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Tuesday 13 September 2022
Justice Department and Federal Trade Commission Hold Annual Trilateral Meeting with Enforcers from Mexico and CanadaRead the Press Release
Competition Enforcement Leaders: Canadian Commissioner of Competition Matthew Boswell; Federal Trade Commission Chair Lina Khan; Acting Chair Commissioner Brenda Hernandez of the Mexican Federal Economic Competition Commission; Assistant Attorney General Jonathan Kanter of Department of JusticeThe Justice Department’s Antitrust Division participated in a trilateral meeting today with enforcers from Mexico’s Federal Economic Competition Commission, Canada’s Competition Bureau, and the U.S. Federal Trade Commission. The meeting took place at FTC headquarters in Washington, D.C. and included roundtable discussions on current enforcement priorities and the current legal environment in each jurisdiction. Assistant Attorney General Jonathan Kanter led a conversation on merger enforcement, focusing on the digital economy and forthcoming revisions to the U.S. merger guidelines.
“Canada and Mexico are important partners for the United States in upholding antitrust laws and protecting North American workers and consumers,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “As antitrust enforcement increasingly spans international borders, building a unified response is vital to meeting today’s market realities. Cooperation among neighboring agencies is a crucial step in this process.”
Federal Trade Commission Chair Lina Khan moderated a discussion of recent developments in the United States, Canada, and Mexico.
“Working closely with our North American neighbors is key for promoting fair, open, and competitive markets,” Federal Trade Commission Chair Lina Khan said. “Deepening collaboration and cooperation lets us strengthen our respective approaches to enforcement and better protect our citizens.”
This year’s meetings mark the first joint in-person gathering between the four agencies since 2019, after a pause due to the COVID-19 pandemic.
Justice Department Announces Nearly $225 Million in Grants to Support Coordinated Community Responses to Domestic and Sexual Violence on the 28th Anniversary of the Violence Against Women ActRead the Press Release
On the 28th anniversary of the original authorization of the Violence Against Women Act (VAWA), the Department of Justice announced $224.9 million in grants designed to enhance victim services and justice solutions for victims of sexual assault, domestic violence, dating violence, and stalking. Since the passage of VAWA, the United States has monumentally transformed the way communities and systems such as law enforcement, courts, prosecution, and service providers effectively address the needs of survivors. Funding, appropriated through VAWA and administered by the Office on Violence Against Women (OVW), has supported communities to implement policies and practices that protect and honor survivors.
“For nearly three decades, VAWA has enabled the Justice Department’s Office on Violence Against Women to provide essential support to help empower survivors, hold offenders accountable, and keep communities safe,” said Attorney General Merrick B. Garland. “The grants we are announcing today represent the Department’s renewed commitment to working alongside our partners across the country -- victim services providers, law enforcement agencies, prosecutors, courts, and community-based organizations -- to meet the crisis of gender-based violence with the urgency it demands.”
Grantees can use the grants to provide lifesaving services for hundreds of thousands of survivors each year, improve investigations and prosecutions, reach survivors in rural communities, and leverage the services of statewide coalitions charged with supporting local programs with trainings and service coordination.
- A total of $140,466,152 has been awarded across all 50 states and 6 territories under the STOP (Services, Training, Officers, and Prosecutors) Violence Against Women Formula Grants to develop and strengthen the criminal justice system’s response to violence against women and to enhance direct services for survivors.
- To address economic stability central to ending violence, 73 grants totaling $36,195,932 will provide housing and related wrap-around-services to survivors and their children under the Transitional Housing Program.
- OVW’s Rural Program awarded a total of $33,404,213 to support 44 projects uniquely designed to prevent and respond to these crimes in rural areas and promote safety and healing for survivors. The funding supports collaboration among victim advocates, law enforcement, prosecutors, court personnel, and community leaders to reach survivors and their families whose safety may be further jeopardized by geographical isolation.
- Eighty-seven grants totaling $14,887,922, awarded under the State and Territory Domestic Violence and Sexual Assault Coalitions Program, will support state and territorial coalitions to expand the capacity of local domestic violence and sexual assault programs, identify statewide gaps in services, and coordinate state, local, and territorial systems to address the needs of survivors.
“The grants announced today represent the Justice Department’s commitment to furthering the progress VAWA has achieved over the last three decades,” said Deputy Attorney General Lisa O. Monaco. “They help ensure that survivors who come forward to report abuse are met with competent and compassionate professionals who have the resources, training and institutional support to do their jobs.”
“Projects funded by the grants announced today build the community-wide partnerships that help break the cycle of violence using holistic and innovative approaches,” said Associate Attorney General Vanita Gupta. “An effective response to gender-based violence requires engagement by justice and healthcare professionals, victim advocates, culturally specific service providers, forensic scientists, and educators, among others. It takes all of us to bring about real change.”
“In communities throughout the country, VAWA has literally opened doors for millions of individuals and families who have suffered violence and needed somewhere safe to go,” said OVW Acting Director Allison Randall. “The grants issued today help keep those doors open and create new pathways to a life free of violence through innovative interventions that keep in step with the dynamic needs of survivors, especially for survivors from rural communities and historically underserved populations."
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
On the 28th anniversary of the original authorization of the Violence Against Women Act (VAWA) the Department of Justice announced $224.9 million in grants designed to enhance victim services and justice solutions for victims of sexual assault, domestic violence, dating violence, and stalking. Since the passage of VAWA, the United States has monumentally transformed the way communities and systems such as law enforcement, courts, prosecution, and service providers effectively address the needs of survivors. Funding, appropriated through VAWA and administered by the Office on Violence Against Women (OVW), has supported communities to implement policies and practices that protect and honor survivors.
“For nearly three decades, VAWA has enabled the Justice Department’s Office on Violence Against Women to provide essential support to help empower survivors, hold offenders accountable, and keep communities safe,” said Attorney General Merrick B. Garland. “The grants we are announcing today represent the Department’s renewed commitment to working alongside our partners across the country -- victim services providers, law enforcement agencies, prosecutors, courts, and community-based organizations -- to meet the crisis of gender-based violence with the urgency it demands.”
Grantees can use the grants to provide lifesaving services for hundreds of thousands of survivors each year, improve investigations and prosecutions, reach survivors in rural communities, and leverage the services of statewide coalitions charged with supporting local programs with trainings and service coordination.
- A total of $140,466,152 has been awarded across all 50 states and 6 territories under the STOP (Services, Training, Officers, and Prosecutors) Violence Against Women Formula Grants to develop and strengthen the criminal justice system’s response to violence against women and to enhance direct services for survivors.
- To address economic stability central to ending violence, 73 grants totaling $36,195,932 will provide housing and related wrap-around-services to survivors and their children under the Transitional Housing Program.
- OVW’s Rural Program awarded a total of $33,404,213 to support 44 projects uniquely designed to prevent and respond to these crimes in rural areas and promote safety and healing for survivors. The funding supports collaboration among victim advocates, law enforcement, prosecutors, court personnel, and community leaders to reach survivors and their families whose safety may be further jeopardized by geographical isolation.
- Eighty-seven grants totaling $14,887,922, awarded under the State and Territory Domestic Violence and Sexual Assault Coalitions Program, will support state and territorial coalitions to expand the capacity of local domestic violence and sexual assault programs, identify statewide gaps in services, and coordinate state, local, and territorial systems to address the needs of survivors.
“The grants announced today represent the Justice Department’s commitment to furthering the progress VAWA has achieved over the last three decades,” said Deputy Attorney General Lisa O. Monaco. “They help ensure that survivors who come forward to report abuse are met with competent and compassionate professionals who have the resources, training and institutional support to do their jobs.”
“Projects funded by the grants announced today build the community-wide partnerships that help break the cycle of violence using holistic and innovative approaches,” said Associate Attorney General Vanita Gupta. “An effective response to gender-based violence requires engagement by justice and healthcare professionals, victim advocates, culturally specific service providers, forensic scientists, and educators, among others. It takes all of us to bring about real change.”
“In communities throughout the country, VAWA has literally opened doors for millions of individuals and families who have suffered violence and needed somewhere safe to go,” said OVW Acting Director Allison Randall. “The grants issued today help keep those doors open and create new pathways to a life free of violence through innovative interventions that keep in step with the dynamic needs of survivors, especially for survivors from rural communities and historically underserved populations.
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Jury Convicts Lancaster Man for International Drug Trafficking and Money LaunderingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dwayne Sherman, age 48, of Lancaster, Pennsylvania, was convicted yesterday by a federal jury on money laundering and drug trafficking conspiracy charges after a six-day trial before U.S. District Court Judge Jennifer P. Wilson.
According to United States Attorney Gerard M. Karam, the evidence introduced at trial showed that on three occasions between October 2015 and January 2016, Sherman delivered over $555,000 in cash to an informant working with the FBI. Each of the deliveries happened in Harrisburg, Pennsylvania. The money was transported to San Diego, California and then smuggled across the border into Tijuana, Mexico. During the years of the conspiracy, Sherman made numerous trips across the border into Mexico, including in late March 2016. In April 2016, police in Los Angeles, California, stopped Sherman’s vehicle and found him in possession of two kilograms of cocaine and 15,000 pills, some of which contained methamphetamine.
The case was investigated by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, San Diego County Sheriff’s Office, the Hawthorne (California) Police Department, and U.S. Drug Enforcement Administration. Assistant U.S. Attorneys Michael A. Consiglio and Carl Marchioli prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The maximum penalty under federal law for this offense is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Jefferson County Man Pleads Guilty to Distributing MethamphetamineRead the Press Release
PITTSBURGH – A resident of Reynoldsville, Pennsylvania, pleaded guilty in federal court to violation of federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
James Williams Jr., age 57, pleaded guilty to one count of conspiracy to distribute and possesses with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine before United States District Judge Christy Criswell Wiegand. Williams was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that Williams was a methamphetamine distributor who obtained between 350 grams and 500 grams of methamphetamine as part of a large-scale methamphetamine distribution conspiracy and redistributed it to methamphetamine users.
Judge Wiegand scheduled sentencing for Williams on Jan. 24, 2023, at 10:00 a.m. The law provides for a sentence of not less than five years to a maximum of forty years in prison, a fine not to exceed $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant.
The court ordered that the defendant remain on bond pending sentencing.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Iowa Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pleaded guilty on September 13, 2022, in federal court in Sioux City.
Dustin Coates, 36, from Cherokee, Iowa, was convicted of conspiracy to distribute methamphetamine. In 2013, Coates was previously convicted of distribution of a controlled substance in the United States District Court for South Dakota.
At the plea hearing, Coates admitted his involvement in a conspiracy that distributed at least 150 grams of pure methamphetamine from March 2021, through March 8, 2022. On March 8, 2022, law enforcement conducted a traffic stop of the vehicle Coates was driving. Coates threw two baggies of methamphetamine from his person while attempting to flee the traffic stop on foot. Coates admitted at the hearing that he planned to distribute the 60+ grams of methamphetamine to other persons.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Coates remains in custody of the United States Marshal pending sentencing. Due to his prior conviction for distribution of controlled substances, Coates faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least 10 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Kraig R. Hamit and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4027. Follow us on Twitter @USAO_NDIA.
Indiana man pleads guilty to illegally selling fireworks in OhioRead the Press Release
CINCINNATI – An Indiana man pleaded guilty in U.S. District Court here today to distributing explosive materials to a person without a permit or license.
A federal grand jury charged Paul Eberhard, 66, of Shelbyville, Indiana, in May 2021.
The investigation began after the July 4, 2020, death of a Mt. Healthy man. According to reports, the man died after being struck in the head by a display firework that he had purchased from Eberhard.
According to his plea documents, Eberhard admitted that he illegally sold display fireworks in 2020.
Display fireworks are large fireworks designed primarily to produce visible or audible effects by combustion, deflagration or detonation. Display fireworks contain more than 50 milligrams of flash powder for ground devices, and more than 130 milligrams of flash powder for aerial explosives. Under federal law, a person must have an ATF license or permit to receive or use display fireworks.
Eberhard had an ATF explosive permit. As part of maintaining his permit from 2008 until 2021, Eberhard repeatedly acknowledged that it was illegal for him to distribute explosive materials to anyone who is not an ATF explosives licensee or permittee. Despite this, Eberhard sold display fireworks to the man who died, who was neither an ATF explosives licensee or permittee.
Distributing explosive materials to a person without a permit or license is a federal crime punishable by up to 10 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the plea entered today before U.S. District Judge Matthew W. McFarland.
U.S. Attorney Parker and Special Agent in Charge McCormick commended the work of the Mount Healthy, North College Hill and Shelbyville police departments, the sheriff’s office bomb squads from Hamilton and Butler counties, and the Hamilton County Coroner.
Assistant United States Attorney Megan Gaffney Painter is representing the United States in this case.
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Honduran Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to three months in federal prison.
Santos Lara-Figueroa, age 43, a citizen of Honduras illegally present in the United States and residing in Hiawatha, Iowa, received the prison term today after a guilty plea on July 20, 2022, to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Lara-Figueroa admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Lara-Figueroa, falsely claiming to be a Mexican citizen, was removed to Mexico by immigration officials in July 2006. One month later in August 2006, he illegally reentered the United States by crossing the border on foot into Texas. Lara-Figueroa was deported to Honduras from Virginia in January 2011. On February 22, 2022, immigration officials learned Lara-Figueroa had illegally returned to the United States and found Lara-Figueroa at the Linn County Jail following his arrest on state charges.
Lara-Figueroa was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Lara-Figueroa was sentenced to 92 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Lara-Figueroa is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-52.
Follow us on Twitter @USAO_NDIA.
Homewood Drug Dealer Sentenced to 5 YearsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced to 60 months' imprisonment and four years of supervised release on charges of violating federal drug laws, United States Attorney Cindy K Chung announced today.
