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Wednesday 21 September 2022
Contract Killer Pleads Guilty and Admits to Committing Six Murders and One Attempted Murder in PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Ernest Pressley, 42, of Philadelphia, PA, pleaded guilty before United States District Court Judge Eduardo C. Robreno to one count of conspiracy to commit murder-for-hire and four counts of use of interstate commerce facilities in the commission of murder-for-hire, in connection with Pressley’s role in murdering four victims in Philadelphia between 2017 and 2018, all in exchange for money. As part of the guilty plea, the defendant also admitted to his role in the killing of two other victims in 2016 and 2017, and the attempted murder of a woman in 2018. Charging documents and court filings detailing these crimes were unsealed today in connection with the plea hearing.
In late 2018, the Philadelphia Police Department joined with the Federal Bureau of Investigation to investigate Pressley in connection with the murder of a victim known as S.S., who was shot to death in the parking lot of a Philadelphia apartment complex near 7400 Malvern Avenue in the early morning hours of September 1, 2018. The defendant was captured on video surveillance footage near the scene and in footage retrieved from a bar in Philadelphia the evening before, when he was with S.S. and several other men. Pressley was arrested in connection with this crime on September 7, 2018.
The ensuing investigation revealed that Pressley was responsible for other murders in Philadelphia, including the killings of two tow truck drivers who worked for the business A. Bob’s Towing on January 12 and 13, 2017. The defendant agreed to kill a tow truck driver known as K.F. in exchange for money, in order to prevent K.F. from testifying as a witness at an assault trial in Philadelphia. In an effort to distract law enforcement from the true motivation for K.F.’s murder and to make it appear as though it was connected to a feud between rival tow truck companies, Pressley selected at random one of K.F.’s co-workers, a victim known as E.R., and shot him to death as he left work on January 12, 2017, near 4500 Melrose Street. The next day, Pressley approached K.F. as he left his home and entered his tow truck, which was being driven by a co-worker, at which time Pressley opened fire, fatally striking K.F. and injuring his co-worker, who was shot several times in his lower body.
As the investigation developed further, Pressley was also identified as the person who shot a victim known as M.R. to death in Philadelphia on January 11, 2017, near the intersection of East Sharpnack and Baldwin Streets, while M.R. worked on his vehicle at a garage in the area.
During the guilty plea allocution before Judge Robreno earlier today, Pressley admitted that he murdered M.R., E.R., K.F., and S.S., in exchange for money and at the direction of a drug trafficker. Around the time of each crime, Pressley used his cellular phone to communicate with his co-conspirator to plan how and when each murder would be carried out. His use of a cell phone to facilitate each of the killings is a federal offense. Pressley’s conviction by way of his guilty plea carries a mandatory life sentence in prison.
Further, Pressley admitted to shooting a victim known as C.Y. to death on July 19, 2016, as C.Y. sat on the porch of a residence near 1500 West Olney Avenue in Philadelphia. The defendant also admitted to his role in providing the location of a man he knew was wanted dead by a Philadelphia drug trafficker, which later resulted in the death of a victim known as Y.H., who was killed as the result of mistaken identity near the intersection of 56th Street and Ithan Street on July 24, 2018. Finally, Pressley admitted that he attempted to kill a woman when he shot her in the arm as she arrived at her Philadelphia home on North Woodstock Street on July 9, 2018. While the woman survived a gunshot wound, she later discovered that her home had been ransacked and several items were stolen, including money and jewelry. Several hours later, Pressley was identified as having sold a Rolex watch belonging to the woman at a Philadelphia pawn shop.
“By his own admission, Ernest Pressley is an incredibly dangerous individual with no qualms about accepting money to calculatedly and cold-bloodedly murder anyone,” said U.S. Attorney Romero. “With today’s guilty plea and thanks to the dedicated efforts of the investigators on this case, this defendant will now spend the rest of his life behind bars for these heinous crimes.”
“We’ve long known that much of Philadelphia’s violent crime is committed by a discrete group of chronic offenders,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Ernest Pressley is a case in point. Today, he’s admitted to murdering six people and trying to kill a seventh. He’s an obvious menace with zero respect for human life and the city is unequivocally safer with him behind bars. The FBI and Philadelphia Police Department are working in lockstep and bringing all our resources to bear, as we home in on these violent criminals leaving bodies in their wake.”
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.
Clearwater Man Pleads Guilty to Distributing MethamphetamineRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Justin Roberson (34, Clearwater) today pleaded guilty to possession with the intent to distribute methamphetamine. Roberson faces a minimum mandatory penalty of 10 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the facts presented at the change of plea hearing, in 2021, DEA agents in Tampa, partnering with law enforcement officers from the Clearwater Police Department (CPD), initiated an investigation into the distribution of methamphetamine within the Middle District of Florida. Agents received information that Roberson was distributing methamphetamine in Clearwater.
On September 15, 2021, Roberson called a confidential source (CS) working with law enforcement and said that he (Roberson) had “a lot” of methamphetamine and was selling it “by the pound.” Through coded conversation, Roberson and the CS agreed to meet at a business associated with Roberson, on North Meteor Avenue in Clearwater, to complete the purchase of the methamphetamine. During the drug transaction, Roberson sold four individual plastic baggies, each containing a crystallized substance inside. The substance obtained from Roberson was later analyzed by the DEA and found to be approximately 893 grams (1.96 pounds) of methamphetamine hydrochloride, a controlled substance.
On July 8, 2022, agents executed a federal search warrant at the North Meteor Avenue location and located a fully loaded AR-15 rifle, ammunition, a kilogram of cocaine, numerous pills—including more than 579 grams of MDMA, a quantity of marijuana, digital scales, baggies, a currency counter, and cash. On that same date, agents also conducted a consent search of Roberson’s residence and located an AK-47 rifle, additional rifle magazines, a Glock handgun, several AR-15 style rifles, and more cash.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by Drug Enforcement Administration and the Clearwater Police Department. It is being prosecuted by Assistant United States Attorney Craig Gestring.
Charlottesville Woman Sentenced for Bank Fraud, Aggravated Identity TheftRead the Press Release
CHARLOTTESVILLE, Va. – A Charlottesville woman, who altered and forged checks she obtained without the consent of the checks’ owners, was sentenced yesterday to 42 months in federal prison.
Samantha Leigh Thomas, 33, pleaded guilty in February 2022 to one count of bank fraud and one count of aggravated identity theft.
According to court documents, Thomas devised a scheme in which she altered or forged stolen checks and then deposited all of her ill-gotten gains into one of five personal checking accounts maintained at five different financial institutions. The eventual loss suffered by the victims exceeded $25,000. In addition to being required to pay back the money she stole, Thomas will be on supervised release for a period of four years after her release from prison.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Damon E. Wood, Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division made the announcement.
The United States Postal Inspection Service and the Albemarle County Police Department investigated the case.
Assistant U.S. Attorney Ronald M. Huber is prosecuting the case.
Charleston Man Sentenced to Serve 115 Months for Firearm ChargeRead the Press Release
CAPE GIRARDEAU - The United States Attorney's Office announced that Duramus T. Coleman, age 38, of Charleston, was sentenced to serve 115 months in federal prison for the offense of possession of a firearm by a convicted felon. Coleman appeared for his sentencing hearing today before United States District Judge Stephen N. Limbaugh, Jr. at the federal courthouse in Cape Girardeau, Missouri.
According to court documents, on October 22, 2021, a Missouri State Highway Patrol trooper conducted a traffic stop of a Chevrolet Monte Carlo traveling on MO Highway 105 with expired license registration tags. Before coming to a stop, the driver of the Monte Carlo attempted to flee and a vehicle pursuit ensued. The driver eventually left the roadway and drove into the front yard of a residence. While the car was still in motion, the driver exited and fled on foot. A woman was standing nearby and advised the trooper that she saw a man run into her home, and she gave permission for the trooper to enter. The door was locked and the landlord was contacted to bring extra keys.
Once inside, the trooper located the driver of the Monte Carlo hiding in a bedroom of the home. The subject was identified as Duramus Coleman and taken into custody without further incident. The trooper returned to the Monte Carlo and observed a pistol in plain-view inside the car.
Coleman was previously convicted of the felony offense of domestic assault in the second degree in Mississippi County and is therefore prohibited from possessing firearms.This case was investigated by the Missouri State Highway Patrol. Assistant United States Attorney Julie Hunter handled the prosecution for the government.
Champaign Man Sentenced to Eight Years in Federal Prison for Child Enticement CrimeRead the Press Release
URBANA, Ill. – A Champaign, Illinois, man, Ozgur Kurt, 46, of the 2800 block of Alton Drive, was sentenced on September 20, 2022, to 96 months’ imprisonment for one count of attempted enticement of a minor.
According to court documents, Kurt engaged in sexually graphic online conversations with an individual whom he believed to be a fifteen-year-old minor. On September 1, 2020, agents of the Federal Bureau of Investigation arrested Kurt when he arrived at a Champaign restaurant to pick up the minor for a sexual encounter. Senior U.S. District Judge Michael M. Mihm sentenced Kurt to the eight-year term of imprisonment, to be followed by five years of supervised release. Judge Mihm also imposed a $5000 fine.
Kurt was indicted in September 2020 and pleaded guilty in March 2022. Kurt has remained in the custody of the U.S. Marshals Service since his arrest.
The Federal Bureau of Investigation, Springfield Field Office, investigated the case. Assistant U.S. Attorney Eugene L. Miller represented the government at sentencing.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. 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.
Brooklyn Man Sentenced to 30 Years in Prison for Jihadist-Inspired Attack on New York City Police Department OfficersRead the Press Release
Earlier today, in federal court in Brooklyn, Dzenan Camovic was sentenced by United States District Judge Rachel P. Kovner to 30 years in prison for the robbery of a New York City Police Department (NYPD) officer’s firearm and discharging that firearm at several NYPD officers during the course of the robbery. Camovic, who was inspired by terrorism, is a Bosnian citizen illegally in the United States. He will be deported after completing his sentence. He is also scheduled to be sentenced in state court in Brooklyn today to state charges arising out of the same conduct.
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 Keechant Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Today’s 30-year sentence, along with Camovic’s removal from the United States, guarantees the community will be protected from his hate-filled ideology and actions,” stated United States Attorney Peace. “We will never stop working to protect the safety of our brave law enforcement officers and community from those who would do them harm.”
Mr. Peace expressed his appreciation to the FBI’s New York Joint Terrorism Task Force for its outstanding work on the case and the Kings County District Attorney’s Office for their assistance.
“As today's sentence demonstrates, those who direct hate-fueled violence at anyone - including the brave men and women of law enforcement - will face stiff consequences in our criminal justice system. Along with our partners on the Joint Terrorism Task Force, we remain steadfast in our determination to protect our city and our Nation from terrorists and their violent extremist ideology,” stated FBI Assistant Director-in-Charge Driscoll.
“An attack against New York City police officers is an attack against our city and way of life – and today’s sentencing of Dzenan Camovic sends a clear message that such violence will never be tolerated,” said Police Commissioner Sewell. “Our NYPD family is thankful our brave officers survived this premeditated ambush. I commend our NYPD investigators, our partners in the FBI’s New York Joint Terrorism Task Force, and the prosecutors in the United States Attorney’s Office in the Eastern District of New York, for their work in this case. Together, we will never stop working to protect our city.”
As set forth in court filings and during the plea and sentencing proceedings, on the evening of June 3, 2020, in the midst of a public health emergency and while New York City was under a nightly curfew order, Camovic attacked several uniformed NYPD officers assigned to post near the intersection of Flatbush and Church Avenues in Brooklyn, New York. At approximately 11:50 p.m., Camovic rounded the corner from Flatbush Avenue onto Church Avenue and stabbed one of the officers (Officer 1) in the neck with a knife. After stabbing Officer 1, Camovic chased the second officer (Officer 2), lunging at him and attempting to stab him. Camovic then ran back to Officer 1, attacked him, forcibly took control of Officer 1’s firearm and fired multiple shots at Officer 2 and other officers who responded to the scene. Responding officers ultimately shot Camovic and took him into custody. Several officers suffered injuries during Camovic’s attack and robbery, including Officer 1, who was stabbed in the neck, and Officer 2, who was shot in the hand and lost a finger as a result. A third officer also sustained a gunshot wound to the hand.
During his attack on the police officers, Camovic repeatedly shouted “Allahu Akbar,” a common Arabic phrase meaning “God is the greatest,” that has been used by perpetrators of jihadist terror attacks during the commission of violent attacks. Prior to the attack, Camovic possessed a significant volume of radical jihadist propaganda.
During the sentencing proceeding, and as stipulated in Camovic’s plea agreement, Judge Kovner found that the terrorism enhancement to the United States Sentencing Guidelines—an enhanced sentence for certain criminal conduct that was calculated to influence or affect the conduct of government by intimidation or coercion—is applicable to his offense.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Craig R. Heeren, Artie McConnell and Josh Hafetz are in charge of the prosecution.
The Defendant:
DZENAN CAMOVIC
Age: 22
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-326 (RPK)
Blackfoot Man Sentenced to 30 Years in Prison for Producing Child PornographyRead the Press Release
POCATELLO – Andrew Ray Young, 35, of Blackfoot was sentenced to 30 years in federal prison for coercing a minor to engage in sexual activity and producing and receiving child pornography, U.S. Attorney Josh Hurwit announced today.
According to court records and evidence presented at trial, the investigation began in December 2020, after an individual reported finding sexually explicit Snapchat messages between a 14-year-old child and Young. A detective with the Bonneville County Sherriff’s Office obtained a search warrant for Young’s home and electronic devices. A search of Young’s phone found that Young was having sexual conversations with the child for over eight months. During that time, he had the child produce numerous sexually explicit images and videos. This included 38 files recovered from Young’s phone. The child testified at trial that the Defendant met her online. Through a process of grooming, he convinced her to produce the images and videos.
Visiting Wyoming Chief U.S. District Judge Scott W. Skavdahl also sentenced Young to 25 years of supervised release, which will commence upon completing his prison sentence. Young will also be required to register as a sex offender. Young was convicted by a federal jury sitting in Pocatello on June 22, 2022.
“Protecting the most vulnerable members of our society, our children, has never been more urgent,” said Hurwit. “I thank our federal and local partners for their teamwork and dedication in this case. We will continue our efforts to ensure the safety of Idaho’s children.”
U.S. Attorney Hurwit commended the cooperative efforts of the Bonneville County Sheriff’s Office, Homeland Security Investigations (HSI), the Rexburg, Idaho Falls, and Blackfoot Police Departments, and the Idaho Internet Crimes Against Children (ICAC) task force, which led to charges.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Armed Career Criminal Sentenced to over 20 Years in Prison for Firearm and Drug Related OffensesRead the Press Release
GAINESVILLE, FLORIDA – William Harrison Quarterman, III, 33, of Gainesville, Florida, was sentenced on September 20, 2022, to 21 years in federal prison after he pled guilty to drug trafficking, possessing a firearm in furtherance of drug trafficking, and possessing a firearm as a convicted felon on May 9, 2022. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
Quarterman will serve concurrent sentences of 16 years for the Possession with Intent to Distribute Eutylone (a Schedule I controlled substance) and Possession of a Firearm by Convicted Felon charges, followed by a consecutive 5 years for the Possession of a Firearm in Furtherance of Drug Trafficking charge. The Court also ordered six years of supervised release following Quarterman’s prison term.
“The collaborative efforts of our partners in the Gainesville Gun Violence Initiative continue to produce impactful results, and we will continue working tirelessly to make North Florida safer,” said U.S. Attorney Coody. “This sentence removes a habitual felon from our community and sends a clear message that there are real and severe consequences for federal firearm offenses.”
On April 15, 2021, deputies from the Alachua County Sheriff’s Office were dispatched in reference to a domestic disturbance after Quarterman’s girlfriend called 911 and then left their shared apartment for fear of her own safety. Responding deputies made contact with the victim near the apartment, and while speaking with her about the incident, were alerted that Quarterman was leaving the area in their shared vehicle. After learning that Quarterman had exchanged vehicles with a relative to avoid arrest, deputies again located him on foot in the Veteran’s Memorial Park. When Quarterman noticed a deputy had spotted him, Quarterman fled from deputies on foot and was eventually apprehended by a K9 deputy after he became entangled in dense vegetation in a wooded area near the park.
Alachua County Sheriff Clovis Watson, Jr. added, “We are more effective when we work together in our efforts to combat gun violence and will continue to make public safety a number one priority for our community.”
“We’re always excited to collaborate with partners like the Alachua County Sheriff’s Office,” said ATF Tampa Division Special Agent in Charge Craig W. Saier. “No one law enforcement agency can combat violent crimes alone, which is why the Gainesville Gun Violence Initiative is so important.”
When deputies took Quarterman into custody, he was wearing a multicolored backpack. A search of that backpack revealed a loaded .22 caliber revolver, almost 50 grams of Eutylone packaged for sale in multiple baggies, marijuana, and parsley that Quarterman had dyed red to attempt to sell as “spice.” Quarterman made statements while on scene that the items in the backpack would send him back to prison. Quarterman is a convicted felon, and he was arrested on numerous state charges stemming from this incident.
