Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
4 October 2022
Three Philadelphia-Area Men Charged in Connection with USPS Arrow Key, Mail Theft from Blue Collection BoxesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Sam Wolo, 21, of Philadelphia, PA; Bruno Nyanue, 20, also of Philadelphia, PA; and Gransae Manue, 20, of Clifton Heights, PA; were arrested and charged by Indictment with conspiracy to commit bank fraud, bank fraud, aggravated identity theft, conspiracy to commit mail theft, possession of stolen mail, and robbery of a postal carrier. The charges arise from the defendants’ alleged schemes to steal checks from the United States mail, and to then fraudulently alter and deposit the stolen checks.
The Indictment specifically alleges that, on December 22, 2021, Wolo, Nyanue, and Manue forcibly robbed a U.S. Postal Service (USPS) letter carrier of his Arrow Key, a USPS key used by letter carriers to access USPS blue collection boxes along their routes. The Arrow Key stolen by Wolo, Nyanue, and Manue opened USPS collection boxes in Drexel Hill, Pennsylvania, which the defendants used repeatedly to steal mail from boxes in that area.
As alleged in the Indictment, between December 2021 and February 2022, the co-conspirators “washed” and altered checks they stole from the mail that belonged to victims who had mailed checks in Drexel Hill. The defendants altered the stolen checks to make them payable to third parties, often in amounts greater than the checks’ original value, without the victims’ knowledge or consent. As part of the scheme, the defendants deposited the fraudulently washed and altered checks into those third-party accounts, and in at least some instances, withdrew some of the fraudulently deposited funds. The Indictment further alleges that approximately 370 stolen checks and nine stolen money orders were recovered from defendant Wolo’s apartment. The Arrow Key stolen by the defendants from the USPS letter carrier in Drexel Hill, as well as two stolen checks and two money orders, were also recovered from defendant Wolo’s vehicle. Altogether, the value of stolen checks and money orders recovered from defendant Wolo’s apartment and car totaled more than $171,000.
“The United States Postal Service provides an essential service to nearly every American, often conveying income, bills and expenses which are the basis of many livelihoods,” said U.S. Attorney Romero. “If you choose to tamper with or steal U.S. mail for any reason, you can be assured that the federal government will conduct an intensive investigation and aggressive prosecution, as we intend to in this case.”
“People continue to use and rely on the U.S. Mail to pay bills, conduct business, send letters and cards, and send and receive goods, among other things,” said Raimundo Marreo, Inspector in Charge of the Philadelphia Division of the U.S. Postal Inspection Service. “They should be able do these things without fear that their mail will be stolen. Investigating mail theft and violence against mail carriers are core missions of the Postal Inspection Service and we will work tirelessly, with our partners in local law enforcement and in state and federal prosecutors offices, to investigate and prosecute individuals who commit violence against Postal employees and who steal the mail. I want to thank the United States Attorney’s Office and investigators from the Upper Darby Police Department for their help in investigating and prosecuting this case against these three individuals.”
If convicted, defendant Wolo faces a maximum of 236 years in prison, defendant Nyanue faces a maximum of 64 years in prison, and defendant Manue faces a maximum of 172 years in prison. All three defendants could face fines of at least $3 million, with defendant Wolo facing a possible fine of up to $8.5 million.
The case was investigated by the U.S. Postal Inspection Service and the Upper Darby Police Department, and is being prosecuted by Assistant United States Attorney Eileen Castilla Geiger.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
The U.S. Attorney’s Office for the Western District of Texas Joins Transnational Elder Fraud Strike Force to Protect Older AmericansRead the Press Release
SAN ANTONIO – The U.S. Attorney’s Office for the Western District of Texas announced today that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice, it is joining the Justice Department’s Transnational Elder Fraud Strike Force as one of 14 additional U.S. Attorney’s Offices. Since 2019, current Strike Force members — including the Department’s Consumer Protection Branch, six U.S. Attorneys’ Offices, the FBI, U.S. Postal Inspection Service and Homeland Security Investigations — have brought successful cases against the largest and most harmful global elder fraud schemes and worked with foreign law enforcement to disrupt criminal enterprises, disable their infrastructure and bring perpetrators to justice.
Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat sophisticated fraud schemes that target or disproportionately impact older adults. The expansion will increase the total number of U.S. Attorneys’ Offices comprising the Strike Force from six to 20, including all of the U.S. Attorneys’ Offices in the states of California, Arizona, Texas, Florida, Georgia, Maryland and New York.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“Older adults are often exploited and victimized by fraud schemes that deplete their financial resources at a time in their lives when those resources are most needed and most often irreplaceable,” said U.S. Attorney Ashley C. Hoff. “We are committed to pursuing justice for older adults throughout communities in the Western District of Texas. We look forward to working with other members of the Transnational Elder Fraud Strike Force and our state and local law enforcement partners in this pursuit.”
The Strike Force expansion will further enhance of the Department’s existing efforts to protect older adults from fraud and exploitation. During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged. The matters tackled by the Department and its partners ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims.