United States District Judge David S. Cercone imposed the sentence on Darwin Parker, age 27, formerly of the City’s Homewood South neighborhood.
According to information presented to the court, on January 13, 2021, detectives with the Pittsburgh Bureau of Police observed Parker conduct a hand-to-hand drug exchange with another person in the area of Frankstown Avenue and Nroth Homewood Avenue, in the Homewood section of the City of Pittsburgh. After Parker was taken into custody, detectives located two bags containing 33 grams of crack cocaine and 125 stamp bags containing a mixture of heroin and fentanyl, along with $1,240 in U.S. currency in Parker’s possession.
Assistant United States Attorney Michael R. Ball and Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Chung commended the Pittsburgh Bureau of Police and the Drug Enforcement Administration for the investigation leading to the successful prosecution of Darwin Parker.
Harford County Felon Sentenced to 15 Years in Federal Prison for Sexual Exploitation of a Child and for Illegal Possession of a Firearm and AmmunitionRead the Press Release
Baltimore, Maryland – Yesterday U.S. District Judge George L. Russell, III sentenced Travis Joseph Crawford, age 34, of Edgewood, Maryland, to 15 years in federal prison, followed by 25 years of supervised release, for sexual exploitation of a child to produce child pornography and for being a felon in possession of a firearm and ammunition. Judge Russell also ordered that, upon his release from prison, Crawford will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Harford County Sheriff Jeffrey R. Gahler; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to Crawford’s plea agreement and other court documents, on November 30, 2020, Harford County Sheriff’s deputies went to Crawford’s residence, based on an arrest warrant issued for Crawford by Maryland State Police for firearms related offenses. When the officers arrived, they heard Crawford call, “Where’s my gun?” Crawford was arrested and law enforcement recovered a cell phone, a smart watch, and a fully-loaded .40-caliber semi-automatic pistol. A search warrant subsequently executed on Crawford’s phone revealed three sexually explicit videos involving Jane Doe, all of which were recorded without her knowledge or permission. Crawford was also previously a convicted felon and therefore was prohibited from possessing a firearm or ammunition.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Erek L. Barron commended HSI, ATF, the Maryland State Police, and the Harford County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Glock Boyz Gang Member Sentenced to 60 Months in Prison for Aggravated Identity Theft and Firearms OffensesRead the Press Release
Detroit – A member of the Glock Boyz street gang was sentenced to 60 months in prison today after being convicted of aggravated identity theft, wire fraud, and illegally possessing firearms, United States Attorney Dawn N. Ison Announced today.
Ison was joined in the announcement by Special Agent in Charge James A. Tarasca of the FBI’s Detroit Division.
According to court records, Damon Long, 25, of Detroit, was a member of a violent street gang, the “Glock Boyz TMC” (too much cash). The Glock Boyz have perpetrated acts of violence against rival gangs and have been victims of such violence. Court records tie Long to these violent attacks and to being the target of rival gangs.
In May 2021, the FBI executed a search warrant at Long’s residence in Detroit and seized two of Long’s loaded pistols. Agents also seized evidence that Long engaged in wire fraud by submitting false applications for federal Unemployment Insurance (UI) benefits using stolen identities totaling over $300,000. Long used the identities and Social Security numbers of at least ten individuals in perpetuating his scheme. Long boasted about his fraud schemes on social media, and his membership in the street gang was also revealed on his social media accounts.
In addition to 60 months in prison, Long was also ordered to pay restitution of $300,000.
The Detroit office of the FBI investigated this case with assistance from the Department of Labor. The case is being prosecuted by Assistant United States Attorneys assigned to the United States Attorney’s Office’s Violent & Organized Crime Unit.
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.
Georgia Man Indicted for Misuse of Social Security Number and Aggravated Identity TheftRead the Press Release
SYRACUSE, NEW YORK – Gregory William Hill, whose aliases include Gregory Allen Davis, Gregory William Davis, and John Martin Hill, age 37, of Georgia, has been charged by indictment with two counts of misuse of a social security number and two counts of aggravated identity theft. The indictment was announced by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The indictment alleges that Hill impersonated a former graduate of Syracuse University and used that victim’s name and a false social security number for the purpose of obtaining information and documentation from Syracuse University by fraud.
The charges filed against Hill carry a maximum sentence of 5 years in prison for the social security fraud counts and mandatory two-year terms of imprisonment for the aggravated identity theft counts; a fine of up to $250,000 for each count; and a term of supervised release of up to 3 years. 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.
The defendant was arraigned today by videoconference before United States Magistrate Judge Miroslav Lovric and has been ordered detained pending a trial to be scheduled before United States District Judge Glenn T. Suddaby.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Four Red River Army Depot Officials and Vendors Sentenced in Federal Bribery and Conspiracy SchemeRead the Press Release
TEXARKANA, Texas – Four individuals, including two Red River Army Depot (RRAD) officials, have been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jeffrey Harrison, 44, of Texarkana, a former RRAD vendor, pleaded guilty on May 18, 2021, to bribing Jimmy Scarbrough, a former RRAD official, and was sentenced to 30 months in federal prison today by U.S. District Judge Robert W. Schroeder, III. Harrison was also ordered to forfeit $300,000.
Justin Bishop, 52, of Clarksville, a former RRAD vendor, pleaded guilty on May 18, 2021, to bribing Scarbrough and was sentenced to 12 months and 1 day in federal prison on Sep. 6, 2022, by Judge Schroeder. Bishop was also ordered to forfeit $55,000.
Devin McEwin, 43, of Avery, a former RRAD official, pleaded guilty on May 27, 2021, to receiving bribes from Harrison and was sentenced to a five-year term of federal probation, including eight months of home confinement. McEwin was also ordered to forfeit $21,000 and pay a fine of $5,000.
Louis Singleton, 64, of Texarkana, a former RRAD official, pleaded guilty on April 27, 2022, to receiving bribes from Harrison and others and was sentenced to five years of federal probation, including eight months of home confinement, and was ordered to forfeit $18,000.
“The Red River Army Depot is a key component of our nation’s defense infrastructure and is the lifeblood of the surrounding community,” said U.S. Attorney Brit Featherston. “Scarbrough, Harrison, Bishop, McEwin, Singleton, and others exploited the public trust in order to line their own pockets and undermined the warfighting mission of the Depot in the process.”
“These sentences are a direct reflection of the tenacity and teamwork by MPFU special agents and our law enforcement partners,” said SA Scott Moreland, Special Agent-in-Charge of the Major Procurement Fraud Field Office (MPFFO), U.S. Army CID. “Bribery and other fraud schemes have no place in the government contracting system and those who attempt it will be caught.”
“Today’s announcement highlights a successful collaboration among partner agencies as we collectively hold these defendants accountable for allegedly creating a fraudulent and deceptive scheme against the government and the people of the United States. We remain committed to the aggressive pursuit of those who selfishly leverage government programs for their own personal gain,” said Dallas FBI Special Agent in Charge, Matthew J. DeSarno.
According to information presented in court, Scarbrough was the Equipment Mechanic Supervisor at the RRAD in Texarkana, Texas, a position he held from November 2001 until May 2019. Scarbrough directed more than $7 million in purchases from RRAD to Harrison and Bishop through the government purchase card (GPC) program. In order to manipulate the GPC program, which is designed to ensure a competitive bidding process, Scarbrough told the vendors what to bid, including the item, the quantity, and the price. By collecting fake bids from multiple vendors, Scarbrough was able to direct RRAD purchases to his select vendors, in this case Harrison and Bishop, while maintaining the appearance of a competitive bidding process. Scarbrough also defrauded the United States by falsely certifying that he had received the purchased items, therefore causing the RRAD to pay his select vendors. However, the reality was that Scarborough instructed the vendors not to deliver certain RRAD-purchased items.
Scarbrough demanded hundreds of thousands of dollars in bribes from his selected vendors. Scarbrough accepted bribes in various forms, including receiving at least $116,000.00 in U.S. Postal Service money orders from Harrison. Scarbrough also had Harrison and Bishop purchase at least $135,000.00 in car parts or services for his hot rod collection, which included a red and black 1936 Ford Tudor, an electric green 1932 Ford Coupe, a cherry red 1951 Ford F-1 truck, and more. Scarbrough received more than $27,000.00 worth of firearms from Bishop, including rare Colt handguns and Wurfflein dueling pistols. Finally, Scarbrough directed at least $32,000.00 in donations to the Hooks Volunteer Fire Department while he was the Capitan of Operations. In total, Scarbrough received more than $300,000.00 in bribe payments from Harrison and Bishop.
Scarbrough is not the only official at RRAD who accepted bribes. Devin McEwin accepted more than $21,000.00 in bribes from Harrison, including hunting trips, donations directed to the Annona Volunteer Fire Department, and the refurbishment of his 1964 Ford truck. Additionally, Louis Singleton accepted more than $18,000 in bribes from Harrison and others, including tickets to the Hall of Fame section of AT&T Stadium for the Dallas Cowboys football game against the New England Patriots. Singleton was the supervisor of the GPC program at the RRAD and was responsible for approving purchases requested by Scarbrough.
Jimmy Scarbrough, 69, of Hooks, pleaded guilty on August 22, 2022, to conspiring with Harrison, Bishop, and others to defraud the United States, commit theft of government property, and commit bribery. At that time, Scarbrough agreed to forfeit his 1951 Ford F-1 pickup truck and amount of money to be determined by the court. Scarbrough faces up to 5 years in federal prison and is awaiting sentencing.
This was investigated by the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit; the Federal Bureau of Investigation-Dallas Division, Tyler Resident Agency, and the U.S. Postal Inspection Service. This case was prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
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Former Renton, Washington, dentist charged federally with illegally distributing prescription opiatesRead the Press Release
Seattle – A former dentist who practiced in Renton until his license was indefinitely suspended by the Washington State Dental Commission, was indicted federally for four counts of distributing a controlled substance, announced U.S. Attorney Nick Brown. Luke Edward St. Marie, 34, appeared in federal court today and entered pleas of “not guilty.”
The federal indictment lists four instances between January 2018 and July 2018, when prescriptions for oxycodone and hydrocodone were allegedly issued under his credential outside the scope of professional practice with no legitimate medical purpose. Trial on the charges is scheduled in front of U.S. District Judge Lauren King on November 21, 2022.
When the state suspended St. Marie’s license indefinitely in April 2021, it concluded St. Marie, “wrote prescriptions outside of a provider-patient relationship, didn’t adequately document prescriptions, rewrote an altered prescription, didn’t report that his prescription pad may have been compromised, and didn’t take adequate steps to ensure all prescriptions issued under his authority were valid.” The dental commission referred the matter to the Drug Enforcement Administration (DEA) for criminal investigation.
In court today, prosecutors noted that the four counts in the indictment comprise just a fraction of the illegal distribution. The investigation revealed that seventy-five prescriptions were improperly written, many in the names of St. Marie’s then-girlfriend, her family, and friends. Sadly, the former girlfriend overdosed at St. Marie’s home, and died days later in the hospital.
Distribution of controlled substances is punishable by up to 20 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
St. Marie was released on personal recognizance bond pending future hearing in the case.
The case was investigated by the DEA and is being prosecuted by Assistant United States Attorney Michelle Jensen.
Former Oregon Dentist Pleads Guilty to Stealing Nearly $11.5 Million in Covid-Relief Program FundsRead the Press Release
PORTLAND, Ore.—A former Oregon dentist pleaded guilty today in federal court for fraudulently converting to his personal use nearly $11.5 million in loans intended to help small businesses during the COVID-19 pandemic.
Salwan Adjaj, 43, of West Linn, Oregon, pleaded guilty to wire fraud and aggravated identity theft.
According to court documents, beginning no later than September 2020 and continuing until at least May 2021, Adjaj submitted dozens of fraudulent loan applications to the Small Business Administration (SBA) in an attempt to obtain Economic Impact Disaster Loan (EIDL) and Paycheck Protection Program (PPP) funds. The EIDL and PPP programs were among several economic relief programs originally authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES). They enabled SBA to issue low-interest loans to small businesses adversely impacted by the pandemic and associated mitigation measures.
Adjaj used the names and employer identification numbers (EIN) of fictitious business entities on his fraudulent applications. He further provided false information about the business start dates, number of employees, and locations, and the identities of the purported applicants and business owners. Most of the fraudulent applications were submitted in other peoples’ names, but with Adjaj’s personal residence as the business mailing address. All of the applications were submitted online from an internet protocol (IP) address associated with Adjaj’s dental practice.
After SBA rejected most of Adjaj’s initial EIDL applications, he began focusing primarily on the PPP program as well as the Restaurant Revitalization Fund (RRF), a pandemic economic relief program aimed at supporting restaurants, bars, and other food- and drink-related businesses. The RRF program was authorized by the American Rescue Plan Act (ARPA) in March 2021. Adjaj had substantially greater success stealing PPP and RRF funds than he did EIDL. In May 2021, Adjaj submitted three RRF applications for restaurants allegedly located Sarasota, Miami, and Daytona Beach, Florida. Like his fraudulent EIDL and PPP applications, Adjaj’s RRF applications contained false business information and all listed his personal residence as the business mailing address.
Together, Adjaj’s fraudulent applications caused the SBA to pay out more than $11.5 million in loans, grants, and associated lender fees.
On October 14, 2021, Adjaj was charged by criminal complaint with wire fraud and aggravated identity theft. On December 14, 2021, he was arrested following a pretrial release violation and, one day later, ordered detained pending further court proceedings. Adjaj remains in custody pending sentencing.
On July 13, 2022, in a separate criminal case, Adjaj pleaded guilty to illegally distributing controlled substances, including thousands of pills of prescription drugs and anabolic steroids. Adjaj further admitted to using his position as a dentist to obtain some of the drugs he illegally distributed.