The Bureau of Alcohol, Tobacco and Firearms adopted the case for federal prosecution and conducted additional investigation. Quarterman had multiple prior felony convictions, including two convictions for selling cocaine, possessing cocaine, a felony domestic battery conviction, and a host of felony convictions related to an armed home invasion robbery he committed with other codefendants. Quarterman had only been out of prison for less than two years after serving a fourteen-year sentence in the Florida Department of Corrections. Quarterman was determined to qualify as an Armed Career Criminal, which provided for an enhanced sentence, including a fifteen-year minimum mandatory term of imprisonment.
This sentencing resulted from the collaborative work of the Alachua County Sheriff’s Office and the Bureau of Alcohol, Tobacco, and Firearms. The case was prosecuted by Assistant United States Attorney Chris Elsey.
The Gainesville GVI was established by the United States Attorney’s Office for the Northern District of Florida to stem the escalating gun violence in Gainesville and the surrounding area. As GVI partners, the State Attorney’s Office for the Eight Judicial Circuit, the Bureau of Alcohol, Tobacco and Firearms, the Federal Bureau of Investigation, the U.S. Marshals Service, the Florida Department of Law Enforcement, the Gainesville Police Department, the Alachua County Sheriff’s Office, the Alachua Police Department, the University of Florida Police Department, and the Florida Department of Corrections share this commitment to protecting public safety.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Arcadia Man Charged with Securities Fraud for Stealing Client Funds and Concealing His Investment Firm’s Massive Financial LossesRead the Press Release
LOS ANGELES – A former San Gabriel Valley resident who ran Los Angeles County-based investment companies and was a frequent guest on financial television news programs was charged today in a federal criminal complaint alleging he lied to investors.
James Arthur McDonald Jr., 50, formerly of Arcadia and who is believed to be in hiding, is charged with one count of securities fraud, a crime punishable by up to 20 years in federal prison.
According to an affidavit filed with the complaint, McDonald frequently appeared as an analyst on the CNBC financial TV news network and was the CEO and chief investment officer of two companies: Hercules Investments LLC, based in downtown Los Angeles, and Index Strategy Advisors Inc. (ISA), based in Redondo Beach.
In late 2020, McDonald lost tens of millions of dollars of Hercules client money after adopting a risky short position that effectively bet against the health of the United States economy in the aftermath of the U.S. presidential election. McDonald projected that the COVID-19 pandemic and the election would result in major selloffs that would cause the stock market to drop. When the market decline didn’t occur, Hercules clients lost between $30 million and $40 million, according to the affidavit. By December 2020, Hercules clients were complaining to company employees about the losses in their accounts.
Since McDonald’s compensation for his investment advisory services primarily was based on a percentage of assets under his management – typically 2% of a client’s total assets held by Hercules – the massive losses to Hercules clients significantly decreased the fees McDonald was entitled to collect.
In early 2021, McDonald solicited millions of dollars' worth of funds from investors in the form of a purported capital raise for Hercules but misrepresented how the funds would be used and failed to disclose the massive losses Hercules previously sustained. McDonald – an avid football enthusiast – stated that he planned to launch a publicly traded mutual fund under the ticker symbol “NFLHX.” The losses to Hercules clients and the potential for litigation related to those losses jeopardized the success of that fund because any litigation would have had to be publicly disclosed.
As part of the capital raise, McDonald obtained $675,000 in investment funds from one victim group on March 9, 2021. He then misappropriated those funds in various ways, including spending roughly $174,610 of them at a Porsche dealership. Approximately $109,512 was transferred to the landlord of a home McDonald was renting in Arcadia; and approximately $6,800 was spent on a website that sells designer menswear.
McDonald allegedly also falsely represented to clients that ISA, his other firm, was a registered investment adviser, even though he had withdrawn ISA as a state-registered investment adviser firm in May 2019. He also allegedly sent ISA clients false account statements, including for one client who invested approximately $351,000, later needed the money to make a down payment on a home, was informed by McDonald that much of the money had been lost, and never got his full investment back.
The United States Securities and Exchange Commission subpoenaed McDonald to testify before it in November 2021, but – without advance notice – he failed to appear as required. According to the complaint, McDonald also appears to have terminated his previous phone and email accounts and told one person that he planned to “vanish.”
Anyone with information about McDonald’s whereabouts is encouraged to call the FBI’s Los Angeles Field Office at (310) 477-6565.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI and IRS Criminal Investigation investigated this matter. The SEC filed a civil complaint today charging McDonald and Hercules with violations of federal securities law.
Assistant United States Attorneys Carolyn S. Small and Alexander B. Schwab of the Major Frauds Section are prosecuting this case.
Alleged Drug Dealer Charged with Distributing Fentanyl in Civic Center AreaRead the Press Release
SAN FRANCISCO –A federal grand jury indicted Cesia Medina-Zuniga in connection with an alleged scheme to sell narcotics in the Tenderloin District of San Francisco announced U.S. Attorney Stephanie M. Hinds and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Bob P. Beris.
According to documents filed by the government, since 2019, Zuniga, 26, has commuted “regularly and frequently” from her residence in Oakland to San Francisco’s Tenderloin District to sell narcotics. Further, the government alleges that since 2020, Zuniga added fentanyl to the products that she distributed on the streets of the Tenderloin.
According to the government, an undercover officer contacted Zuniga on July 12, 2022, and requested “yellow,” a slang term for fentanyl. Although she demonstrated she was suspicious of the officer, Zuniga allegedly completed a transaction with him in which she provided just over 8 grams of fentanyl in exchange for $80. Following this first transaction, Zuniga sold increasing quantities and varieties of narcotics to the officer, including methamphetamine and a brightly colored fentanyl dubbed “rainbow.” Following three more transactions on July 19, 2022, July 26, 2022, and August 19, 2022 (involving a total of $2,600, 95 grams of fentanyl, and over 100 grams of methamphetamine), the undercover officer sent a text to Zuniga on September 6, 2022, asking how much fentanyl he could buy for $2,000. After Zuniga allegedly replied that she would sell the officer seven ounces of fentanyl for $2,000, the two arranged to meet on September 8, to complete the transaction. On September 8, 2022, Zuniga was observed leaving her residence in Oakland wearing a black backpack. In connection with her arrest, officers retrieved the backpack which was alleged to have contained 351 grams of suspected fentanyl.
The indictment charges Zuniga with one count of possessing with intent to distribute fentanyl, in violation of 21 U.S.C. § 841(a) and (b)(1)(C), and three counts of possession with intent to distribute over 40 grams of fentanyl, in violation of 18 U.S.C. § 841(a)(1)(C) and (b)(1)(B). If convicted of the first count, Zuniga faces a maximum statutory sentence of 20 years in prison. For each of the three counts under section (b)(1)(B), Zuniga faces a mandatory minimum of five years in prison and a maximum of 40 years in prison, if convicted. However, any sentence after a conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Zuniga remains in custody pending further proceedings. The defendant is next scheduled to appear September 27, 2022, before Magistrate Judge Joseph C. Spero, to be arraigned on the charges in the indictment.
The charges contained in the criminal indictment are only allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being prosecuted by Assistant United States Attorney Alethea M. Sargent with assistance from Claudia Hyslop. The prosecution is the result of an investigation by the DEA and SFPD.
Adams County Man Sentenced to 57 Months for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Charles Leofilos, 34, Grand Marsh, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 57 months in federal prison for possessing a firearm as a felon. This prison term will be followed by 3 years of supervised release. Leofilos pleaded guilty to this charge on July 1, 2022.
On March 15, 2021, officers with the La Crosse Police Department stopped a car driven by Leofilos for a traffic violation. A police canine alerted officers to the presence of controlled substances and officers searched the car. Officers found a handgun containing a loaded magazine concealed behind the steering wheel, as well as heroin hidden in a separate compartment below the steering wheel. Leofilos admitted to borrowing the gun as part of plan to confront one of his passengers over a drug dispute, and to taking the heroin as part of the same plan.
Leofilos is prohibited from possessing a firearm as a result of multiple Wisconsin felony convictions, including substantial battery. Following his release from local custody in connection with this case, Leofilos committed his fifth operating while under the influence offense and was sentenced to 24 months in Wisconsin prison. The sentence in this case will begin afterwards.
In sentencing Leofilos, Judge Conley stated the sentence was justified by the danger implicit in Leofilos’ offense, his lengthy criminal history, his unchecked substance abuse, and prior acts of violence. Judge Conley noted it was “easy to imagine” what could have occurred had officers not stopped Leofilos’ car. Judge Conley also stated that Leofilos posed an ongoing danger to himself, those around him, and the community at large.
The charge against Leofilos was a result of an investigation conducted by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
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.
Tuesday 20 September 2022
Yuba City Man Sentenced to More Than 15 Years in Prison for Child ExploitationRead the Press Release
SACRAMENTO — James Dean Miller, 54, of Yuba City, was sentenced today to 15 years and eight months in prison for sexual exploitation of a child, U.S. Attorney Phillip A. Talbert announced.
Miller pleaded guilty to one count in April 2022. According to court records, on March 17, 2018, Miller produced a surreptitious video of a naked child and still images depicting himself engaged in sexually explicit conduct with the child while she slept. Miller subsequently possessed this child sexual abuse material over a period of several months.
Miller was convicted of state charges of unlawful sexual penetration of an unconscious victim in 2018. Upon his release from state custody, Miller was transferred to federal custody for federal prosecution.
This case was the product of an investigation by the Federal Bureau Investigation and the Yuba County Sheriff’s Department. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Undocumented Individual Sentenced for Illegal Return to the United StatesRead the Press Release
LAS VEGAS – An undocumented individual residing in Las Vegas was sentenced on Friday, September 16, by U.S. District Judge James C. Mahan to three years and five months in prison followed by three years of supervised release for illegally returning to the United States after deportation.
According to court documents, Salamon Ruiz-Lopez (48) had previously been deported five times between 2010 – 2011. In June 2017, Ruiz-Lopez was convicted of Attempted Murder in Clark County District Court, and he was sentenced to 48 – 120 months of custody. Following the completion of his state sentence, Ruiz-Lopez came into ICE custody and was indicted by a federal grand jury.
U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.
The investigation was conducted by U.S. Immigration and Customs Enforcement (ICE). Assistant U.S. Attorney Jared Grimmer prosecuted the case.
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U.S. Attorney’s Office Reaches Agreement with Town of Limerick to Improve Voter AccessibilityRead the Press Release
PORTLAND, Maine: The U.S. Attorney’s Office has reached a settlement agreement with the Town of Limerick to resolve allegations that the town excluded a resident with a disability from voting, U.S. Attorney Darcie N. McElwee announced.
The settlement agreement resolves an Americans with Disabilities Act (ADA) complaint filed by a voter with a mobility impairment who alleged that he was unable to vote at Limerick’s annual town meeting. The voter alleged that he was told that the first floor of Limerick Town Hall was full, and he would need to vote on the second floor which he was unable to access.
Under the ADA, state and local governmental entities may not exclude individuals with disabilities from participating in a voting program. State and local government entities must also make reasonable modifications to ensure that voters with disabilities have an equal opportunity to participate in voting programs unless the modifications would fundamentally alter the nature of the voting program.
Under the settlement agreement, Limerick has agreed to make certain modifications to improve accessibility at its town hall for persons with mobility impairments. In addition, the town agreed to adopt a policy for program accessibility to ensure that all services, programs and activities held at the town hall are readily accessible to and usable by persons with mobility impairments.
“It’s noteworthy that this agreement comes today, on National Voter Registration Day,” McElwee said. “The freedom to participate in elections is a fundamental right, and all voters should and must have an equal opportunity to participate in the voting process. The remedial measures agreed to by Limerick will give individuals with disabilities an equal opportunity to participate in town voting, as required by the ADA. I hope that other cities and towns will proactively comply with this important civil rights law.”
The Town of Limerick cooperated with the U.S. Attorney’s Office during its investigation.
Individuals in Maine who believe their civil rights may have been violated may submit their complaints by accessing https://civilrights.justice.gov/. For more information on the ADA, or to access publications available to assist entities in complying with the ADA, visit ada.gov or call the Justice Department’s toll-free ADA information line at 1-800-514-0301 or 1-800-514-0383 (TDD).
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U.S. Attorney General and Ukrainian Prosecutor General Met to Strengthen Joint Efforts to Hold Accountable Perpetrators of War Crimes and Other Atrocities Committed in UkraineRead the Press Release
U.S. Attorney General Merrick B. Garland and Ukrainian Prosecutor General Andriy Kostin met today in Washington to discuss efforts to hold accountable individuals responsible for war crimes and other atrocities in the wake of Russia’s unprovoked and unjust invasion of Ukraine. The leaders outlined areas for enhanced collaboration and signed a memorandum of understanding (MOU) that will facilitate appropriate cooperation, coordination, and deconfliction between each country’s respective investigations and prosecutions.
“The United States stands by the people of Ukraine in their tireless pursuit to uphold the rule of law and seek justice for victims in the face of Russia’s continued aggression,” said U.S. Attorney General Garland. “Today, the Department of Justice and the Prosecutor General’s Office announced our decision to work more closely together to identify, apprehend, and prosecute individuals involved in war crimes and other atrocities in Ukraine. We will be relentless in these efforts to hold perpetrators accountable.”
“The MOU we signed today allows us to step up our common efforts in ensuring accountability for international crimes,” said Ukraine Prosecutor General Kostin. “Through establishing a formal framework of cooperation, we will strengthen effective investigation and prosecution of crimes committed by Russia in Ukraine and provide a measure of justice to victims.”
The U.S.-Ukraine MOU will promote efficiency in investigations and prosecutions by, consistent with national laws, removing barriers to timely and effective exchanges of information and evidence in investigations and prosecutions by the two countries, and increasing the ease with which technical cooperation may be provided.
The MOU builds on prior efforts by the department following the Attorney General’s trip to Ukraine on June 21, 2022. During that trip, Attorney General Garland announced the launch of a War Crimes Accountability Team to centralize and strengthen the Justice Department’s ongoing work to hold accountable those who have committed war crimes and other atrocities in Ukraine in the wake of Russia’s unprovoked invasion. The team brings together the department’s leading experts in investigations involving human rights abuses, war crimes, and other atrocities; and provides wide-ranging technical assistance, including operational assistance and advice regarding criminal prosecutions, evidence collection, forensics, and relevant legal analysis. A central component of the team’s mission is to further on-going investigations of potential war crimes over which the United States possesses jurisdiction, such as the killing and wounding of U.S. journalists covering the unprovoked Russian aggression in Ukraine.
The leaders also discussed the importance of continuing efforts to counter Russian illicit finance and sanctions evasion. In March, Attorney General Garland announced the establishment of Task Force KleptoCapture (TFKC) to further leverage the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. Government in response to Russian military aggression. TFKC, an interagency law enforcement task force run out of the Office of the Deputy Attorney General, is dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Since it was created, the task force has facilitated the seizure and forfeiture of assets, including superyachts and airplanes, of sanctioned individuals with close ties to the Russian regime; dismantled Russian criminal networks; and enforced sanctions violations, among other actions.
For more information on the Justice Department’s commitment to ensuring accountability on behalf of the victims of war crimes, go to: Attorney General Merrick B. Garland Visits Ukraine, Reaffirms U.S. Commitment to Help Identify, Apprehend, and Prosecute Individuals Involved in War Crimes and Atrocities | OPA | Department of Justice
U.S. Attorney Announces Federal Charges Against 47 Defendants in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – The U.S. Attorney’s Office for the District of Minnesota today announced federal criminal charges against 47 defendants for their alleged roles in a $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic.
“These indictments, alleging the largest pandemic relief fraud scheme charged to date, underscore the Department of Justice’s sustained commitment to combating pandemic fraud and holding accountable those who perpetrate it,” said Attorney General Merrick B. Garland. “In partnership with agencies across government, the Justice Department will continue to bring to justice those who have exploited the pandemic for personal gain and stolen from American taxpayers.”
“Today’s indictments describe an egregious plot to steal public funds meant to care for children in need in what amounts to the largest pandemic relief fraud scheme yet,” said FBI Director Christopher Wray. “The defendants went to great lengths to exploit a program designed to feed underserved children in Minnesota amidst the COVID-19 pandemic, fraudulently diverting millions of dollars designated for the program for their own personal gain. These charges send the message that the FBI and our law enforcement partners remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
“This was a brazen scheme of staggering proportions,” said U.S. Attorney Andrew M. Luger. “These defendants exploited a program designed to provide nutritious food to needy children during the COVID-19 pandemic. Instead, they prioritized their own greed, stealing more than a quarter of a billion dollars in federal funds to purchase luxury cars, houses, jewelry, and coastal resort property abroad. I commend the work of the skilled investigators and prosecutors who unraveled the lies, deception, and mountains of false documentation to bring this complex case to light.”