This past year, the Austin Division of the Western District of Texas prosecuted, Harry Cole, a Nigerian citizen, who was involved in a fraudulent “sweepstakes” scheme that targeted the elderly with losses in excess of $260 million. Cole was sentenced to 166 months in prison and ordered to forfeit $850,000 and to pay $111,870.25 in restitution. The San Antonio Division prosecuted Scherry Lynn Moses, an adult day care owner, for fleecing elderly victims out of their Medicaid and Social Security benefits. Moses was sentenced to 60 months in prison and ordered to pay $1,784,817.96 in restitution. The Court also entered a money judgment against Moses in the amount of $1,784,817.96, representing the proceeds that she obtained as part of the scheme.
The Department also highlighted two other efforts, including success in returning money to victims and efforts to combat grandparent scams.
In the past year, the Department has notified over 550,000 people that they may be eligible for payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
###
The U.S. Attorney’s Office for the Middle District of Georgia Joins Transnational Elder Fraud Strike Force to Protect Older AmericansRead the Press Release
MACON, Ga. – The U.S. Attorney’s Office for the Middle District of Georgia today announced that as part of its continuing efforts to protect older adults and to bring perpetrators of fraud schemes to justice, it is joining the Justice Department’s Transnational Elder Fraud Strike Force, as one of 14 additional U.S. Attorney’s Offices.
Since 2019, current Strike Force members — including the Department’s Consumer Protection Branch, six U.S. Attorneys’ Offices, FBI, U.S. Postal Inspection Service and Homeland Security Investigations — have brought successful cases against the largest and most harmful global elder fraud schemes and worked with foreign law enforcement to disrupt criminal enterprises, disable their infrastructure and bring perpetrators to justice. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat sophisticated fraud schemes that target or disproportionately impact older adults. The expansion will increase the total number of U.S. Attorneys’ Offices comprising the Strike Force from six to 20, including all of the U.S. Attorneys’ Offices in the states of Georgia, Florida, Maryland, New York, Texas, Arizona and California.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“Our engagement in the Transnational Elder Fraud Strike Force comes at a time when we are seeing bad actors using any means necessary to criminally extract money from unsuspecting citizens here in the Middle District of Georgia and nationwide,” said U.S. Attorney Peter D. Leary. “The scams are diabolical, robbing money and dignity from people who have worked and sacrificed a lifetime. Working with our law enforcement partners in Georgia, our office will vigorously pursue federal prosecution against those intent on defrauding our elder citizens.”
The Strike Force expansion will further enhance of the Department’s existing efforts to protect older adults from fraud and exploitation. During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged. The matters tackled by the Department and its partners ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims and combat grandparent scams.
This past year, the U.S Attorney’s Office for the Middle District of Georgia pursued fraud cases targeting older Americans, including the recent prosecutions of individuals involved in a nationwide gift card scam. Hundreds of Americans, many elderly, were victimized as part of the larger scheme to criminally extract money from people. For more information about these prosecutions, please visit: https://www.justice.gov/usao-mdga/pr/two-defendants-plead-guilty-resulting-separate-investigations-complex-wal-mart-gift.
As part of the U.S. Attorney’s Office for the Middle District of Georgia ongoing elder fraud efforts, the office engages in outreach to the community to raise awareness about scams, exploitation and preventing victimization. The office has a dedicated Elder Justice Fraud Coordinator—Assistant U.S. Attorney Sean Deitrick—who is focused on the successful prosecution of elder abuse cases, along with offering opportunities for education and training. Citizen groups and law enforcement agencies interested in learning more about training opportunities can contact Pam Lightsey, Law Enforcement Coordinator for the Middle District of Georgia, at [email protected].
In the past year, the Department has notified over 550,000 people that they may be eligible for payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Attorney’s Office for the District of Colorado Takes Part in Justice Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
DENVER – The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged. This past year, the U.S. Attorney's Office for the District of Colorado secured an order for more than $880,000 in restitution against two defendants who perpetrated a lottery scam on an elderly woman residing Estes Park, Colorado. The first defendant was convicted following a jury trial and received a sentence of 108 months in prison. The second defendant was extradited from his home country of Jamaica, elected to plead guilty, and received a sentence of 63 months in prison.
Additionally, this Office helped an elderly Arapahoe County resident recover $22,000 from an investment loan scheme. The defendant in that case was on federal probation after scamming an elderly victim in Oregon out of almost $3 million dollars and gambling all of the victim’s funds away. This year, the defendant pled guilty to violating his probation, including by engaging in gambling and by obtaining the unauthorized loans from the Arapahoe County victim. He was sentenced in an additional 12 months of prison and a further two years of probation.
The Office also charged three individuals with conspiracy to commit money laundering, money laundering, and interstate transmission of a threatening communication, in case which alleges that the defendants told the victims that their identities had been connected to a criminal incident and threatened them with arrest and/or deportation if they failed to pay the “Government” large sums of money, as instructed. That case is ongoing.
As part of the Office’s elder fraud efforts, it engages in outreach to the community and industry to raise awareness about scams and exploitation and preventing victimization. This year, the District of Colorado is disseminating a public safety awareness video on grandparent scams, which are on the rise in this state and across the country.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 160,000 of those victims cashed checks totaling $62 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Video news release on Grandparents Scam Warning: https://youtu.be/7PNeN1qWYb4
Texas Woman Sentenced to 5 Years in Federal PrisonRead the Press Release
Memphis, TN – Bereniz Cavazos, 31, formerly of Texas, has been sentenced to 5 years in federal prison for possessing heroin with intent to distribute. Kevin G. Ritz, United States Attorney, announced the sentence today.
