020 to October 2020, Carter submitted fraudulent unemployment insurance benefit applications to various states. These states provided, and Carter falsely obtained, more than $400,000 in unemployment insurance benefits.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Carter or twice the gross loss suffered by the victims, whichever is greatest. Sentencing is scheduled for March 14, 2023.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone; postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division; special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, and special agents of the Department of Homeland Security, Office of Inspector General, under the direction of Inspector General Joseph V. Cuffari, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Fugitive Bookkeeper Apprehended in Utah After 8 Years on the Run Sentenced to 90 Months in Prison for Embezzling More than $2.2 MillionRead the Press Release
INDIANAPOLIS– Jody Russell Trapp, 58, of Indianapolis, was sentenced to 90 months in federal prison for wire fraud, money laundering and tax evasion.
According to court documents, from July 2009 through December 2011, Trapp was a bookkeeper for Shelton Machinery, Inc., a Fishers-based distributor of advanced machines, drill-tap machines, production saws, and band saws. As a bookkeeper for Shelton Machinery, Trapp’s duties included overseeing the preparation and mailing of checks to outside vendors.
Between September 2009 and December 2011, Trapp stole more than $2.2 million from Shelton Machinery by diverting checks made payable to one of Shelton Machinery’s suppliers into his personal bank account. To accomplish his theft and to conceal his actions, Trapp prepared fictitious or duplicate invoices for work that had already been billed and paid, as well as checks to pay the fictious or duplicate invoices.
Trapp was arrested in January 2012. On June 8, 2012, Trapp was charged by Information and a petition to plead guilty was filed with the federal court on November 9, 2012. A change of plea and sentencing hearing was scheduled for March 7, 2013. Less than two weeks before the hearing, however, Trapp absconded from his residence, where he’d been ordered by the court to remain while on pretrial release.
Trapp’s whereabouts remained unknown until 2021, when Deputy U.S. Marshals located him living under an assumed name in Utah. Trapp was arrested in October 2021 and transported back to Indiana to face the still-pending charges. Trapp formally pleaded guilty to the criminal charges on July 19, 2022.
“Mr. Trapp has finally been held accountable for stealing millions of dollars from a company that trusted him and fleeing in an attempt to avoid the consequences,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The punishment imposed today demonstrates that those who try to obstruct and evade justice will ultimately be held accountable. I commend the FBI, IRS-Criminal Investigations, and our determined partners at the U.S. Marshals Service for their determined efforts to investigate and apprehend the defendant.”
“Mr. Trapp took advantage of his position and exploited his employer’s trust to divert funds for his personal use and then vanished for years leaving no resolution for the business and its clients,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The dedication of all the law enforcement agencies involved in locating him and bringing him back to face the court demonstrates that the FBI and our partners will continue to investigate and pursue those who choose to enrich themselves at the expense of others.”
“The role of IRS Criminal Investigation becomes even more important in fraud cases like this due to the complex financial transactions that can take time to unravel,” said Justin Campbell, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “As we often see, the victims here are not only the taxpayers, but also the small businesses and individuals who suffer the financial harm.”
FBI and IRS-Criminal Investigation investigated the case. The sentence was imposed by Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Trapp be supervised by the U.S. Probation Office for three years following his release from federal prison and ordered Trapp to pay $2,528,716.63 in restitution to his victims.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kathryn E. Olivier who prosecuted this case.
Fredericksburg Man Pleads Guilty to Pandemic Unemployment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A Fredericksburg man pleaded guilty yesterday to conspiring to obtain pandemic unemployment benefits. His family members were also indicted for their roles in the scheme, along with a separate mail theft and bank fraud scheme.
According to court documents, from in or about May 2020 through in or about January 2022, Eric Wilhoit, II, 28, conspired with his siblings, Odyssey Wilhoit, 23, and Jeremiah Wilhoit, 26, and cousin, Dejhaun Wilhoit, 26, to obtain pandemic unemployment benefits. Yesterday, Eric Wilhoit pleaded guilty and admitted that he applied for pandemic unemployment benefits in his name and in the names of others, many who were identity theft victims. He also admitted that he falsely represented, among other things, the applicants’ work history and that they lost their employment as a result of the COVID-19 pandemic. As part of yesterday’s plea, Eric Wilhoit admitted that he instructed his coconspirators on how to make the claims and used VPNs and false or anonymized email addresses in an attempt to hide the fraud. Additionally, he admitted that he recruited others so as to use their physical addresses to receive the prepaid debit cards that contained the unemployment benefits. Eric Wilhoit admitted that he and his coconspirators made significant cash withdrawals and bought luxury goods with the benefits. Specifically, Eric Wilhoit purchased a diamond ring among other things. Eric Wilhoit admitted that the associated loss was somewhere between $550,000 and $3,500,0000.
While attempting to flee his arrest, Eric Wilhoit led law enforcement on a high-speed chase, resulting in him crashing his car with his minor children in the backseat.
In addition to alleging that Odyssey Wilhoit, Jeremiah Wilhoit, and Dejhaun Wilhoitm engaged in this pandemic unemployment benefits scheme, the indictment also alleges Odyssey Wilhoit conspired with Jaleai Morrison, 23, of Temple, Georgia, in a separate mail theft and bank fraud scheme. Morrison pleaded guilty on November 7 to participating in this scheme. According to court documents, Morrison would steal checks from a U.S. postal collection box and provide the checks or personal information from the checks to Odyssey Wilhoit. Odyssey Wilhoit then allegedly used the information to create counterfeit checks, which she would then deposit into bank accounts. After her conspiracy with Morrison ended, it is alleged that Odyssey Wilhoit continued her bank fraud scheme through at least July 2022.
Eric Wilhoit and Morrison are scheduled to be sentenced on January 25, 2023. Eric Wilhoit faces a maximum penalty of 20 years in prison. Morrison faces a maximum penalty of 30 years in prison. If convicted, Odyssey Wilhoit, Jeremiah Wilhoit, and Dejhaun Wilhoit face a mandatory minimum of 2 years and maximum penalty of 30 years. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Kevin Davis, Fairfax County Chief of Police; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Troy Springer, Acting Special Agent in Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea.
The Charles County Sheriff’s Office and Virginia State Police provided assistance in this case.
Assistant U.S. Attorneys Kimberly Shartar and Christopher Hood are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-191.
An indictment is merely an accusation. Odyssey Wilhoit, Jeremiah Wilhoit, and Dejhaun Wilhoit are presumed innocent until proven guilty.
Former Tracy Resident Pleads Guilty to Conspiracy to Defraud Financial InstitutionsRead the Press Release
SACRAMENTO, Calif. —Johnathan Ward, 44, formerly of Tracy, pleaded guilty today to conspiracy to commit wire fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Ward conspired to defraud financial institutions using a scheme called “refund fraud.” This scheme exploited the refund process used by merchants to pay back customers for returns, reimbursements, and erroneous charges. The conspirators posed as merchants and executed fraudulent bankcard refunds, such as credit and debit card refunds, causing an unauthorized transfer of money from a merchant bank account to a bankcard account under the conspirators’ control.
This case was the product of an investigation by the Regional Enforcement Allied Computer Tear (REACT) Task Force, which includes investigators from the Santa Clara County District Attorney’s Office, and the Federal Bureau of Investigation. Assistant United States Attorney Jessica Delaney is prosecuting the case.
Ward is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on April 11, 2023. Ward faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former St. Louis Insurance Agent Sentenced to 3 Years in Prison for Aiding Reality Show Star’s Murder ConspiracyRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Monday sentenced a former insurance agent to three years in prison for helping a former reality show star fraudulently obtain life insurance on the nephew the star later had killed.
Judge Ross said there was no evidence that Waiel “Wally” Rebhi Yaghnam knew that a murder was going to occur when he committed insurance fraud, but added, “It was a foreseeable outcome that bad things were going to happen.”
Yaghnam, 44, pleaded guilty in July to a charge of conspiracy to commit mail and wire fraud. He admitted conspiring with James Timothy Norman to fraudulently obtain a life insurance policy on Norman’s nephew, Andre Montgomery Jr.
Norman and Yaghnam began submitting life insurance applications in October 2014 containing numerous false statements regarding Montgomery’s income, net worth, medical history, employment and family background in an attempt to obtain policies.
One $200,000 policy was ultimately issued that contained a $200,000 accidental death rider that would pay out if Montgomery died of something other than natural causes, and a $50,000 term rider that would pay out if Montgomery died within 10 years of the policy’s issuance.
After Montgomery, 21, was fatally shot by Travell Anthony Hill at 3964 Natural Bridge Avenue in St. Louis on March 14, 2016, Norman repeatedly contacted the insurance company about the claim, and later hired an attorney to help. Yaghnam placed two telephone calls to the insurance agencies seeking to file a claim.
Montgomery’s relatives pointed out in statements during Monday’s hearing that Yaghnam coached Norman on how to pretend to be Montgomery to obtain the policy, a policy that was necessary to make the murder-for-hire profitable for Norman.