The 47 defendants are charged across six separate indictments and three criminal informations with charges of conspiracy, wire fraud, money laundering, and bribery.
As outlined in the charging documents, the defendants devised and carried out a massive scheme to defraud the Federal Child Nutrition Program. The defendants obtained, misappropriated, and laundered millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. The defendants exploited changes in the program intended to ensure underserved children received adequate nutrition during the COVID-19 pandemic. Rather than feed children, the defendants enriched themselves by fraudulently misappropriating millions of dollars in Federal Child Nutrition Program funds.
The Federal Child Nutrition Program, administered by the U.S. Department of Agriculture (USDA), is a federally-funded program designed to provide free meals to children in need. The USDA’s Food and Nutrition Service administers the program throughout the nation by distributing federal funds to state governments. In Minnesota, the Minnesota Department of Education (MDE) administers and oversees the Federal Child Nutrition Program. Meals funded by the Federal Child Nutrition Program are served by “sites.” Each site participating in the program must be sponsored by an authorized sponsoring organization. Sponsors must submit an application to MDE for each site. Sponsors are also responsible for monitoring each of their sites and preparing reimbursement claims for their sites. The USDA then provides MDE federal reimbursement funds on a per-meal basis. MDE provides those funds to the sponsoring agency who, in turn, pays the reimbursements to the sites under its sponsorship. The sponsoring agency retains 10 to 15 percent of the funds as an administrative fee.
During the COVID-19 pandemic, the USDA waived some of the standard requirements for participation in the Federal Child Nutrition Program. Among other things, the USDA allowed for-profit restaurants to participate in the program, as well as allowed for off-site food distribution to children outside of educational programs.
Aimee Bock was the founder and executive director of Feeding Our Future, a nonprofit organization that was a sponsor participating in the Federal Child Nutrition Program. The indictments charge Bock with overseeing a massive fraud scheme carried out by sites under Feeding Our Future’s sponsorship. Feeding Our Future went from receiving and disbursing approximately $3.4 million in federal funds in 2019 to nearly $200 million in 2021.
As part of the charged scheme, Feeding Our Future employees recruited individuals and entities to open Federal Child Nutrition Program sites throughout the state of Minnesota. These sites, created and operated by the defendants and others, fraudulently claimed to be serving meals to thousands of children a day within just days or weeks of being formed. The defendants created dozens of shell companies to enroll in the program as Federal Child Nutrition Program sites. The defendants also created shell companies to receive and launder the proceeds of their fraudulent scheme.
To carry out the scheme, the defendants also created and submitted false documentation. They submitted fraudulent meal count sheets purporting to document the number of children and meals served at each site. The defendants submitted false invoices purporting to document the purchase of food to be served to children at the sites. The defendants also submitted fake attendance rosters purporting to list the names and ages of the children receiving meals at the sites each day. These rosters were fabricated and created using fake names. For example, one roster was created using names from a website called “www.listofrandomnames.com.” Because the program only reimbursed for meals served to children, other defendants used an Excel formula to insert a random age between 7 and 17 into the age column of the rosters.
Despite knowing the claims were fraudulent, Feeding Our Future submitted the fraudulent claims to MDE and then disbursed the fraudulently obtained Federal Child Nutrition Program funds to the individuals and entities involved in the scheme.
In exchange for sponsoring these sites’ fraudulent participation in the program, Feeding Our Future received more than $18 million in administrative fees to which it was not entitled. In addition to the administrative fees, Feeding Our Future employees solicited and received bribes and kickbacks from individuals and companies sponsored by Feeding Our Future. Many of these kickbacks were paid in cash or disguised as “consulting fees” paid to shell companies created by Feeding Our Future employees to make them appear legitimate.
When MDE attempted to perform necessary oversight regarding the number of sites and amount of claims being submitted, Bock and Feeding Our Future gave false assurances that they were monitoring the sites under its sponsorship and that the sites were serving the meals as claimed. When MDE employees pressed Bock for clarification, Bock accused MDE of discrimination and unfairly scrutinizing Feeding Our Future’s sites. When MDE denied Feeding Our Future site applications, Bock and Feeding Our Future filed a lawsuit accusing MDE of denying the site applications due to discrimination in violation of the Minnesota Human Rights Act.
In total, Feeding Our Future opened more than 250 sites throughout the state of Minnesota and fraudulently obtained and disbursed more than $240 million in Federal Child Nutrition Program funds. The defendants used the proceeds of their fraudulent scheme to purchase luxury vehicles, residential and commercial real estate in Minnesota as well as property in Ohio and Kentucky, real estate in Kenya and Turkey, and to fund international travel.
“Exploiting a government program intended to feed children at the time of a national crisis is the epitome of greed,” said IRS - Criminal Investigation Special Agent in Charge Justin Campbell, Chicago Field Office. “As alleged, the defendants charged in this case chose to enrich themselves at the expense of children. Instead of feeding the future, they chose to steal from the future. IRS – Criminal Investigation is pleased to join our law enforcement partners to hold these defendants accountable.”
United States v. Aimee Marie Bock, et al., 22-CR-223 (NEB/TNL), charges 14 defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In April 2020, Safari Restaurant enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owners of Safari Restaurant and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $32 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and travel.
United States v. Abdiaziz Shafii Farah, et al., 22-CR-124 (NEB/TNL), charges eight defendants with conspiracy, wire fraud, federal programs bribery, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In April 2020, Empire Cuisine and Market LLC enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. The owners of Empire Cuisine and Market LLC and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $40 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, travel, real estate, and property in Kenya.
United States v. Qamar Ahmed Hassan, et al., 22-CR-224 (NEB/TNL), charges eight defendants with conspiracy, wire fraud, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In August 2020, S & S Catering Inc. enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owner of S & S Catering and other co-conspirators opened sites across the Twin Cities and claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $18 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles and real estate.
United States v. Haji Osman Salad, et al., 22-CR-226 (NEB/TNL), charges five defendants with wire fraud, conspiracy to commit money laundering, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. The owner of Haji’s Kitchen LLC and other co-conspirators enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. The co-conspirators opened sites across the state of Minnesota, as well as multiple shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $25 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and travel.
United States v. Liban Yasin Alishire, et al., 22-CR-222 (NEB/TML), charges three defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs, federal programs bribery, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. The owner of Community Enhancement Services Inc. and other co-conspirators opened multiple sites and shell companies in the JigJiga Business Center in Minneapolis. Over the course of the fraud scheme, the defendants claimed to have served hundreds of thousands of meals. Based on their fraudulent claims, the defendants received more than $1.6 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and beach property in Kenya.
United States v. Sharmake Jama, et al., 22-CR-225 (NEB/TNL), charges six defendants with wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. In September 2020, Brava Restaurant & Café LLC, a site located in Rochester, Minnesota, enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owners of Brava Restaurant & Café and other co-conspirators claimed to have served millions of meals from Brava Restaurant & Café and falsely claimed to have a contract with Rochester Public Schools. Based on their fraudulent claims, the defendants received approximately $4.3 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and property on the Mediterranean coast of Turkey.
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The following defendants are named in the United States v. Aimee Marie Bock, et al. indictment:
- Aimee Marie Bock, 41, of Apple Valley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery. Bock was the founder and executive director of Feeding Our Future. Bock oversaw the $240 million fraud scheme carried out by sites under Feeding Our Future’s sponsorship.
- Abdikerm Abdelahi Eidleh, 39, of Burnsville, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Eidleh was an employee of Feeding Our Future who solicited and received bribes and kickbacks from individuals and sites under the sponsorship of Feeding Our Future. Eidleh also created his own fraudulent sites.
- Salim Ahmed Said, 33, of Plymouth, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Said was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
- Abdulkadir Nur Salah, 36, of Columbia Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdulkadir Salah was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Sharif Omar-Hashim, 39, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Omar-Hashim created a company called Olive Management Inc., a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Abdi Nur Salah, 34, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Abdi Salah registered Stigma-Free International, a non-profit entity used to carry out the scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul.
- Abdihakim Ali Ahmed, 36, of Apple Valley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdihakim Ahmed created ASA Limited LLC, a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Mohamed Artan, 37, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, conspiracy to commit money laundering, and money laundering. Artan registered Stigma-Free International, a non-profit entity used to carry out the scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul.
- Abdikadir Ainanshe Mohamud, 30, of Fridley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Mohamud ran the Stigma-Free Willmar site. This site claimed to have served approximately 1.6 million meals and received more than $4 million in fraudulent Federal Child Nutrition Program funds.
- Abdinasir Mahamed Abshir, 30, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdinasir Abshir ran the Stigma-Free Mankato site. This site claimed to have served more than 1.6 million meals and received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Asad Mohamed Abshir, 32, of Mankato, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Asad Abshir ran the Stigma-Free Mankato site. This site claimed to have served more than 1.6 million meals and received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Hamdi Hussein Omar, 26, of St. Paul, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Omar ran the Stigma-Free Waite Park site. This site claimed to have served more than 500,000 meals and received more than $1 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Abdullahi Ghedi, 32, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering. Ghedi created ASA Limited LLC, a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Abdirahman Mohamud Ahmed, 54, of Columbus, Ohio, is charged with conspiracy to commit money laundering and money laundering. Abdirahman Ahmed was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
The following defendants are named in the United States v. Abdiaziz Shafii Farah, et al. indictment:
- Abdiaziz Shafii Farah, 33, of Savage, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, money laundering, and false statements in a passport application. Abdiaziz Farah was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.
- Mohamed Jama Ismail, 49, of Savage, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Ismail was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.
- Mahad Ibrahim, 46, of Lewis Center, Ohio, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Ibrahim was the president and owner of ThinkTechAct Foundation, a Minnesota non-profit organization that also operated under the name Mind Foundry Learning Foundation. ThinkTechAct and Mind Foundry created dozens of sites throughout Minnesota, including in Minneapolis, St. Paul, Bloomington, Burnsville, Faribault, Owatonna, Shakopee, Circle Pines, and Willmar. ThinkTechAct received more than $18 million in fraudulent Federal Child Nutrition Program funds.
- Abdimajid Mohamed Nur, 21, of Shakopee, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Abdimajid Nur created Nur Consulting LLC to receive and launder Federal Child Nutrition Program funds from Empire Cuisine and Market, ThinkTechAct, and other entities involved in the scheme.
- Said Shafii Farah, 40, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Said Farah, the brother of Abdiaziz Farah, was an owner of Bushra Wholesalers LLC, a shell company used to launder fraudulent Federal Child Nutrition Program funds.
- Abdiwahab Maalim Aftin, 32, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, conspiracy to commit money laundering, and money laundering. Aftin was an owner of Bushra Wholesalers LLC, a shell company used to launder fraudulent Federal Child Nutrition Program funds.
- Mukhtar Mohamed Shariff, 31, of Bloomington, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Shariff was the chief executive officer of Afrique Hospitality Group, a shell company used to fraudulent obtain and launder Federal Child Nutrition Program funds.
- Hayat Mohamed Nur, 25, of Eden Prairie, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Hayat Nur, the sister of Abdimajid Nur, participated in the scheme by creating and submitting fraudulent meal count sheets, attendance rosters, and invoices.
The following defendants are named in the United States v. Qamar Ahmed Hassan, et al. indictment:
- Qamar Ahmed Hassan, 53, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, money laundering, conspiracy to commit money laundering, and money laundering. Hassan was the owner and operator of S & S Catering Inc., a for-profit restaurant and catering business that participated in the scheme as a distribution site and as a vendor for other sites. S & S Catering received more than $18 million in fraudulent Federal Child Nutrition Program funds.
- Sahra Mohamed Nur, 61, of Saint Anthony, Minnesota, is charged with conspiracy to wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Nur ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Abdiwahab Ahmed Mohamud, 32, of Brooklyn Park, Minnesota is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Mohamud ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Filsan Mumin Hassan, 28, of Brooklyn Park, Minnesota is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Hassan ran a site called Youth Higher Educational Achievement that falsely claimed to serve up to 4,300 meals a day.
- Guhaad Hashi Said, 46, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Hashi ran a site under the name Advance Youth Athletic Development that falsely claimed to serve up to 5,000 meals a day.
- Abdullahe Nur Jesow, 62, of Columbia Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Jesow ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Abdul Abubakar Ali, 40, of St. Paul, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Abdul Ali ran a site called Youth Inventors Lab that falsely claimed to have served a total of approximately 1.5 million meals in a seven-month period.
- Yusuf Bashir Ali, 40, of Vadnais Heights, Minnesota is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Yusuf Ali ran a site called Youth Inventors Lab that falsely claimed to have served a total of approximately 1.5 million meals in a seven-month period.
The following defendants are named in the United States v. Haji Osman Salad, et al. indictment:
- Haji Osman Salad, 32, of St. Anthony, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Salad was the principal of Haji’s Kitchen and received approximately $11.6 million in fraudulent Federal Child Nutrition Program funds.
- Fahad Nur, 38, of Minneapolis, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Nur was the principal of The Produce LLC, a vendor and purported food supplier who received more than $5 million in fraudulent Federal Child Nutrition Program funds.
- Anab Artan Awad, 52, of Plymouth, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Awad was the president of Multiple Community Services, MCA. Awad claimed more than $11 million in fraudulent Federal Child Nutrition Program funds.
- Sharmarke Issa, 40, of Edina, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Issa created a company called Minnesota’s Somali Community and was the manager of Wacan Restaurant LLC. Issa fraudulently caused MDE to pay out more than $7.4 million in Federal Child Nutrition Program funds.
- Farhiya Mohamud, 63, of Bloomington, Minnesota, is charged with conspiracy to commit money laundering, and money laundering. Mohamud was the principal and CEO of Dua Supplies and Distribution Inc., a shell company that laundered millions of dollars of fraudulently obtained Federal Child Nutrition Program funds.
The following defendants are named in the United States v. Liban Yasin Alishire, et al. indictment:
- Liban Yasin Alishire, 42, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, and money laundering. Alishire was the president and owner of Community Enhancement Services, Inc., a company located in the JigJiga Business Center in Minneapolis. Community Enhancement Services was a cultural mall owned and operated by Alishire and co-defendant Khadar Jigre Adan. Community Enhancement Services received more than $1.6 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Yasin Ali, 57, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Ali created a second program site, run by Lake Street Kitchen, and located in the JigJiga Business Center in Minneapolis.
- Khadar Jigre Adan, 59, of Lakeville, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Adan was the CEO of Lake Street Kitchen, which was a program site located in the JigJiga Business Center in Minneapolis.
The following defendants are named in the United States v. Sharmake Jama, et al. indictment:
- Sharmake Jama, 34, of Rochester, Minnesota, is charged with wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering. Sharmake Jama was a principal of Brava Restaurant and Café LLC. Brava Restaurant received approximately $4.3 million in fraudulent Federal Child Nutrition Program funds.
- Ayan Jama, 43, of Rochester, Minnesota is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Ayan Jama was a principal of Brava Restaurant and Café LLC. Ayan Jama also created shell companies to launder fraudulent proceeds.
- Asha Jama, 39, of Lakeville, Minnesota is charged with conspiracy to commit money laundering and money laundering. Asha Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Fartun Jama, 35, of Rosemount, Minnesota is charged with conspiracy to commit money laundering and money laundering. Fartun Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Mustafa Jama, 45, of Rochester, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Mustafa Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Zamzam Jama, 48, of Rochester, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Zamzam Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
Criminal informations:
- Bekam Addissu Merdassa, 39, of Inver Grove Heights, Minnesota, is charged with one count of conspiracy to commit wire fraud.
- Hadith Yusuf Ahmed, 34, of Eden Prairie, Minnesota, is charged with one count of conspiracy to commit wire fraud.
- Hanna Marekegn, 40, of Edina, Minnesota, is charged with one count of conspiracy to commit wire fraud.
United States Attorney Andrew Luger thanks the FBI, IRS – Criminal Investigations, the U.S. Department of State’s Diplomatic Security Service, and the U.S. Postal Inspection Service for their collaboration and skilled investigative work in bringing these indictments.
Assistant U.S. Attorneys for the District of Minnesota Joseph H. Thompson, Harry M. Jacobs, Chelsea A. Walcker, Matthew S. Ebert, and Joseph S. Teirab are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Announces Federal Charges Against 47 Defendants in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
The Department of Justice announced today federal criminal charges against 47 defendants for their alleged roles in a $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic.
“These indictments, alleging the largest pandemic relief fraud scheme charged to date, underscore the Department of Justice’s sustained commitment to combating pandemic fraud and holding accountable those who perpetrate it,” said Attorney General Merrick B. Garland. “In partnership with agencies across government, the Justice Department will continue to bring to justice those who have exploited the pandemic for personal gain and stolen from American taxpayers.”