In his Covid-relief fraud case, Adjaj faces a maximum sentence of 22 years in prison, a $250,000 fine (or twice his gross gains or his victims’ gross losses), and three years’ supervised release. In his drug case, Adjaj faces a maximum sentence of 10 years in prison, a $500,000 fine, and three years of supervised release. He will be sentenced in both cases on December 6, 2022, by U.S. District Court Judge Michael W. Mosman.
As part of his plea agreement, Adjaj has agreed to pay no less than $10.5 million in restitution to SBA and his victim lenders.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, the U.S. Secret Service, and the FBI. Assistant U.S. Attorney Ryan W. Bounds is prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Nurse Agrees to Plead Guilty to Drug Diversion from Two Boston-Area HospitalsRead the Press Release
BOSTON – A former nurse has been charged and has agreed to plead guilty in connection with the diversion of opioids from two Boston-area hospitals.
Lisa Tarr, 33, of St. Petersburg, Fla., was charged and has agreed to plead guilty to four counts of unlawfully obtaining controlled substances by fraud, deception and subterfuge. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, in August 2018, Tarr was a Student Nurse working at a Boston-area hospital. It is alleged that Tarr admitted to investigators at the hospital that she had stolen and self-injected fentanyl, a Schedule II controlled substance, from the hospital.
In 2020, while working for another Boston-area hospital, Tarr stole an infusion bag containing fentanyl that was being used to treat a patient. On another occasion in 2020, while still working at the second hospital, Tarr stole multiple syringes of hydromorphone, a Schedule II controlled substance, from a locked drug cabinet.
The charge of unlawfully obtaining controlled substances by fraud provides a sentence of no greater than four years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Margret Cooke, the Commissioner of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Kelly Begg Lawrence, Chief of Rollins’ Health Care Fraud Unit, and Assistant U.S. Attorney Evan Panich of Rollins’ Narcotics & Money Laundering Unit are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former NYPD Sergeant Pleads Guilty to Embezzlement SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Thomas M. Fattorusso, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, New York Field Office (“IRS-CI”), and Jonathan Mellone, Special Agent-in-Charge of the New York Regional Office of the U.S. Department of Labor – Office of Inspector General (“DOL-OIG”), announced that ANTHONY LISI pled guilty to conspiracy to commit wire fraud for his involvement in an embezzlement scheme. LISI surrendered yesterday and pled guilty before United States District Judge Paul A. Engelmayer, to whom his case is assigned.
U.S. Attorney Damian Williams said: “As he admitted, Anthony Lisi participated in an embezzlement scheme. Lisi accepted a job with a technology company and, for over a year, submitted falsified weekly time sheets to his employer. He claimed that he had worked eight hours per day, every day—including various holidays—when he had not. As a law enforcement officer who worked for the NYPD for over 20 years, including as a Sergeant, Lisi knew right from wrong.”
FBI Assistant Director Michael J. Driscoll said: “As he admitted, Mr. Lisi intentionally defrauded his victims through an embezzlement scheme as soon as he began his employment. As a law enforcement officer, he knew better than most that by lying about the services he provided he was committing a crime. Embezzlement schemes harm both private businesses and the broader economy regardless of their scale. The FBI and our law enforcement partners will continue to work to hold fraudsters accountable in our justice system.”
IRS-CI Special Agent in Charge Thomas M. Fattorusso said: “There is simply no excuse for Lisi, whose job as a Sergeant with the NYPD was to understand how laws work and how laws are broken. His scheme to make fast cash without doing the work has now landed him on the wrong side of the law, and his guilty plea moves him a step closer to realizing the consequences of his actions.”
According to the allegations in the Information, court filings, and statements made in court:
In connection with an IT services contract, a technology company hired ANTHONY LISI. From January 2018 to February 2019, LISI electronically submitted weekly time sheets in which he represented to the technology company that he had worked eight hours per day, every day, including various holidays. In fact, he had not. These false representations induced the technology company to pay LISI.
* * *
LISI, 47, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. Under the terms of his plea agreement, LISI has agreed to forfeit $66,100 and to pay restitution of $94,185.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. LISI is scheduled to be sentenced by Judge Engelmayer on December 21, 2022, at 10:30 a.m.
Mr. Williams praised the outstanding efforts of the FBI, IRS-CI, and DOL-OIG. Mr. Williams also noted that the investigation is ongoing.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
Food Drive Helps Ease Burden for Those in NeedRead the Press Release
Miami, Florida – Staff from the United States Attorney’s Office for the Southern District of Florida (USAO-SDFL) served nearly 400 people this morning during a Farm Share Food Drive at Demps Park in Miami.
The distribution was scheduled to run from 9 a.m. to noon, but people were lined up by 8 a.m. so staff adjusted and began an hour early. The supplies, which included two pallets of meat, several bread bins, and a large amount of pasta and canned items were gone shortly after 10 a.m.
“The reality is that there is food insecurity nationwide and particularly in South Florida,” said J.D. Smith, Chief of Law Enforcement Coordination and Community Outreach Section, USAO-SDFL. “Prices have gone up on everything and people are on limited incomes … this is an important resource that people depend on.”
If the speed with which the food drive was over is any indication, then, yes, it seems people do depend on these types of services.
“There is this impression that everyone is working, but that just isn’t the case,” said Smith. “For senior citizens, the young, and the unemployed, it can be a difficult situation. We are fortunate enough to have jobs and be in a position to help.”
For Smith, it comes down to doing the right thing. It’s a sense of duty.
“It’s important for us to pay it forward,” he said. “We all have that bell in the back of our minds that reminds us to help people other than our own families. It’s our duty to answer that bell.”
The most important aspect for Department of Justice staff at the food drive was simple—helping people.
“It means a lot to me because people have suffered,” said Mark McKinney, Law Enforcement Coordination specialist with USAO-SDFL. “Doing something positive for the community helps relieve a burden. We do these food drives consistently so at least those who need assistance know they can count on this.”
Department of Justice staff members hold these drives four times per month by partnering with Farm Share, Miami-Dade County Parks and Recreation, and Miami-Dade Police Department—South District. Click here for times and locations as they do change.
Staff from the U.S. Attorney’s Office for the Southern District of Miami gather by the Farm Share truck that supplied the food for today’s Food Drive at Demps Park in Miami. Nearly 400 people were served in a little more than two hours.
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First-ever False Claims Act settlement received from Paycheck Protection Program lenderRead the Press Release
HOUSTON – Prosperity Bank has agreed to pay $18,673.50 to resolve allegations it improperly processed a Paycheck Protection Program (PPP) loan on behalf of an ineligible customer, announced U.S. Attorney Jennifer B. Lowery.
Prosperity Bank is a regional bank with branches throughout Texas and Oklahoma. It is a subsidiary of Prosperity Bancshares Inc.
The Coronavirus Aid, Relief and Economic Security (CARES) Act authorized the issuance of PPP loans in order to provide relief to small businesses experiencing economic hardship during the pandemic. Those loans would be forgiven if certain conditions were met.
Lenders like Prosperity Bank who originated PPP loans were entitled to receive a fixed fee from the Small Business Administration (SBA).That fee ranged from 1% to 5% depending on the size of the loan.
In May 2020, Prosperity Bank approved and processed a $213,400 PPP loan for Woodlands Pain Institute PLLC. The PPP application included a question asking whether the applicant (or any individual owning more than 20% equity) is subject to an indictment, criminal information, arraignment or other means by which formal criminal charges are brought in any jurisdiction.
Dr. Emad Bishai was the sole owner of Woodlands Pain Institute PLLC. However, at the time of the application, Bishai was facing criminal charges in Montgomery County arising from his practice of prescribing opioid medicines. When filling out the application, he checked the box marked “No” and initialed his name beneath the question.
At that time, Prosperity Bank employees knew Bishai was facing charges and was therefore ineligible to apply for the PPP loan. However, the bank processed the application anyway and falsely granted the money to Bishai. As a result, Prosperity Bank received a 5% processing fee of $10,670 to which it was not entitled.
Bishai entered into a $523,331 settlement in November 2021 to resolve his liability arising from fraudulent medical billing and his submission of the PPP loan application. He also repaid the PPP loan in full in 2022.
The settlement announced today is believed to be the nation’s first settlement with a PPP lender pursuant to the False Claims Act. The settlement amount also reflects Prosperity Bank’s efforts to cooperate with the government’s investigation and provide relevant facts along with its implementation of additional compliance measures.
The SBA’s Office of Litigation provided assistance. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Final Member of Multi-State Drug Trafficking Organization Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
CHARLESTON, W.Va. – Robert Sanders Jr., 30, of Ashland, Kentucky, was sentenced today to 10 years and one month in prison, to be followed by five years of supervised release, for his role in a drug trafficking organization (DTO) responsible for distributing methamphetamine, fentanyl, cocaine and marijuana in Parkersburg and elsewhere.
According to court documents and statements made in court, Sanders admitted to supplying co-defendants Matthew Edward Depew and Carlo Ramsey with methamphetamine that Depew and Ramsey redistributed in the Parkersburg area between June 2021 and September 2021. During this same time period, another co-defendant, Floyd Dermonta Ramsey, supplied the DTO with fentanyl, cocaine and marijuana that originated in Chicago, Illinois.
Sanders pleaded guilty to conspiracy to distribute methamphetamine. The other defendants were sentenced to the following prison terms after pleading guilty to felony offenses:
- Carlo Ramsey, 57, of Chicago, Illinois, to nine years for conspiracy to distribute methamphetamine;
- Matthew Edward DePew, 31, of Zanesville, Ohio, to five years for conspiracy to distribute methamphetamine;
- Era Dawn Corder, 47, of Parkersburg, to three years for conspiracy to distribute methamphetamine;
- Floyd Dermonta Ramsey, 42, of Chicago, Illinois, to three years for possession with intent to distribute fentanyl, cocaine, and marijuana;
- Ambera Roberts, 35, of Parkersburg, to one year and six months for conspiracy to distribute methamphetamine.
The case resulted from a nearly year-long investigation dubbed “Long Time Coming.” The investigation also yielded more than a dozen arrests on state criminal complaints in Wood County.
“This successful prosecution dismantled a drug trafficking organization that inflicted much harm on this community,” said United States Attorney Will Thompson. “The dedication and teamwork evident in this case underscores our resolve to prevent overdoses and protect lives.”
Thompson commended the excellent investigative work of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Parkersburg Narcotics Task Force (PNTF), the Parkersburg Police Department, the West Virginia State Police, the United States Postal Inspection Service, the Vienna Police Department, the Williamstown Police Department, the Wood County Sheriff’s Office, the Cabell County Sheriff’s Department, the Boyd County, Kentucky, Sheriff’s Department, the Russell, Kentucky, Police Department and the Raceland, Kentucky, Police Department.
“I also commend Assistant United States Attorney Jeremy B. Wolfe, who prosecuted the case,” Thompson said.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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. 2:21-cr-163.
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FBI and Law Enforcement Partners Arrest Nearly 6,000 Violent Criminals This SummerRead the Press Release
FBI Director Christopher Wray announced today in a video message the results of joint violent crime enforcement efforts throughout the summer, recognizing the essential cooperation of local and state law enforcement agencies around the country.
Between May 1, and Sept. 2, 2022, the FBI and local and state law enforcement partners arrested nearly 6,000 alleged violent criminals and gang members and seized more than 2,700 firearms connected to criminal conduct. Throughout the summer, the FBI and its partners also disrupted nearly 845 and dismantled 105 violent gangs and criminal enterprises and seized large quantities of fentanyl and other deadly narcotics.
“Keeping our communities and our country safe is the Justice Department’s priority, every single day. At the beginning of this year, we further intensified our department-wide efforts to combat violent crime, including by directing all 94 U.S. Attorneys’ offices to develop and implement district-specific violent crime reduction strategies,” said Attorney General Merrick B. Garland. “Together with our law enforcement partners across the country, we will continue to do everything we can to protect our communities from violent crime.”
“I believe the FBI’s most sacred duty is to ensure people can live free from fear in their own homes and neighborhoods,” said Director Wray. “To that end, we dedicate agents, analysts, and technical resources across the country to work with state and local law enforcement on these operations.”
These joint violent crime enforcement efforts resulted in FBI operations occurring in many communities across the country, including in New Mexico, California, Texas, Illinois, Hawaii, Puerto Rico, Pennsylvania, and Washington, D.C., as summarized below:
The FBI Albuquerque Violent Gang Task Force executed 16 federal search warrants targeting violent street and prison gangs. More than a dozen federal, state, and local law enforcement agencies and SWAT teams seized more than one million fentanyl pills, 142 pounds of methamphetamine, 37 firearms, nine ballistic vests, two hand grenades, and $1.8 million in cash.
The Los Angeles Metropolitan Task Force on Violent Gangs arrested 28 members and associates of the South Los Angeles-based Eastside Playboys street gang for alleged federal racketeering, firearms, and narcotics charges. The task force seized approximately 47 firearms, almost 200 kilograms of methamphetamine, 27 kilograms of cocaine, more than 13 kilograms of fentanyl, and more than seven kilograms of heroin.
In Houston, 10 MS-13 gang members were federally indicted for racketeering conspiracy, murder, attempted murder, and conspiracy to murder in aid of racketeering, related firearms charges, and obstruction of justice. The seven murders alleged in the indictment were especially brutal, using mutilation and dismemberment with machetes, and included the killing of a juvenile female and a police informant.
As part of FBI Sacramento’s efforts in a multi-agency coordinated operation targeting the South Lake Tahoe area, seven defendants were charged with conspiracy to distribute and distribution of methamphetamine and heroin. Separately, four subjects were indicted for trafficking methamphetamine and firearms, including an AR-15-style rifle, a shotgun, and several handguns, some of which were “ghost” guns, lacking serial numbers.