Norman and Montgomery appeared on the reality show Welcome to Sweetie Pie’s.
Hill, 31, was sentenced last month to 32 years in prison for a charge of conspiracy to commit murder-for-hire and one count of murder-for-hire.
The sentencing for Norman, 43, who was convicted in September of conspiracy to commit murder-for-hire, murder-for-hire and conspiracy to commit mail and wire fraud, is set for March 2.
Another co-defendant, Terica Ellis, 38, is scheduled to be sentenced January 10 on the murder-for-hire conspiracy charge. Ellis, an exotic dancer from Memphis, Tennessee, admitted helping Norman find Montgomery, provide his location to Hill and lure Montgomery outside before the shooting.
The case was investigated by the St. Louis Metropolitan Police Department and the FBI. Assistant U.S. Attorneys Angie Danis and Gwendolyn Carroll are prosecuting the case.
Former Oklahoma Undersheriff Pleads Guilty to Federal Civil Rights Charge for Using Excessive ForceRead the Press Release
The Justice Department announced today that Kendall Morgan, 44, the former undersheriff of the Le Flore County Sheriff’s Department (LCSO) in Le Flore County, Oklahoma, pleaded guilty to a criminal civil rights violation for using unlawful force on an arrestee.
According to court documents, on Jan. 25, 2017, while acting in his official capacity as LCSO’s undersheriff, Morgan willfully assaulted an individual identified as D.P. by repeatedly striking D.P. while D.P. was in handcuffs and not resisting arrest. The assault deprived D.P. of his right to be free from unreasonable force, did not further a legitimate law enforcement purpose, and resulted in bodily injury to D.P.
“This defendant, an experienced law enforcement officer, is being held accountable for unlawfully injuring a handcuffed man who was not resisting arrest and unable to defend himself,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to prosecuting any officer who violates their position and authority by using excessive force without cause.”
“Every citizen is entitled to be treated fairly and law enforcement officers should be models of this very important principle,” said U.S. Attorney Christopher Wilson for the Eastern District of Oklahoma. “The defendant’s actions in this case were illegal, immoral and unethical, and justice demands he face the consequences for his acts.”
“Mr. Morgan’s actions not only violated the civil rights of his victim, but compromised the public’s trust in the law enforcement system,” said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. “The FBI is committed to holding those who abuse their authority accountable and safeguarding the civil liberties of all Americans.”
Morgan faces a maximum sentence of 10 years in prison, three years of supervised release and a fine of up to $250,000. A sentencing hearing has not yet been set.
Assistant Attorney General Clarke, U.S. Attorney Wilson and Special Agent in Charge Gray made the announcement.
The FBI Oklahoma City Field Office investigated the case. Assistant U.S. Attorney Jarrod Leaman for the Eastern District of Oklahoma and Trial Attorney Avner Shapiro of the Civil Rights Division are prosecuting the case.
Former Oklahoma Undersheriff Pleads Guilty to Federal Civil Rights Charge for Using Excessive ForceRead the Press Release
WASHINGTON – The Justice Department announced today that Kendall Morgan, 44, the former undersheriff of the Le Flore County Sheriff’s Department (LCSO) in Le Flore County, Oklahoma, pleaded guilty to a criminal civil rights violation for using unlawful force on an arrestee.
According to court documents, on Jan. 25, 2017, while acting in his official capacity as LCSO’s undersheriff, Morgan willfully assaulted an individual identified as D.P. by repeatedly striking D.P. while D.P. was in handcuffs and not resisting arrest. The assault deprived D.P. of his right to be free from unreasonable force, did not further a legitimate law enforcement purpose, and resulted in bodily injury to D.P.
“This defendant, an experienced law enforcement officer, is being held accountable for unlawfully injuring a handcuffed man who was not resisting arrest and unable to defend himself,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to prosecuting any officer who violates their position and authority by using excessive force without cause.”
“Every citizen is entitled to be treated fairly and law enforcement officers should be models of this very important principle,” said U.S. Attorney Christopher Wilson for the Eastern District of Oklahoma. “The defendant’s actions in this case were illegal, immoral, and unethical and justice demands he face the consequences for his acts.”
“Mr. Morgan’s actions not only violated the civil rights of his victim, but compromised the public’s trust in the law enforcement system,” said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. “The FBI is committed to holding those who abuse their authority accountable and safeguarding the civil liberties of all Americans.”
Morgan faces a maximum sentence of 10 years in prison, three years of supervised release and a fine of up to $250,000. A sentencing hearing has not yet been set.
Assistant Attorney General Clarke, U.S. Attorney Wilson and Special Agent in Charge Gray made the announcement.
The FBI Oklahoma City Field Office investigated the case. Assistant U.S. Attorney Jarrod Leaman for the Eastern District of Oklahoma and Trial Attorney Avner Shapiro of the Civil Rights Division are prosecuting the case.
Former Brownsville police officer sentenced for escorting drugsRead the Press Release
BROWNSVILLE, Texas – A 53-year-old man residing in Brownsville has been ordered to federal prison following his conviction of trafficking one kilogram of meth, announced U.S. Attorney Jennifer B. Lowery.
Jose Salinas pleaded guilty Aug. 2. He is a former law enforcement officer of the Brownsville Police Department.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Salinas to serve 96 months in federal prison followed by three years of supervised release. He was further ordered to pay a $3,000 fine. In handing down the sentence, the court noted the position that Salinas held as an officer and that he misused this position of trust to commit the crime over a period of time, not just on one occasion. Judge Rodriguez also expressed concern that the criminal conduct Salinas committed cast all law enforcement in a bad light in the community.
On March 19, 2020, Salinas met people he believed to be drug traffickers at a used car lot he owned. Salinas received $2,500 in cash for escorting meth and cocaine from the lot to a stash house he provided. During that time, Salinas had parked his marked police car in front of the stash house to protect the drug load.
Salinas was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Drug Enforcement Administration and Homeland Security Investigations conducted the investigation with assistance of the Brownsville Police Department. Assistant U.S. Attorneys David A. Lindenmuth, Israel Cano and Jody Young prosecuted the case.
Federal Jury Finds Pasco County Man, Whose Victims Included Children and Foreign Nationals, Guilty of Human Trafficking ChargesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found David Alan Quarles (51, Odessa) guilty of conspiracy; sex trafficking by force, threats, fraud, and coercion; importation of an alien for the purpose of prostitution; transportation of an individual in interstate commerce for the purpose of prostitution; and using a facility of interstate commerce in aid of prostitution. Quarles faces a mandatory minimum of 15 years, and up to life, in federal prison. His sentencing hearing is scheduled for January 24, 2023. Quarles was indicted on January 13, 2021.
According to testimony and evidence presented at trial, for decades, Quarles recruited, enticed, harbored, transported, provided, obtained, advertised, and maintained young women and forced them to have sex with men in exchange for money. Quarles used physical violence, threats of violence, sexual abuse, psychological abuse, and financial abuse to force and coerce the victims to engage in commercial sex across the United States and throughout the Middle District of Florida. The evidence revealed Quarles frequented strip clubs and bikini bars to target and recruit young vulnerable women who were in difficult financial situations. Many of the victims lacked a stable home and had recently aged out of the foster care system. Quarles promised the victims he would provide everything they had been desiring – financial security, love and affection, and a family. Quarles and his conspirators directed the victims to engage in prostitution, posted advertisements featuring these victims, and arranged for the victims to travel across the United States to work. In addition to recruiting and obtaining women from the United States, Quarles also imported non-United States citizens into the country for the purposes of prostitution.
Quarles required that his victims send him the money that they earned or seek his permission to spend funds on necessities. The evidence demonstrated that while Quarles lacked any legitimate source of income, he benefited financially from the victims. He used their earnings to rent large homes, buy luxury clothing items, and purchase high-end cars, including a Range Rover and a Porsche Panamera. At trial, Quarles testified he had been working as a “pimp” since at least 1994 but denied needing to force or coerce the victims to engage in commercial sex.
As a result of his conviction, the United States is forfeiting multiple electronic devices that facilitated these offenses.
This case was investigated by Homeland Security Investigations and the U.S. Coast Guard Investigative Service. It is being prosecuted by Assistant United States Attorney Lisa M. Thelwell and former Assistant United States Attorney Colin McDonell. Assistant United States Suzanne Nebesky is handling the forfeiture.
This case resulted from the U.S. Attorney’s Office’s efforts to collaborate with local, state, and federal law enforcement agencies to detect, investigate, and prosecute coercive human trafficking in the Tampa area. This includes the trafficking of minors, forced labor, transnational sex trafficking, and sex trafficking of adults by force, fraud, or coercion. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Federal Indictment Charges Rockford Man with ArsonRead the Press Release
ROCKFORD — A Rockford man was indicted today by a federal grand jury on charges of arson for allegedly setting fire to two buildings in Rockford, Ill.
Marzavious Thomas, 27, of Rockford, was charged with two counts of maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, two churches, both located on East State Street in Rockford, on or about October 19, 2022.