“Today’s indictments describe an egregious plot to steal public funds meant to care for children in need in what amounts to the largest pandemic relief fraud scheme yet,” said FBI Director Christopher Wray. “The defendants went to great lengths to exploit a program designed to feed underserved children in Minnesota amidst the COVID-19 pandemic, fraudulently diverting millions of dollars designated for the program for their own personal gain. These charges send the message that the FBI and our law enforcement partners remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
“This was a brazen scheme of staggering proportions,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “These defendants exploited a program designed to provide nutritious food to needy children during the COVID-19 pandemic. Instead, they prioritized their own greed, stealing more than a quarter of a billion dollars in federal funds to purchase luxury cars, houses, jewelry, and coastal resort property abroad. I commend the work of the skilled investigators and prosecutors who unraveled the lies, deception, and mountains of false documentation to bring this complex case to light.”
The 47 defendants are charged across six separate indictments and three criminal informations with charges of conspiracy, wire fraud, money laundering, and bribery.
As outlined in the charging documents, the defendants devised and carried out a massive scheme to defraud the Federal Child Nutrition Program. The defendants obtained, misappropriated, and laundered millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. The defendants exploited changes in the program intended to ensure underserved children received adequate nutrition during the COVID-19 pandemic. Rather than feed children, the defendants enriched themselves by fraudulently misappropriating millions of dollars in Federal Child Nutrition Program funds.
The Federal Child Nutrition Program, administered by the U.S. Department of Agriculture (USDA), is a federally-funded program designed to provide free meals to children in need. The USDA’s Food and Nutrition Service administers the program throughout the nation by distributing federal funds to state governments. In Minnesota, the Minnesota Department of Education (MDE) administers and oversees the Federal Child Nutrition Program. Meals funded by the Federal Child Nutrition Program are served by “sites.” Each site participating in the program must be sponsored by an authorized sponsoring organization. Sponsors must submit an application to MDE for each site. Sponsors are also responsible for monitoring each of their sites and preparing reimbursement claims for their sites. The USDA then provides MDE federal reimbursement funds on a per-meal basis. MDE provides those funds to the sponsoring agency who, in turn, pays the reimbursements to the sites under its sponsorship. The sponsoring agency retains 10 to 15 percent of the funds as an administrative fee.
During the COVID-19 pandemic, the USDA waived some of the standard requirements for participation in the Federal Child Nutrition Program. Among other things, the USDA allowed for-profit restaurants to participate in the program, as well as allowed for off-site food distribution to children outside of educational programs.
Aimee Bock was the founder and executive director of Feeding Our Future, a nonprofit organization that was a sponsor participating in the Federal Child Nutrition Program. The indictments charge Bock with overseeing a massive fraud scheme carried out by sites under Feeding Our Future’s sponsorship. Feeding Our Future went from receiving and disbursing approximately $3.4 million in federal funds in 2019 to nearly $200 million in 2021.
As part of the charged scheme, Feeding Our Future employees recruited individuals and entities to open Federal Child Nutrition Program sites throughout the state of Minnesota. These sites, created and operated by the defendants and others, fraudulently claimed to be serving meals to thousands of children a day within just days or weeks of being formed. The defendants created dozens of shell companies to enroll in the program as Federal Child Nutrition Program sites. The defendants also created shell companies to receive and launder the proceeds of their fraudulent scheme.
To carry out the scheme, the defendants also created and submitted false documentation. They submitted fraudulent meal count sheets purporting to document the number of children and meals served at each site. The defendants submitted false invoices purporting to document the purchase of food to be served to children at the sites. The defendants also submitted fake attendance rosters purporting to list the names and ages of the children receiving meals at the sites each day. These rosters were fabricated and created using fake names. For example, one roster was created using names from a website called “www.listofrandomnames.com.” Because the program only reimbursed for meals served to children, other defendants used an Excel formula to insert a random age between seven and 17 into the age column of the rosters.
Despite knowing the claims were fraudulent, Feeding Our Future submitted the fraudulent claims to MDE and then disbursed the fraudulently obtained Federal Child Nutrition Program funds to the individuals and entities involved in the scheme.
In exchange for sponsoring these sites’ fraudulent participation in the program, Feeding Our Future received more than $18 million in administrative fees to which it was not entitled. In addition to the administrative fees, Feeding Our Future employees solicited and received bribes and kickbacks from individuals and companies sponsored by Feeding Our Future. Many of these kickbacks were paid in cash or disguised as “consulting fees” paid to shell companies created by Feeding Our Future employees to make them appear legitimate.
When MDE attempted to perform necessary oversight regarding the number of sites and amount of claims being submitted, Bock and Feeding Our Future gave false assurances that they were monitoring the sites under its sponsorship and that the sites were serving the meals as claimed. When MDE employees pressed Bock for clarification, Bock accused MDE of discrimination and unfairly scrutinizing Feeding Our Future’s sites. When MDE denied Feeding Our Future site applications, Bock and Feeding Our Future filed a lawsuit accusing MDE of denying the site applications due to discrimination in violation of the Minnesota Human Rights Act.
In total, Feeding Our Future opened more than 250 sites throughout the state of Minnesota and fraudulently obtained and disbursed more than $240 million in Federal Child Nutrition Program funds. The defendants used the proceeds of their fraudulent scheme to purchase luxury vehicles, residential and commercial real estate in Minnesota as well as property in Ohio and Kentucky, real estate in Kenya and Turkey, and to fund international travel.
“Exploiting a government program intended to feed children at the time of a national crisis is the epitome of greed,” said Special Agent in Charge Justin Campbell of the IRS Criminal Investigation, Chicago Field Office. “As alleged, the defendants charged in this case chose to enrich themselves at the expense of children. Instead of feeding the future, they chose to steal from the future. IRS – Criminal Investigation is pleased to join our law enforcement partners to hold these defendants accountable.”
United States v. Aimee Marie Bock, et al., 22-CR-223 (NEB/TNL), charges 14 defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In April 2020, Safari Restaurant enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owners of Safari Restaurant and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $32 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and travel.
United States v. Abdiaziz Shafii Farah, et al., 22-CR-124 (NEB/TNL), charges eight defendants with conspiracy, wire fraud, federal programs bribery, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In April 2020, Empire Cuisine and Market LLC enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. The owners of Empire Cuisine and Market LLC and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $40 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, travel, real estate, and property in Kenya.
United States v. Qamar Ahmed Hassan, et al., 22-CR-224 (NEB/TNL), charges eight defendants with conspiracy, wire fraud, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In August 2020, S & S Catering Inc. enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owner of S & S Catering and other co-conspirators opened sites across the Twin Cities and claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $18 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles and real estate.
United States v. Haji Osman Salad, et al., 22-CR-226 (NEB/TNL), charges five defendants with wire fraud, conspiracy to commit money laundering, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. The owner of Haji’s Kitchen LLC and other co-conspirators enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. The co-conspirators opened sites across the state of Minnesota, as well as multiple shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $25 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and travel.
United States v. Liban Yasin Alishire, et al., 22-CR-222 (NEB/TML), charges three defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs, federal programs bribery, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. The owner of Community Enhancement Services Inc. and other co-conspirators opened multiple sites and shell companies in the JigJiga Business Center in Minneapolis. Over the course of the fraud scheme, the defendants claimed to have served hundreds of thousands of meals. Based on their fraudulent claims, the defendants received more than $1.6 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and beach property in Kenya.
United States v. Sharmake Jama, et al., 22-CR-225 (NEB/TNL), charges six defendants with wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. In September 2020, Brava Restaurant & Café LLC, a site located in Rochester, Minnesota, enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owners of Brava Restaurant & Café and other co-conspirators claimed to have served millions of meals from Brava Restaurant & Café and falsely claimed to have a contract with Rochester Public Schools. Based on their fraudulent claims, the defendants received approximately $4.3 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and property on the Mediterranean coast of Turkey.
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The following defendants are named in the United States v. Aimee Marie Bock, et al. indictment:
- Aimee Marie Bock, 41, of Apple Valley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery. Bock was the founder and executive director of Feeding Our Future. Bock oversaw the $240 million fraud scheme carried out by sites under Feeding Our Future’s sponsorship.
- Abdikerm Abdelahi Eidleh, 39, of Burnsville, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Eidleh was an employee of Feeding Our Future who solicited and received bribes and kickbacks from individuals and sites under the sponsorship of Feeding Our Future. Eidleh also created his own fraudulent sites.
- Salim Ahmed Said, 33, of Plymouth, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Said was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
- Abdulkadir Nur Salah, 36, of Columbia Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdulkadir Salah was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Sharif Omar-Hashim, 39, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Omar-Hashim created a company called Olive Management Inc., a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Abdi Nur Salah, 34, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Abdi Salah registered Stigma-Free International, a non-profit entity used to carry out the scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul.
- Abdihakim Ali Ahmed, 36, of Apple Valley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdihakim Ahmed created ASA Limited LLC, a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Mohamed Artan, 37, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, conspiracy to commit money laundering, and money laundering. Artan registered Stigma-Free International, a non-profit entity used to carry out the scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul.
- Abdikadir Ainanshe Mohamud, 30, of Fridley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Mohamud ran the Stigma-Free Willmar site. This site claimed to have served approximately 1.6 million meals and received more than $4 million in fraudulent Federal Child Nutrition Program funds.
- Abdinasir Mahamed Abshir, 30, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdinasir Abshir ran the Stigma-Free Mankato site. This site claimed to have served more than 1.6 million meals and received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Asad Mohamed Abshir, 32, of Mankato, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Asad Abshir ran the Stigma-Free Mankato site. This site claimed to have served more than 1.6 million meals and received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Hamdi Hussein Omar, 26, of St. Paul, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Omar ran the Stigma-Free Waite Park site. This site claimed to have served more than 500,000 meals and received more than $1 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Abdullahi Ghedi, 32, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering. Ghedi created ASA Limited LLC, a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Abdirahman Mohamud Ahmed, 54, of Columbus, Ohio, is charged with conspiracy to commit money laundering and money laundering. Abdirahman Ahmed was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
The following defendants are named in the United States v. Abdiaziz Shafii Farah, et al. indictment:
- Abdiaziz Shafii Farah, 33, of Savage, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, money laundering, and false statements in a passport application. Abdiaziz Farah was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.
- Mohamed Jama Ismail, 49, of Savage, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Ismail was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.
- Mahad Ibrahim, 46, of Lewis Center, Ohio, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Ibrahim was the president and owner of ThinkTechAct Foundation, a Minnesota non-profit organization that also operated under the name Mind Foundry Learning Foundation. ThinkTechAct and Mind Foundry created dozens of sites throughout Minnesota, including in Minneapolis, St. Paul, Bloomington, Burnsville, Faribault, Owatonna, Shakopee, Circle Pines, and Willmar. ThinkTechAct received more than $18 million in fraudulent Federal Child Nutrition Program funds.
- Abdimajid Mohamed Nur, 21, of Shakopee, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Abdimajid Nur created Nur Consulting LLC to receive and launder Federal Child Nutrition Program funds from Empire Cuisine and Market, ThinkTechAct, and other entities involved in the scheme.
- Said Shafii Farah, 40, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Said Farah, the brother of Abdiaziz Farah, was an owner of Bushra Wholesalers LLC, a shell company used to launder fraudulent Federal Child Nutrition Program funds.
- Abdiwahab Maalim Aftin, 32, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, conspiracy to commit money laundering, and money laundering. Aftin was an owner of Bushra Wholesalers LLC, a shell company used to launder fraudulent Federal Child Nutrition Program funds.
- Mukhtar Mohamed Shariff, 31, of Bloomington, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Shariff was the chief executive officer of Afrique Hospitality Group, a shell company used to fraudulent obtain and launder Federal Child Nutrition Program funds.
- Hayat Mohamed Nur, 25, of Eden Prairie, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Hayat Nur, the sister of Abdimajid Nur, participated in the scheme by creating and submitting fraudulent meal count sheets, attendance rosters, and invoices.
The following defendants are named in the United States v. Qamar Ahmed Hassan, et al. indictment:
- Qamar Ahmed Hassan, 53, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, money laundering, conspiracy to commit money laundering, and money laundering. Hassan was the owner and operator of S & S Catering Inc., a for-profit restaurant and catering business that participated in the scheme as a distribution site and as a vendor for other sites. S & S Catering received more than $18 million in fraudulent Federal Child Nutrition Program funds.
- Sahra Mohamed Nur, 61, of Saint Anthony, Minnesota, is charged with conspiracy to wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Nur ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Abdiwahab Ahmed Mohamud, 32, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Mohamud ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Filsan Mumin Hassan, 28, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Hassan ran a site called Youth Higher Educational Achievement that falsely claimed to serve up to 4,300 meals a day.
- Guhaad Hashi Said, 46, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Hashi ran a site under the name Advance Youth Athletic Development that falsely claimed to serve up to 5,000 meals a day.
- Abdullahe Nur Jesow, 62, of Columbia Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Jesow ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Abdul Abubakar Ali, 40, of St. Paul, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Abdul Ali ran a site called Youth Inventors Lab that falsely claimed to have served a total of approximately 1.5 million meals in a seven-month period.
- Yusuf Bashir Ali, 40, of Vadnais Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Yusuf Ali ran a site called Youth Inventors Lab that falsely claimed to have served a total of approximately 1.5 million meals in a seven-month period.
The following defendants are named in the United States v. Haji Osman Salad, et al. indictment:
- Haji Osman Salad, 32, of St. Anthony, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Salad was the principal of Haji’s Kitchen and received approximately $11.6 million in fraudulent Federal Child Nutrition Program funds.
- Fahad Nur, 38, of Minneapolis, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Nur was the principal of The Produce LLC, a vendor and purported food supplier who received more than $5 million in fraudulent Federal Child Nutrition Program funds.
- Anab Artan Awad, 52, of Plymouth, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Awad was the president of Multiple Community Services, MCA. Awad claimed more than $11 million in fraudulent Federal Child Nutrition Program funds.
- Sharmarke Issa, 40, of Edina, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Issa created a company called Minnesota’s Somali Community and was the manager of Wacan Restaurant LLC. Issa fraudulently caused MDE to pay out more than $7.4 million in Federal Child Nutrition Program funds.
- Farhiya Mohamud, 63, of Bloomington, Minnesota, is charged with conspiracy to commit money laundering, and money laundering. Mohamud was the principal and CEO of Dua Supplies and Distribution Inc., a shell company that laundered millions of dollars of fraudulently obtained Federal Child Nutrition Program funds.
The following defendants are named in the United States v. Liban Yasin Alishire, et al. indictment:
- Liban Yasin Alishire, 42, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, and money laundering. Alishire was the president and owner of Community Enhancement Services Inc., a company located in the JigJiga Business Center in Minneapolis. Community Enhancement Services was a cultural mall owned and operated by Alishire and co-defendant Khadar Jigre Adan. Community Enhancement Services received more than $1.6 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Yasin Ali, 57, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Ali created a second program site, run by Lake Street Kitchen, and located in the JigJiga Business Center in Minneapolis.
- Khadar Jigre Adan, 59, of Lakeville, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Adan was the CEO of Lake Street Kitchen, which was a program site located in the JigJiga Business Center in Minneapolis.
The following defendants are named in the United States v. Sharmake Jama, et al. indictment:
- Sharmake Jama, 34, of Rochester, Minnesota, is charged with wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering. Sharmake Jama was a principal of Brava Restaurant and Café LLC. Brava Restaurant received approximately $4.3 million in fraudulent Federal Child Nutrition Program funds.
- Ayan Jama, 43, of Rochester, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Ayan Jama was a principal of Brava Restaurant and Café LLC. Ayan Jama also created shell companies to launder fraudulent proceeds.
- Asha Jama, 39, of Lakeville, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Asha Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Fartun Jama, 35, of Rosemount, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Fartun Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Mustafa Jama, 45, of Rochester, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Mustafa Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Zamzam Jama, 48, of Rochester, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Zamzam Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
Criminal informations:
- Bekam Addissu Merdassa, 39, of Inver Grove Heights, Minnesota, is charged with one count of conspiracy to commit wire fraud.
- Hadith Yusuf Ahmed, 34, of Eden Prairie, Minnesota, is charged with one count of conspiracy to commit wire fraud.
- Hanna Marekegn, 40, of Edina, Minnesota, is charged with one count of conspiracy to commit wire fraud.
United States Attorney Andrew Luger thanked the FBI, IRS Criminal Investigation, and the U.S. Postal Inspection Service for their collaboration and skilled investigative work in bringing these indictments.
Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Chelsea A. Walcker, Matthew S. Ebert, and Joseph S. Teirab for the District of Minnesota are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two New York City Correction Officers Plead Guilty to Accepting Bribes in Exchange for Smuggling Contraband into Rikers Island for Gang MembersRead the Press Release
Earlier today, in federal court in Brooklyn, New York City correction officer Krystle Burrell pleaded guilty to bribery, admitting that she accepted nearly $10,000 in bribe payments in exchange for smuggling contraband into Rikers Island. On August 16, 2022, New York City correction officer Katrina Patterson pleaded guilty to bribery, admitting that she accepted more than $34,000 in bribe payments in exchange for smuggling contraband into Rikers Island. Burrell and Patterson are employed by the New York City Department of Corrections (DOC). Burrell’s proceeding was held before United States District Judge Kiyo A. Matsumoto, and Patterson’s proceeding was held before United States District Judge Carol Bagley Amon.