According to information presented in court, on October 6, 2021, investigators with the West
Tennessee Drug Task Force stopped a vehicle Cavazos was occupying, along with her two minor children. A search of the vehicle led to the recovery of approximately 5 kilograms of heroin.A federal grand jury returned a four-count indictment against Cavazos in October 2021. On May 17, 2022, Cavazos pled guilty to one count of possession of heroin with intent to distribute in violation of 21 U.S.C. § 841.
On October 3, 2022, United States District Judge Thomas L. Parker sentenced Cavazos to 5 years imprisonment to be followed by 5 years of supervised release. There is no parole in the federal system.
This case was investigatedby the Shelby County West Tennessee Drug Task Force and the Drug
Enforcement Administration (DEA).Deputy Criminal Chief Michelle Kimbril-Parks represented the government at the sentencing hearing.
###
Contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow
@WDTNNews on Twitter for office news and updates.
Texas Men Charged with Drug TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jose Torres, age 27, and Luis Gonzalez, age 26, of Texas, were indicted by a federal grand jury for cocaine trafficking.
According to United States Attorney Gerard M. Karam, the indictment charges Torres and Gonzalez with conspiracy to distribute more than five kilograms of cocaine, as well as possession with intent to distribute more than five kilograms of cocaine on September 29, 2022.
The investigation was conducted by the United States Drug Enforcement Administration (DEA), the Pennsylvania State Police and the Scranton Police Department. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles:
fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The charges carry a mandatory minimum sentence of ten years in prison. The maximum penalty under federal law is up to life in prison, 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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Spring Hill Man Sentenced to 8 Years in Prison for Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced to 96 months imprisonment and four years of supervised release on charges of violating federal firearms and drug laws, United States Attorney Cindy K Chung announced today.
United States District Judge Robert J. Colville imposed the sentence on Brandon Washington, age 36, formerly of the City’s Spring Hill neighborhood.
According to information presented to the court, on March 4, 2021, Washington delivered a quantity of cocaine to an undercover narcotics detective with the City of Pittsburgh Bureau of Police in a hotel located on the North Shore of Pittsburgh. On March 18, 2021, DEA agents and members of the Pittsburgh Bureau of Police executed federal search warrants on several rooms utilized by Washington in the same hotel where the undercover drug buy took place. During the search of the hotel rooms detectives located crack cocaine and a semi-auto handgun that was possessed by Washington in furtherance of his drug trafficking crimes.
Assistant United States Attorney Michael R. Ball 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 Brandon Washington.
Spencer Man Sentenced to More Than 19 years in Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced on September 30, 2022, in federal court in Sioux City.
On February 18, 2022, Armando Silva Reyes, 55, from Spencer, Iowa, pled guilty to one count of conspiracy to distribute methamphetamine and two counts of possession with intent to distribute methamphetamine.
At the plea and sentencing hearings, evidence showed that between January 2020 and February 2021, Silva Reyes and others were involved in a conspiracy to distribute pounds of methamphetamine in Northern Iowa. On at least two separate occasions, Silva Reyes distributed more than a quarter pound of pure methamphetamine to individuals cooperating with law enforcement. On February 3, 2021, defendant and others received approximately 3 pounds of methamphetamine utilizing the United States Postal Service at the Spencer post office.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Silva Reyes was sentenced to 235 months’ imprisonment and must serve a five-year term of supervised release following imprisonment. There is no parole in the federal system. Silva Reyes remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Iowa Great Lakes Drug Task Force, United States Postal Inspection Service, Iowa Division of Narcotics Enforcement, Clay County Sheriff’s Office, Buena Vista County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4040. Follow us on Twitter @USAO_NDIA.
South Georgia man sentenced to prison for distribution and possession of child pornographyRead the Press Release
WAYCROSS, GA: A Coffee County man has been sentenced to 15 years in federal prison after his conviction on child pornography charges.
Ashley Marshall Carter, 43, of Douglas, Ga., was sentenced to 180 months in prison after a U.S. District Court jury found him guilty in June 2022 of one count of Distribution of Child Pornography, and one count of Possession of Child Pornography, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Carter to pay $11,000 in restitution, to register as a sex offender, and to serve 12 years of supervised release after completion of his prison sentence. There is no parole in the federal system.
“Ashley Carter was found guilty by a jury of his peers, and is being held accountable for his crimes,” said U.S. Attorney Estes. “We commend our law enforcement partners for their outstanding work in identifying and removing these predators from our communities.”
As described in court, a task force officer working with Homeland Security Investigations identified electronic transfers of images of child exploitation originating from Carter’s Douglas address. During a subsequent search in February 2021, Carter was arrested after investigators removed multiple electronic devices from the home and identified more than 17,000 images of child pornography.
“This sentence should serve as a warning to those who are viewing, sharing or creating these disturbing images of children being abused,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners are committed to catching and prosecuting those involved in the exploitation of children.”
The case was investigated by Homeland Security Investigations and the Lowndes County Sheriff’s Office, with assistance from the Candler County Sheriff’s Office, the Coffee County Sheriff’s Office, and the Georgia Bureau of Investigation, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer J. Kirkland and Jeremiah L. Johnson.