In Chicago, three individuals were charged for two separate violent carjackings. In both instances, the defendants allegedly brandished a semiautomatic handgun, and in one, the defendants also allegedly used a semiautomatic rifle. Another defendant was charged in a separate carjacking in downtown Chicago, which also included the use of a firearm.
Out of FBI San Antonio’s Waco Resident Agency, a federal grand jury indicted 27 defendants for their involvement in a Texas-based drug trafficking organization operating a methamphetamine distribution ring, leading to numerous arrests.
A federal investigation into a Hawaiian criminal enterprise resulted in three subjects being arrested for their alleged participation in drug trafficking of methamphetamine and cocaine, operating an illegal gambling business, as well as firearms possession. The criminal enterprise operated throughout the Hawaiian Islands.
Forty-one violent gang members from Puerto Rico were arrested on drug trafficking and firearms charges. The criminal organization allegedly distributed heroin, cocaine, marijuana, Oxycodone, Xanax, and other drugs throughout Puerto Rico.
The FBI Washington Field Office’s Cross Border Safe Streets Task Force, recovered eight firearms and significant quantities of Fentanyl and crack cocaine stemming from searches related to their investigation. Ten defendants were arrested for allegedly conspiring to distribute Fentanyl and cocaine throughout the D.C. area.
Twenty-five people were arrested in Pennsylvania for allegedly running a drug trafficking ring. The subjects allegedly engaged in a widespread drug distribution conspiracy that crossed state lines into Florida, Puerto Rico, and Arizona.
Similar to the those listed here, the FBI and our law enforcement partners conducted numerous operations in many other cities across the nation, including Cleveland, Buffalo, New Haven, Charlotte, Springfield, and more, and will continue these efforts against violent crime to help keep our communities safe for everyone.
Learn more about the FBI’s work in investigating violent crime at fbi.gov/violentcrime. Report tips to tips.fbi.gov; you can remain anonymous, or call 1-800-CALL FBI (800-225-5324).
Eighth and Final Defendant Sentenced in New Buffalo Cocaine RingRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced that on September 12, 2022, the Honorable Paul L. Maloney, United States District Judge for the Western District of Michigan sentenced Adrian Romero Antunez (35), a Mexican national in the United States on a tourist visa, to 46 months in prison for his role in a conspiracy to distribute five (5) kilograms or more of cocaine. Romero Antunez was the final defendant to be sentenced in a transnational and interstate cocaine ring that centered around New Buffalo, Michigan resident Ivan Huerta Hernandez (33). Through conduits in Mexico, Huerta Hernandez was supplied by sources located in Chicago, Illinois, including Romero Antunez. Huerta Hernandez then distributed cocaine to dealers in West Michigan and Northern Indiana.
On the morning of November 3, 2021, approximately 90 federal, state, and local law enforcement officers executed arrest warrants and six search warrants in four judicial districts: the Western District of Michigan, the Northern District of Indiana, the Northern District of Illinois, and the Central District of Illinois. Investigators seized over 1.5 kilograms of cocaine. Investigators also seized approximately $100,000 in cash, six vehicles, and two firearms.
The men who have been convicted of felony charges are listed below:
Name
Residence
Age
Sentence
Ivan Huerta Hernandez
New Buffalo, Michigan
33
87 months
Adrian Romero Antunez
Chicago, Illinois
35
46 months
Henry Shavar Nichols
Greenville, South Carolina
41
36 months
Marcus Jemel Johnson
Benton Harbor, Michigan
41
46 months
Juan Martinez Camarillo
Michigan City, Indiana
37
57 months
Donald James Rogers
New Buffalo, Michigan
62
12 months and 1 day
Manuel Eudave
La Porte, Indiana
54
Fine
Santiago Cardenas
Michigan City, Indiana
41
Probation and Fine
For more information, please see the continuation in support of the criminal complaint available on the public docket. United States v. Hernandez, et al., No. 21-MJ-551, ECF No. 1 (W.D. Mich.).
In announcing the sentences, U.S. Attorney Mark Totten said, “The convictions and sentences in this case represent a significant victory against a transnational drug trafficking conspiracy.” He continued: “My office is committed to combatting large-scale traffickers who bring these poisons to the Western District of Michigan. This prosecution demonstrates the power of pooling the resources of federal, state, and local governments. Drug trafficking organizations do not recognize political boundaries and we must continue to work together to combat drug trafficking organizations across Michigan, the Midwest, and the United States.”
“An investigation like this can only be successful when law enforcement agencies at all levels work together to remove those who pollute local neighborhoods with dangerous drugs,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “This investigation effectively dismantled a transnational, interstate drug trafficking organization that set up operations in the New Buffalo area. The FBI will continue to work with our partners to rid the streets of these criminals and make our communities safer for all citizens.”
“This sentencing should serve as a reminder that along with our Federal, State and local law enforcement partners, DEA is dedicated to identifying, investigating and dismantling drug trafficking organizations who look to profit from the suffering of others,” said Orville Greene, Special Agent in Charge, Detroit Field Division of the Drug Enforcement Administration.
“The Berrien County Sheriff’s Office is honored to partner with the FBI, DEA, and other law enforcement agencies to ensure that the residents of southwest Michigan and the entire United States are protected from individuals and organizations that are trying to harm our residents and citizens,” said Berrien County Sheriff, L. Paul Bailey. “The Berrien County Sheriff’s Office is proud of the hard work and dedication of all law enforcement personnel who took part in this investigation and brought it to a successful conclusion.”
The case was investigated and prosecuted as part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that began in 2020 and has been led by the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), United States Marshals Service (USMS), Immigration and Customs Enforcement (ICE), United States Postal Inspection Service (USPIS), Michigan State Police’s Southwest Enforcement Team (SWET), Berrien County Sheriff’s Department (BCSD), Pokagon Band Tribal Police, Michigan City Police Department, La Porte City Police Department, and the Cook County Sheriff Department.
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using an intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant United States Attorneys Vito S. Solitro and Daniel T. McGraw prosecuted the case.
Eight Indicted in Joint Task Force Alpha Investigation and Arrested as Part of Takedown of Prolific Human Smuggling NetworkRead the Press Release
The U.S. Department of Justice, along with its partners, today announced a significant enforcement operation that disrupted and dismantled a prolific human smuggling operation in Texas and across the Southern United States. The operation, a part of Joint Task Force Alpha (JTFA), included the arrest of eight alleged human smugglers whose indictment were unsealed today in the Southern District of Texas (SDTX).
“Over a year ago, we launched Joint Task Force Alpha to strengthen our efforts across government to dismantle the most dangerous human smuggling and trafficking networks,” said Attorney General Merrick B. Garland. “The charges announced today are just the latest example of these efforts’ success. The Justice Department will continue to bring our full resources to bear to combat the human smuggling and trafficking groups that endanger our communities, abuse and exploit migrants, and threaten our national security.”
Erminia Serrano Piedra aka Irma, and Boss Lady, 31, led the human smuggling operation. Other defendants include Kevin Daniel Nuber aka Captain, 41; Laura Nuber aka Barbie, 40; Lloyd Bexley, 51; Jeremy Dickens, 45; Katie Ann Garcia aka Guera, 39; Oliveria Piedra-Campuzana, 53; and Pedro Hairo Abrigo, 33. All were arrested in Texas, Louisiana, Mississippi, and Alabama pursuant to charges previously filed in the SDTX and unsealed today.
According to the indictment, they facilitated the unlawful transportation and movement of migrants within the United States in deplorable conditions for profit. The migrants were allegedly citizens of Mexico, Guatemala and Colombia. The migrants or their families allegedly paid members of the human smuggling organization to help them travel illegally to and within the United States.
According to the indictment, the criminal human smuggling organization allegedly used drivers to pick up migrants near the U.S.-Mexico border and transport them further into the interior of the United States. They allegedly often harbored the migrants at “stash houses” along the way in locations such as Laredo and Austin, Texas. Drivers allegedly used various methods to transport migrants, including by hiding them in suitcases placed in pickup trucks and cramming migrants in the back of tractor-trailers, covered beds of pickup trucks, repurposed water tankers or wooden crates strapped to flatbed trailers. The human smuggling organization allegedly used methods to transport migrants that placed their lives in danger as they were frequently held in contained spaces with little ventilation, no temperature control and in conditions that placed them at great risk. Drivers for the organization were allegedly paid as much as $2,500 for each migrant they unlawfully transported.
81 migrants in the back of a tractor trailer. Migrants trapped inside the bed cover of a pickup truck. Migrants inside a wooden crate.The indictment also notices the criminal forfeiture of three properties as well as money judgments amounting to $2,299,152.40.
“This human smuggling organization operated on an enormous scale, placing a high value on financial profit, while putting migrants’ lives at great risk,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “JTFA will continue to use all means necessary to pursue and dismantle criminal smuggling networks and protect the vulnerable populations they exploit.”
“Sadly, this case is an example of what we see in our district, too many times, especially in our border communities,” said U.S. Attorney Jennifer B. Lowery for the Southern District of Texas. “Our Laredo office works continuously with our valued partners to bring to justice those who allegedly put profits ahead of everything else. No amount of money should be a substitute for human life.”
“At DHS, countering human smuggling is a moral imperative, a law enforcement priority, and a necessity for our national security,” said Deputy Secretary John K. Tien of the Department of Homeland Security. “It is a central plank of our efforts to address irregular migration across the western hemisphere, and to hold transnational criminal organizations accountable for perpetrating vile and horrific crimes. We are unwavering in our commitment, and sending a strong message: if you manipulate and imperil and take advantage of struggling migrants, we are coming for you. This investigation is a perfect example of how we're bringing our agencies and components together to leverage the full force of the federal government to do just that.”
“Transnational criminal organizations often use sophisticated circumvention techniques to facilitate their smuggling and trafficking efforts,” said Acting Deputy Director PJ Lechleitner of the U.S. Immigration and Customs Enforcement (ICE). “Special agents with Homeland Security Investigations (HSI) employ a full range of law enforcement techniques and cross-border authorities to combat human smuggling by effectively eliminating profit incentives, seizing assets, and maintaining strong collaborative relationships with law enforcement partners across the country and world. Today should be a reminder that if you are going to engage in this type of criminal activity, your criminal network is not invisible. The members of the organization will be exposed, the network will be dismantled, and you will be brought to justice.”
“Human smugglers are criminals who do not care about human life,” said Deputy Commissioner Troy Miller of U.S. Customs and Border Protection (CBP). “They lie to make money, convincing vulnerable migrants to hand over what is often their life savings in exchange for empty promises to get to the United States. Smugglers regularly abandon migrants in the desert or mountains with no food or water, leaving them for dead. CBP strives to be flexible, adaptable, and to think outside the box when it comes to disrupting these criminal organizations and protecting migrants from harm.”
The indictments against these defendants were brought under JTFA. Attorney General Garland created JTFA in June 2021, in partnership with DHS, to strengthen the department’s overall efforts to combat the dangerous rise in human smuggling emanating from Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle those human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse or exploit migrants, present national security risks or engage in other types of transnational organized crime.
Since its creation, JTFA has successfully increased coordination and collaboration between the Justice Department, DHS, and other interagency law enforcement participants along with foreign law enforcement partners including El Salvador, Guatemala, Honduras and Mexico; targeted those organizations who have the most impact on the United States; and coordinated significant smuggling indictments and extradition efforts in U.S. Attorneys’ Offices across the country. To date, JTFA’s work with its partners has resulted in criminal charges and over 100 domestic and international arrests against leaders, organizers and significant facilitators of human smuggling activities, several dozen convictions, significant prison sentences and substantial asset forfeiture.
JTFA is comprised of detailees from southwest border U.S. Attorneys’ Offices, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California, and dedicated support for the program is also provided by numerous components of the Justice Department’s Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section (HRSP) and supported by the Office of Prosecutorial Development, Assistance and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS). JTFA is made possible by substantial law enforcement investment from DHS, FBI, U.S. Drug Enforcement Administration, and other partners.
HSI Laredo, along with CBP’s U.S. Border Patrol Laredo Sector and DHS-OIG, led U.S. investigative efforts and received substantial assistance from HSI offices in Austin, San Antonio, and Corpus Christi, Texas; New Orleans, Louisiana; Gulfport, Mississippi; Mobile, Alabama; West Palm Beach, Florida; and its Human Smuggling Unit in Washington, D.C.; along with CBP’s National Targeting Center; U.S. Marshals Service; ICE’s Enforcement and Removal Operations – Austin; Police Departments in Laredo, Kileen, and Round Rock, Texas, Wiggins, Missouri, and Bogalusa, Louisiana; Webb County, Texas, Constable’s Office; Webb County, Texas, District Attorney’s Office; Sheriff’s offices in Webb, Bastrop, and Caldwell County, Texas, and Harrison County, George County, and Stone County, Mississippi; Jefferson Parish and Washington Parish, Louisiana; and Mississippi Bureau of Narcotics; and the Louisiana State Police.
Trial Attorneys Erin Cox and Christian Levesque of the Justice Department’s Human Rights and Special Prosecution Section; Assistant U.S. Attorney Jennifer Day for the Southern District of Texas and JTFA; Assistant U.S. Attorney Paul Harrison for the Southern District of Texas; Trial Attorney Daria Andryushchenko and Financial Investigator Kelly O’Mara of the Justice Department’s Money Laundering and Asset Recovery Section handled the case, with substantial assistance from the Justice Department’s Electronic Surveillance Unit of the Office of Enforcement Operations.
The charges contained in an indictment are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dyer Man Sentenced to 240 Months in PrisonRead the Press Release
HAMMOND- Ronald Ortega, 48 years old, of Dyer, Indiana, was sentenced by United States District Court Judge Jon E. DeGuilio on his plea of guilty to possession and production of child pornography, announced United States Attorney Clifford D. Johnson.