According to the indictment, on October 19, 2022, Thomas ignited a fire at two different churches. Following an investigation by law enforcement, Thomas was taken into custody and subsequently charged.
The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives. The Rockford Police Department and Rockford Fire Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Jessica S. Maveus.
The charge of maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, real and personal property, carries a mandatory minimum penalty of 5 years in prison and a maximum penalty of up to 20 years in prison, in addition to a fine of up to $250,000. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Fake Oxycodone Pill Seller Sentenced to 10 Years in Federal PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a Wilmington, Delaware man was sentenced last week to over 10 years in federal prison for possessing with intent to distribute fentanyl while also illegally possessing two firearms. U.S. District Judge Maryellen Noreika pronounced the sentence.
According to court documents, Mandingo Joseph, age 38, was arrested on December 23, 2021, by agents and officers with the Drug Enforcement Administration (“DEA”). DEA agents conducted a search of the defendant’s residence and found over 2,400 fake oxycodone pills containing fentanyl, fentanyl powder, pill cutting agents, and five digital scales, as well as two guns, one of which had a fully loaded extended magazine. Additionally, DEA agents intercepted a package the defendant mailed via the U.S. Postal Service containing over 1900 fake oxycodone tablets.
U.S. Attorney Weiss commented, “Hundreds of Delawareans succumb to fentanyl overdoses every year. For this reason, stopping the flow of fentanyl onto our streets remains a top priority of my office. Similarly, the illegal possession of firearms threatens the safety and security of our community. Such conduct will be prosecuted to the fullest extent of the law, and we will seek significant prison sentences for those who engage in this activity.”
“Fake pills containing illicit fentanyl are by far the biggest drug threat facing our communities today,” said Thomas Hodnett, Special Agent in Charge of the DEA Philadelphia Field Division. “That Joseph possessed 4,300 of these pills as well as two guns, one of which had an extended capacity magazine, shows the threat that Joseph posed to the public. For that he has received a lengthy term in federal prison. Learn more about the dangers of fake pills from DEA’s One Pill Can Kill campaign, which can be accessed at www.DEA.gov.”
Assistant U.S. Attorney Alexander P. Ibrahim prosecuted the case, which was investigated by the DEA Wilmington Resident Office. The U.S. Attorney’s Office also wishes to thank the U.S. Postal Inspection Service for its contributions to the case.
The U. S. Attorney’s Office is committed to helping those who suffer from substance abuse. If you need help, drug treatment information is available any time through the federal Substance Abuse and Mental Health Services Administration’s Treatment Referral Routing Service, found online at dpt2.samhsa.gov/treatment/ or by dialing 1.888.545.2600. Don’t let the pandemic stop you from beginning treatment.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 22-cr-47-MN.
Eight Individuals Indicted and Arrested for Bank and Wire Fraud, Money Laundering, and Aggravated Identity TheftRead the Press Release
SAN JUAN, Puerto Rico – On October 28, 2022, a federal grand jury returned a 40-count superseding indictment charging eight individuals with conspiracy to commit bank fraud, wire fraud, access device fraud, aggravated identity theft, and money laundering conspiracy. The United States Postal Inspection Service (USPIS) and the Federal Bureau of Investigation (FBI) are in charge of the investigation of the case.
The USPIS and the FBI have been investigating a fraudulent scheme whereby the debit cards of mostly elderly clients of Banco Popular de Puerto Rico have been used in connection with the fraudulent purchase and cashing of Postal Money Orders. Specifically, between in or about October 21, 2021, through the present, Ángel De La Rosa a.k.a. “Julio Zapata” and others, posing as either federal agents or bank officials, visited the residences of account holders claiming that their bank accounts had been compromised. Under the guise of helping restore the integrity of their respective accounts, De La Rosa and others asked victims to provide their ATM debit cards and PIN numbers.
Upon obtaining physical possession of the debit cards, De La Rosa—aided and abetted by Raisa Raymundo-Vargas, a.k.a. “Oleidy”; Adonis Marquez-Marte; Josué Figueroa-López, a.k.a. “Pachin”; Mirkin Espinosa-Salvador, a.k.a. “José Mesa”; Jan González-López; Nicole Figueroa-De Jesús; Edwin Peña-Valdez, a.k.a. “Pajarito,” and others would purchase Postal Money Orders at various U.S. Post Offices throughout Puerto Rico. The Postal Money Orders were negotiated into cash at U.S. Post Offices at a later time.
Defendants De La Rosa and Marquez-Marte made cash purchases of over $40,000 worth of jewelry at various locations in New York with proceeds obtained from the fraudulent purchases of Postal Money Orders and operated a jewelry store in San Juan, Puerto Rico as a means of laundering proceeds from the fraudulent scheme.
“The U.S. Attorney’s Office will continue to pursue and prosecute individuals that take advantage of others, including the elderly and other vulnerable members of our community,” said United States Attorney W. Stephen Muldrow. “Once again, we urge everyone to take steps to protect their personal information. Do not share your personal identification information with strangers. If you suspect that your bank account, credit card or ATH Móvil account has been compromised, call or visit your bank directly. That is the best way to avoid becoming a victim of a fraud scheme like the one involved in this case.”
“Elder fraud is a sophisticated endeavor, and it can happen to anyone. Victims will often hide their losses, even when they realize they’re being scammed, out of shame and fear of ridicule. This silence is what gives these perpetrators ample opportunity for illicit gain,” said Special Agent in Charge of the FBI’s San Juan Field Office, Joseph González. “We need to break that silence and the FBI is here to help. If you, or anyone you know, has been a victim or a witness to an elder fraud scheme, we urge you to call 787-987-6500 or submit a tip online, by visiting Tips.FBI.gov. Highlighting awareness is the key to avoid falling prey to these scams and can help you navigate a crisis such as this.”
“Protecting our senior citizens from criminals who target them is one of our highest priorities,” said Juan A. Vargas, Acting Inspector in Charge, U.S. Postal Inspection Service, Miami Division. “The U.S. Postal Inspection Service is committed to ending the exploitation of the most vulnerable members of our society.”
If convicted, the defendants face a maximum penalty of 30 years in prison and a mandatory consecutive sentence of at least two years for the aggravated identity theft charges. The proceeds of the fraud scheme are subject to criminal forfeiture and include a vehicle and approximately $619,344. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Alexander Alum is prosecuting the case.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on the Federal Trade Commission ID Theft Website at www.ftc.gov/idtheft.
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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Doctor Licensed in the District of Columbia and Virginia Pleads Guilty to Multiple Felonies Related to Unlawful Distribution of Controlled SubstancesRead the Press Release
WASHINGTON – Dr. Robert M. Cao, 39, of Lafayette, Louisiana, and previously of Falls Church, Virginia, pleaded guilty today in the U.S. District Court for the District of Columbia to five felony counts of unlawful distribution of a controlled substance outside the scope of his professional practice. As detailed in court documents, the charges pertain to Cao prescribing various narcotic pain medications in the months and days leading up to an overdose death in Virginia last year.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, and Kevin Davis, Chief of the Fairfax County, Virginia Police Department.
The Honorable Tanya S. Chutkan scheduled sentencing for Feb. 22, 2023.
According to court documents, Cao is a physician who was licensed to practice medicine in the District of Columbia and Virginia. As part of his guilty plea, Cao admitted that on at least five occasions in 2021, he knowingly and intentionally wrote a man identified in court documents as “V.C.” prescriptions for oxycodone and hydrocodone, Schedule II controlled substances with a high potential for abuse. Cao provided the narcotic prescriptions to the victim without having any doctor-patient relationship with him, without any physical examination, diagnosis, or treatment plan, and knowing that the victim had no medical condition that would necessitate such prescriptions.
On May 31, 2021, first responders were dispatched to a Fairfax, Virginia residence in response to a 911 call for assistance regarding “V.C.,” after his girlfriend found him cold and non-responsive. He was pronounced deceased under suspicious circumstances.
A subsequent autopsy report documented the cause of death as acute combined oxycodone and ethanol poisoning. On the nightstand next to where “V.C.” was found were prescription bottles, including one containing Percocet (a brand name of the narcotic analgesic oxycodone/acetaminophen) pills filled on May 23, 2021. Cao was the prescribing doctor listed on the bottle.
Court filings also detail text message exchanges between Cao and “V.C.,” including discussions about Cao prescribing narcotic pain medications to “V.C.” in exchange for agreeing to give Cao a kickback of some of the pills he had prescribed, and meetings between the two, including a meeting in a parking lot on the night before the man’s death so Cao could get a portion of the narcotic pills from “V.C.”
As detailed in court documents, Cao took several steps to avoid detection from law enforcement and regulatory authorities. For example, he advised the victim not to create a paper trail, and to fill the prescriptions at times when they were least likely to be questioned by pharmacies. Cao also hid the pad that he used to write the man prescriptions, which Cao took from a District of Columbia cosmetic office where he previously worked, at his home inside a hollowed-out container made to look like a diary.