Breon Peace, United States Attorney for the Eastern District of New York, Ricky J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.
“The defendants threw in their lot with Bloods gang members and betrayed their sworn duty to maintain the safety of incarcerated individuals and other correction officers at Rikers Island by smuggling cell phones and drugs into the jail,” stated United States Attorney Peace. “This Office and our law enforcement partners are committed to rooting out corruption at Rikers Island.”
DOI Commissioner Jocelyn E. Strauber said, "These two Correction Officers took bribes in return for smuggling contraband to inmates, crimes that risked the safety and security of the jails and willfully circumvented Correction Department regulations. These violations of their duty carry serious consequences, including termination from their City employment. DOI and our law enforcement partners will continue to target contraband smuggling and other misconduct that destabilizes the City’s jails.”
“When correction officers betray their oath to serve and protect, the public is put at risk and the entire law enforcement community is tarnished,” stated NYPD Commissioner Sewell. “We have zero tolerance for such misconduct. With today’s guilty plea, Ms. Burrell joins Ms. Patterson in publicly acknowledging that their actions were immoral, unethical, and without integrity – diametrically opposed to the core requirements of our profession. I commend all of our partners for their dedication to uncovering and eradicating corruption in all of its forms.”
“These officers were tempted by greed to betray their duty. By taking bribes to smuggle prohibited contraband to incarcerated known gang members, they violated the oath they swore and became criminals themselves,” said HSI New York Acting Special Agent in Charge Patel. “HSI is committed to making our communities safer by disrupting gang activity wherever it occurs, whether on the streets or in prisons.”
According to court documents and facts presented at the guilty plea proceedings, Patterson accepted at least $34,090 in bribes from co-conspirators on behalf of co-defendant Michael Ross in exchange for Patterson smuggling contraband into the Robert N. Davoren Center on Rikers Island for Ross. Ross, who was incarcerated on unrelated offenses, arranged for the bribes to be sent to Patterson. DOC personnel subsequently located narcotics and cell phones in Ross’s cell. Law enforcement also recovered Patterson’s text messages, including messages where a co-conspirator told Patterson that some of the contraband would be “4 black joints in 1 paper,” and Patterson responded, “it better be wrapped so many times I don’t want to smell it.”
Burrell accepted bribes in exchange for smuggling contraband into the Anna M. Kross Center on Rikers Island for co-defendant Terrae Hinds, facilitating Hinds’ contraband smuggling business and permitting Hinds and others to violate DOC regulations. Hinds, who was incarcerated on unrelated offenses, arranged for approximately $9,780 in bribe payments to be sent to Burrell. In exchange, Burrell smuggled at least two unauthorized cell phones to Hinds, and also facilitated Hinds’ sale of narcotics and other contraband items at the Anna M. Kross Center.
When sentenced, Burrell faces up to 10 years’ imprisonment and Patterson faces up to five years’ imprisonment. Ross, who is a Bloods gang member, has also pleaded guilty to a bribery offense and is awaiting sentencing. Charges against Hinds remain pending.
The government’s case is being handled by the Office’s Public Integrity Section. The government’s case is being prosecuted by Assistant United States Attorney Philip Pilmar.
The Defendants:
KATRINA PATTERSON
Age: 31
Jamaica, New YorkE.D.N.Y. Docket No. 22-CR-196 (CBA)
KRYSTLE BURRELL
Age: 35
Lawrence, New YorkE.D.N.Y. Docket No. 22-CR-195 (KAM)
Two Men Sentenced to Federal Prison for Illegally Possessing Firearms in RockfordRead the Press Release
ROCKFORD — Two men have been sentenced to federal prison terms for illegally possessing firearms in Rockford.
U.S. District Judge Iain D. Johnston on Friday sentenced RAHIME BRIGGS, 25, of Rockford, to six years and ten months, and, in a separate case, sentenced D’LEON JOHNSON, 25, of Rockford, to four years and two months.
Briggs and Johnson pleaded guilty earlier this year to charges of illegal firearm possession. As previously convicted felons, they were prohibited by federal law from possessing firearms.
Briggs admitted in a plea agreement that he illegally possessed a handgun and rifle on Feb. 1, 2021, in Rockford. Johnson admitted in a plea agreement that he illegally possessed two handguns and a drum-style magazine loaded with ammunition on March 15, 2021, in Rockford.
The sentences were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Office of the ATF; and Carla Redd, Chief of the Rockford Police Department. The government was represented by Assistant U.S. Attorney Robert Ladd.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Tucson Man Indicted for Migrant Smuggling and Threatening to Murder a Border Patrol AgentRead the Press Release
TUCSON, Ariz. – On September 8, 2022, a federal grand jury in Tucson returned a six-count indictment against Jesus Alberto Ibarra-Barraza, 31, of Tucson, Arizona, for Conspiracy to Transport Illegal Aliens for Profit, four counts of Transportation of an Illegal Alien for Profit, and one count of Threats to Murder an Employee of the United States.
The indictment alleges that on March 16, 2022, Ibarra-Barraza attempted to transport four undocumented noncitizens in his vehicle. After encountering law enforcement, Ibarra-Barraza stopped his vehicle, allowed the passengers to exit, then fled at a high rate of speed. Shortly after, he crashed his vehicle, resulting in serious bodily injury to himself. While at the hospital, Ibarra-Barraza verbally confronted a United States Border Patrol agent and threatened to kill the agent upon his release from the hospital.
Each charge in the indictment carries a maximum penalty of 10 years in federal prison and a fine of up to $250,000, or both.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Customs and Border Protection’s U.S. Border Patrol conducted the investigation in this case. Assistant U.S. Attorney Nathaniel Walters, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-22-01958-SHR-MSA
RELEASE NUMBER: 2022-157_Ibarra-Barrazaa
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Three Airline Employees Based at PHL International Airport Indicted for Reservation Skimming Fraud SchemeRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Taylor Thompson, 27; Tiana Fairfax, 29, both of Philadelphia, PA, and Theodore Robinson, 29, of Upper Darby, PA, were arrested and charged by Indictment with seven counts of wire fraud in connection with their scheme to defraud their employer, a national airline carrier, out of ticket fare revenue by recruiting customers to book inexpensive flights which they didn’t intend to use, upgrading those customers to more expensive flights which the customers actually wanted by using supervisors’ computer access codes, and then charging the customers a ‘commission’ and pocketing that money rather than charging the customer the full price of the upgraded flight.
The Indictment alleges that in 2017 and 2018, defendant Thompson was an employee in a supervisory role with a major U.S. airline headquartered in Florida, and defendants Fairfax and Robinson worked as customer service agents with the same airline. In those jobs, the defendants had access to the airline’s computerized reservation system and were able to book flight reservations; supervisors like Thompson had the ability to use a special code at their discretion to make changes in the reservation system without charging customers the additional costs associated with modified reservations. In general, if a passenger changed their itinerary, airline policy required that the passenger pay the full price of the modified itinerary, which was often more expensive than the itinerary that the passenger originally booked. Although supervisors had the ability to modify a reservation without assessing those charges, under Airline policy, those charges were only to be waived under extenuating circumstances, such as a death in the passenger's family.
In March 2018, Thompson allegedly approached another employee and co-schemer about participating in a scheme to skim money from airline fares, and asked that employee for access to their Cash App account in order to receive payments directly from customers. Thompson made money from the scheme by charging customers for whom she booked and modified a flight reservation more for the flight than the price of the original itinerary (that is, the amount that was paid to the airline), but less than the true cost of the new, modified itinerary. The defendant retained the additional amount paid to her by the customer as a commission for her services. Defendants Fairfax and Robinson allegedly joined the scheme by modifying flight reservations for customers without charging them the difference in cost by utilizing Thompson’s supervisory airline credentials. In 2018, when Thompson was terminated by the airline, a second co-schemer was approached to join the scheme in order to utilize their supervisory credentials in order to modify flight reservations.
According to the Indictment, between December 2017 and August 2018, all three defendants along with the two co-schemers modified more than 1,700 flight reservations without compensating the airline for the increased cost of those modified reservations, for a total loss to the airline of more than $283,000.
“As alleged, these defendants used access and privileges granted by virtue of their employment to cheat the airline reservation system and skim money off the top for themselves,” said U.S. Attorney Romero. “We will continue to work with our law enforcement partners to investigate and prosecute fraud schemes wherever they occur.”
“Supplementing your paycheck by scamming your employer is a criminally bad career move,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Fraud is never the ticket to lasting financial gain, as these defendants have now discovered. Instead, it’s landed them in court to answer for their alleged actions. The FBI stands ready to investigate financial crimes wherever they may occur.”
The case was investigated by Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Jessica Rice.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
St. Louis Man Sentenced to Nearly 6 Years in Prison for Identify Theft, Other CrimesRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a St. Louis man to five years and 10 months in prison for using stolen or fake identification documents to buy, lease or steal three cars and a $5,600 puppy.
Samuel Stoddard, 26, pleaded guilty in June to eight felony counts in two criminal cases: aggravated identity theft, identity theft, possession of a stolen motor vehicle, access device fraud, possession of five or more identification documents, possession of document-making implements, possession of falsely made securities and interstate transportation of a stolen vehicle.
Stoddard admitted being found in possession of a series of fake or stolen identification documents and vehicle registration materials after a court-authorized search of his home in St. Louis. He’d already created a fake Missouri driver’s license that another person used to rent a 2019 Chevrolet Malibu and a fake Illinois title for the car to prevent the rental company from getting it back.
After the search, he used a fake temporary driver’s license in the name of a Webster Groves man to buy a $5,600 German Shepherd puppy from a Lake St. Louis company. He used other fake identification documents to lease a 2021 Volvo XC90 worth more than $56,000 from a Kansas car dealer and buy another XC90 worth $41,000 from a St. Louis County dealer.
Stoddard also forged the name of another individual and used a fraudulently obtained credit card to pay towing and impound fees for a 2020 Acura RDX. The vehicle was in the custody of a St. Louis tow yard because it had been reported as having been fraudulently purchased from a St. Louis area dealership.
After his arrest on the federal charges, he used another jail inmate to help him conceal the proceeds of his crimes as well as the material he used to commit them, according to his guilty plea.
After Stoddard fled from federal pretrial supervision and became a fugitive, he continued his criminal activities in Kentucky, Tennessee, and Georgia before he was arrested and returned to federal custody in Missouri.
For three years, Stoddard “just kept engaging in fraud on top of fraud,” Assistant U.S. Attorney Tracy Berry said during the sentencing hearing Tuesday.
The Missouri Department of Revenue, the U.S. Postal Inspection Service, the U.S. Secret Service and police departments in the Missouri jurisdictions of Manchester, O’Fallon, St. Charles, St. Charles County, St. Louis, St. Louis County and Webster Groves investigated this case. Assistant U.S. Attorney Tracy Berry prosecuted the case.
Spirit Lake, ND, Man Sentenced to 30 Years in Federal Prison for Production and Distribution of Child PornographyRead the Press Release
Fargo – United States Attorney Jennifer Klemetsrud Puhl announced that Johnson Shae Tollefson, age 29 of Spirit Lake, ND, appeared before Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, and was sentenced to 30 years in prison after having plead guilty on February 8, 2022, to Production, Distribution and Possession of Child Pornography. Judge Welte also sentenced Tollefson to lifetime of supervised release and he ordered Tollefson to pay $12,000 in restitution to four victims who were depicted in the images of child pornography.
This case came to the attention of law enforcement after the social networking website Tumblr reported that the Tumblr user "hornybiguysstuff" uploaded child pornography images during a private blog via the platform on December 19, 2019. A subsequent investigation by Homeland Security Investigation and North Dakota Bureau of Criminal Investigation revealed that the user "hornybiguysstuff" was in reality Tollefson. Tollefson produced child pornography in Dilworth, Minnesota, that depicted a toddler-age female. While in North Dakota, Tollefson subsequently distributed the child pornography to other Tumblr users in exchange for other child pornography.
A federal grand jury in the District of Minnesota returned an Indictment charging Tollefson with production of child pornography and a federal grand jury in North Dakota returned an Indictment charging him with distribution and possession of child pornography. The Minnesota Indictment was eventually transferred to the District of North Dakota and Tollefson plead guilty to both Indictments in North Dakota. The two cases were combined for sentencing.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorney’s Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the North Dakota Bureau of Criminal Investigation and Homeland Security Investigations, and the case was prosecuted by the United States Attorney’s Office, with United States Attorney Jennifer Puhl assigned to the case.
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South Carolina Inmate Sentenced to Federal Prison for Role in Military Sextortion SchemeRead the Press Release
CHARLESTON, SOUTH CAROLINA — Darnell Khan, 39, was sentenced to seven years in federal prison after pleading guilty to his role in a scheme to extort and defraud military members that was operated from the South Carolina Department of Correction (SCDC).
Evidence presented to the Court showed that while serving a 25-year sentence in SCDC for voluntary manslaughter and attempted armed robbery, Khan smuggled smartphones into SCDC and used the internet to join internet dating websites. Once on the internet dating websites, Khan would pose as a young woman, target young men who were in the military, and solicit nude photographs. Once the photographs were received, Khan and others posed as the father of the young woman, claimed that the young woman was underage, and accused the military member of being in possession of child pornography. Khan and others then threatened to have the military members arrested or dishonorably discharged unless they paid money.
From January 2017 to July 2017, due to this extortion, service members transferred funds to Khan totaling $62,500.71, which investigators traced to at least 40 victims.
“Mr. Khan knowingly used deceit to prey on those who serve our nation. This is inexcusable,” said U.S. Attorney Adair F. Boroughs. “This case also shows that nothing good comes from smartphones in prison. Inmates use them to continue criminal activity behind bars, and we hope this prosecution helps state officials in their efforts to eliminate and disable contraband phones in prison.”
“The Defense Criminal Investigative Service will not tolerate these organized criminals targeting our service members,” said Special Agent in Charge Christopher Dillard, Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “We will continue to work with our law enforcement partners to protect our Warfighters from sextortion crimes and hold these criminals accountable.”
“Mr. Khan deserves to be held fully accountable for his leading role in this reprehensible and criminal network targeting military service members,” said Special Agent in Charge Erin Carmichael of the Naval Criminal Investigative Service (NCIS) Carolinas Field Office. “NCIS will not tolerate the existence of sextortion rings like this that degrade the readiness of our military force. NCIS thanks the U.S. Attorney’s Office and our law enforcement partners for their substantial efforts to keep our service members and their families safe from harm.”
“This is another in a long line of cases that would be stopped if we had the ability to jam cellphone signals in state prisons,” said Bryan Stirling, Director of SCDC. “I am calling on Congress to support a hearing on the Cellphone Jamming Reform Act and allow states to use technology to stop inmates from using these illegal phones to prey on innocent victims.”
United States District Judge Richard M. Gergel sentenced Khan to 84 months in federal prison, to be followed by a three-year term of court-ordered supervision. This sentence will be served after Khan completes his 25-year state prison sentence. There is no parole in the federal system.
This case was investigated by DCIS, NCIS, and SCDC. Assistant U.S. Attorneys Katherine Orville and Amy Bower prosecuted the case.
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Sorority Treasurer gets 45 months for Wire FraudRead the Press Release
Oxford, Miss. – An Oxford woman was sentenced last Friday to 45 months in prison for wire fraud committed while she was a volunteer for the Kappa Delta sorority at Mississippi State University.
Court records state that Betty Jane Cadle, 75, issued checks from the Kappa Delta House Corporation banking account to herself and to a business she and her daughter owned in Oxford, Mississippi without authority. According to court documents, from 2012 through 2019, Cadle stole $2.9 million from the Kappa Delta Sorority House Corporation.
Representatives of the sorority spoke at the sentencing hearing and recounted how Cadle had bullied the sorority members and maintained an attitude of superiority to avert any questions about the finances of the sorority house.
“The defendant abused her position of trust and authority by stealing money she was entrusted with for her own personal gain.” Said U.S. Attorney Clay Joyner. “The Northern District of Mississippi’s United States Attorney’s Office will continue to prosecute those that abuse their positions to steal from others.”
In announcing the sentence, U.S. District Judge Glen H. Davidson also imposed a restitution judgment in the amount of $2,940,853.80.
Cadle is scheduled to report to prison on October 24. Assistant U.S. Attorney Parker S. King prosecuted the case.
Slidell Woman Pleads Guilty to Theft of Government FundsRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that LINDA REED HILL (“HILL”), age 75, of Slidell, Louisiana, pled guilty today to Theft of Government Funds in violation of Title 18, United States Code, Section 641.
Beginning in or about May 1, 2004, and continuing until in or about February 28, 2021, HILL did knowingly embezzle, steal, purloin, and convert to her use, money belonging to the United States and a department and agency thereof, namely the Social Security Administration, to which she knew she was not entitled, when she withdrew funds from a joint JP Morgan Chase account under her own name and Individual “A’s” name.