This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Childhood. Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
South Florida Resident Sentenced to 35 Years in Prison for Production and Distribution of Child PornographyRead the Press Release
MIAMI – Billy Joe Gann, Jr., 32, of Sebring, has been sentenced to 420 months in federal prison for producing and distributing child pornography.
Court records show that in June of 2021, Gann began chatting online with a person whom he believed to be a woman living with her young daughter in Wisconsin. During the chats, Gann sent images and a video of a seven-year-old in lascivious poses and discussed his role in the girl’s sexual molestation. Gann encouraged the woman he believed to be a Wisconsin mother, and like-minded predator, to get her 14-year-old daughter drunk and sexually assault her after she was passed out. Law enforcement officers arrested Gann soon after that chat.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Robert M. DeWitt, Acting Special Agent in Charge, FBI Miami, announced the sentence that U.S. District Judge Robin L. Rosenberg imposed yesterday in West Palm Beach.
This case was brought as part of Project Safe Childhood (PSC), 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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
FBI Miami investigated the case with assistance from the Winnebago County Sheriff’s Office and the Highlands County Sheriff’s Office, Special Victims Unit. Assistant U.S. Attorney Luisa Honora Berti prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, case number is 21-cr-14034.
###
Snapchat Gun Dealer Convicted of Unlawfully Manufacturing and Selling FirearmsRead the Press Release
SACRAMENTO, Calif. —Andrew Jace Larrabure-Tuma, 20, of Sacramento, pleaded guilty today to unlawful dealing and manufacturing firearms, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Larrabure-Tuma used Snapchat to advertise guns for sale. During the investigation, Larrabure-Tuma sold guns to undercover officers and a confidential informant. Larrabure-Tuma, who could not legally purchase a gun in the state of California, ordered kits from the internet, including from a company called Polymer80, a licensed firearms manufacturer in Nevada, and manufactured his own firearms and then sold the guns he had manufactured. A search warrant was executed at Larrabure-Tuma’s residence in Sacramento and law enforcement officers found what appeared to be a firearm manufacturing operation, including partially complete firearms, firearm kits from Polymer80, firearm parts, tools for manufacturing and finishing firearms, firearm accessories, completed firearms, and ammunition.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Western El Dorado Narcotics Enforcement Team. Assistant U.S. Attorney Justin Lee is prosecuting the case.
Larrabure-Tuma is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 10, 2023. Larrabure-Tuma faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 U.S. Department of Justice 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.
Siskiyou County Man and Minnesota Woman Sentenced in Bribery and Marijuana Growing CaseRead the Press Release
SACRAMENTO, Calif. — Chi Meng Yang, 36, of Montague, and Gaosheng Laitinen, 41, of St. Paul, Minnesota, were sentenced today for their respective roles in a bribery scheme aimed at protecting illicit marijuana grows in Siskiyou County from law enforcement, U.S. Attorney Phillip A. Talbert announced.
Yang was sentenced to five years and 11 months in prison to be followed by five years of supervised release. Laitinen was sentenced to time-served and a $50,000 fine to be followed by two years of supervised release.
On March 18, 2022, a federal jury had convicted Yang of bribery of a public official, conspiracy to commit bribery, and manufacturing more than 100 marijuana plants. Shortly before the trial, in February 2022, Laitinen—Yang’s sister—pleaded guilty to conspiracy to commit bribery and conspiracy to manufacture marijuana.
According to evidence presented at trial, the charges arose from a four-month effort by Yang to bribe Jon Lopey, the elected sheriff of Siskiyou County, so that a county ordinance banning outdoor marijuana grows would not be enforced. As part of that scheme, Yang enlisted Laitinen to assist in structuring the scheme and developing a timeline for payments.
According to court documents, on May 17, 2017, Yang met with Sheriff Lopey and offered a million-dollar donation to the charity of the sheriff’s choice in exchange for the sheriff’s “friendship” and help with a lobbying effort to legalize medical marijuana in Missouri. Yang, a Siskiyou County resident, also purported to represent a group of local cannabis farmers. Believing he was being offered a bribe, Sheriff Lopey called the FBI, who recorded all of the meetings that followed.
At the outset, Yang explained he wanted “no enforcement” on the properties or the two water trucks that he used to water the marijuana grows. He offered the sheriff $5,000 per parcel for “protection,” with another $5,000 per parcel as a contribution to the sheriff’s re-election campaign. He made clear that he wanted the payments to be “private, discreet … anonymous.”
In total, Yang met with Sheriff Lopey seven times, with Laitinen present for two of these meetings. Together, Yang and Laitinen provided the sheriff with a list of eight properties that they wanted the sheriff not to raid. To guarantee the properties would not get raided before they could realize their profit, Yang and Laitinen offered $1,000 per property up front, with the remaining $4,000 in protection fees and $5,000 in re-election money to be paid after the harvest. They paid $8,000—in envelopes of cash—as the initial protection payment for each of the eight properties. They also gave the sheriff cash “bonuses” totaling $2,500.