After learning of the victim’s untimely death, Cao created fraudulent backdated medical records to make it appear that Cao had provided legitimate prescriptions to the victim as part of a lawful doctor-patient relationship.
This case was investigated by the FBI’s Washington Field Office and the Fairfax County Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Anne P. McNamara and Christine Macey of the U.S. Attorney’s Office for the District of Columbia.
Dekalb Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Dekalb, Mississippi man pleaded guilty to possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Cordexster Antonio Grace, 27, was found in possession of a firearm by a Lauderdale County Sheriff’s Deputy on March 12, 2021, during a traffic stop. Grace had a .22 caliber revolver in his jacket pocket. Grace had a prior felony conviction for aggravated assault and was under the supervision of the Mississippi Department of Corrections at the time. As a convicted felon it is contrary to federal law for Grave to possess any firearm.
Grace pleaded guilty to a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) which criminalize the possession of firearms by convicted felons. He is scheduled to be sentenced on February 16, 2022 and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Lauderdale County Sheriff’s Office and the ATF are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham is prosecuting the case.
This case is being 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.
Convicted Felon Pleads Guilty to Fentanyl Distribution Offenses and Possessing a Loaded FirearmRead the Press Release
BOSTON – A Somerville man pleaded guilty yesterday in connection with distributing and possessing fentanyl while illegally in possession of a loaded firearm.
Tevon Ngomba, 29, pleaded guilty to one count of distributing and possessing with intent to distribute 40 grams or more of fentanyl, one count of possessing with intent to distribute fentanyl and one count of possessing a firearm and ammunition as a convicted felon. U.S. District Court Judge Indira Talwani scheduled sentencing for Feb. 1, 2023. Ngomba was indicted by a federal grand jury in September 2020.
On July 16, 2020, less than two months following his release from state prison, Ngomba distributed more than 40 grams of fentanyl to an individual in exchange for $1,800 in a recorded drug transaction.
On Aug. 3, 2020, Ngomba purported to sell a loaded firearm to the same individual in exchange for $1,500 in another recorded transaction. During the deal, which occurred in the individual’s vehicle, Ngomba loaded the firearm and pretended to leave it under the driver’s seat before exiting the vehicle. Instead, Ngomba took both the $1,500 cash from the individual as well as the firearm he had pretended to sell. Ngomba did not realize, however, that he accidentally left his cellphone in the individual’s vehicle which he preceded to chase down. Law enforcement immediately apprehended Ngomba who was still clutching the $1,500 in his hand.
During a subsequent search of Ngomba’s vehicle, a loaded Ruger firearm with an obliterated serial number was found in the trunk as well as 16 grams of fentanyl and a second cellphone containing drug-related communications in the glove compartment. The cellphone Ngomba left in the individual’s car was found to contain images from the night before of Ngomba posing with what appeared to be the same firearm found in his vehicle.
The charge of possession with intent to distribute and distribution of 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to life of supervised release and a fine of up to $5 million. The charge of possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, New England Field Division; Somerville Police Chief Charles Femino; and Somerville Housing Authority Chief of Police Daniel Meade made the announcement. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Fred M. Wyshak, III of Rollins’s Organized Crime and Gang Unit are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Convicted Felon Pleads Guilty to Crack Cocaine DistributionRead the Press Release
BOSTON – A Boston man previously convicted of numerous state drug distribution charges pleaded guilty today to distributing cocaine base (crack cocaine).
Jerry Cooper, a/k/a “Jerkz,” 29, pleaded guilty to one count of distribution and possession with intent to distribute cocaine base. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for March 9, 2023. Lee was indicted by a federal grand jury in October 2021.
This case arose from a series of controlled purchases of crack cocaine from Cooper, who, in September 2021, was recorded conducting a controlled purchase of crack cocaine.
The charge of distribution and possession of a controlled substance with intent to distribute provide for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement today. The investigation was led by the Federal Bureau of Investigation’s Metro Boston Gang Task Force. Assistant U.S. Attorney John T. Dawley, Jr. of the Organized Crime & Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Clearwater Man Sentenced to More Than Five Years in Federal Prison for Bank Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Christopher Alholm (39, Clearwater) to five years and six months in federal prison for conspiracy to commit bank fraud and aggravated identity theft. As part of his sentence, the court also entered an order of forfeiture in the amount of $5,000, the proceeds of the charged criminal conduct. Alholm had pleaded guilty plea on August 4, 2022.
According to court documents, in March 2019, Alholm conspired with others to defraud a Federal Deposit Insurance Corporation insured bank (“Bank 1”) with branches located throughout the Middle District of Florida. Bank 1 was a member institution of the Federal Home Loan Bank of Atlanta. Alholm received a victim bank customer’s (“Customer 1’s”) stolen Home Equity Line of Credit (“HELOC”) account number and personally identifying information (“PII”), including Customer 1’s name, signature, date of birth and Social Security number from a co-conspirator. Alholm then used the stolen PII to impersonate Customer 1 at a Bank 1 branch located in Spring Hill, to conduct a fraudulent $495,000 advance of funds from the Customer 1’s HELOC account to an intermediary account at Bank 1. After Alholm completed the fraudulent advance of funds, another co-conspirator wired the stolen HELOC funds from the intermediary account to offshore bank accounts.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Florida Department of Law Enforcement. It was prosecuted by Special Assistant United States Attorney Chris Poor. The forfeiture is being handled by Assistant United States Attorney Suzanne C. Nebesky.
Cedar Rapids Meth and Heroin Dealer Sentenced to Federal PrisonRead the Press Release
A Cedar Rapids woman who distributed methamphetamine and heroin was sentenced November 7, 2022, to two years in federal prison.
Breanna Lynn Luna, age 42, from Cedar Rapids, Iowa, received the prison term after a June 23, 2022 guilty plea to one count of possession with intent to distribute a controlled substance.
Evidence disclosed at sentencing showed that, between January 2020 and March 2020, Luna distributed methamphetamine and heroin in Cedar Rapids, Iowa. On March 4, 2020, law enforcement officers stopped a vehicle in which Luna was a passenger. During the stop, officers recovered methamphetamine from Luna’s purse. Luna was then arrested and transported to jail, where she was subject to a search. During the search, deputies recovered methamphetamine from Luna’s person.
Luna was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Luna was sentenced to 24 months’ imprisonment, and she must also serve a three‑year term of supervised release after the prison term. There is no parole in the federal system.
Luna is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Emily Nydle and Dillan Edwards and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-00048.
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Cedar Rapids Man Who Transported over 100 Pounds of Methamphetamine from California to Iowa Pleads GuiltyRead the Press Release
A man who hauled loads of 30 to 60 pounds of methamphetamine from California to Iowa pled guilty today in federal court in Cedar Rapids.
Albert Henry Bailey, age 53, from Cedar Rapids, Iowa, was convicted of one count of conspiracy to distribute a controlled substance.
At the plea hearing, Bailey admitted he conspired with others to distribute methamphetamine in Iowa. Evidence at a prior hearing showed that during a wiretap investigation conducted by the Drug Enforcement Administration in Cedar Rapids in late 2021 and early 2022, Bailey was discovered to be a driver for a group of individuals who were purchasing ice methamphetamine in California and selling it in eastern Iowa. Bailey traveled to California and then drove between 30 and 60 pounds of methamphetamine back to Iowa, where other individuals would sell it. In February 2022, intercepted communications over the wiretap indicated that Bailey would be transporting methamphetamine from California to Iowa. Investigators tracked Bailey’s vehicle and stopped it in York County, Nebraska. During a search of the vehicle, investigators located and seized approximately 60 pounds of ice methamphetamine.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Bailey was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Bailey faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and a lifetime of supervised release following any imprisonment.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the DEA Task Force in Cedar Rapids and the Federal Bureau of Investigation. The DEA Task Force in Cedar Rapids consists of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement. The case is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 22‑CR‑87‑CJW‑MAR.
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Cedar Rapids Man Pleads Guilty to Being a Prohibited Person in Possession of a FirearmRead the Press Release
A prohibited person who possessed a firearm pled guilty on November 7, 2022, in federal court in Cedar Rapids, Iowa.
Tylon Randolph, age 21, from Cedar Rapids, was convicted of one count of being a prohibited person in possession of a firearm. At the plea hearing, Randolph admitted that, on June 1, 2022, he possessed a Hi-Point 9 mm pistol after having been convicted of a felony and while he was an unlawful user of marijuana and alprazolam.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Randolph remains in custody of the United States Marshal pending sentencing. Randolph faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Cedar Rapids Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 22-71.
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Campbell County Man Sentenced to 32 Months for Illegal Possession of a FirearmRead the Press Release
COVINGTON, Ky. – A Bellevue, Ky., man, Perrin George March V, 27, was sentenced in federal court on Tuesday, to 32 months in prison, by U.S. District Judge David Bunning, for illegal possession of a firearm.