Prior to April 28, 2004, Individual “A” received SSA Retirement Survivor Insurance disability benefits (“RSI”). After Individual “A’s” death, from approximately May 2004 to February 2021, Individual “A” continued to receive monthly SSA disability benefits in an amount ranging from $1,310.00 - $1,518.00 per month, totaling $319,696.00, which was deposited by SSA into a joint JP Morgan Chase Savings account, shared by HILL and Individual “A.” The monthly SSA funds were then taken from the joint account, transferred to two different accounts listed under HILL’s name, and withdrawn by HILL.
HILL faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee.
“Social Security benefits fraud is a criminal offense, which DOJ and my office takes very seriously,” said U.S. Attorney Duane A. Evans. “For several years, Ms. Hill fraudulently received disability benefits from the Social Security Administration (SSA) by claiming monies not designated for her. This plea illustrates that our office will continue to collaborate with SSA Office of the Inspector General and other investigative agencies to identify those who commit SSA fraud for their personal gain.”
”For nearly two decades, Ms. Hill intentionally stole hundreds of thousands of dollars from SSA,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to hold those accountable who defraud Social Security programs.”
Sentencing in this matter is scheduled for January 10, 2023, before United States District Judge Greg G. Guidry.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of Inspector General with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Seven Members of Bounty Hunter Bloods Gang Indicted for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – Seven members of a New Jersey gang associated with the Bounty Hunter Bloods were charged by indictment today with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, U.S. Attorney Philip R. Sellinger announced today.
The Indictment charges Walter Boyd, a/k/a “Walt,” a/k/a “Walt Daddy,” 34, Isiah Daniels, a/k/a “Ice,” 33, Joel Lyons, a/k/a “Jayski,” 21, Gede Maccelus, a/k/a “G Baby,” 21, Armando Ortiz, a/k/a “Mando,” 24, Malik Stringer, a/k/a “Rambo,” 24, and Kimani Wanyoike, a/k/a “Ki,” 21, all of Somerset and Middlesex County, New Jersey with a racketeering conspiracy that included multiple murders, fraud schemes, and narcotics distribution. Daniels and Wanyoike are in federal custody on previously filed related federal charges. Lyons and Ortiz are currently serving terms of imprisonment in state prison. Boyd, Maccelus, and Stringer are currently in state custody on pending state charges related to the charges filed today. All defendants’ will have initial appearances to be scheduled.
The charges are the result of a long-running investigation, coordinated between the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Middlesex County Prosecutor’s Office, the Somerset County Prosecutor’s Office, the New Brunswick Police Department, and the Franklin Township Police Department.
According to documents filed in this case and statements made in court:
Boyd, Daniels, Lyons, Maccelus, Ortiz, Stringer, and Wanyoike, each were allegedly members and associates of the Bounty Hunter Bloods, who operated under the umbrella of the neighborhood street gangs known as “Parkside” in Somerset and “The Ville” in New Brunswick. Gang members, including the defendants, are alleged to have also engaged in numerous violent acts on behalf of and for the benefit of the gang, including assaults, shootings, and murders, some of which targeted rival gang members, including the following:
• On or about June 12, 2020, Daniels, along with other gang members drove at least two cars to a gathering to pay homage to a purported rival gang member who had passed away. At the gathering, members of the Bounty Hunter Bloods gang got out of their cars and shot into a vehicle in the area of Churchill Avenue in Franklin Township;
• On or about August 1, 2020, Maccelus, Wanyoike, and other gang members, at Ortiz’s direction, drove to the area of the Hope Manor housing complex in the “Down Bottom” area of New Brunswick in a stolen vehicle. Upon arriving, Wanyoike and another gang member exited the vehicle and shot Victim 1, a purported gang rival, as well as Victims 2 and 3;
• On or about September 13, 2020, Lyons, Daniels, and other gang members used a stolen car to commit a shooting in New Brunswick that caused the deaths of Victim 4, a purported gang rival, and Victim 5, and resulting in injuries to Victims 6, 7, 8, 9, 10, 11, and 12;
• On or about July 19, 2021, Wanyoike possessed a firearm that had been used in a shooting on or about April 30, 2021, in North Brunswick, New Jersey where at least seven rounds of .40 caliber ammunition were discharged from a red Hyundai motor vehicle as it chased at Victim 13, a purported rival of the Bounty Hunter Bloods Enterprise;• On or about June 18, 2021, Boyd and other gang members gathered outside a hospital in New Brunswick to support and pay homage to a high-ranking member of the Bounty Hunter Bloods gang, who had been shot by purported rivals hours prior. Upon seeing a white Jeep they concluded was occupied by rivals, Boyd and two other gang members followed the Jeep to the area of Easton Avenue in New Brunswick. After stopping, one of the gang members shot into the Jeep, killing Victim 14 and causing injury to Victim 15;
• On or about July 24, 2021, Stringer, while gathered with other gang members, possessed a firearm and attempted to fire it at a purported rival gang member in New Brunswick;
• On or about January 9, 2022, Stringer, while with another gang member in New Brunswick, got into a confrontation regarding narcotics distribution with purported rival gang members and shot at them, killing Victim 16 and causing injury to Victim 17; and
• On or about January 20, 2022, Maccelus, while with another gang member in Franklin Township, possessed a loaded firearm that had been used in a shooting in New Brunswick that same day.
In addition to these violent acts, Bounty Hunter Bloods members, including the defendants, are alleged to have routinely distributed narcotics in and around the gang’s turf in both New Brunswick and Somerset. Gang members also engaged in various wire and bank fraud schemes to enrich themselves and fellow members of the gang, including schemes to defraud the federal Paycheck Protection Program.
Boyd, Daniels, Lyons, and Stringer each face a maximum sentence of life imprisonment for the racketeering conspiracy, while Maccelus, Ortiz, and Wanyoike each face a maximum sentence of twenty years’ imprisonment. All defendants face a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James Dennehy, investigators of the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone, investigators of the Somerset County Prosecutor’s Office, under the direction of Prosecutor John McDonald, the New Brunswick Police Department, under the direction of Director Anthony Caputo, and the Franklin Township Police Department, under the direction of Director of Public Safety Quovella Mayweather, for the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Kendall Randolph of the District of New Jersey’s Organized Crime and Gangs Unit in Newark and Assistant U.S. Attorney Tracey Agnew of the Trenton Office.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Serial Bank Robber Sentenced to Prison for Bank FraudRead the Press Release
DETROIT – A man previously convicted and imprisoned for four bank robberies was sentenced last week to 71 months in federal prison for stealing the identities of ten people to commit bank fraud, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Special Agent in Charge James Tarasca of the FBI’s Detroit Field Office.
Rynell Roberts, 39, of Redford, Michigan, was sentenced before Chief United States District Court Judge Sean F. Cox. Court records show that Roberts was previously convicted of four bank robberies back in 2008. During all of the bank robberies, Roberts threatened tellers with a firearm, even firing a pistol inside the bank during one of the robberies. After being released from prison on the armed bank robbery charges, Roberts switched to fraud to steal from banks.
According to court records, Roberts was sentenced for using stolen identifications to make approximately $119,000 in purchases at area retail stores. He admitted that he used the names and stolen personal identifiers of ten individuals to open fraudulent credit accounts to make these purchases. As part of his sentence, Roberts was ordered to pay $119,000 in restitution.
U.S. Attorney Ison stated, “Identification theft not only robs individuals of time and peace of mind, but it also causes unwarranted damage to the credit of law-abiding citizens. All consumers ultimately bear the costs of these crimes. My office remains committed to holding identity thieves accountable.”
“It is a misperception that identity theft is a victimless crime,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “Victims of this type of fraud can spend significant time and effort clearing up financial issues caused by the greed of these criminals and often causing a significant financial burden to the victim in the process. The FBI will continue to investigate these thieves and protect Michiganders from this type of criminal activity.”
This case was prosecuted by Assistant United States Attorney Philip A. Ross. The case was investigated by the Federal Bureau of Investigation with assistance from the Blackmon Township and Grosse Isle Police Departments.
San Francisco Resident Sentenced to Six Years in Prison for Possession of Guns, Ammunition, and DrugsRead the Press Release
SAN FRANCISCO – Samuel Polanco was sentenced to 72 months for being a felon in possession of ammunition and in connection with a scheme to sell methamphetamine and Suboxone, announced United States Attorney Stephanie M. Hinds and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Patrick T. Gorman. The sentence was handed down by the Hon. Richard Seeborg, Chief United States District Judge.
Polanco pleaded guilty to the charges on June 28, 2021. According to the plea agreement, Polanco admitted that on September 17, 2020, he was arrested on an outstanding warrant by members of the San Francisco Police Department. Polanco was arrested near his white Jaguar SUV that he parked outside the SoMa Park Inn in San Francisco. Having been previously convicted of a felony, Polanco was not permitted to possess a firearm or ammunition. Nevertheless, at the time of his arrest, Polanco was in possession of a privately manufactured, unserialized 9mm caliber pistol, or “ghost gun,” and a magazine containing 10 rounds of unfired 9mm ammunition. Additional rounds of ammunition were found in his car, including 28 rounds of unfired 9mm ammunition and 17 rounds of unfired .40 caliber ammunition.
In addition to illegally possessing these items, Polanco admitted that he also was in possession of narcotics. Specifically, Polanco acknowledged that at the time of his arrest, he was found with approximately 210 grams of methamphetamine and 45.33 grams of fentanyl in the folds of his skin. Polanco admitted in his plea agreement that he knowingly possessed the methamphetamine with the intent to distribute it.
Polanco also pleaded guilty to an additional crime that he committed after his arrest. Specifically, beginning March 25, 2021, Polanco was detained in pretrial custody at Santa Rita Jail and, while detained, asked a confederate outside of the jail to send him Suboxone (in the form of sublingual strips), a Schedule III controlled substance. Polanco admitted that he received the strips, used the drugs himself, and distributed the drugs to other inmates in exchange for payment in currency or commissary items. Polanco admitted he possessed the Suboxone with the intent to distribute it to other inmates.
On June 24, 2021, the government filed a superseding information charging Polanco with being a felon in possession of ammunition, in violation of 18 U.S.C. § 922(g)(1); possession with intent to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1), (b)(1)(B)(viii); and possession with intent to distribute Suboxone, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(E)(i). Polanco pleaded guilty to all three counts.
In addition to the prison term, Chief Judge Seeborg also ordered Polanco to a four-year term of supervised release.
The case was prosecuted by Assistant U.S. Attorney Joseph Tartakovsky. The prosecution is a result of investigations by the San Francisco Police Department and Alameda County Sheriff’s Office.
Rotterdam Man Pleads Guilty to Marijuana and Gun OffensesRead the Press Release
ALBANY, NEW YORK – Tyquan Armstrong, aka “Moose,” age 43, of Rotterdam, New York, pled guilty yesterday to conspiring to distribute and possessing with intent to distribute marijuana and possessing firearms in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.
In pleading guilty, Armstrong admitted to being a member of a marijuana-trafficking organization that shipped large quantities of marijuana from Fresno, California, to locations throughout the United States, including the Capital Region of New York. The marijuana was shipped from Fresno through UPS and FedEx and, to track the packages, Armstrong’s co-conspirator text-messaged him shipping receipts with tracking information. Armstrong admitted to receiving at least 19 packages of marijuana from Fresno at his apartment in Rotterdam between July 2021 and June 2022, which he sold in and around Schenectady, New York. Armstrong also admitted that his participation in the conspiracy involved at least 50 kilograms, or 110 pounds, of marijuana.
On June 15, 2022, law enforcement executed a search warrant at Armstrong’s apartment in Rotterdam and discovered 7 vacuum-sealed packages of marijuana weighing 10 pounds, which Armstrong planned to sell. The apartment contained two money counters and $18,723 in cash, which was earned by the defendant selling marijuana. Law enforcement also seized a loaded .357 revolver, a loaded .22 caliber “ghost gun,” and 125 rounds of .357 ammunition. Armstrong possessed the revolver and “ghost gun” to protect his marijuana and marijuana proceeds.
The defendant’s apartment also contained a gold Rolex watch, gold chain with a diamond-encrusted cross pendant, and two gold rings encrusted with diamonds, all of which were purchased with marijuana proceeds. Armstrong will forfeit $18,723 in cash, the Rolex, jewelry, firearms, and ammunition.
At sentencing, Armstrong faces at least 5 years and up to life in prison, a term of post-release supervision of at least 6 years and up to life, and a fine of up to $2 million. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the ATF and DEA, and is being prosecuted by Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia.
Peoria Man Sentenced to 126 Months in Prison for Possession with Intent to Distribute Methamphetamine and Possession of a Firearm with Drug TraffickingRead the Press Release
PEORIA, Ill. – A Peoria, Illinois man, Raphael Thompson, 34, of the 1100 block of East Arcadia, has been sentenced consecutively to 66 months in prison for possession with intent to distribute at least 5 grams of methamphetamine and 60 months, for possession of a firearm in furtherance of drug trafficking. The total sentence of 126 months is to be followed by five years of supervised release.
At the sentencing hearing before U.S. District Judge James Shadid, the United States presented evidence that law enforcement officers investigated Thompson for drug sales and obtained a search warrant for his residence on East Arcadia in Peoria. When officers searched the house, they found a loaded Jimenez Arms .380 caliber handgun with a defaced serial number, 55.6 grams of a substance that was determined to contain 31.1 grams of pure methamphetamine, approximately 5.17 grams of crack cocaine, 30 methamphetamine pills, and a digital scale. Thompson admitted that he possessed the crack cocaine and “molly” pills and had been selling drugs.
Thompson was indicted in March 2022 and has remained in the custody of the U.S. Marshals Service. He pleaded guilty on May 11, 2022.
The statutory penalties for possession with intent to distribute 5 grams or more of methamphetamine are 5 to 40 years imprisonment and 4 years to life of supervised release. The penalties for possession of a firearm in furtherance of drug trafficking are 5 years to life imprisonment, consecutive to any other sentence, and up to 5 years of supervised release. Fines of up to $250,000 are also possible.
The U.S. Department of Justice Drug Enforcement Administration, with the assistance of the Peoria Police Department, investigated the case. Assistant U.S. Attorney Keith Hollingshead-Cook represented the United States in the prosecution.
The case against Thompson 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.
Parkersburg Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Joshua Dean Sprague, 42, of Parkersburg, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on May 4, 2022, law enforcement officers in Parkersburg attempted to pull over a vehicle driven by Sprague, who fled at a high rate of speed onto Interstate 77. The chase led to Seventh Street before Sprague lost control of his vehicle and crashed into another vehicle. A mother and her daughter were in the other vehicle and were treated for injuries at the scene. After crashing his vehicle, Sprague fled on foot but was apprehended. Sprague was in possession of a Ruger, model LCP, .380-caliber semi-automatic pistol.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Sprague knew he was prohibited from possessing a firearm because of his prior felony convictions for malicious assault on a correctional officer, escape from an institution and aggravated robbery in Harrison County Circuit Court on February 10, 2004.
Sprague is scheduled to be sentenced on December 20, 2022, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Senior United States District Judge John T. Copenhaver Jr. presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case.
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. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-140.
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Out of state man convicted for stalking local victimRead the Press Release
HOUSTON – A 47-year-old Colorado man has admitted to threatening a woman with releasing sexually-explicit images unless she moved with him across the country, announced U.S. Attorney Jennifer B. Lowery.
Moses Cano pleaded guilty to one count of stalking.
Cano and the victim dated for a brief amount of time. At the end of that relationship, Cano made threats to her if she did not agree to come to Colorado with him. The victim refused. In retaliation, he then sent sexually-explicit images of the victim to her place of employment and several of her friends.
As part of his plea, he admitted he took over her Facebook account and used it to send the images and other messages to her contacts. He also posted a sexually-explicit video of the victim to a well-known adult pornography site.
In distress, the victim contacted authorities.
Sentencing has been set for Nov. 30. At that time, Cano faces up to five years in federal prison and a $250,000 maximum possible fine. He has been and will remain in custody pending that hearing.
The FBI conducted the investigation with the assistance of Matagorda County Sheriff’s Office. Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.
Oakland Investment Advisor Charged with Securities FraudRead the Press Release
OAKLAND - John Mendes, a registered investment advisor, was charged in a federal information filed today with securities fraud for trading upon non-public inside information, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Sean Ragan.
According to the information filed in Oakland federal court, Mendes, 39, formerly of Oakland, is a registered representative and investment adviser who learned non-public information from his friend, identified in the information only as “Insider One.” At the time of the allegations in the information, Insider One worked for Granite Construction, Inc. (Granite), a construction materials company headquartered in Watsonville, California. Granite focuses on large scale public and private infrastructure projects and is traded publicly on the New York Stock Exchange. Granite negotiated with and eventually acquired another company in 2018 that also traded on the New York Stock Exchange, Layne Christensen Company (Layne). Layne was a water management, construction, and drilling company headquartered in The Woodlands, Texas. Granite publicly announced the agreement to acquire Layne on February 14, 2018.