Over time, Yang asked for favors outside the original protection scheme. He told the sheriff he wanted to add more marijuana plants to each property and to add greenhouses to his properties, so that he could grow marijuana throughout the year. He asked the sheriff to send his deputies to serve other growers with violation notices to get them to join the protection racket, and he even asked the sheriff to raid a rival grower’s operation. Moreover, Yang asked if the sheriff could prevent the California Highway Patrol from enforcing the law against his water trucks, and also asked for the sheriff’s help concerning a family member’s DUI arrest.
Eventually, FBI agents arrested Yang at a final meeting in Sheriff Lopey’s office on Aug. 31, 2017. That day, law enforcement teams eradicated the more than 1,000 marijuana plants that were found on the eight properties identified by Yang and Laitinen.
This case was the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Land Management, the Siskiyou Unified Major Investigations Team, the Shasta Interagency Narcotics Task Force, the North State Marijuana Investigation Team, and the Siskiyou County Sheriff’s Office. Assistant U.S. Attorneys James Conolly and Aaron Pennekamp prosecuted the case. Assistant U.S. Attorneys Michael Beckwith, Kevin Khasigian, and Ross Pearson assisted in the prosecution.
SDTX takes part in wide-ranging efforts to protect older adultsRead the Press Release
HOUSTON - The Department of Justice (DOJ) has announced the results of its efforts over the past year to protect older adults from fraud and exploitation.
During the past year, DOJ and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made to return money to fraud victims. DOJ also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“ ‘Respect your elders’ is one of the most fundamental principles we are taught,” said U.S. Attorney Jennifer B. Lowery.” Sadly, however, all too often we see our most vulnerable senior citizens fall victim to fraud and/or abuse. From call center scams to theft, my office has worked diligently to hold such scammers accountable. We will continue these efforts as part of the Transnational Elder Fraud Strike Force with the hope we can preserve the dignity of our beloved aging community.”
From September 2021 to September 2022, DOJ personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged. The matters DOJ tackled ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. There were also substantial efforts over the last year to return money to fraud victims.
In the Southern District of Texas (SDTX) over the past year, federal grand juries returned indictments in 10 cases involving more than 15 defendants. Loss amounts totaled approximately $38 million from elderly victims throughout the district.
As part of its elder fraud efforts, the SDTX also engages in outreach to the community and industry to raise awareness about scams and exploitation and preventing victimization. For example, the SDTX conducted a podcast in conjunction with AARP and FBI in Spanish for elderly citizens in our communities. Additional Podcasts are planned this year.
DOJ also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
DOJ announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate DOJ’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, DOJ has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies DOJ prosecuted and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, DOJ has identified and contacted over 300,000 consumers who may be eligible for remission. Since March 2020, more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, DOJ also pursued cases against the perpetrators of “grandparent scams,” AKA “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told their family member is in jeopardy and is urgently in need of money.
When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams as “heartbreakingly evil.” DOJ is also working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833-FRAUD-11 or 833-372-8311. The Office for Victims of Crime manages the DOJ hotline. Experienced professionals provide personalized support to callers by assessing the needs of the victim and identifying next steps.
Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6 a.m. to 11 p.m. ET. English, Spanish and other languages are available. More information about DOJ’s elder justice efforts can be found on the Department’s Elder Justice website.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Readout of Election Threats Task Force Briefing with Election Officials and Workers on Grant-Funding for Physical Election Security EnhancementsRead the Press Release
Assistant Attorney General Kenneth A. Polite, Jr. convened a virtual discussion today with a bipartisan group of approximately 300 election officials and workers to brief them on available grant funding for physical security enhancements under federal programs and the potential applicability of state and local fiscal recovery funds under the American Rescue Plan.
Members of the election community heard directly from representatives from the State Administering Agencies responsible for administering federal grant funds that are available for increased physical election security in their respective states. Those states included Arizona, Colorado, Delaware, and Wisconsin. The election community also heard directly from representatives with the Department of Homeland Security’s Preparedness grants program, and from the Election Assistance Commission on the use of Help America Vote Act (HAVA) funds. These federal and state representatives discussed points of contact, deadlines, and strategies for accessing various funding streams that can be used to enhance the physical security of the election community.
Finally, the election community received an update on the work of the Justice Department’s Election Threats Task Force, including a briefing from the FBI on communication and coordination with FBI Election Crime Coordinators in the lead up to the November election.
Joining Assistant Attorney General Polite in the briefing today was Principal Deputy Chief John Keller of the Justice Department’s Public Integrity Section, FBI Special Agent Lindsay Capodilupo, FBI’s National Program Coordinator for the Election Crime Coordinator Program, and Michelle M. Garcia, Deputy Director for Programs at the department’s Bureau of Justice Assistance.
Rapid City Man Sentenced for EscapeRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that a Rapid City, South Dakota, man convicted of Escape from Custody was sentenced on September 27, 2022, by 8th Circuit Judge Jonathan A. Kobes, sitting in U.S. District Court.