According to March’s plea agreement, law enforcement executed a federal search warrant at his residence and found a fully loaded AK-47 pistol, ammunition, and large capacity magazines. March admitted that he knew he was currently subject to a domestic violence order and was prohibited from possessing a firearm or ammunition.
March pleaded guilty in July 2022.
Under federal law, March must serve 85 percent of his prison sentence. Upon his release, his three-year term of supervision by the U.S. Probation Office will commence.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
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Bloomington Man’s Guilty Plea Marks 16th Felony Conviction in Two Medicaid Fraud Conspiracies that Totaled over $5.4 Million in Fraudulent BillingRead the Press Release
ST. PAUL, Minn. – A Bloomington man has pleaded guilty to his role in a $1.4 million Medicaid fraud conspiracy, announced United States Attorney Andrew M. Luger.
According to court documents, Abdirahman Yonis, 35, was a mental health practitioner who worked with Minnesota Multicultural Counseling Clinic, a clinic with offices in St. Paul, Brooklyn Park, and Roseville. As part of the scheme, Yonis and his co-conspirators knowingly prepared and signed client progress notes for mental health services—and related interpreter verification forms—that were not actually rendered and submitted claims to the Minnesota Medicaid program for reimbursement of mental health services and the related interpretation of those services. As a result of the false and fraudulent claims, the Medicaid program paid more than $1.4 million for services that never occurred.
Yonis pleaded guilty yesterday before U.S. District Judge Eric C. Tostrud to one count of wire fraud. A sentencing hearing will be scheduled at a later time.
In 2021, the United States Attorney’s Office charged two separate cases (21-cr-56 and 21-cr-57) that involved over $5.4 million in fraudulent Medicaid billing for mental health services and the purported interpretation of those services. Since that time, 15 defendants have pleaded guilty, one has been convicted at trial, and three remain fugitives from law enforcement. The convicted defendants will be required to pay restitution to the Medicaid program for the amounts paid out on their fraudulent billing practices.
This case is the result of an investigation conducted by the FBI; the U.S. Department of Health and Human Services, Office of Inspector General; and the Minnesota Attorney General Office’s Medicaid Fraud Control Unit.
Assistant U.S. Attorneys Angela M. Munoz and Jordan L. Sing are prosecuting the case.
Baltimore Robber Sentenced to More Than 10 Years in Federal Prison for Possession of a Firearm in Furtherance of Drug Trafficking and a Related Drug ChargeRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Billy Wesson, age 20, of Baltimore, Maryland, late yesterday to 125 months in federal prison, followed by five years of supervised release, for possession with intent to distribute cocaine and to possession of a firearm in furtherance of a drug trafficking crime. Wesson also participated in a series of armed robberies of convenience stores.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.According to his guilty plea, between August 4 and August 7, 2020, Wesson and a co-conspirator committed three armed robberies of convenience stores. In the first robbery on August 4, the store clerk began to run to the rear of the store when she saw the robbers enter. Wesson chased after the employee, caught up with her and walked her back to the cash register, which she opened at gunpoint. In the second robbery on August 6, Wesson approached a store employee from behind and placed the gun to the back of the employee’s head, telling her to “go to the register and open it.” Wesson walked the employee to the register area and again ordered her to open the register, which she did. In the third robbery on August 7, which was committed less than an hour after the second robbery, Wesson pointed a gun at a store employee immediately upon entering the store. Wesson ordered the employee to open the register, which he did, but the employee could only open the first cash drawer and not the second drawer. As in the two previous robberies, Wesson took the cash from the drawer and fled the store.
As detailed in his plea agreement, on the evening of August 8, 2020, four Baltimore Police Department officers were conducting routine patrol in an unmarked vehicle in 5100 block of Midwood Avenue in the Winston-Govans neighborhood in Northwest Baltimore. There was a party in the area and individuals were in the street and on the sidewalk. The officers saw an individual, later identified as Wesson, wearing a satchel across the right side of his body and conducting a “security check,” indicating that Wesson was armed.
The officers stopped and began to get out of their car to approach Wesson. Wesson fled, followed by the four officers. As he ran from the officers, Wesson threw his satchel on the sidewalk not far from one of the homes on Midwood Avenue, where it was almost immediately recovered by law enforcement. The satchel was searched and was found to contain a loaded firearm that matched the gun used in the robberies. The satchel also contained multiple baggies of cocaine packaged for street-level distribution.
Wesson was caught and searched. On Wesson’s person, law enforcement recovered $279 in cash—proceeds from his drug trafficking—and suspected marijuana. Wesson was arrested and subsequently admitted that he possessed the firearm in connection with and in furtherance of his illegal business selling cocaine and that he knew he was prohibited from possessing a firearm or ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.United States Attorney Erek L. Barron commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Paul A. Riley and Colleen McGuinn, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Anderson County Man Sentenced to 276 Months for the Production of Child Sexual Abuse MaterialRead the Press Release
FRANKFORT, Ky.— A Lawrenceburg, Ky., man, David Allen Kiper, 34, was sentenced to 276 months in federal prison on Tuesday, by U.S. District Judge Gregory VanTatenhove, for the production of child sexual abuse material.
According to Kiper’s plea agreement, on March 31, 2021, law enforcement received a referral from the Australian Federal Police, in reference to a subject posting on a Russian website associated with the sexual exploitation of children. In an interview, Kiper admitted to using the Russian website to download sexually explicit images of children from the internet. Kiper further admitted that he had multiple sexually explicit images of children on his phone and to having a sexual interest in children. Kiper also admitted to producing a video of himself sexually abusing a three-year old minor.
Kiper pleaded guilty in August 2022.
Under federal law, Kiper must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge, Department of Homeland Security - Homeland Security Investigations; and Col. Phillip Burnett, Commissioner, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the Department of Homeland Security - Homeland Security Investigations and KSP. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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American Contractor Pleads Guilty in Death of U.S. Military DoctorRead the Press Release
A former American military contractor pleaded guilty today to involuntary manslaughter for fatally striking an active duty U.S. Air Force medical doctor with a forklift as she was walking on Al Dhafra Airbase in the United Arab Emirates.
According to court documents, on Nov. 27, 2020, Ari Taylor, 32, of Roxboro, North Carolina, was operating a forklift to deliver pallets of water on Al Dhafra Airbase in his role as a civilian employed by a U.S. military contractor. He drove the forklift through a space shared by vehicles and pedestrians, between a medical clinic and living quarters. Taylor acknowledged that pedestrians were frequently present in this area.
At the time of the fatal collision, Taylor was distracted while using his cell phone and never saw Captain Kelliann Leli. A crash reconstruction expert concluded that Taylor had almost nine seconds to prevent the crash, but Taylor admitted that he did not see Capt. Leli and failed to take any steps to avoid striking her with the forklift.
Taylor pleaded guilty to one count of involuntary manslaughter. He is scheduled to be sentenced on April 25, 2023. 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 Sandra J. Hairston for the Middle District of North Carolina, and Brigadier General Terry L. Bullard of the U.S. Air Force Office of Special Investigations made the announcement.
The U.S. Air Force Office of Special Investigations conducted the investigation with assistance from the FBI.
Senior Trial Attorney Frank G. Rangoussis and Trial Attorney Elizabeth Nielsen of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Terry Meinecke for the Middle District of North Carolina are prosecuting the case.
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American Contractor Pleads Guilty in Death of U.S. Military DoctorRead the Press Release
A former American military contractor pleaded guilty today to involuntary manslaughter for fatally striking an active duty U.S. Air Force medical doctor with a forklift as she was walking on Al Dhafra Airbase in the United Arab Emirates.
According to court documents, on Nov. 27, 2020, Ari Taylor, 32, of Roxboro, North Carolina, was operating a forklift to deliver pallets of water on Al Dhafra Airbase in his role as a civilian employed by a U.S. military contractor. He drove the forklift through a space shared by vehicles and pedestrians, between a medical clinic and living quarters. Taylor acknowledged that pedestrians were frequently present in this area.
At the time of the fatal collision, Taylor was distracted while using his cell phone and never saw Captain Kelliann Leli. A crash reconstruction expert concluded that Taylor had almost nine seconds to prevent the crash, but Taylor admitted that he did not see Capt. Leli and failed to take any steps to avoid striking her with the forklift.
Taylor pleaded guilty to one count of involuntary manslaughter. He is scheduled to be sentenced on April 25, 2023. 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 Sandra J. Hairston for the Middle District of North Carolina, and Brigadier General Terry L. Bullard of the U.S. Air Force Office of Special Investigations made the announcement.
The U.S. Air Force Office of Special Investigations conducted the investigation with assistance from the FBI.