Ortega was sentenced to 240 months in prison followed by 5 years of supervised release and ordered to pay $10,000 in restitution.
According to documents in the case, Ortega produced child pornography with two separate victims. He also possessed child pornography of children, including victims that were under the age of 12.
This case was investigated by the Federal Bureau of Investigation and the Dyer Police Department. This case was prosecuted by Assistant United States Attorney Emily A. Morgan.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .
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Drug User Pleads Guilty to Firearms OffensesRead the Press Release
PITTSBURGH, PA - A resident of Aleppo, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearm laws, United States Attorney Cindy K. Chung announced today.
Chester Aaron Hostutler, age 35, pleaded guilty to two counts of possession of a firearm and ammunition by an unlawful drug user before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that Troopers with the Pennsylvania State Police conducted traffic stops of a vehicle driven by Hostutler on two separate days in August 2020. During each traffic stop, Hostutler admitted to using drugs and to having a firearm.
On each occasion, law enforcement recovered a firearm from the vehicle and determined Hostutler had recently used controlled substances. The firearm recovered in the first traffic stop was loaded and previously reported stolen.
Judge Horan scheduled sentencing for Jan. 4, 2023, at 10:00 a.m. The law provides for a total sentence of not more than ten years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered Hostutler to remain in the custody of the U.S. Marshals Service.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation that led to the prosecution of Hostutler.
Dominican National Sentenced to 4 Years in Federal Prison for Fentanyl Trafficking OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that REGINO MORILLO-ESPINAL, 40, a citizen of the Dominican Republic last residing in Allentown, Pennsylvania, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 48 months of imprisonment for a fentanyl trafficking offense.
According to court documents and statements made in court, members of the Drug Enforcement Administration’s Hartford Task Force identified Morillo-Espinal as a member of a fentanyl trafficking ring. On March 26, 2021, investigators stopped Morillo-Espinal’s vehicle on I-91 South after he had traveled from Allentown to multiple locations in Hartford. He was arrested after a search of the vehicle revealed approximately two kilograms of suspected fentanyl.
Morillo-Espinal has been detained since his arrest. On October 27, 2021, he pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl.
Morillo-Espinal faces immigration proceedings when he completes his prison term.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Defendant Pleads Guilty to Bank Secrecy Act ChargesRead the Press Release
Earlier today, in federal court in Brooklyn, Hanan Ofer pleaded guilty to failing to maintain an effective anti-money laundering program in violation of the Bank Secrecy Act, as part of a scheme to bring lucrative and high-risk international financial business to a small, unsophisticated credit union. Today’s proceeding took place before United States Magistrate Judge Ramon E. Reyes, Jr. When sentenced, Ofer faces up to 10 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Rick J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the guilty plea.
“Ofer willfully disregarded provisions of the Bank Secrecy Act that are designed to prevent money laundering and the use of our financial system for criminal ends. This Office will vigorously enforce those laws to ensure the integrity of the U.S. financial system,” stated United States Attorney Peace. “With his admissions today, the defendant will be held responsible for exposing financial institutions to the risk of illicit activity.”
“Ofer’s failure to implement anti-money laundering practices as required by the Bank Secrecy Act (BSA) exposed Financial Institutions to the likelihood of high-risk transactions which ultimately led to the processing of billions in bulk cash from Mexican-based banks without proper oversight,” stated HSI Acting Special Agent-in- Charge Patel. “Money laundering is a vital component of transnational criminal organizations wishing to legitimize their ill-gotten gains and ensuring the compliance of BSA regulations is the first step to fighting these organizations. HSI is a leader in financial crimes investigations and will continue to seek the prosecution of those who attempt to circumvent the law for quick financial gains.”
According to court filings, from 2014 to 2016, Ofer operated the New York State Employees Federal Credit Union Services Organization (NYSEFCU-CUSO), a money services business that was required to have an effective anti-money laundering program. Through the NYSEFCU-CUSO and other entities, Ofer participated in a scheme that brought over $1 billion in high-risk transactions, including millions of dollars of bulk cash transactions from a Mexican bank, to the New York State Employees Federal Credit Union (NYSEFCU).
Ofer was experienced in international banking and trained in anti-money laundering compliance and procedures, and represented to the NYSEFCU that he and the NYSEFCU-CUSO would conduct appropriate anti-money laundering oversight as required by the Bank Secrecy Act. Instead, Ofer failed to implement an effective anti-money laundering program at the NYSEFCU-CUSO. This failure caused the NYSEFCU to process high-risk transactions, including from Mexican banks, without appropriate oversight and without ever filing a single Suspicious Activity Report, as required by law.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section, in coordination with the Office’s Bank Integrity Task Force, which is charged with investigating and charging corporate and individual actors who launder criminal proceeds using the U.S. banking system and enforcing anti-money laundering controls under the Bank Secrecy Act. Assistant United States Attorneys Ryan C. Harris and Francisco J. Navarro of the Eastern District of New York are prosecuting the case with Trial Attorneys Margaret Moeser and Leigh Kessler of the Criminal Division’s Money Laundering and Asset Recovery Section. The investigation is being conducted by HSI’s El Dorado Task Force in New York.
The Defendant:
HANAN OFER
Age: 69
New York, New YorkE.D.N.Y. Docket No. 21-CR-174 (DG)
Dayton woman charged with federal crimes related to stealing identities of local victimsRead the Press Release
DAYTON, Ohio – A Dayton woman was arrested by federal agents this afternoon on charges alleging she has stolen the identities of several young women in the Dayton area and used those identities to commit various types of fraud.
Tiffany Lewis, 29, appeared in U.S. District Court in Dayton today following her arrest.
According to the charging documents, in March and April 2021, Lewis stole the identities of two area women and used their information to obtain approximately $8,000 total in personal loans from Lendmark. Lewis allegedly cashed out those loans at Checksmart locations in Fairborn and Monroe, Ohio. Lewis was photographed at each Checksmart location and is covering her distinctive neck tattoos in each of the photographs.
In June and July 2021, Lewis allegedly used a third stolen identity to commit various acts of fraud.
For example, Lewis allegedly used the victim’s identity to obtain a fraudulent Ohio driver’s license and a car loan for approximately $48,000.
In addition, it is alleged that Lewis used the identity on two separate occasions to rent Chevrolet Silverado trucks from Uhaul in Dayton. One of the trucks was later discovered at Lewis’s residence and had been spray-painted black.
Lewis allegedly used the third victim’s identity to write fraudulent checks at Menards in Fairborn totaling more than $3,500. When questioned at the store by a Fairborn police officer, Lewis presented her fake driver’s license, which was flagged as fraudulent in the officer’s computer.
Lewis is charged with committing Social Security number fraud, wire fraud, bank fraud and aggravated identity theft.
If you think you may also be a victim of Lewis’s alleged fraud, please contact the Social Security OIG tip line at: 1-800-269-0271.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio and Andrew Boockmeier, Special Agent in Charge, Social Security Administration, Office of the Inspector General (SSA-OIG) announced the charges. The U.S. Secret Service, U.S. Marshals Service, and Dayton, Fairborn, Whitehall and Riverside police departments all contributed to this investigation.
Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Chief Credit Officer Admits to Conspiracy to Defraud First NBC BankRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that WILLIAM J. BURNELL (“BURNELL”), age 72, a resident of Kenner, Louisiana, pleaded guilty today to conspiracy to defraud First NBC Bank (“ Bank “), the New Orleans-based bank that failed in April 2017.
According to court documents, from in or around 2006 through April 2017, BURNELL was the Bank’s Chief Credit Officer. He was responsible for the overall quality of the Bank’s lending function; the Bank’s credit policies and administration; the Bank’s loan recovery and collection efforts; and the Bank’s monitoring and managing of past due loans, including the approval of the Bank’s internal list of past-due loans. BURNELL was responsible for compiling month-end reports, including lists of overdrawn borrowers and past-due loans. These reports should have accurately shown the quality of the Bank’s assets, which included loans. Misrepresentations on these reports made a true assessment of the Bank’s overall financial well-being impossible. BURNELL was also responsible for approving credit risk ratings before the Bank decided to lend to its customers.
Other people involved with the Bank, including the Bank’s board of directors, external auditors, and federal and state regulators, relied on BURNELL as the Chief Credit Officer to inform them about problems with the Bank’s asset quality, including problems with loans. Nevertheless, BURNELL conspired with the Bank’s President Ashton J. Ryan, Jr., Executive Vice President Robert B. Calloway, Senior Vice President Fred V. Beebe, and others to conceal material information and defraud the Bank. For example, BURNELL, Ryan, and Calloway knowingly concealed material information about borrower Gary Gibbs from the board, auditors, and examiners. Further, BURNELL served as an additional approving officer for loans to borrower Warren Treme, who was Ryan’s business partner. Beebe was Treme’s loan officer. BURNELL, Ryan, and Beebe made misrepresentations in Treme’s loan documents and to the board, auditors, and examiners, in ways that financially benefited Ryan. Calloway, Gibbs, and Treme have all previously pleaded guilty to conspiracy to defraud the Bank, as have the Bank’s General Counsel Gregory St. Angelo, borrower Kenneth Charity, borrower Jeffrey Dunlap, and borrower Arvind Vira. The trial for Ryan, Beebe, and borrower Frank Adolph is scheduled to begin on January 3, 2023.
“Today’s guilty plea once again demonstrates that the FDIC OIG and our law enforcement partners from the United States Attorney’s Office, Eastern District of Louisiana; Federal Bureau of Investigation; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General will continue to investigate those individuals, including bank directors and officers who are entrusted to manage financial institutions, but cause harm to our nation’s banking industry,” said Anand Ramlall, Special Agent in Charge, Dallas Region, Office of Inspector General for the Federal Deposit Insurance Corporation.
“Today’s plea agreement illustrates the FBI’s steadfast commitment to bringing those who commit white collar crimes to justice, like Mr. William J. Burnell,” said Douglas A. Williams, Jr., Special Agent in Charge, FBI New Orleans. “We thank our partners from the United States Attorney’s Office, Eastern District of Louisiana; Federal Deposit Insurance Corporation, Office of Inspector General; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General for their strong partnerships in protecting the integrity of the American banking system.”
“Today’s plea sends a clear message that bank executives who commit fraud and deliberately deceive regulators will be brought to justice for their actions. I commend our agent and their federal law enforcement partners for their hard work and persistence, which ultimately led to this outcome,” said Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.
BURNELL has pleaded guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. The maximum penalties that may be imposed upon conviction are thirty years in prison; a fine of up to $1,000,000, or the greater of twice the gain to BURNELL or twice the loss to any victim; up to five years of supervised release; and a $100 mandatory special assessment fee .
Judge Eldon E. Fallon scheduled BURNELL’s sentencing for March 16, 2023, at 2:00pm.
This case is being investigated by the Federal Bureau of Investigation; the Federal Deposit Insurance Corporation, Office of Inspector General; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General. Assistant U.S. Attorneys Matthew R. Payne, Nicholas D. Moses, J. Ryan McLaren, and Rachal Cassagne are in charge of the prosecution.
California Man Pleads Guilty to $400,000 Fraud Scheme Involving Minnesota-Based RetailerRead the Press Release
ST. PAUL, Minn. – A California man has pleaded guilty to wire fraud after defrauding his former employer, a Minnesota-based retailer, of more than $400,000, announced U.S. Attorney Andrew M. Luger.
According to court documents, Michael John Gennarelli, 32, of Huntington Beach, California, was employed as a sales consultant and mobile supervisor for Company A, a retail store based in Minnesota. Gennarelli unlawfully accessed Company A’s computer network and obtained sales receipt information for high-dollar-value purchases that were not associated with a “My Rewards” account, Company A’s customer loyalty program. Gennarelli then created numerous fraudulent “My Rewards” accounts, applied the stolen sales receipts information, and claimed the associated “My Rewards” points for the value of such purchases. In total, Gennarelli issued himself approximately $467,307 in “My Rewards” certificates, $393,200 of which he redeemed for merchandise and gift cards in Company A stores and on Company A’s website.
Gennarelli pleaded guilty today before U.S. District Judge Katherine M. Menendez to one count of wire fraud. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the U.S. Secret Service and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Chelsea A. Walcker is prosecuting the case.
Brothers Plead Guilty to Trafficking More Than $100 Million of Cocaine in International WatersRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that Robin Castro-Gomez (35, Colombia, South America) and his brother, Alvaro Castro-Gomez (41, Colombia, South America), have pleaded guilty to conspiracy with the intent to distribute five kilograms or more of cocaine on a vessel subject to the jurisdiction of the United States. Robin Castro-Gomez faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. Alvaro Castro-Gomez faces a minimum mandatory penalty of 15 years, and up to life, in federal prison. They were indicted on March 5, 2019.
According to the plea agreement, Robin and Alvaro Castro-Gomez are responsible for attempting to traffic over 3,500 kilograms (7,700 pounds) of cocaine from Colombia to Central America. In 2017 and 2018, the United States Coast Guard interdicted three separate low-profile vessels in the Eastern Pacific Ocean, each loaded with cocaine and destined for Central America. Robin Castro-Gomez was directly responsible for leading and organizing each of these drug ventures from Colombia. Alvaro Castro-Gomez, who was previously convicted in federal court for trafficking cocaine on the high seas, assisted his brother at the launch sites. He also recruited, hired, and paid one of the mariners to participate in the conspiracy.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF. The case is being prosecuted by Assistant United States Attorney David J. Pardo.