James Charger, 25, was sentenced to eight months in federal prison and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Charger was indicted for Escape from Custody by a federal grand jury in April of 2022. He pleaded guilty on June 21, 2022
Charger was in Bureau of Prisons custody serving a sentence for Assault Resulting in Serious Bodily Injury. He was placed at the Community Education Center in Rapid City to finish serving his sentence as part of a re-entry process. He walked away and was found outside of Rapid City a few weeks later.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Charger was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Indicted for Illegal Possession of FirearmRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
William Scott, age 31, was indicted in September of 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on October 3, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
In February of 2022, at Rapid City, Scott, a previously convicted felon who is prohibited from possessing firearms, did knowingly possess an Iberia Firearms Incorporated, Hi-Point brand name, model JCP, .40 Smith & Wesson caliber, semi-automatic pistol, which was found after Scott came into contact with law enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The charge is merely an accusation and Scott is presumed innocent until and unless proven guilty.
The investigation is being conducted by ATF and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Scott was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Quincy Man Pleads Guilty to Currency CounterfeitingRead the Press Release
BOSTON – A Quincy man pleaded guilty yesterday in federal court in Boston to counterfeiting hundreds of thousands of dollars in U.S. currency.
Victor Cardona, 34, pleaded guilty to one count of counterfeiting U.S. currency, specifically, $100 bills. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Jan. 10, 2023. Cardona was arrested and charged by criminal complaint in October 2019 and subsequently indicted by a federal grand jury in December 2019.
During a search of Cardona’s residence in October 2019, federal agents found equipment and materials used to create counterfeit bills including inkjet printers, a shredder and a “counterfeit buster” detection pen. Agents also found four authentic $100 bills, the serial numbers of which were tied to counterfeit currency recovered from across the country. Burned remains of counterfeit currency were also located in Cardona’s backyard.
In total, Cardona produced, or participated in the production of, thousands of fake $100 bills that were identified as counterfeit, recovered by the U.S. Secret Service, and traced by serial number to the authentic bills found at Cardona’s residence. To date, the government has recovered over $467,000 in counterfeit $100 bills traced back to the authentic bills found at Cardona’s residence.
The charge of counterfeiting any currency of the United States provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement. Many local police departments, in Massachusetts and elsewhere, provided valuable assistance with the investigation. Assistant U.S. Attorney Adam W. Deitch of Rollins’ Public Corruption & Special Prosecutions Unit is prosecuting the case.
Queens Man Charged with Smuggling SnakesRead the Press Release
ALBANY, NEW YORK – Calvin Bautista, age 36, of Richmond Hill, New York, was arraigned today on an indictment charging him with smuggling three Burmese pythons into the United States at the Champlain Port of Entry.
The announcement was made by United States Attorney Carla B. Freedman, and Ryan Noel, Regional Special Agent in Charge, U.S. Fish and Wildlife Service, Office of Law Enforcement.
Bautista smuggled the snakes in his pants as he rode on a bus that crossed the U.S.-Canadian border. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charge filed against Bautista carries a maximum sentence of 20 years in prison, a fine of up to $250,000, 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.
Bautista was arraigned today in Albany, before United States Magistrate Judge Christian F. Hummel, and released pending a trial before Senior United States District Judge Lawrence E. Kahn.
This case is being investigated by the U.S. Fish & Wildlife Service and U.S. Customs and Border Protection, and is being prosecuted by Assistant U.S. Attorney Alexander P. Wentworth-Ping.
Puerto Rico U.S. Attorney’s Office Takes Part in U.S. Department of Justice’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
San Juan, Puerto Rico – The United States Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass‑marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
W. Stephen Muldrow indicated that “the United States Attorney’s Office for the District of Puerto Rico has actively joined ongoing nationwide efforts not only to prosecute those who target the elderly but also to educate Puerto Rico citizens about the fraud schemes that are being used in our area. Keeping all our citizens safe from criminal predators requires not only law enforcement action after the fact, but also a fair amount of knowledge and affirmative action by our community members. Awareness and prevention about the scams that exist are integral in our battle against elder fraud. Reporting incidents of victimization is also important to allow the U.S. Department of Justice to pursue the recovery of funds for victims.”
During the period from September 2021 to September 2022, U.S. Department of Justice personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.
As part of the District’s elder fraud efforts, our personnel engaged in outreach to the community and industry to raise awareness about scams and exploitation, and to prevent victimization. This year, the USAO‑Puerto Rico’s PACE Division held a series of crime prevention seminars in the Multiple Activities Centers for the Elderly (known in Spanish by the acronym of “CAMPEA”) managed by the Family Department across the Island. Pursuant to this initiative, the PACE (Public Affairs and Community Outreach Unit) visited the following CAMPEA locations where Assistant United States Attorney Kelly Zenón and Community Outreach Specialist Genesis González provided important and insightful training to the elderly community: Bayamón, Arecibo, Lares, Juana Díaz, Aguada, Guayama and Aguadilla. The photograph included was taken during the Financial Fraud Prevention Seminars at the CAMPEA locations.
The Department also highlighted three other efforts being pursued nationwide to address this important matter: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims, and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million because of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult, and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
###
Previously convicted sex offender sent to prison againRead the Press Release
McALLEN, Texas – A 35-year-old non-U.S. citizen illegally residing in Palmview has been ordered to federal prison for obtaining child pornography and being unlawfully present in the United States, announced U.S. Attorney Jennifer B. Lowery.
Jose Ricardo Zamora-Ibarra pleaded guilty Dec. 14, 2021.
Today, U.S. District Judge Randy Crane ordered Zamora-Ibarra to serve a total of 180 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. Zamora-Ibarra was further ordered to pay $15,000 in restitution to known victims and must register as a sex offender.