Senior Trial Attorney Frank G. Rangoussis and Trial Attorney Elizabeth Nielsen of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Terry Meinecke for the Middle District of North Carolina are prosecuting the case
Allahjuan Calhoun Pleads Guilty to Failure to Appear, Admits to Violating Supervised ReleaseRead the Press Release
The United States Attorney for the District of Vermont announced that Allahjuan Calhoun, 32, of Yonkers, New York, pleaded guilty today in United States District Court in Burlington to a charge of failure to appear. District Judge Christina Reiss ordered that Calhoun be detained pending his sentencing next March 21. At today’s hearing, Calhoun also admitted that he violated conditions of his federal supervised release on a related case. Based on that admission, Judge Reiss sentenced Calhoun to six months of imprisonment. Calhoun has already served about five and one-half months since his arrest on a bench warrant last summer.
According to court records, in 2020, Calhoun pleaded guilty in Vermont to being a felon in possession of a firearm. Judge Reiss sentenced Calhoun to 26 months of imprisonment, to be followed by a two-year period of supervised release. Calhoun completed his prison term in 2021. Soon after, the U.S. Probation Office filed a petition to revoke Calhoun’s supervised release because, among other things, he repeatedly smoked marijuana in violation of his conditions.
The court scheduled a final hearing on the motion to revoke Calhoun’s supervised release for March 22, 2022 in Burlington. Although he was aware of the court date, Calhoun failed to appear as required and the court issued a bench warrant for his arrest. Calhoun was arrested on the warrant in late June. On October 27, a grand jury returned a one-count indictment charging Calhoun with failure to appear. Calhoun pleaded guilty to that charge at today’s arraignment.
Calhoun faces up to five years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines. By law, any sentence on the failure to appear charge must run consecutively to Calhoun’s supervised release violation sentence.
Calhoun is represented by Assistant Federal Defender Mary Nerino. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Albemarle County Man Pleads Guilty to Hobbs Act RobberyRead the Press Release
CHARLOTTESVILLE, Va. – An Albemarle County man pled guilty yesterday to breaking into a private home while armed in October 2021.
Traevon Gray, 20, pleaded guilty to one count of Hobbs Act Robbery. At sentencing, Gray faces up to 20 years in prison.
“The Department of Justice prioritizes the investigation and prosecution of violent crime, especially those involving firearms,” United States Attorney Christopher R. Kavanaugh said today. “My Office will continue to work with our local, state, and federal partners to reduce violent crime in our communities and make the Western District of Virginia safer for all residents.”
“Violent crime instills fear by threatening the safety and security of our communities. As such, the FBI Richmond Safe Streets Task Force worked with local and federal partners to identify and hold the defendants accountable for their actions. Violent crime will not be tolerated in any form. We will continue to take steps to identify those persons who choose to threaten our communities and encourage anyone who has knowledge of such acts to contact authorities,” said Special Agent in Charge Stanley M. Meador of the FBI Richmond Division.
“The Albemarle County Police Department remains committed to collaborating with our local, state, and federal law enforcement partners, like the United State Attorney’s Office and the Federal Bureau of Investigation. This commitment to cooperation is vital to keeping the citizens, residents, and visitors of Albemarle County safe,” said Colonel Sean Reeves, Chief of Police for Albemarle County.
According to court documents, on the morning of October 27, 2021, Gray and co-defendant Damon Williams broke into the victim’s Albemarle County home through a backdoor. While both Gray and Williams were armed with firearms, they forced the victim from his upstairs bedroom into the kitchen where they ordered him to lie face down on the floor.
After stealing various items, Gray bound the victim’s hands with tape, punched him in the face, and pushed him into the kitchen pantry. The men stole two pounds of marijuana, several thousand dollars, a firearm, and other drug paraphernalia.
After the robbery, Gray and Williams fled to Spartanburg, South Carolina where they divided up the robbery proceeds.
Williams is scheduled to plead guilty to similar charges next week in federal court.
The FBI’s Safe Streets Task Force and the Albemarle County Police Department investigated the case.
Assistant U.S. Attorney Heather L. Carlton is prosecuting the case.
Albany Woman Sentenced to Prison for COVID-19 Relief FraudRead the Press Release
ALBANY, NEW YORK – Debra Hackstadt, age 68, of Albany, was sentenced today to 16 months in prison for fraudulently obtaining 32 government-backed loans meant for businesses struggling with the financial effects of the coronavirus pandemic.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
United States Attorney Carla B. Freedman stated: “Today’s sentence holds Debra Hackstadt accountable for a prolific fraud. She took advantage of an economically devastating pandemic and stole money that was earmarked for legitimate businesses struggling to stay afloat. With our law enforcement partners, we will continue to investigate and prosecute those who have stolen from pandemic relief programs.”
FBI Special Agent in Charge Janeen DiGuiseppi stated: “Debra Hackstadt defrauded government loan programs established to help small businesses recover from the devastating financial impacts of the pandemic. By lying to obtain multiple loans, Hackstadt took over a million dollars away from deserving companies who were in desperate need of support. Today’s sentence ensures she will answer for her criminal acts. The FBI, together with our law enforcement partners, will continue to investigate and hold accountable anyone looking to steal money from these critical government programs.”
Hackstadt pled guilty to wire fraud on May 19, 2022. She admitted that between April 30, 2020 and June 11, 2021, she fraudulently obtained $1,615,546 from two pandemic relief loan programs – the Paycheck Protection Program (“PPP”), whose loans are issued by private financial institutions and backed by the federal government, and Economic Injury Disaster Loans (“EIDLs”), which are issued directly by the U.S. Small Business Administration (SBA). These loans were issued to Hackstadt herself, certain of her family members and acquaintances, and several companies controlled by Hackstadt or her family members.
United States District Judge Glenn T. Suddaby ordered Hackstadt to pay $1,696,324.96 in restitution and to forfeit an additional $254,812, representing the amount of money she personally obtained from the fraud. He also imposed a 2-year term of post-imprisonment supervised release.
Hackstadt committed the fraud by lying to the SBA and various PPP lenders on loan applications, including by making up and grossly overstating the number of employees and payrolls of the companies and sole proprietorships for which she obtained loans. Many of the PPP applications also included false tax documents that Hackstadt created as part of the scheme. In total, Hackstadt’s scheme resulted in the issuance of 27 PPP loans and five EIDLs.
Hackstadt also admitted that in addition to these loans, she fraudulently obtained two other business loans from private lenders. She fraudulently obtained a $42,290 loan in October-November 2019, and promptly defaulted on it, and fraudulently obtained a $48,500 loan in June 2021, and promptly defaulted on it.
This case was investigated by the FBI, and was prosecuted by Assistant U.S. Attorneys Michael Barnett and Joshua R. Rosenthal.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
7 November 2022
Wichita Man Indicted for Child PornRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging a Kansas man with one count of sexual exploitation of a child -production of child pornography, three counts of distribution of child pornography, and one count of possession of child pornography.
According to court documents, Jimmy Lynn, 50, of Wichita is accused of using a young child to create sexually explicit images, and he’s accused of distributing child porn.
Homeland Security Investigations (HSI), the Kansas Internet Crimes Against Children Task Force (ICAC), and Wichita Police Department are investigating the case.
Assistant U.S. Attorney Jason Hart is prosecuting the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."OTHER INDICTMENTS
Matthew Albretch, 31, of Wichita was indicted on two counts of aggravated identity theft. The U.S. Secret Service is investigating the case. Assistant U.S. Attorney Alan Metzger is prosecuting the case.
Brian Shrout, 56, of Wichita was indicted on one count of failure to register as a sex offender. The U.S. Marshal Service is investigating the case. Assistant U.S. Attorney Molly Gordon is 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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West Virginia Man Sentenced to Federal Prison for Meth ConvictionRead the Press Release
A man who possessed over a pound and a half of methamphetamine was sentenced today to more than 19 years in federal prison.
Robert Charles Shelton, age 42, from Parkersburg, West Virginia, received the prison term after a May 2, 2022 guilty plea to one count of possession with intent to distribute methamphetamine.
At the plea and sentencing hearings, evidence showed that Shelton was attempting to burglarize a home in Cedar County, Iowa, when relatives of the homeowner found him. Shelton attempted to flee in his car but became stuck in a field. Shelton abandoned his car and fled from the house on foot before law enforcement officers arrived. The following morning, law enforcement officers received a call of a person walking near the Cedar Valley Bridge. There, an officer found Shelton carrying a bag and a flashlight. In the bag, officers located over a pound and a half of methamphetamine and a BB handgun.
Shelton was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Shelton was sentenced to 235 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Shelton is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Adam J. Vander Stoep and investigated by the Cedar County Sheriff’s Office, Iowa State Patrol, Iowa Division of Narcotics Enforcement, and Muscatine County Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-17.
Washington Man Pleads Guilty to Making Interstate Threats and Hate CrimeRead the Press Release
A Washington man pleaded guilty today in U.S. District Court in Seattle to making interstate threats and committing a hate crime for interference with a federally protected activity. The defendant has been in federal custody since his arrest on July 22.
According to the plea agreement, Joey David George, 37, of Lynwood, telephoned multiple grocery stores in Buffalo, New York, and threatened to shoot Black people in the stores. George told the staff at the store to “take him seriously,” and ordered the store to clear out the customers, as he was “nearby” and “preparing to shoot all Black customers.” One store closed. The threats followed a racially-motivated shooting at another Buffalo grocery store in May. Law enforcement traced the phone number and identified George as the person who made the call.