Bay Area Rapper Mark “Kafani” Hicks and Two Co-Conspirators Sentenced to Prison for Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
SAN FRANCISCO – Bay area rapper Mark “Kafani” Hicks, aka Amir Rashad, was sentenced to 87 months in prison for his role in orchestrating a complex loan fraud and identity theft conspiracy, announced United States Attorney Stephanie M. Hinds, FBI Special Agent in Charge Sean Ragan, U.S. Postal Inspection Service Acting Inspector in Charge Kevin Rho, and U.S. Secret Service Special Agent in Charge Shawn M. Bradstreet. Co-defendants Demarcus Hicks and Dionysius “Donnie” Costello were sentenced to 48 months and 54 months respectively for their roles in the two-year conspiracy. An additional three members of the fraud ring were sentenced on May 23, 2022, and June 13, 2022. A seventh alleged member remains a fugitive. The sentences were handed down by the Hon. James Donato, United States District Judge.
According to the plea agreements, Mark Hicks admitted to being at the center of a conspiracy in which he directed a team of criminals who stole approximately $2 million from banks and lending institutions. Specifically, Hicks admitted that within months of being released from prison in November 2017, he began orchestrating a scheme and conspiracy to defraud lending institutions and financial institutions. Hicks admitted that he obtained the personal identifying information of nine victims; obtained additional information about the victims, such as their credit history; used the illegally-obtained information to create fraudulent bank accounts, emails, and phone numbers in the victims’ names; and then applied for mortgage refinance loans in the victims’ names.
Hicks admitted that he used these methods to victimize nine individuals when fraudulently applying for eight loans. In some cases, the loans were not approved. In other cases, Hicks convinced lending institutions to forward funds to fraudulently-created bank accounts.
During the sprawling two-year loan fraud conspiracy, Hicks impersonated victims in over a dozen phone calls with banks, lending institutions, and gold dealers. Hicks used the stolen funds primarily to buy gold bars and coins that his co-conspirators sold for cash. Over $480,000 of the illicit gains were recovered from a safe deposit box controlled by Hicks’s relatives.
Demarcus Hicks (Mark Hicks’s half-brother) and Costello each admitted to assisting Hicks in executing various aspects of the scheme. For example, Demarcus Hicks admitted that after he was made aware of the scheme, he obtained and passed on to coconspirators the personal identifying information of a victim, he sold gold bars and coins that had been purchased with the proceeds of the scheme, he traveled with coconspirators who impersonated victims to get fraudulent loan documents notarized, and he withdrew cash from bank accounts that had been fraudulently established as part of the scheme. Similarly, Costello admitted that after being informed about the scheme, he obtained counterfeit drivers’ licenses with the names of victims but photographs of coconspirators, and facilitated meetings between coconspirators and notaries to obtain fraudulent loan documents.
In sum, the scheme included the following defendants:
Defendant Age, Residence Statutes of Conviction Sentence Imposed Mark “Kafani” Hicks 42, Oakley, California 18 U.S.C. § 1349
18 U.S.C. § 1344
18 U.S.C. § 1028A 87 months Demarcus Hicks 38, Stockton, California 18 U.S.C. § 1349
18 U.S.C. § 1344
18 U.S.C. § 1028A 48 months Dionysius Costello 38, Berkeley, California 18 U.S.C. § 1349
18 U.S.C. § 1344
18 U.S.C. § 1028A 54 months Susan Arreola-Martin 72, Antioch, California 18 U.S.C. § 1349
18 U.S.C. § 1344
18 U.S.C. § 1028A
21 U.S.C. § 841 84 months Leif Skorochod 48, San Francisco, California 18 U.S.C. § 1349
18 U.S.C. § 1344
18 U.S.C. § 1028A 14.5 months Christopher Pool 57, Stockton, California 18 U.S.C. § 1349
18 U.S.C. § 1344
18 U.S.C. § 1028A 15 monthsJudge Donato ordered each of the defendants to pay restitution in the amount of $1,904,988.79.
The cases were prosecuted by Assistant U.S. Attorneys Barbara J. Valliere and David J. Ward, with assistance from Claudia Hyslop and Kathy Tat. The prosecutions are the result of investigations by the Federal Bureau of Investigation, the United States Secret Service, and the United States Postal Inspection Service.
Banker Pleads Guilty to Bank Secrecy Act ChargesRead the Press Release
A New York man pleaded guilty today in the Eastern District of New York to failure to maintain an effective anti-money laundering program in violation of the Bank Secrecy Act as part of a scheme to bring lucrative and high-risk international financial business to a small, unsophisticated credit union.
According to court documents, from 2014 to 2016, Hanan Ofer, 69, of New York City, operated the New York State Employees Federal Credit Union Service Organization (NYSEFCU-CUSO), a money services business that was required to have an effective anti-money laundering program. Through the NYSEFCU-CUSO and other entities, Ofer participated in a scheme that brought more than $1 billion in high-risk transactions, including millions of dollars of bulk cash transactions from a Mexican bank, to the New York State Employees Federal Credit Union (NYSEFCU).
Ofer was experienced in international banking and trained in anti-money laundering compliance and procedures, and represented to the NYSEFCU that he and his businesses would conduct appropriate anti-money laundering oversight as required by the Bank Secrecy Act. Instead, Ofer willfully failed to implement an effective anti-money laundering program at the NYSEFCU-CUSO. This failure caused the NYSEFCU to process the high-risk transactions without appropriate oversight and without ever filing a single Suspicious Activity Report, as required by law.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, and Acting Special Agent in Charge Ricky J. Patel of Homeland Security Investigations (HSI) New York made the announcement.
HSI New York investigated the case.
Trial Attorneys Margaret Moeser and Leigh Kessler of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Ryan C. Harris and Francisco J. Navarro for the Eastern District of New York are prosecuting the case.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
Assistant Attorney General Jonathan Kanter Meets with National Farmers UnionRead the Press Release
Assistant Attorney General Jonathan Kanter speaks with members of National Farmers Union in RFK Main Justice Building.The Justice Department’s Antitrust Division hosted 30 farmers affiliated with the National Farmers Union (NFU) on Sept. 12, 2022, to discuss the state of competition in agriculture markets and strengthening antitrust enforcement. The Department is committed to fighting for fairness in food systems and protecting American farmers, producers, workers, and consumers from the effects of consolidation throughout the food supply chain.
Yesterday’s meeting builds on the Division’s ramped up efforts to combat anticompetitive practices and advocate for competition in agricultural markets. The Division has brought all of its tools to bear. Over the last year, the Antitrust Division has put special focus on competition in agriculture, including by suing to block U.S. Sugar from acquiring its rival, Imperial Sugar Company.
“Competition in agriculture is critical. Too often, farmers and livestock producers have too few suppliers to buy from and too few buyers to sell to. Farmers and their families work incredibly hard and deserve to see the fruits of their labor and the American dream,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Yesterday, we heard from farmers about how monopolies, collusion, and other anticompetitive conduct threatens their livelihood and their communities. Protecting competition and the rule of law in agricultural markets is core to the work of the Antitrust Division, and we will vigorously enforce the antitrust laws in this area.”
In addition, this summer, the Division filed a civil antitrust lawsuit against a data consulting firm and its president, as well as three poultry processors, to end a long-running conspiracy to exchange information about wages and benefits for poultry processing plant workers. The proposed consent decree with defendant poultry processors Cargill, Sanderson Farms and Wayne Farms would prohibit them from sharing competitively sensitive information about poultry.
This effort—in cooperation with the USDA—built on other interagency partnerships with the USDA, including the Farmer Fairness reporting portal, which allows farmers and ranchers to report anticompetitive practices online.
The Division protects competition, including through enforcement against monopolies, illegal mergers, collusion, and other anticompetitive abuses in agricultural markets. It also partners with state, federal, and international enforcers where appropriate to ensure vibrant food systems and free market competition in this critical economic sector.
Anyone with additional information about anticompetitive practices in livestock and poultry markets can go to farmerfairness.gov. Anyone with information about poultry industry collusion or competitors sharing non-public compensation information can contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or [email protected].
Ash Grove Woman Sentenced for $1.3 Million Theft, Tax SchemeRead the Press Release
SPRINGFIELD, Mo. – An Ash Grove, Mo., woman was sentenced in federal court today for a wire fraud scheme in which she embezzled more than $362,000 from her Springfield, Mo., employer and failed to pay nearly $1 million in business payroll taxes and personal income taxes.
Carrie Leigh Long, 52, was sentenced by U.S. District Judge Stephen R. Bough to three years and five months in federal prison without parole. The court also ordered Long to pay $1,329,440 in restitution -- $362,175 to her employer and $1,071,802 to the IRS. The court also ordered Long to forfeit to the government $362,175.
On April 25, 2022, Long pleaded guilty to one count of wire fraud and one count of failure to pay over employment taxes.
Long was employed by Executive Coach Builders, Inc. to provide in-house accounting services to the company and to Executive Bus Builders, Inc. The companies are headquartered in Springfield but do business worldwide with factories and sales offices in Missouri and California. The companies build luxury buses, coaches, and limousines. Long was hired in April 2014.
Long admitted that she stole at least $362,175 from the companies from February 2016 to September 2020. Long also admitted that she failed to pay approximately $902,226 of employment taxes the companies owed to the IRS. By not making these payments, Long created a pool of funds in the companies’ bank accounts from which she continued her embezzlement scheme.
Long used her position as an in-house accountant for the companies, and her access to the companies’ check stock, to regularly write checks against the companies’ bank accounts for unauthorized payments to herself. Long stole money from the companies by filling in unauthorized amounts on some pre-signed checks and making such checks payable to herself. Long also stole money from the companies by forging signatures on the companies’ checks, filling in unauthorized amounts on the checks, and making such checks payable to herself.
According to court documents, Long stole from the companies at least 198 times. When the companies’ owner confronted her with evidence that she had stolen from the companies and that she had not paid over the companies’ employment taxes, she continued to lie to him, forcing him to hire an accounting firm to investigate.
As part of the scheme, Long did not claim the unauthorized payments as personal income on her individual income tax returns from 2016 through 2020. This resulted in a loss to the IRS of $65,039.
Beginning in April 2019, Long ceased to make regular payments to the IRS for the employment taxes the companies owed the IRS. Long concealed her actions from company officials by altering the companies’ bank account statements and misrepresenting on her financial reports that the payments had been made. Long caused the companies to fail to pay over to the IRS approximately $902,226 of taxes (including both the employer portion and the funds withheld from the companies’ employees’ paychecks) owed to the IRS for two quarters of 2019 and one quarter of 2020.
When an agent from the Internal Revenue Service attempted to collect those delinquent tax payments, Long falsely claimed they had been paid and provided forged bank account statements.
According to court documents, Long was convicted in state court of similar conduct with a previous employer and was still on probation for that crime at the time of this federal offense. On Oct. 21, 2013, she pleaded guilty in the Circuit Court of Laclede County, Mo., to stealing more than $88,000 from a client of her then-accounting firm employer. As in this federal case, she stole by forging checks made payable to herself and endorsed in her own name against the victim’s bank account. Long received a suspended five-year sentence, was ordered to serve 90 days shock time, placed on probation for five years, and ordered to pay restitution to her victim within 30 days of her sentencing.
Long’s mother actually paid her court-ordered restitution on her behalf in the state case. Long used the money she stole from the companies in this scheme to pay her mother back for the prior victims’ restitution payment.
This case was prosecuted by Assistant U.S. Attorney Shannon Kempf. It was investigated by IRS-Criminal Investigation and the FBI.
Albuquerque man sentenced to over 15 years in prison for carjacking, bank robbery and firearms violationsRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Lante Porcha, 30, of Albuquerque, was sentenced to 15 years and eight months in prison. On May 3, Porcha pleaded guilty to one count of carjacking, one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence, one count of attempted bank robbery with a dangerous weapon, and one count of being a felon in possession of a firearm and ammunition.
On Feb. 3, 2019, in the parking lot of Presbyterian Hospital in Albuquerque, Porcha approached a victim who was seated in his vehicle and asked the victim for a cigarette or a lighter. Porcha then pointed a handgun at the victim and threatened to shoot him if he did anything. Porcha entered the passenger seat and ordered the victim to drive the vehicle to a nearby accomplice, Chaz Estrada. Porcha then ordered the victim to get out of the vehicle, after which Estrada entered the driver seat and the two fled in the victim’s vehicle.
Later that day, Porcha approached another victim as she was at a drive-up ATM. Porcha pointed the handgun at the victim and demanded that she empty her bank account. The victim refused and pushed the gun downward. The gun discharged and the bullet passed between the victim’s legs. Porcha ran back to the stolen vehicle and fled with Estrada driving.
A short time later, law enforcement stopped the stolen vehicle. Porcha and Estrada attempted to flee on foot but were arrested. The handgun and ammunition were found in the vehicle.
On May 26, 2020, Estrada, 34, of Albuquerque, pleaded guilty to attempted bank robbery with a dangerous weapon, being an accessory after the fact, and being a felon in possession of a firearm and ammunition. On Sept. 15, 2020, Estrada was sentenced to eight years and one month in prison, to be followed by three years of supervised release.
Upon his release from prison, Porcha will be subject to five years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Albuquerque Police Department. Assistant United States Attorney Timothy Trembley prosecuted the case.
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Monday 12 September 2022
West Haven Man Admits Trafficking Cocaine Through the U.S. MailRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JEAN MANGUAL-CASTRO, 35, of West Haven, pleaded guilty today before U.S. District Judge Sarala V. Nagala in Hartford to a cocaine trafficking offense.
According to court documents and statements made in court, an investigation headed by the FBI’s New Haven Safe Streets/Gang Task Force and the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force revealed that Mangual-Castro was orchestrating shipments of cocaine through the U.S. Mail from Puerto Rico. On December 20, 2021, after investigators identified a suspicious package that had been delivered to the West Haven residence of Mangual-Castro’s mother, investigators conducted a court-authorized search of the residence and seized approximately two kilograms of cocaine, a Rolex watch, jewelry, and approximately $2,900 in cash. During the investigation, law enforcement also found at another location approximately three kilograms of cocaine that had been mailed from Puerto Rico to Connecticut at Mangual-Castro’s direction. Investigators identified more than 30 suspicious parcels that had been shipped from Puerto Rico to addresses connected to Mangual-Castro in Connecticut.