At the time of his plea, Zamora-Ibarra admitted to downloading over 250 files of child pornography utilizing a peer-to-peer platform.
During the course of the investigation, authorities recovered Zamora-Ibarra’s laptop computer and an external hard drive. A forensic examination of the files determined the videos and images depicted prepubescent children engaged in sexually-explicit conduct. Zamora-Ibarra saved the child pornography onto his devices into created files named “preteen boy sex” and “preteen girl sex.”
Zamora-Ibarra was previously convicted of sexual assault of a child and subsequently removed from the United States. He then illegally re-entered the country without authorization.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Devin V. Walker prosecuted 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 tab on that page.
Preston County man guilty of sex offender chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Thomas Bradley Upole, Jr., of Terra Alta, West Virginia, has admitted to a sex offender charge, United States Attorney William Ihlenfeld announced.
Upole, 27, pleaded guilty today to one count of “Failure to Update Sex Offender Registration.” Upole, who was previously convicted of a sex offense and required to be on the sex offender registry, failed to update his registration address from January to April 2022 in Preston County.
Upole faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The United States Marshals Service and the Bureau of Alcohol, Tobacco, Firearms, & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pottawattamie County Man Sentenced for a Drug OffenseRead the Press Release
COUNCIL BLUFFS, IA – Scott Paul Polinski, age 58 of Council Bluffs, was sentenced on Friday, September 30, 2022, to 120 months in prison for Possession with Intent to Distribute Methamphetamine. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
In October 2021, Polinski was on parole with the State of Iowa Fourth Judicial District Probation and Parole Department for prior distribution of methamphetamine convictions. Officers received information that Polinski was selling methamphetamine out of his home. Officers went to Polinksi’s address to complete a home visit and speak with Polinski. Officers located 264 grams of methamphetamine and drug paraphernalia related to distributing illegal drugs.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department, Fourth Judicial District Department of Correctional Services Probation and Parole Department, and Southwest Iowa Narcotics Enforcement Task Force investigated the case. This case was prosecuted by the United States Attorney’s Offices for the Southern District of Iowa.
Pembroke Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
CONCORD – Kyle Goff, 28, a resident of Pembroke New Hampshire, pleaded guilty in federal court to possession with the intent to distribute fentanyl and possession of a firearm silencer that was unregistered and did not contain a serial number, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, during the fall of 2020, law enforcement began a drug distribution investigation into the defendant. During this investigation, the defendant made three controlled sales of fentanyl to a confidential informant.
Based on the evidence obtained from these controlled sales, law enforcement obtained and executed a search warrant of the defendant's home and car. The search of the defendant's home resulted in the seizure of over 390 grams of fentanyl from a safe in the defendant's bedroom. In addition, the police found a firearm silencer that did not contain a serial number in the house. The silencer was also not registered on the national firearms registry.
Goff is scheduled for sentencing on January 17, 2023.
The case was investigated by the New Hampshire State Police Drug Task Force, the New Hampshire Attorney General’s Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshal’s Fugitive Task Force and the Pembroke Police Department. It is being prosecuted by Assistant United States Attorneys Anna Dronzek and Seth R. Aframe.
###
Pawtucket Man Admits to Trafficking Crack Cocaine and Powder Cocaine While on Federal Supervised ReleaseRead the Press Release
PROVIDENCE – Appearing before a federal judge today, a Pawtucket man has admitted that he trafficked crack and powder cocaine while on federal supervised release, having completed a term of incarceration on federal gun and drug charges, announced United States Attorney Zachary A. Cunha.
According to charging documents, during an ongoing drug trafficking investigation in March 2022, Bureau of Alcohol, Tobacco, Firearms and Explosives agents and Pawtucket Police detectives witnessed Estefano J. Lobo, 30, make a hand-to-hand crack cocaine delivery to another person. Estefano was arrested a short time later and was found to be carrying 1.35 grams of crack cocaine and $580 in cash. A court-authorized search of his residence resulted in the seizure of 98.45 grams of cocaine powder, 19.44 grams of crack cocaine, $7,652 in cash, and, among other items, tools associated with processing cocaine powder into cocaine base. Following his arrest, Lobo admitted to agents that for the previous several months he had been processing cocaine powder into crack cocaine and distributing it. At the time, Lobo was serving a four-year term of supervised release as a result of a prior conviction in the District of Rhode Island.
Estefano, detained in federal custody since his arrest on March 16, 2022, was charged by indictment with possessing cocaine base with intent to distribute and possessing cocaine with intent to distribute; he pleaded guilty today to both of those charges. He is scheduled to be sentenced on January 5, 2023. Each count is punishable by statutory penalties of up to 20 years of incarceration to be followed by a life term of federal supervised. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney Milind M. Shah.
###
Owner of Northeast Philadelphia Pharmacy Sentenced to 3 ½ Years for Conspiracy to Distribute Oxycodone and FraudRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Mitchell Spivack, 63, of Collegeville, PA, was sentenced to three years and six months in prison, two years of supervised release, and ordered to pay $451,328 restitution and to forfeit $116,000 by United States District Court Judge Harvey Bartle III, for conspiracy to distribute controlled substances and healthcare fraud. These charges were the result of a joint investigation between the United States Attorney’s Office for the Eastern District of Pennsylvania and the Pennsylvania Office of Attorney General.