In addition to the calls to Buffalo, George admits that in May, he called a restaurant in San Bruno, California. In that call, George allegedly threatened to shoot Black and Hispanic patrons in the restaurant. He told law enforcement that he made the threat to strike fear in the Bay Area Black community.
On Sept. 11, 2021, George called a cannabis dispensary in Rockville, Maryland, and used racial slurs as he threatened to shoot and kill Black people at the business. George admitted his racial hate to local law enforcement who used caller ID to trace the call. The dispensary shut down and hired extra security, causing a loss of over $50,000. George also called a Denny’s restaurant in Enfield, Connecticut, and threatened Black patrons at the restaurant on the same day.
In his plea agreement George admitted he made threatening telephone calls from at or near his home in Lynnwood, to grocery stores in Buffalo, New York, restaurants in California and Connecticut, and a marijuana dispensary in Maryland. Sentencing is scheduled in front of U.S. District Judge Ricardo S. Martinez on Dec.16.
In his plea agreement George agrees to pay restitution to the impacted businesses.
Making interstate threats in punishable by up to five years in prison. Interfering with a federally protected activity is punishable by up to 10 years in prison.
Prosecutors have agreed to limit their sentencing recommendation to the high end of the federal sentencing guidelines range. Judge Martinez is not bound by prosecutors’ recommendations and can impose any sentence up to the 10-year statutory maximum after considering the sentencing guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Nick Brown for the Western District of Washington and Special Agent in Charge Richard A. Collodi of the FBI Seattle Field Office made the announcement.
The FBI Seattle Field Office investigated the case, with the assistance of multiple local police departments. Assistant U.S. Attorneys Thomas Woods and Rebecca Cohen for the Western District of Washington prosecuted the case in consultation with the Justice Department’s Civil Rights Division.
United States Attorney Will Thompson to Hold Press ConferenceRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson, along with Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and other law enforcement officials will hold a press conference at 2 p.m. on Monday, November 7, 2022, to announce a major milestone resulting from a large-scale drug trafficking and firearms investigation known as “Woo Boyz” (U.S. vs. Williams et al., 2:21-cr-32).
WHERE: Robert C. Byrd United States Courthouse, 300 Virginia Street East, Charleston
WHEN: Monday, November 7, 2022, at 2 p.m.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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United States Attorney Announces Initiative for Addressing Environmental Justice and Public Health ConcernsRead the Press Release
OKLAHOMA CITY – United States Attorney Robert J. Troester announces an initiative to address environmental justice and public health concerns in the Western District of Oklahoma. An Environmental Justice Coordinator has been designated to coordinate the U.S. Attorney’s Office’s efforts in this important area. Members of the public may visit the website of the U.S. Attorney’s Office at https://www.justice.gov/usao-wdok for information regarding where to report environmental violations or public health issues; and how to report such concerns to the Environmental Justice Coordinator.
"Protecting our community requires that we safeguard our environment and public health through the vigorous enforcement of federal laws," said U.S. Attorney Robert J. Troester. "We encourage citizens to report concerns that create a danger to themselves and fellow Oklahomans. My office will work closely with regulatory authorities and investigative agencies who specialize in environmental and public health enforcement to take appropriate action where necessary."
The Office’s reporting procedures are part of the Department of Justice’s Comprehensive Environmental Justice Enforcement Strategy, which seeks to advance environmental justice through timely and effective remedies for environmental violations and injuries to natural resources in "underserved communities that have been historically marginalized and overburdened, including low-income communities, communities of color, and Tribal and Indigenous communities." The Department of Justice enforces the Nation’s civil and criminal environmental laws, including the Clean Air Act, Clean Water Act, and hazardous waste laws. The Department also protects natural resources and handles cases relating to tribal rights and resources. Working with its Department of Justice partners, the U.S. Attorney’s Office seeks to secure environmental justice for all communities, to ensure that everyone enjoys the same degree of protection from environmental and health hazards, and to protect equal access to a healthy environment in which to live, learn, play, and work.
If you have information or concerns regarding the potential violation of any federal environmental law and its impact upon people, communities, or natural resources within our district, please share them with the office by email or mail.
Email:
Mail:
U.S. Attorney’s Office, Western District of Oklahoma
Attn: Environmental Justice and Public Health
210 West Park Avenue, Suite 400, Oklahoma City, Oklahoma, 73102
The Office’s reporting procedures are in addition to other methods of reporting environmental concerns to the federal government, such as the online portal maintained by the United States Environmental Protection Agency:
https://echo.epa.gov/report-environmental-violations. Additional points of contact for federal agencies may be found on the Office’s website.
USA Ross Appoints District Election Officer Ahead of Election DayRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY—U.S. Attorney Trini E. Ross announced today that Assistant U.S. Attorney (AUSA) Paul E. Bonanno will lead efforts in her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. AUSA Bonanno has been appointed to serve as the District Election Officer (DEO) for the Western District of New York, and in that capacity is responsible for overseeing the district’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Ross said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
U.S. Attorney Ross stated that, “it is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Bonanno will be on duty in this District while the polls are open. He can be reached by the public at 716-843-5700.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 716-856-7800.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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U.S. Attorney’s Office Will Participate in the DOJ’s Nationwide Election Day ProgramRead the Press Release
Acting United States Attorney Steven Russell announced today that his office would be participating in the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. The United States Attorney’s Office (USAO) is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington, D.C.
Acting United States Attorney Russell said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process. The citizen’s right to vote is the cornerstone of American democracy. We all must ensure that those who are entitle to this privilege can exercise it if they choose, and that those who seek to corrupt it are brought to justice.”
In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure such complaints are directed to the appropriate authorities, the USAO will be available while the polls are open (8 a.m. to 8 p.m. in the Central Time Zone and 7 a.m. to 7 p.m. in the Mountain Time Zone), and can be reached at (402) 661-3700. In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (402) 493-8688. Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
Nebraska Secretary of State Robert Evnen reminds voters that, should the need arise, the state’s Election Integrity Unit is on standby for Election Day concerns or complaints. People may call their County Election Official or Nebraska Secretary of State’s Office Election Division at (402) 471-2555 or (888) 727-0007 (toll free) to report problems. If a voter is unsure about the location of their polling site, they should call their county election office or go online to https://www.votercheck.necvr.ne.gov.
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
Acting United States Attorney Russell said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
U.S. Attorney appoints district election officersRead the Press Release
CINCINNATI – United States Attorney Kenneth L. Parker announced today that Assistant United States Attorney Jessica W. Knight will lead the Southern District of Ohio’s Election Day Program efforts for the general election tomorrow.
As the District Election Officer, Ms. Knight is responsible for overseeing the district’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with the Justice Department headquarters in Washington, D.C.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Parker. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.
It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
The FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. Please direct allegations of election fraud and other election abuses to the FBI at 1-800-CALL FBI.
Deputy Criminal Chiefs Emily Glatfelter and Brent Tabacchi and Assistant U.S. Attorney Peter K. Glenn-Applegate are also serving as District Election Officers. Ms. Knight and Mr. Glenn-Applegate can be reached in Columbus at 614-469-5715. Ms. Glatfelter can be reached in Cincinnati at 513-684-3711. Mr. Tabacchi can be reached in Dayton at 937-225-2910.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
“Ensuring free and fair elections depends in large part on the assistance of the American electorate,” said U.S. Attorney Parker. “It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
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U.S. Attorney Tucker Appoints District of Alaska Election OfficerRead the Press Release
ANCHORAGE – United States Attorney S. Lane Tucker announced today that Assistant United States Attorney (AUSA) Kelly Cavanaugh will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. AUSA Cavanaugh has been appointed to serve as the District Election Officer (DEO) for the District of Alaska and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
United States Attorney Tucker said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
United States Attorney Tucker stated that: “Voting is the cornerstone of American democracy. We all must ensure that those who are entitled to vote can exercise that right if they choose, and that any who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Cavanaugh will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: 907-271-5071.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 907-276-4441 or online at tips.fbi.gov.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
United States Attorney Tucker said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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U.S. Attorney Michael Easley Announces Appointment of 2022 Eastern District Election OfficerRead the Press Release
RALEIGH, N.C. – U.S. Attorney Michael Easley announced today that Assistant U.S. Attorney (AUSA) Susan Menzer will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for tomorrow’s November 8, 2022, general election. AUSA Menzer has been appointed to serve as the District Election Officer (DEO) for the Eastern District of North Carolina, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Easley said, “Every citizen must be able to vote without interference or discrimination and to have their vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without unlawful threats of violence. The Justice Department is committed to protecting the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
U.S. Attorney Easley stated that: “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Menzer will be on duty in this District while the polls are open. She can be reached by the public at the following telephone numbers: (919)856-4530 and (919)856-4099.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (704)672-6100.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
U.S. Attorney Easley said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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U.S. Attorney Announces Historic $3.36 Billion Cryptocurrency Seizure and Conviction in Connection with Silk Road Dark Web FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Tyler Hatcher, the Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Los Angeles Field Office (“IRS-CI”), announced today that JAMES ZHONG pled guilty to committing wire fraud in September 2012 when he unlawfully obtained over 50,000 Bitcoin from the Silk Road dark web internet marketplace. ZHONG pled guilty on Friday, November 4, 2022, before United States District Judge Paul G. Gardephe.