The information alleges that Insider One was actively engaged in Granite’s negotiations to acquire Layne and learned non-public information regarding the deal. During this period of time, Insider One was also a friend of Mendes.
The information alleges that from approximately November 2016 through February 2018, in the course of their friendship Insider One disclosed material nonpublic information to Mendes about Granite’s potential acquisition of Layne before that information was available to the public. Mendes had a history of sharing confidences with Insider One, who expected that Mendes would maintain the confidentiality of the nonpublic information. The information asserts that Mendes breached that duty of confidence and used Insider One’s material non-public information to trade on Layne’s stock before Granite’s public announcement on February 14, 2018.
The information describes instances of Mendes’s trading based on inside information and alleges that between November 2017 and January 2018 Mendes purchased Layne stock and options in accounts in the names of family members and in no fewer than 10 clients’ accounts. All of the securities were sold later for a profit following the February 14, 2018, announcement of Granite’s intent to acquire Layne. The purchases and subsequent sales of Layne stock generated profits of about $242,000 in those accounts.
Mendes is expected to make his initial appearance in federal court to face the securities fraud charge later this week.
Mendes is charged in the information with one count of securities fraud in violation of 15 U.S.C. §§ 78j(b) and78ff and Title 17 C.F.R. § 240.10b-5. If convicted of securities fraud, he faces a maximum sentence of 20 years in prison and a fine of $5,000,000. If convicted, he will also be required to pay restitution. Any sentence following conviction, however, would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A federal information merely alleges that crimes have been committed, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
In a separate civil action, the United States Securities and Exchange Commission filed a civil enforcement action today in the Northern District of California alleging that Mendes engaged in insider trading.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the FBI. The U.S. Attorney’s Office and the FBI appreciate the assistance of the Market Abuse Unit of the Securities and Exchange Commission’s Division of Enforcement.
New Orleans Woman Sentenced for Theft of More Than $61,000 in Social Security FundsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that CATHERINE CAMPBELL WILLIAMS, age 69, of New Orleans, Louisiana, was sentenced after previously pleading guilty to Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to court documents, beginning in December 2010 and continuing through 2020, WILLIAMS collected Social Security Administration benefits paid to a deceased relative. In total, WILLIAMS fraudulently received approximately $61,324 in Social Security Administration benefits to which she was not entitled.
U.S. District Judge Greg G. Guidry sentenced WILLIAMS to three (3) years of Probation and imposed a $100 mandatory special assessment fee. In addition, WILLIAMS was ordered to pay restitution to the Social Security Administration in the amount of $61,324.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
Naval Commander Indicted for Distributing Child Sexual Abuse VideosRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Gregory Edward McLean (38, Jacksonville) with two counts of distributing videos depicting the sexual assault of children and one count of possessing files depicting the sexual abuse of young children. If convicted, McLean faces a minimum term of imprisonment of 5 years, and up to 20 years in federal prison on each count. The indictment also notifies McLean that the United States intends to forfeit two cellphones, a Western Digital hard drive, and a USB drive, which are alleged to have been used in the commission of the offenses. McLean was arrested on September 19, 2022. He is being detained pending trial.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Naval Criminal Investigative Service and the Rhode Island State Police, with assistance from the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kelly S. Karase and Kirwinn Mike.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Myrtle Beach Resort Manager Indicted for Fraud Scheme Totaling Nearly $1 MillionRead the Press Release
FLORENCE, SOUTH CAROLINA — A federal grand jury in Florence returned a five-count indictment against Troy Benjamin Bittner, 53, of Myrtle Beach, for defrauding a local resort out of nearly $1 million during the pandemic.
The indictment alleges that Bittner, in his role as manager for Carolina Pines RV Resort, used his access to the company’s credit card reservation system to commit wire fraud. Specifically, although certain guests stayed at Carolina Pines, Bittner would nonetheless use the electronic payment system to initiate a refund as if those guests had cancelled their reservations. According to the indictment, during the Coronavirus pandemic it was not uncommon for guests to cancel reservations. However, rather than direct the refunds to the credit cards on file, Bittner instead issued the refunds to his own various personal credit cards. Over the 26-month window of Bittner’s alleged scheme, he received more than $800,000 in fraudulent refunds at the expense of Carolina Pines.
Bittner faces a maximum penalty of 20 years in federal prison, in addition to forfeiture and restitution.
The case is being investigated by the U.S. Secret Service, Federal Bureau of Investigation, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Derek A. Shoemake is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Mexican National Sentenced to More Than Three Years in Federal Prison for Possessing A FirearmRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Miguel Vargas-Narez (44, Mexico) to 40 months in federal prison following his convictions for possession of a firearm by an alien unlawfully in the United States and illegal reentry into the United States. Vargas entered guilty pleas to the charges on June 1, 2022.
According to the court records, Vargas is a citizen and national of Mexico. He has previously been deported from the United States four times and has been convicted of illegally reentering the United States after being deported on two prior occasions. On November 18, 2021, Vargas fled from Marion County Sheriff’s Office deputies in a stolen vehicle at a high rate of speed. Vargas eventually crashed the vehicle in a pasture but continued to flee on foot. When apprehended by a police K-9 unit, Vargas had a loaded pistol in his waistband. In his pants pockets, deputies discovered another pistol with a scratched-off serial number, 38 rounds of 9mm ammunition, and seven rounds of .25 caliber ammunition. As an person not lawfully present in the United States, Vargas is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the Marion County Sheriff’s Office, the U.S. Border Patrol, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Hannah Nowalk.
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.
Members of the "Bully Gang" Charged in Superseding Indictment with Murders, Racketeering, Arson, Narcotics Trafficking, Money Laundering, and Firearms OffensesRead the Press Release
A superseding indictment was unsealed today in federal court in Brooklyn charging 26 defendants, including nine members and associates of the violent New York City-based street gang known as the “Bully Gang” with various offenses, including racketeering, murder, drug trafficking, money laundering, and firearms offenses. The superseding indictment includes new charges against the following members and associates of the Bully Gang for three murders and one attempted murder in Brooklyn, New York and Queens, New York committed in 2018 and 2020:
- Derrick Ayers, also known as “Dee” is charged with the March 3, 2018 murder of Jonathan Jackson in Brooklyn.
- Franklin Gillespie, also known as “Spazz” and “Frankie Gino,” is charged with the April 11, 2020 murder of Paul Hoilett in Brooklyn.
- Gillespie and Anthony Kennedy, also known as “Biggie,” are charged with the April 15, 2020 murder of Mike Hawley in Queens.
- Demetrius Johnson, also known as “Q,” is charged with the July 18, 2020 attempted murder of a victim in Brooklyn.
The superseding indictment also charged four new defendants, Tiri Brown, also known as “Tyhoe,” Courtney Foster, also known as “Biga,” Avery Goodluck, also known as “Ave,” and Johnson, with narcotics trafficking charges for their role in a scheme to traffic narcotics between New York and Maine.
Ayers, Gillespie, and Kennedy were previously in custody on the underlying indictment. Defendants Brown, Foster, Goodluck, and Johnson were arrested today and will be arraigned this afternoon before United States Chief Magistrate Judge Cheryl L. Pollak.
Breon Peace, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrests and charges and Jocelyn Strauber, Commissioner, New York City Department of Investigation (DOI), announced the new charges.
“As demonstrated by the superseding indictment, the dismantling of the Bully Gang is continuing with its members being held accountable for the cold-blooded murders, mayhem, and narcotics trafficking they unleashed upon the district,” stated United States Attorney Peace. “Reducing gun violence is a high priority for this Office and I commend our prosecutors and law enforcement partners for their relentless efforts to do justice to make our communities safer.”
“This superseding indictment shows the relentless efforts of federal, state, and local partners to hold violent criminals accountable,” ATF Special Agent in Charge DeVito said. “I commend the hard work of the ATF Joint Firearms Task Force, NYPD, NYC Department of Investigation and the U.S. Attorney’s Office for leaving no stone unturned to charge those who commit senseless acts of violence in the name of loyalty to their gang. ATF’s commitment to protecting the public from violent offenders in collaboration with our partners is unwavering.”
“Targeting and dismantling gangs and crews, and preventing the violence so often associated with their illegal activities, are among the highest priorities for the NYPD and our law enforcement partners,” stated NYPD Commissioner Sewell. “By focusing on the relatively small number of people responsible for much of the crime and disorder in New York City and beyond, we remain relentless in our efforts to identify and arrest anyone who involves themselves in such senseless acts.”
DOI Commissioner Jocelyn E. Strauber said, "Gang violence and drug trafficking jeopardize communities within and beyond New York City. DOI and our law enforcement partners are committed to hold accountable those who engage in this very serious criminal conduct. DOI was pleased to assist the United States Attorney's Office for the Eastern District of New York and our other law enforcement partners on this important investigation."
As set forth in the superseding indictment and other court filings, members and associates of the Bully Gang used force and violence to promote its power, terrorize communities in multiple states and enrich themselves and their members. Their members engaged acts of violence including murder, attempted murder, armed robbery, and arson. The superseding indictment adds charges stemming from the gang’s years-long use of violence and brutality to target its enemies. As alleged, on August 21, 2017, Bermon Clarke, a leader in one of the charged narcotics conspiracies, set fire to a house in Blaine, Maine with at least two occupants inside. The March 3, 2018 murder of Jonathan Jackson alleged in the indictment was the culmination of an exchange of gunfire that followed a “gender reveal” party in Brooklyn, New York. As alleged, during a foot chase along Kings Highway, Ayers repeatedly fired on Jackson at close range. The murders of Hoilett and Hawley occurred just days apart in April 2020. As alleged, Gillespie targeted Hoilett, approaching him from behind and firing at the back of Hoilett’s head at point-blank range. Four days later, Gillespie and Kennedy allegedly lured Hawley to a meeting place in Far Rockaway where Hawley was shot and killed.
As alleged, the Enterprise and its co-conspirators also operated a years-long, sophisticated drug trafficking network responsible for trafficking large quantities of dangerous drugs like cocaine base (“crack”), heroin and fentanyl through New York to Maine, and elsewhere. The enterprise’s drug proceeds were collected on a regular basis and laundered through financial transactions and the purchase of high-value assets, including jewelry and cars. During the investigation, law enforcement seized more than $380,000 in cash, more than 15 firearms, six kilograms of cocaine, 600 grams of fentanyl, multiple luxury watches, and four vehicles with concealed “trap” compartments installed.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
To date, 53 defendants have been charged as part of the prosecution with 27 pleading guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Drew G. Rolle, Nicholas J. Moscow, Lindsey R. Oken, and Joy Lurinsky are in charge of the prosecution.
New Defendants:
TIRI BROWN
Age: 37
Brooklyn, New YorkCOURTNEY FOSTER
Age: 28
Brooklyn, New YorkAVERY GOODLUCK
Age: 32
Brooklyn, New YorkDEMETRIUS JOHNSON
Age: 26
Brooklyn, New YorkDefendants Previously Indicted:
JESSICA ALMEIDA
Age: 33
Detroit, MaineKASSIN APPLING (also known as “Killa” and “Kassim”)
Age: 34
Brooklyn, New YorkDERRICK AYERS (also known as “Dee” and “Mel”)
Age: 34
Rahway, New JerseyTYRONE BANKS (also known as “Ty Hitta”)
Age: 23
Brooklyn, New YorkJANET BLOOD
Age: 47
Troy, MaineDAYVON BOSTICK-SAMUELS (also known as “Daytoe”)
Age: 22
Brooklyn, New YorkJOHNNY CHILES
Age: 36
Brooklyn, New YorkBERMON CLARKE (also known as “G” and “Blue”)
Age: 28
Rahway, New JerseyMIKE GUSTAVO CONNOR (also known as “Gus”)
Age: 21
Brooklyn, New YorkRASHAAD CRAIG (also known as “Skeeno”)
Age: 25
Brooklyn, New YorkRONALD DAVIS (also known as “Ronno”)
Age: 29
Brooklyn, New YorkQUINTEN DELVALLE (also known as “Q”)
Age: 24
Brooklyn, New YorkELIZABETH DUECASTER
Age: 35
Searsport, MaineBRITTANY DUNCAN
Age: 26
Bayonne, New JerseyNEHEMIE ERIL (also known as “Poca”)
Age: 24
Orange, New JerseyCHRISTINA ESTEVEZ
Age: 31
Queens, New YorkLARON ESTRADA (also known as “Yetta”)
Age: 27
Brooklyn, New YorkERICA FAGGIOLE
Age: 44
MaineANTONIO FULTON (also known as “Tone”)
Age: 23
Brooklyn, New YorkFRANKLIN GILLESPIE (also known as “Spazz” and “Frankie Gino”)
Age: 30
Newark, New JerseyROMEO GONZALES
Age: 22
Brooklyn, New YorkNIA GOVAN (also known as “Cam” and “V”)
Age: 29
Boston, MassachusettsKEON GRANT (also known as “Keys”)
Age: 34
Brooklyn, New YorkMOELEEK HARRELL (also known as “Moe Money”)
Age: 31
Brooklyn, New YorkPAUL HARRIS (also known as “Baldhead”)
Age: 31
Brooklyn, New YorkNADINE HEATH
Age: 54
Troy, MaineROBERT HOLT (also known as “Ricky” and “Ghost”)
Age: 33
Brooklyn, New YorkAMANDA HUARD
Age: 38
Raymond, MaineLATRELL JOHNSON (also known as “Barlie Buckz”)
Age: 27
Brooklyn, New YorkANTHONY KENNEDY (also known as “Biggie”)
Age: 34
Queens, New YorkTYQUAWN LANE (also known as “Bicks” and “Tah Tah”)
Age: 27
Brooklyn, New YorkJOANNE LYDEM
Age: 49
Garland, MaineDARIUS MURPHY
Age: 24
Brooklyn, New YorkJESSICA PELKEY
Age: 26
Presque Isle, MaineCHRISHAWN PENN (also known as “Prince”)
Age: 26
Brooklyn, New YorkMICHAEL PEREZ (also known as “White Mike”)
Age: 29
Brooklyn, New YorkJOELLE POCHE (also known as “Rico”)
Age: 21
Brooklyn, New YorkTERRELL RATLIFF (also known as “Rello”)
Age: 29
Brooklyn, New YorkMICHAEL REID (also known as “Half”)
Age: 39
Brooklyn, New YorkISAIAH TERRY SANDIFORD
Age: 21
Brooklyn, New YorkJAMEL SMITH
Age: 23
Bronx, New YorkCHINASA STRACHAN
Age: 33
Brooklyn, New YorkNICOLETTE TOMPKINS
Age: 22
Westfield, MaineAMANDA WALTON (also known as “A”)
Age: 32
Portland, MaineDANIELLE WHITE
Age: 47
Swanville, MaineE.D.N.Y. Docket No. 20-CR-239 (S-8) (BMC)
Media AdvisoryRead the Press Release
ANCHORAGE – The Justice Department’s Office on Violence Against Women (OVW) will host nearly 600 participants, including a record 55 tribal leaders, for the 17th Annual Government-to-Government Violence Against Women Tribal Consultation, September 21 – 23, 2022.
Throughout the consultation, tribal government leaders will provide recommendations on administering tribal funds and programs; enhancing the safety of Alaska Native and American Indian women from domestic and dating violence, sexual assault, homicide, stalking and sex trafficking, along with strengthening the federal response to these crimes; and improving access to local, regional, state, and federal crime information databases and criminal justice information systems.
The consultation is required by law to address the federal administration of tribal funds and programs established under the Violence Against Women Act of 1994 (VAWA) and its subsequent reauthorizations.
U.S. Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco, and Associate Attorney General Vanita Gupta will deliver pre-recorded remarks.
WHO: Office on Violence Against Women
Office of Justice Programs
Office of Tribal Justice
Health and Human Services’ Administration for Children and Families and the Indian Health Service
Department of Interior’s Bureau of Indian Affairs – Office of Justice Services
WHEN: September 21 –22, from 8:30am – 5pm Alaska Standard Time
September 23rd, from 8:30am – 12 pm Alaska Standard Time
WHERE: Hotel Captain Cook, 939 West 5th Avenue Anchorage, Alaska 99501
Join virtually: https://www.ovwconsultation.org/Attend/Register
CONTACT: Media with any question regarding the consultation should reach out to Lisa K. Houghton at 907-350-0408 or [email protected]
NOTES:
OVW Acting Director Allison Randall; OVW Tribal Affairs Division Deputy Director Sherriann Moore; and U.S. Attorney Lane Tucker for the District of Alaska are available for interviews. Please contact Lisa Houghton for more information.
For more information about the consultation schedule, please visit: https://www.ovwconsultation.org/Agenda/Agenda.
Massachusetts Man Indicted for Possession of a Firearm and Ammunition by a Convicted FelonRead the Press Release
CONCORD – Garrito “Tony” Fort, 38, of Randolph, Massachusetts was indicted by a federal grand jury on August 1, 2022, which charged him with one count of possession of a firearm and ammunition by a prohibited person, United States Attorney Jane E. Young announced today.