Mangual-Castro pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. Judge Nagala scheduled sentencing for December 5.
Mangual-Castro has been detained since his arrest on December 20, 2021.
The FBI’s New Haven Safe Streets/Gang Task Force includes participants from the New Haven Police Department, Milford Police Department, East Haven Police Department, West Haven Police Department, Connecticut State Police and the Connecticut Department of Correction. The U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden and Town of Groton Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Kenneth L. Gresham through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Two Nigerian Nationals Sentenced to Prison for $2 Million Internet Fraud ScamRead the Press Release
MINNEAPOLIS – Two men have been sentenced to prison for stealing more than $2 million from victims of business email compromise and romance fraud schemes, announced United States Attorney Andrew M. Luger.
According to court documents, beginning in 2016 through May 2021, Olumide Obidare, 29, and Stephen Oseghale, 29, conspired with each other to use fictitious and stolen identities to engage in business email compromise (BEC) fraud schemes and pursue fraudulent romantic relationships online. As part of the scheme, the defendants obtained false identification documents, including passports and driver’s licenses, and used them to open bank accounts at various banks throughout the United States. The defendants transferred the proceeds of their online romance fraud scams and BEC schemes to bank accounts under their control. In total, the defendants defrauded victims of approximately $2,114,893.91.
On March 14, 2022, Obidare pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. Earlier today, U.S. District Court by Judge Nancy E. Brasel sentenced Obidare to 132 months in prison followed by three years of supervised release and ordered him to pay $1,955,507.53 in restitution. Oseghale, who pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft, was sentenced on August 16, 2022, to 80 months in prison followed by three years on supervised release and ordered to pay $453,889.27 in restitution.
This case is the result of an investigation conducted by the FBI.
This case was prosecuted by Assistant U.S. Attorney Kimberly A. Svendsen and former Assistant U.S. Attorney Miranda E. Dugi.
Two Nigerian Nationals Indicted for Fraud Scheme Targeting Dozens of Public and Private InstitutionsRead the Press Release
PORTLAND, Ore.—An indictment has been unsealed in federal court charging two Nigerian nationals for attempting to steal $25 million from nearly two dozen public and private entities around the United States, including at least one in Oregon.
Efeturi Ariawhorai aka Efeturi Simeon, 35, a dual citizen of Nigeria and Vanuatu who most recently resided in the United Arab Emirates, and Ikenna Nwajiaku, 41, a Nigerian national believed to be residing in or near Lagos, Nigeria, have been charged in an 11-count indictment with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.
“Federal law enforcement is determined to use every tool and capability it has to pursue cyber criminals and retrieve money mistakenly sent to unknown bank accounts. We applaud the local victim in this case for quickly reporting the crime and giving authorities the best possible chance at retrieving their money. Unfortunately, many of these situations go a different and very costly way. When in doubt, we encourage anyone who thinks they are the victim of a cyber crime to report immediately to the FBI. Time is of the essence,” said Assistant United States Attorney Quinn Harrington, Chief of the Cyber and National Security Unit of the U.S. Attorney’s Office for the District of Oregon.
“The level of greed it takes to steal from schools and hospitals, especially during the height of a global pandemic, is beyond disturbing,” said Special Agent in Charge Kieran L. Ramsey. “Through quick action from many of these victims the FBI, with our Recovery Asset Team, was able to freeze funds and return a majority of the stolen money. In fact, we were able to recover the total loss of nearly $3 million for a victim in Oregon and keep that money out of the hands of criminals. If you are the victim of a cyber intrusion or fraud scheme please reach out to the FBI as soon as possible, we are here to help.”
According to the indictment, beginning in June 2019 and continuing until January 2021, Ariawhorai and Nwajiaku conspired with one another and others known and unknown to defraud various public and private entities located throughout the U.S., including numerous school districts, universities, colleges, and hospitals. As part of their scheme, Ariawhorai and Nwajiaku would contact organizations by email; impersonate employees of the targeted organization or professionals from other entities doing business with the target organization, such as construction companies; and convince the organizations to send payments to bank accounts controlled by third parties acting on Ariawhorai and Nwajiaku’s behalf.
To conceal their fraudulent activity, Ariawhorai and Nwajiaku used false names and various identity-concealing technologies including virtual private networks, compromised servers, and leased infrastructure. Ariawhorai and Nwajiaku would also register email addresses and internet domain names with slight variations on the names of real companies to trick victim organizations.
In total, in just over a year and a half, Ariawhorai and Nwajiaku attempted to defraud 20 victim organizations out of approximately $25.2 million. 15 of the victim organizations lost a combined $6.2 million as a result of the scheme.
Conspiracy to commit wire fraud and wire fraud are punishable by up to 20 years in federal prison and three years’ supervised release. Aggravated identity theft is punishable by up to two years in federal prison and one year of supervised release per count of conviction.
Ariawhorai and Nwajiaku are both fugitives. On November 25, 2021, Ariawhorai was arrested in Italy by Italian authorities and the United States made a formal request for his extradition. However, Ariawhorai fled house arrest prior to his transfer to the District of Oregon.
This case was investigated by the FBI. It is being prosecuted by AUSA Harrington.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
The FBI’s Recovery Asset Team (RAT), a component of the Internet Crime Complaint Center (IC3), was established in 2018 to streamline communication with financial institutions and assist FBI field offices with freezing funds for victims who made transfers to domestic accounts under fraudulent pretenses. In 2021, RAT assisted with 1,726 incidents nationwide that together involved losses exceeding $443 million. RAT helped freeze more than $328 million of these potential losses, a 74-percent success rate.
If you are the victim of an online or internet-enabled crime, please file a report online with IC3 at www.ic3.gov or by calling your local FBI field office as soon as possible. For RAT to be effective, individuals and organizations must report crimes immediately and include all pertinent information, including account details.
Tippee Pleads Guilty in First Ever Cryptocurrency Insider Trading CaseRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that NIKHIL WAHI, the brother of a former product manager at Coinbase Global, Inc. (“Coinbase”), pled guilty to one count of conspiracy to commit wire fraud in connection with a scheme to commit insider trading in cryptocurrency assets by using confidential Coinbase information about which crypto assets were scheduled to be listed on Coinbase’s exchanges. WAHI was arrested in July of this year and pled guilty before U.S. District Judge Loretta A. Preska.
U.S. Attorney Damian Williams said: “Less than two months after he was charged, Nikhil Wahi admitted in court today that he traded in crypto assets based on Coinbase’s confidential business information to which he was not entitled. For the first time ever, a defendant has admitted his guilt in an insider trading case involving the cryptocurrency markets. Today’s guilty plea should serve as a reminder to those who participate in the cryptocurrency markets that the Southern District of New York will continue to steadfastly police frauds of all stripes and will adapt as technology evolves. Nikhil Wahi now awaits sentencing for his crime and must also forfeit his illicit profits.”
According to the allegations in the Indictment, and statements made in public court proceedings:
At all relevant times, Coinbase was one of the largest cryptocurrency exchanges in the world. Coinbase users could acquire, exchange, and sell various crypto assets through online user accounts with Coinbase. Periodically, Coinbase added new crypto assets to those that could be traded through its exchange, and the market value of crypto assets typically significantly increased after Coinbase announced that it would be listing a particular crypto asset. Accordingly, Coinbase kept such information strictly confidential and prohibited its employees from sharing that information with others, including by providing a “tip” to any person who might trade based on that information.
Beginning in approximately October 2020, ISHAN WAHI worked at Coinbase as a product manager assigned to a Coinbase asset listing team. In that role, ISHAN WAHI was involved in the highly confidential process of listing crypto assets on Coinbase’s exchanges and had detailed and advanced knowledge of which crypto assets Coinbase was planning to list and the timing of public announcements about those crypto asset listings.
On multiple occasions between July 2021 and May 2022, after getting tips from ISHAN WAHI as to which crypto assets Coinbase was planning to list on its exchanges, NIKHIL WAHI used anonymous Ethereum blockchain wallets to acquire those crypto assets shortly before Coinbase publicly announced that it was listing these crypto assets on its exchanges. Following Coinbase’s public listing announcements, on multiple occasions NIKHIL WAHI sold the crypto assets for a profit.
To conceal his purchases of crypto assets in advance of Coinbase listing announcements, NIKHIL WAHI used accounts at centralized exchanges held in the names of others, and transferred funds, crypto assets, and proceeds of their scheme through multiple anonymous Ethereum blockchain wallets. NIKHIL WAHI also regularly created and used new Ethereum blockchain wallets without any prior transaction history in order to further conceal his involvement in the scheme.
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NIKHIL WAHI, 26, of Seattle, Washington, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. NIKHIL WAHI is scheduled to be sentenced by Judge Preska on December 13, 2022, at 12:00 p.m.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation. He also acknowledged the assistance of the Justice Department’s National Cryptocurrency Enforcement Team, as well as that of the Securities and Exchange Commission, which separately initiated civil proceedings against WAHI.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Noah Solowiejczyk and Nicolas Roos are in charge of the prosecution.
Texas Man and Woman Indicted for Human Trafficking OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that on September 9, 2022 GREGORY MASSEY, age 28, and PATRICIA HART, age 24, were charged in an 11-count indictment by a federal grand jury for violations of the Federal Trafficking Victims Protection Act, specifically, conspiracy to entice individuals to travel in interstate commerce to engage in prostitution, transportation of an individual in interstate commerce to engage in prostitution, and enticement of an individual to travel in interstate commerce to engage in prostitution.
In Count One, MASSEY and HART are charged with conspiracy to commit sex trafficking, in violation of Title 18, United States Code, Sections 1594(a) and (c). If convicted, they each face a maximum sentence of life imprisonment, up to a $250,000 fine, up to 5 years of supervised release, and a $100 mandatory special assessment fee.
In Count Two, MASSEY and HART are charged with sex trafficking by force, fraud, or coercion, in violation of Title 18, United States Code, Sections 1591(a)(1), 1591(a)(2), and 1591(b)(1). If convicted they each face a minimum of 15 years and a maximum of life imprisonment, up to a $250,000 fine, up to 5 years of supervised release, and a $100 mandatory special assessment fee.
In Counts Three through Five, MASSEY and HART are charged with interstate transportation and use of an interstate facility with the intent to carry on unlawful activity, in violation of Title 18, United States Code, Sections 1952(a)(3) and 2. If convicted, per count, they each face a maximum sentence of 20 years imprisonment, up to a $250,000 fine, up to 3 years of supervised release, and a $100 mandatory special assessment fee.
In Count Six, MASSEY and HART are charged with transportation to engage in prostitution, in violation of Title 18, United States Code, Section 2421. If convicted, they each face a maximum sentence of 10 years imprisonment, up to a $250,000 fine, up to 3 years of supervised release, and a $100 mandatory special assessment fee.
In Count Seven, HART is charged with possession of documents in furtherance of trafficking, in violation of Title 18, United States Code, Section 1592. If convicted, she faces up to five years imprisonment, up to a $250,000 fine, up to 3 years of supervised release, and a $100 mandatory special assessment fee.
In Count Eight, MASSEY is charged with being a felon in possession of a firearm, in violation of the Armed Career Criminal Act, pursuant to Title 18, United States Code, Sections 922(g)(1) and 924(e). If convicted, he faces a minimum of 15 years and a maximum of life imprisonment, up to a $250,000 fine, up to 5 years of supervised release, and a $100 mandatory special assessment fee.
U. S. Attorney Evans reiterated that the indictment is merely charges and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case was investigated by the Louisiana State Police, Homeland Security Investigations, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Melissa E. Bücher of the U.S. Attorney’s Office.
Syracuse Man Sentenced to 51 Months for Committing Wire Fraud and Filing False Tax ReturnsRead the Press Release
SYRACUSE, NEW YORK – Glen Zinszer, age 52, of Liverpool, New York was sentenced today to serve 51 months in federal prison for committing wire fraud and filing false tax returns, announced United States Attorney Carla B. Freedman, Thomas Fattorusso, Special Agent in Charge, New York Field Office, Internal Revenue Service – Criminal Investigation (“IRS-CI”), and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his previous guilty plea, Zinszer admitted that he began operating the Brazzlebox company in 2012, which he represented to investors would be like Facebook for business. Beginning in April 2013 and continuing until approximately the summer of 2016, Zinszer made false representations to investors about how Brazzlebox was doing to cause them to invest more money and stay invested. For example, Zinszer inflated Brazzlebox’s user numbers and told employees to create fake user accounts to inflate those numbers, misrepresented purportedly revenue-generating strategic partnerships, forged documents to effectuate those falsehoods, and forged a letter of intent to purchase Brazzlebox for millions of dollars.
From 2012 through 2016, Zinszer used a substantial portion of the money invested in Brazzlebox to finance his lifestyle rather than to operate the business, including paying mortgages on his homes and purchasing concert tickets and jewelry. Although Zinszer used money from Brazzlebox to finance his lifestyle, he willfully filed false tax returns underreporting his income in tax years 2013-2016.
Senior United States District Judge Frederick J. Scullin, Jr. also imposed a 3 year term of supervised release, which will start after Zinszer is released from prison, and ordered him to pay restitution in the amount of $3,049,933 to his victims including the government, forfeiture in the amount of $2,763,811, and a $200 special assessment.
Zinszer’s case was investigated by the Internal Revenue Service – Criminal Investigation (“IRS-CI”) and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorneys Michael D. Gadarian and Geoffrey J.L. Brown.