On November 9, 2021, pursuant to a judicially authorized premises search warrant of ZHONG’s Gainesville, Georgia, house, law enforcement seized approximately 50,676.17851897 Bitcoin, then valued at over $3.36 billion. This seizure was then the largest cryptocurrency seizure in the history of the U.S. Department of Justice and today remains the Department’s second largest financial seizure ever. The Government is seeking to forfeit, collectively: approximately 51,680.32473733 Bitcoin; ZHONG’s 80% interest in RE&D Investments, LLC, a Memphis-based company with substantial real estate holdings; $661,900 in cash seized from ZHONG’s home; and various metals also seized from ZHONG’s home.
U.S. Attorney Damian Williams said: “James Zhong committed wire fraud over a decade ago when he stole approximately 50,000 Bitcoin from Silk Road. For almost ten years, the whereabouts of this massive chunk of missing Bitcoin had ballooned into an over $3.3 billion mystery. Thanks to state-of-the-art cryptocurrency tracing and good old-fashioned police work, law enforcement located and recovered this impressive cache of crime proceeds. This case shows that we won’t stop following the money, no matter how expertly hidden, even to a circuit board in the bottom of a popcorn tin.”
IRS-CI Special Agent in Charge Tyler Hatcher said: “Mr. Zhong executed a sophisticated scheme designed to steal bitcoin from the notorious Silk Road Marketplace. Once he was successful in his heist, he attempted to hide his spoils through a series of complex transactions which he hoped would be enhanced as he hid behind the mystery of the ‘darknet.’ IRS-CI Special Agents are the best in the world at following the money through cyberspace or wherever our financial investigations lead us. We will continue to work with our partners at the US Attorney’s Office to track down these criminals and bring them to justice.”
According to the allegations contained in filings in Manhattan federal court and statements made during court proceedings:
ZHONG’s Scheme to Defraud
Silk Road was an online “darknet” black market. In operation from approximately 2011 until 2013, Silk Road was used by numerous drug dealers and other unlawful vendors to distribute massive quantities of illegal drugs and other illicit goods and services to many buyers and to launder all funds passing through it. In 2015, following a groundbreaking prosecution by this Office, Silk Road’s founder Ross Ulbricht was convicted by a unanimous jury and sentenced to life in prison.
In September 2012, ZHONG executed a scheme to defraud Silk Road of its money and property by (a) creating a string of approximately nine Silk Road accounts (the “Fraud Accounts”) in a manner designed to conceal his identity; (b) triggering over 140 transactions in rapid succession in order to trick Silk Road’s withdrawal-processing system into releasing approximately 50,000 Bitcoin from its Bitcoin-based payment system into ZHONG’s accounts; and (c) transferring this Bitcoin into a variety of separate addresses also under ZHONG’s control, all in a manner designed to prevent detection, conceal his identity and ownership, and obfuscate the Bitcoin’s source.
While executing the September 2012 fraud, ZHONG did not list any item or service for sale on Silk Road, nor did he buy any item or service on Silk Road. ZHONG registered the accounts by providing the bare minimum of information required by Silk Road to create the account; the Fraud Accounts were merely a conduit for ZHONG to defraud Silk Road of Bitcoin.
ZHONG funded the Fraud Accounts with an initial deposit of between 200 and 2,000 Bitcoin. After the initial deposit, ZHONG then quickly executed a series of withdrawals. Through his scheme to defraud, ZHONG was able to withdraw many times more Bitcoin out of Silk Road than he had deposited in the first instance. As an example, on September 19, 2012, ZHONG deposited 500 Bitcoin into a Silk Road wallet. Less than five seconds after making the initial deposit, ZHONG executed five withdrawals of 500 Bitcoin in rapid succession — i.e., within the same second — resulting in a net gain of 2,000 Bitcoin. As another example, a different Fraud Account made a single deposit and over 50 Bitcoin withdrawals before the account ceased its activity. ZHONG moved this Bitcoin out of Silk Road and, in a matter of days, consolidated them into two high-value amounts.
Nearly five years after ZHONG’s fraud, in August 2017, solely by virtue of ZHONG’s possession of the 50,000 Bitcoin that he unlawfully obtained from Silk Road, ZHONG received a matching amount of a related cryptocurrency — 50,000 Bitcoin Cash (“BCH Crime Proceeds”) — on top of the 50,000 Bitcoin. In August 2017, in a hard fork coin split, Bitcoin split into two cryptocurrencies, traditional Bitcoin and Bitcoin Cash (“BCH”). When this split occurred, any Bitcoin address that had a Bitcoin balance (as ZHONG’s addresses did) now had the exact same balance on both the Bitcoin blockchain and on the Bitcoin Cash blockchain. As of August 2017, ZHONG thus possessed 50,000 BCH in addition to the 50,000 Bitcoin that ZHONG unlawfully obtained from Silk Road. ZHONG thereafter exchanged through an overseas cryptocurrency exchange all of the BCH Crime Proceeds for additional Bitcoin, amounting to approximately 3,500 Bitcoin of additional crime proceeds. Collectively, by the last quarter of 2017, ZHONG thus possessed approximately 53,500 Bitcoin of total crime proceeds (the “Crime Proceeds”).
The Government’s Seizure of Forfeitable Property
On November 9, 2021, pursuant to a judicially authorized premises search warrant (the “Search”), IRS-CI agents recovered approximately 50,491.06251844 Bitcoin of the Crime Proceeds from ZHONG’s Gainesville, Georgia, house. Specifically, law enforcement located 50,491.06251844 Bitcoin of the approximately 53,500 Bitcoin Crime Proceeds (a) in an underground floor safe; and (b) on a single-board computer that was submerged under blankets in a popcorn tin stored in a bathroom closet. In addition, law enforcement recovered $661,900 in cash, 25 Casascius coins (physical bitcoin) with an approximate value of 174 Bitcoin, 11.1160005300044 additional Bitcoin, and four one-ounce silver-colored bars, three one-ounce gold-colored bars, four 10-ounce silver-colored bars, and one gold-colored coin.
Beginning in or around March 2022, ZHONG began voluntarily surrendering to the Government additional Bitcoin that ZHONG had access to and had not dissipated. In total, ZHONG voluntarily surrendered 1,004.14621836 additional Bitcoin.
Forfeiture Actions
In connection with ZHONG’s guilty plea, on November 4, 2022, Judge Gardephe entered a Consent Preliminary Order of Forfeiture as to Specific Property and Substitute Assets/Money Judgment forfeiting ZHONG’s interest in the following property:
- ZHONG’s 80% interest in RE&D Investments, LLC, a Memphis-based company with substantial real estate holdings;
- $661,900 in United States currency seized from ZHONG’s home on November 9, 2021;
- Metal items, consisting of four one-ounce silver-colored bars, three one-ounce gold-colored bars, four 10-ounce silver-colored bars, and one gold-colored coin, all seized from ZHONG’s home on November 9, 2021;
- 11.1160005300044 Bitcoin seized from ZHONG’s home on November 9, 2021;
- 25 Casascius coins (physical Bitcoin) with an approximate value of 174 Bitcoin, collectively, seized from ZHONG’s home on November 9, 2021;
- 23.7112850 Bitcoin provided by ZHONG on April 27, 2022;
- 115.02532155 Bitcoin provided by ZHONG on April 28, 2022; and
- 4.57427222 Bitcoin provided by ZHONG on June 8, 2022.
Today, in United States v. Ross Ulbricht, S1 14 Cr. 68 (LGS), the Government filed a motion for entry of an Amended Preliminary Order of Forfeiture, seeking to forfeit approximately 51,351.89785803 Bitcoin traceable to Silk Road, valued at approximately $3,388,817,011.90 at the time of seizure, as follows:
- 50,491.06251844 Bitcoin seized from ZHONG’s home on November 9, 2021;
- 825.38833159 Bitcoin provided by ZHONG on March 25, 2022; and
- 35.4470080 Bitcoin provided by ZHONG on May 25, 2022.
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ZHONG, 32, of Gainesville, Georgia, and Athens, Georgia, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. ZHONG is scheduled to be sentenced by Judge Gardephe on February 22, 2023, at 3:00 p.m.
Mr. Williams praised the outstanding work of the Internal Revenue Service, Criminal Investigation’s Western Cyber Crimes Unit of the Los Angeles Field Office. Mr. Williams also thanked the Athens-Clarke County Police Department in Athens, Georgia, for its support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney David R. Felton is in charge of the case.