Fort was arrested in Rhode Island on September 19, 2022, and he is scheduled to make an initial court appearance in the District of New Hampshire on September 20, 2022 at 4:45 pm.
The indictment filed in court alleges that on November 1, 2021, Fort, who had previously been convicted of a felony offense, unlawfully possessed a Taurus 9mm caliber pistol and assorted 9mm ammunition. The alleged conduct occurred in Seabrook, New Hampshire.
The charges in the indictment are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Seabrook Police Department, the New Hampshire State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from Salisbury, Hampton, Hampton Falls, Portsmouth, and Exeter police departments.
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Marshfield Sex Offender Sentenced to 15 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Marshfield, Mo., man who is a registered sex offender was sentenced in federal court today for downloading child pornography to his cell phone.
Michael Ray Jones, 60, was sentenced by U.S. Chief District Judge Beth Phillips to 15 years in federal prison without parole. The court also ordered Jones to serve 10 years on supervised release following incarceration. Jones has a prior conviction for possessing child pornography.
On Oct. 12, 2021, Jones pleaded guilty to one count of receiving child pornography. Jones admitted that he used his cell phone to access and download child pornography.
Jones was stopped by a Missouri State Highway Patrol trooper on U.S. Highway 60 in Webster County, Mo., on July 28, 2020, because the Ford F-150 he was driving had expired license plates. During the stop, Jones showed his cell phone to the trooper, which included multiple images in a photo gallery, and the trooper realized that some of the images were child pornography. During a forensic examination of Jones’s cell phone, investigators found numerous images of child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Manhattan Real Estate Fund Manager Sentenced to Prison for Securities FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOSHUA BURRELL was sentenced today to 48 months in prison for committing securities fraud in connection with the operation of a New York-based investment firm, Activated Capital, LLC (“Activated Capital”). BURRELL previously pled guilty for raising millions of dollars for Activated Capital’s “Opportunity Zone Funds” using fraudulent misrepresentations. U.S. District Judge Lewis A. Kaplan imposed the sentence in Manhattan federal court.
According to statements in the Indictment, and other public filings and statements in court:
From in or about 2019 through in or about 2021, BURRELL obtained millions of dollars of investments for the Activated Tax Advantaged Opportunity Fund, LLC and Activated Capital Opportunity Zone Fund II, LLC (collectively, the “Activated OZ Funds” or the “Funds”) based on fraudulent representations. BURRELL represented, in substance, that the money invested in the Activated OZ Funds would be used to purchase real estate properties in Opportunity Zones and that investors would receive distribution payments out of the Funds’ net real estate investment income. Contrary to those representations, BURRELL caused the Activated OZ Funds to pay putative distributions in amounts greater than the Funds’ net income. From the inception of the Funds in 2019 through approximately February 2021, BURRELL used investor money to help pay distributions totaling approximately $470,000 in a manner akin to a Ponzi scheme. BURRELL also falsely inflated Activate Capital’s assets under management in communications with prospective investors.
To attract additional investment capital for the Activated OZ Funds, BURRELL sought to establish a partnership with an investment bank headquartered in Manhattan (“Company-1”). As part of Company-1’s diligence process, Company-1 asked BURRELL for “[b]acking to show current fund proceeds/acquisitions made.” In response to these requests, BURRELL fabricated documents to make it appear that the Activated OZ Funds were more successful, owned more properties, and were in better financial condition than was actually the case. For example, BURRELL sent Company-1 fake bank statements making it appear that, for the period July 2019 through October 2019, one of the Activated OZ Funds had ending monthly account balances of between approximately $2,094,450 and $2,463,100 when the real account statements for that period showed ending monthly balances of between only $116,369 and $154,399. BURRELL fabricated additional documents to make it falsely appear to Company-1 that an Activated Capital affiliate owned nine properties in Detroit, Michigan, that it had not, in fact, acquired.
* * *
BURRELL, 39, of New York, New York, was also sentenced to a one-year term of supervised release. He was further ordered to pay restitution to his victims in the amount of $5,763,420 and to pay forfeiture in the amount of $107,688.
Mr. Williams praised the investigative work of the United States Postal Inspection Service and thanked the U.S. Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Daniel Loss and Alex Rossmiller are in charge of the prosecution.
Man Who Impersonated DOJ Investigator to Extort Mt. Pleasant Woman for Sex and Money Sentenced to Ten YearsRead the Press Release
CHARLESTON, SOUTH CAROLINA — Brian Lydell Robinson, 39, of Warrenville, was sentenced to ten years in federal prison after pleading guilty to extortion and impersonating an officer of the United States.
Evidence presented to the Court showed that beginning in the Spring of 2019, Robinson used a dating app to contact a Mount Pleasant woman and solicit commercial sex. Using multiple telephone numbers controlled from a single device, Robinson then posed as a Department of Justice (DOJ) investigator working for the U.S. Attorney’s Office investigating a politically connected sex trafficker. Robinson threatened the victim by telling her that she would be prosecuted for prostitution, which would ruin her reputation, unless she assisted in an undercover operation against the sex trafficker who was, in fact, Robinson. In truth there was no investigation, and Robinson extorted money and sex from his victim by posing as the sex trafficker under investigation, the investigator, and a defense lawyer.
“The Defendant terrorized and exploited his victim through extreme deception and intimidation, and he deserves to go to prison,” said U.S. Attorney Adair F. Boroughs. “We will not tolerate predators posing as law enforcement officers. Those who impersonate federal agents, or use the threat of federal prosecution, to exploit the public will encounter actual federal agents and real prosecution. If you have a question about whether a person is actually a law enforcement officer, call the agency using a publicly posted phone number and ask for verification.”
“Stopping those who pose as law enforcement to commit crimes is of utmost importance to law enforcement and the community,” said Homeland Security Investigations (HSI) Special Agent in Charge Ronnie Martinez, who oversees HSI operations in North Carolina and South Carolina. “This sentencing should send a clear message that we are on the hunt for these impostors.”’
“Impersonating an officer threatens the trust and respect law enforcement professionals work to earn every day serving our communities,” said South Carolina Law Enforcement Division (SLED) Chief Mark Keel, “SLED is proud to support the DOJ and HSI in investigations like these to ensure those who seek to prey upon our fellow citizens face the consequences.”
In outlining the scheme, the evidence presented to the Court also showed that after luring the victim across state lines and sexually exploiting her with this ruse, Robinson, acting as the sex trafficker supposedly under investigation, confronted the victim and told her that he knew that she was working for law enforcement. Robinson assured the victim that he could keep them both out of trouble through the services of a well-positioned defense attorney, but said that the victim would owe him money. After Robinson allegedly placed a call to the defense attorney, the victim was contacted by the fictitious federal agent, who claimed that his case had been temporarily suspended because of Robinson’s attorney.
Over the next seven months, Robinson extorted the victim for money to pay for non-existent legal services under the false premise that such services were needed to avoid federal prosecution. When the victim ran out of funds, Robinson extorted sex and pornographic materials from the victim in lieu of payment. The victim went to the police after Robinson demanded that she have sex with multiple men at the same time, and she became fearful that she would be abducted. Robinson has multiple prior convictions for offenses including forgery, obtaining property under false pretenses, and burglary.
United States District Judge Richard M. Gergel sentenced Robinson to 120 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by HSI, SLED, and the Mount Pleasant Police Department. Assistant U.S. Attorneys Chris Schoen and Elliott B. Daniels prosecuted the case.
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Man Pleads Guilty to Distribution of Child Pornography while on Probation for Prior Sex OffenseRead the Press Release
RICHMOND, Va. – A Highland Springs man pleaded guilty today to distribution of child pornography.
According to court documents, Deric Wallace Peacock, 39, used Wickr, an encrypted messaging service, to distribute child pornography using his “vapastor” user account. At the time that Peacock distributed the child pornography, he was on probation for two prior state court convictions for procuring sex acts by computer of an individual believed to be under the age of 15.
Peacock is scheduled to be sentenced on January 24, 2023. Due to his prior enticement conviction, he faces a mandatory minimum of 15 years in prison and a maximum of 40 years in prison. 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, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. Magistrate Judge Mark R. Colombell accepted the plea.
Assistant U.S. Attorney Carla Jordan-Detamore is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
In 2021, EDVA launched “UnMasked,” a community-based educational outreach and prevention program in Virginia dedicated to raising awareness and educating the community about the prevalence of online sexual exploitation involving children and young adults. UnMasked is a multi-disciplinary partnership of local, state, federal, and non-profit stakeholders. The core curriculum is provided by the National Center for Missing and Exploited Children’s (NCMEC) NetSmartz program. To report an incident involving online sexual exploitation, call 1-800-843-5678 or submit a report at report.cybertip.org. To request an UnMasked event at your school or organization, please contact EDVA’s Community Outreach Coordinator at [email protected].
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-109.
Madison Felon Sentenced to 24 Months for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Dwayne Peeples, 42, Madison, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 24 months in federal prison for possessing a firearm as felon. This prison term will be followed by 3 years of supervised release. Peeples pleaded guilty to this charge on June 15, 2022.
On July 24, 2021, officers with the Madison Police Department stopped a car in which Peeples was a passenger after officers observed Peeples conduct a hand-to-hand drug deal in Penn Park. When a canine officer altered officers to the presence of controlled substances, officers searched the car and located a 9mm firearm along with a loaded magazine in a bag belonging to Peeples. The magazine contained five rounds of hollow-point ammunition.
Peeples is prohibited from possessing a firearm as a result of multiple felony convictions, including a 2006 conviction for distributing crack cocaine in the Western District of Wisconsin. He was released from prison in that case in 2016 and completed supervision in 2019.
In sentencing Peeples, Judge Conley noted that Peeples possessed the firearm under extremely suspicious circumstances, and that the type of ammunition in the magazine can cause extensive damage. Judge Conley stated a custodial sentence was also warranted because of Peeples’ non-compliance with pre-trial supervision during the pendency of the case.
The charge against Peeples was a result of an investigation conducted by the Madison Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
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.
Macon Man with Criminal Past Pleads Guilty to Heroin Distribution Resulting from DEA InvestigationRead the Press Release
MACON, Ga. – A Macon resident with a criminal history to include an armed robbery conviction admitted in court that he possessed with the intent to distribute heroin as a result of a federal investigation into drug trafficking in Middle Georgia.
Adrian Howard, 46, of Macon, pleaded guilty to possession with intent to distribute heroin before U.S. District Judge Marc T. Treadwell on Sept. 19. Howard faces a maximum sentence of twenty years in prison to be followed by at least three years of supervised release and a $1,000,000 fine. Sentencing will occur within 90 days.
“Individuals with lengthy criminal pasts who choose to continue engaging in illegal activities which harm our communities will find their cases elevated to the federal level,” said U.S. Attorney Peter D. Leary. “Holding repeat violent offenders accountable for their crimes is one part of a larger strategic effort by local, state and federal law enforcement to reduce crime in every city across the Middle District of Georgia.”
“The distribution of heroin and methamphetamine continue to plague many communities, but DEA and its law enforcement partners are committed to protecting our communities,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “This guilty plea is a direct result of what can be achieved when DEA works tirelessly to disrupt, dismantle and destroy drug distribution networks. This guilty plea is a ‘win’ for the Macon, Georgia, community because this criminal has been removed from the streets.”
According to court documents, the Drug Enforcement Administration (DEA) became aware through a confidential source (CS) in Feb. 2021 that Howard was dealing methamphetamine in Middle Georgia. Two controlled buys of methamphetamine from Howard occurred at a rental home he occupied on Eveline Avenue in Macon in Feb. and March 2021. After the two controlled buys, DEA obtained and executed a search warrant at 1728 Eveline Ave. on March 18, 2021. At the time the search warrant was executed, ten individuals were present at the address, located both inside and outside the residence, including Howard. Agents found two black safes in Howard’s bedroom that were observed in the same location during a previous controlled buy from Howard. The safes contained quantities of heroin, methamphetamine, empty plastic bags, drug related paraphernalia and $2,179 in cash. Underneath a black pillow on Howard’s bed, agents found a stolen handgun. Additional bags containing controlled substances were located throughout the bedroom. Howard admitted in federal court to knowingly possessing with intent to distribute heroin on March 18, 2021.
Howard has a lengthy criminal record that includes a prior felony conviction of armed robbery in Crawford County, Georgia, Superior Court.
The case was investigated by DEA.
Assistant U.S. Attorney Joy Odom is prosecuting the case.
Leader of $3 Million Bank Fraud Scheme Involving Stolen Mail Sentenced to More Than 12 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – The leader of a $3 million bank fraud scheme involving stolen checks and two co-conspirators were sentenced to prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
Terrell Devon Freeman, 35, of Charlotte, was sentenced to 150 months in prison, followed by three years of supervised release. Joshua MacDavid Monteith, 32, of Charlotte, was sentenced to 46 months in prison and three years of supervised release. And Yanalise Simone Hodge, 23, also of Charlotte, was ordered to serve 24 months in prison, followed by three years of supervised release.
According to filed court documents and statements made in court, from October 2020 to September 2021, Freeman was the mastermind of a bank fraud scheme involving stolen mail. The defendants executed the fraud scheme in North Carolina, South Carolina, Georgia, and Virginia and defrauded at least seven financial institutions.
According to court documents, Freeman and his co-conspirators used a stolen U.S. Postal Service key to open USPS collection boxes in the Charlotte area, from which they stole business and personal checks. The USPS key was obtained following the armed robbery of a postal worker in November of 2020.
The co-conspirators then used fraudulent identifications and straw bank accounts to cash the stolen checks. Over the course of the scheme, Freeman and his co-conspirators deposited or attempted to deposit funds from approximately 86 stolen checks totaling over $3 million.
On September 26, 2021, Monteith was arrested after he used the stolen USPS key to open a collection box in the Ballantyne area. Law enforcement located in Monteith’s vehicle 58 stolen checks totaling more than $19,000. On October 4, 2021, Freeman was arrested in Atlanta, Georgia. Law enforcement recovered from Freeman’s vehicle approximately 1,500 stolen checks, totally over $1.5 million.
Freeman, Monteith, and Hodge each pleaded guilty to bank fraud conspiracy. In addition to the prison term imposed, U.S. District Judge Robert J. Conrad Jr. also ordered Freeman to pay more than $394,000 as restitution.
In making today’s announcement, U.S. Attorney King thanked USPIS and CMPD for their investigation of the case.
Assistant U.S. Attorney William T. Bozin, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Las Vegas Man Sentenced to Prison for Mail Fraud ConspiracyRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today by U.S. District Judge Gloria M. Navarro to three years and five months in prison followed by three years of supervised release for his role in a conspiracy to commit mail fraud in connection to the illegal possession of unemployment benefit debit cards issued by the Nevada Department of Employment, Training and Rehabilitation (DETR) and Arizona’s Department of Economic Security (DES).
Vincent Okoye (40) pleaded guilty in June 2022 to conspiracy to commit mail fraud.
According to court documents and admissions made in court, Okoye conspired with others, including co-defendant Jasmine-Royshell Kanisha Black, to obtain DETR and DES debit cards by submitting fraudulent unemployment insurance claims using other peoples’ personal identifying information, such as their names, dates of birth, and social security numbers, without their knowledge or consent. The agencies administer Nevada’s and Arizona’s unemployment insurance program. In total, DETR and DES approved more than $550,000 in benefits for the fraudulent claims.
On July 15, 2020, law enforcement executed a search warrant at Okoye’s residence and found:
- Over $100,000 in U.S. Currency and U.S. Money Orders;
- A forged Canadian passport;
- A postal mailbox master key;
- Over 100 pieces of mail, bearing names and addresses not belonging to Okoye;
- At least 24 pieces of mail from DETR, bearing various names and addresses; and
- At least 100 credit and debit cards not issued in Okoye’s name, including at least 11 debit cards issued by DETR and at least 12 debit cards issued by DES.
U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Karon Ransom for the U.S. Secret Service made the announcement.
The case was investigated by the U.S. Secret Service, U.S. Postal Service Office of Inspector General, and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Jim Fang prosecuted the case.
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Lame Deer man sentenced to 46 months in prison for strangling woman on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — A Lame Deer man who admitted to strangling a woman on the Northern Cheyenne Indian Reservation was sentenced today to 46 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Isaiah Benjamin Antelope, 26, pleaded guilty in April to strangulation.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that in July 2020 the victim went to Antelope’s house in the Lame Deer area, on the Northern Cheyenne Indian Reservation, for Antelope’s help in fixing a flat tire on a car. After trying to fix the tire, Antelope and the victim went inside the house. The victim was scared because the two had argued the day before. The two exchanged words and then Antelope strangled the victim with his hands. Antelope had strangled the victim on other occasions and made her pass out or feel like she was going to pass out.
The U.S. Attorney’s Office prosecuted the case, which was investigated by the FBI.
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