Syracuse Man Sentenced for Naturalization FraudRead the Press Release
SYRACUSE, NEW YORK - Fadl Mohamad Alharbi, age 51, of Syracuse, was sentenced today in federal court in Syracuse to a $10,000 fine and to two years of supervised release following his conviction for naturalizing contrary to law and submitting a false statement in a passport application. The sentence was announced by United States Attorney Carla B. Freedman and Special Agent-in-Charge Keith J. Byrne, New York Field Office, U.S. Department of State-Diplomatic Security Service (DSS).
Alharbi was convicted following a jury trial in August 2021 in Binghamton, New York. The trial evidence revealed that Alharbi, a native of Yemen, used a false name and falsely posed as the son of his uncle, who was a U.S. citizen (and is now deceased), to obtain lawful permanent residency in the United States and, later, to naturalize as a U.S. citizen and to apply for a passport. The defendant later admitted in interviews with immigration and Department of State officials that he knew these facts about his identity were false and that he had submitted these false statements to naturalize and to obtain a passport.
Alharbi will also be denaturalized (lose his U.S. citizenship) as a result of his conviction.
This case was investigated by the U.S. Department of State-Diplomatic Security Service with assistance from United States Citizenship and Immigration Services (USCIS), and it was prosecuted by Assistant U.S. Attorney Michael F. Perry.
South Carolina Woman Sentenced in Social Security Fraud SchemeRead the Press Release
Columbia, South Carolina – Crystal Deveaux, 61, of Eastover, was sentenced to more than a year in federal prison after pleading guilty to theft of Government funds totaling of over $258,000.00.
Evidence presented to the Court showed Deveaux unlawfully obtained Social Security Retirement Insurance Benefits (RIB) on behalf of her deceased grandmother, which she used for her own personal benefit from June 2001 through December 2020. While acting as a representative for her deceased grandmother, Deveaux failed to notify the Social Security Administration of the death and continued to cash and deposit the RIB checks she received on her grandmother’s behalf. Additionally, Deveaux caused the Social Security Administration to pay an additional $22,840.10 in Medicare premiums on behalf of the deceased grandmother. Further, Deveaux was a Supplemental Security Income (SSI) recipient herself and was wrongly paid $22,875.00 as she had unreported income; and she failed to report her husband’s Veteran’s Administration (VA) benefits, causing her to be paid another $23,751.42 by the Social Security Administration.
United States District Judge Sherri A. Lydon sentenced Deveaux to 15 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Deveaux was ordered to pay restitution to the Social Security Administration.
The case was investigated by the Social Security Administration-Office of Inspector General, and was prosecuted by Assistant U.S. Attorney T. DeWayne Pearson.
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Sioux City Woman Pleads Guilty to Possessing Meth and FirearmsRead the Press Release
Alicia Loraine Robinson, 36, from Sioux City, Iowa, pled guilty September 6, 2022, in federal court in Sioux City. Robinson was convicted of possession with intent to distribute methamphetamine and being a prohibited person in possession of firearms.
Evidence at the plea hearing showed that on December 30, 2021, in Sioux City, Iowa, law enforcement conducted a traffic stop of a vehicle Robinson was driving. Law enforcement smelled marijuana emanating from the car and noted Robinson was clutching her purse tightly on her lap. Robinson admitted she smoked marijuana in the car and that she was suspended from driving. A search of the car found drug paraphernalia and a .380 firearm in Robinson’s purse. Law enforcement then searched Robinson’s home and found a 12-gauge shotgun, over 50 grams methamphetamine, marijuana, and other distribution-related items. On July 6, 2021, law enforcement executed a search warrant at another home associated with drug distribution. Amongst other illicit items, law enforcement found a Glock .40 handgun that had been owned by Robinson. Robinson admitted to possessing the firearms and being a user of marijuana and methamphetamine. A person that uses controlled substances is prohibited from possessing firearms.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Robinson remains in custody of the United States Marshal pending sentencing. On the drug conviction, Robinson faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $5,000,000 fine, and at least four years of supervised release following any imprisonment. On the firearm conviction, Robinson faces a maximum possible sentence of 10 years’ imprisonment, a $250,000 fine, and not more than three years of supervised release.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4010. Follow us on Twitter @USAO_NDIA.
Sex offender convicted of sharing child pornography in two statesRead the Press Release
HOUSTON – A 43-year-old registered sex offender has admitted to distributing and possessing child pornography in two separate federal cases, announced U.S. Attorney Jennifer B. Lowery.
Timothy Lee Tyler, pleaded guilty to distributing child pornography in 2020 and to possessing child pornography in both 2019 and 2020.
As part of his plea, Tyler admitted he was staying with friends in Conroe in September 2020. During that time, he started distributing child pornography from his cellphone on the Kik messenger app. When Tyler was arrested, his cellphone contained hundreds of images and videos depicting bestiality, bondage and sexual abuse of children. Tyler also admitted to possessing hundreds of child pornography files on a flash drive while residing in Milwaukee in June 2019.
U.S. District Judge Andrew S. Hanen will impose sentence Dec. 19. At that time, Tyler faces up to 40 years on the distribution of child pornography charge and up to 20 years for each conviction of possessing child pornography. Additionally, each charge is punishable by a $250,000 fine and mandatory restitution.
Tyler, of Milwaukee, Wisconsin, will remain in custody pending sentencing.
The FBI conducted the investigation with the assistance of Montgomery County Internet Crimes Against Children Task Force and Conroe Police Department.
Assistant U.S. Attorneys Stephanie Bauman and Sherri Zack are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Santa Ana Man Sentenced to 5 Years in Prison for Deliberately Aiming Laser Pointer Beam at In-Flight O.C. Sheriff’s Department HelicopterRead the Press Release
LOS ANGELES – An Orange County man was sentenced today to 60 months in federal prison for intentionally aiming a laser pointer’s beam at an in-flight Orange County Sheriff’s Department helicopter, an act that blinded the crew for several seconds.
Eric Jayson Suarez, 48, of Santa Ana, was sentenced by United States District Judge Stephen V. Wilson. Suarez pleaded guilty in November 2021 to one count of aiming a laser pointer at an aircraft.
On the evening of April 13, 2020, an Orange County Sheriff’s Department helicopter was flying above the intersection of Bristol and First streets in Santa Ana. Suarez, sitting alone in his car that was parked approximately 20 blocks away, saw the helicopter in flight, intentionally pointed a high-intensity green laser beam at the aircraft and struck the cockpit at least four times with his laser pointer’s beam.
Suarez’s laser beam blinded the helicopter’s pilot and tactical flight officer for several seconds, impacting their ability to see the ground and to detect hazards and jeopardizing the safety of the flight crew, the helicopter, other nearby aircraft, and people on the ground.
Law enforcement determined Suarez’s location and followed him to a retail shopping center in Santa Ana. Shortly before officers stopped Suarez’s car in a parking lot, Suarez threw his laser pointer out the car’s window. Law enforcement later recovered the laser pointer, approximately 50 feet from where they stopped Suarez’s car.
In February 2015, Suarez was convicted in Orange County Superior Court of unlawful discharge of a laser at an occupied aircraft. In March 2020, law enforcement officers responded to a report of a green laser beam that shone from Suarez’s backyard and struck a helicopter approximately eight times. That night, an officer warned Suarez that it would be “disastrous” because it could blind the pilot and cause the aircraft to crash, according to court documents.
The FBI, the Orange County Sheriff’s Department, and the Santa Ana Police Department investigated this matter.
Assistant United States Attorney Varun Behl of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.
Sacramento Man Sentenced to 30 Years in Prison for Sex Trafficking of a MinorRead the Press Release
SACRAMENTO, Calif. — Robert Pierre Duncan, 26, of Sacramento, was sentenced today to 30 years in prison for a conspiracy to engage in sex trafficking of a child, sex trafficking of a child, and escape from custody, U.S. Attorney Phillip A. Talbert announced.
On March 8, 2022, a federal jury found Duncan guilty on all counts of a three-count superseding indictment after a seven–day trial. According to evidence presented at trial, between September and October 2018, Duncan recruited a 17-year-old girl to engage in prostitution in Oakland and San Francisco. He frequently drove the victim to areas known for prostitution activity where he caused her to have sex with strangers for money, which he kept. Duncan also posted online prostitution ads depicting the victim and harbored the victim at an Oakland motel so she could have sex with sex buyers. Duncan was on parole for assault with a semiautomatic firearm at the time.
In late September 2018, law enforcement officers recovered the victim and sent the victim to a children’s group home in Woodland. However, a few weeks later, Duncan, working with his co-conspirator, Eva Christian, 25, extracted the victim from the children’s group home in the middle of the night. The next day, Duncan put the victim back to work engaging in prostitution on the streets of Oakland. Duncan kept his child victim at his Sacramento apartment thereafter. He also managed his trafficking of her from this location, using his cellphone and a GPS tracking application on that phone to monitor and direct the victim’s prostitution activity in Oakland.
On May 31, 2019, Duncan was arrested, but immediately broke free and fled through Midtown Sacramento until he was finally apprehended again several blocks away from the scene of his initial arrest. He fought the arresting officer so violently that the officer required surgery for an injury he sustained while arresting Duncan.
Evidence at trial also showed that Duncan sent a letter to Christian—his co-defendant—in which he urged her to lie about Duncan’s knowledge that his trafficking victim was 17 years old. Duncan’s letter encouraged his co‑defendant to claim that she could not remember various details about Duncan’s trafficking of the child victim.
This case was the product of an investigation by the Federal Bureau of Investigation, the California Department of Justice’s Special Operations Unit, the Sacramento County Sheriff’s Office, the Woodland Police Department, and the Oakland Police Department with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Sam Stefanki prosecuted the case.
On April 8, 2021, co-defendant Christian pleaded guilty to one count of misprision of a felony. She is scheduled to be sentenced on Sept. 19, 2022.
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.
St. Croix Man Sentenced to 51 Months on Felon in Possession ConvictionRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Jahseen Simmonds, 30, of St. Croix, was sentenced to 51 months imprisonment followed by three years of supervised release and $1,000 fine by District Judge Wilma Lewis on the charge of felon in possession of a firearm.
According to court documents, on September 3, 2020, Virgin Islands Police Officers were patrolling the John F. Kennedy housing community. As they approached Building 29, officers observed a group of male individuals sitting in the archway of the building. One of those individuals, later identified as Simmonds, immediately ran up the stairs of the building and into an apartment on the second floor. Officers knocked on the apartment door and Simmonds exited the apartment and admitted to the officers that he did not live at that address. Police again knocked on the door of the apartment and two residents came to the door and stated that they did not give Simmonds permission to enter their apartment. The residents later provided consent to search their apartment and officers found a firearm on the balcony of the apartment. The residents stated that the firearm was not on the balcony before Simmonds ran into their apartment, and that the firearm did not belong to either of the residents.
An inspection of the firearm revealed that one live 9mm round was chambered and 15 live 9mm rounds were in the magazine. Along with the firearm, officers seized an extended magazine that was loaded with 31 live 9mm rounds. Simmonds was previously convicted of a felony offense.
This case was investigated by the Virgin Islands Police Department and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Romanian National Sentenced to Prison for Role in International Online Auction Fraud SchemeRead the Press Release
AKRON - Costel Alecu, 38, of Bucharest, Romania, was sentenced to more than five and a half years in prison on September 7, 2022, by U.S. District Judge John R. Adams for his role in an international criminal network engaged in a wide-ranging online auction fraud scheme that targeted victims in the Northern District of Ohio and elsewhere in the United States.
In addition to the prison sentence, Alecu was ordered to pay a special assessment of $12,000 with restitution to be determined at a later date.
According to court documents, from July 2008 through August 2020, Alecu and codefendant Madalin Ghinea, 35, of Alexandria, Romania, were part of a conspiracy that devised a scheme to entice victims in the United States and elsewhere to purchase items online, including vehicles and other high-value items, that did not exist and to obtain the personal identifying information of their victims.
As a result, victims suffered a combined loss of approximately $3 million USD.
As part of the scheme, Alecu and other conspiracy members created accounts on various auction websites to post advertisements for goods that did not exist. In certain cases, Alecu and others created and used fictitious websites, email addresses and other forms of communication that contained counterfeit trademark information designed to convince their victims that the advertisements were genuine.
In addition, court documents state that the conspirators used a number of fraudulent online communication templates and email addresses to deceive victims into believing that they were communicating with legitimate business representatives when, in fact, they were speaking with a member of the conspiracy.
Court documents state that Alecu and others in the conspiracy then used a network of money launderers and money mules to obtain payment from their victims and transfer the funds overseas. Alecu and the conspirators then used the stolen personal identifying information of their victims, credit cards and bank accounts to launder money overseas and fund the operation of their network by purchasing items such as virtual private networks and domain names.
Romanian authorities arrested Alecu and Ghinea in March 2021.
Madalin Ghinea was sentenced on June 1, 2022, to more than four years in prison and ordered to pay $450,000.00 in restitution for his role in the scheme.
This case was investigated by the Cleveland FBI and IRS Criminal Investigation (CI) with help from authorities in Romania. This case was prosecuted by Assistant U.S. Attorneys Duncan T. Brown and Brian S. Deckert of the Northern District of Ohio with assistance provided by the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section.
Repeat Immigration Offender and Illegal Alien Pleads Guilty to Illegal ReentryRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Gerardo Ruiz-Martinez (21, Zitácuaro, Mexico) has pleaded guilty to illegally reentering the United States after having been deported. Ruiz-Martinez faces a maximum penalty of two years in federal prison.
According to court documents, Ruiz-Martinez was removed from the United States to Mexico on March 25, 2014, through Brownsville, Texas, and again on September 2, 2020, through the Miami International Airport. On May 3, 2022, deputies from the Hillsborough County Sheriff’s Office arrested Ruiz-Martinez for a theft he committed in Tampa. Ruiz-Martinez stated that he was a citizen of Mexico and that he was in the United States illegally.
This case was investigated by U.S. Customs and Border Protection – U.S. Border Patrol, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney David W.A. Chee.