In June 2022, the defendant pleaded guilty to a Criminal Information charging him with these offenses. According to the charging documents, Spivack owned Verree Pharmacy, a small neighborhood pharmacy located in the Fox Chase section of Philadelphia, and was the pharmacist in charge for more than thirty years. During that time in business, Spivack and his coconspirators allegedly cultivated Verree’s reputation as a “no questions asked” pharmacy for oxycodone and other dangerous and addictive opioid drugs. By 2016, Verree was the largest purchaser of oxycodone among retail pharmacies in the entire Commonwealth of Pennsylvania. In furtherance of the conspiracy, Spivack and his coconspirators filled prescriptions for wholesale quantities of high-dose oxycodone despite obvious alterations to the prescriptions and other red flags indicating that the drugs were not for a legitimate medical purpose. In addition, Spivack and other employees of Verree submitted entirely fraudulent claims to health care benefit programs for prescription drugs not dispensed. These drugs were designated in patient profiles as “BBDF” which was an acronym for “Bill But Don’t Fill.” From 2013 through 2019, Medicare and other insurers paid over $450,000 for these bogus claims.
In August 2022, U.S. Attorney Romero announced that the United States filed a civil judgment with Philadelphia-based Spivack, Inc., previously operating under the name Verree Pharmacy, and defendant Spivack, to resolve allegations similar to the criminal charges. The pharmacy and Spivack have agreed to pay over $4.1 million to resolve their civil liability under the Controlled Substances Act, False Claims Act, and forfeiture. The judgment also permanently bans them from ever dispensing controlled substances in the future.
“Pharmacies and pharmacists engage in the deepest violation of the community’s trust when they exploit their access to opioids and other controlled substances and illegally dispense the drugs for their own financial gain,” said U.S. Attorney Romero. “It is even more disturbing when pharmacists take advantage of their position of trust by fraudulently billing Medicare and other federal health care programs. Our Office will use every resource it has to pursue and hold these individuals accountable, including criminal charges and civil penalties, as was the case here.”
“Mitchell Spivack filled prescriptions outside of medical standards for the highly addictive drug oxycodone, adding fuel to the fire of a crisis that kills 14 Pennsylvanians every day,” said Pennsylvania Attorney General Josh Shapiro. “Pharmacies and medical professionals have a responsibility under the law to dispense these drugs only when appropriate. Nothing will bring back the lives we’ve lost to this epidemic, but today’s sentence holds Spivack, and Verree pharmacy, accountable for their actions.”
If the public has any information regarding health care fraud allegation, individuals should contact the HHS-OIG hotline at 800-HHS-TIPS.
The criminal case was investigated by the Philadelphia Field Division of the Drug Enforcement Administration, HHS-OIG, the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation, and the Pennsylvania Department of State’s Bureau of Enforcement and Investigation. The criminal case is being prosecuted by Assistant United States Attorney M. Beth Leahy and Special Assistant United States Attorney Linda Montag, who was specially designated by the PA OAG. The civil case is being handled by Assistant United States Attorneys Sarah Grieb and Anthony D. Scicchitano.
Ocala Convicted Felon Pleads Guilty to Illegal Possession of A FirearmRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Jaedyn Tiryse Presley (23, Ocala) today pleaded guilty to possessing a firearm as a convicted felon. Presley faces a maximum penalty of 10 years in federal prison. He also agreed to forfeit the firearm used in the commission of the offense. Presley had been indicted on February 1, 2022.
According to the plea agreement, on July 16, 2021, deputies from the Marion County Sheriff’s Office conducted a traffic stop on Presley’s vehicle, which smelled strongly of marijuana. After determining that Presley had a suspended license, the deputy placed him under arrest and searched the vehicle, recovering a loaded 9mm handgun and several containers of marijuana. A subsequent federal search warrant conclusively showed Presley’s DNA on the grip, frame, slide, and trigger of the firearm. Presley, a multi-convicted felon, is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the Marion County Sheriff’s Office, the City of Ocala Police Department, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
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.
Oakland Resident Pleads Guilty to Possessing Fentanyl for Distribution in San Francisco’s TenderloinRead the Press Release
SAN FRANCISCO – Mainor Escoto Escoto pleaded guilty yesterday afternoon in federal court to possessing fentanyl with the intent to distribute it, announced United States Attorney Stephanie M. Hinds and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Bob P. Beris.
According to his plea agreement, Escoto, 20, last known to reside in Oakland, was stopped and arrested on February 16, 2022, by San Francisco police near the corner of Larkin and Eddy Streets in San Francisco’s Tenderloin District. At the time he was arrested, Escoto was wearing a hooded sweatshirt with a front pocket and carrying a backpack. Escoto admitted in his plea agreement that in his sweatshirt he possessed a baggie of heroin, a pill bottle with base cocaine inside, and four baggies of fentanyl. He also carried a digital scale and cash.
Escoto further admitted that in his backpack he carried a loaded 9 millimeter pistol and 28 additional baggies of fentanyl. Escoto agreed the fentanyl weighed more than 160 grams (.35 pounds) but less than 280 grams (.6 pounds).
Escoto pleaded guilty to one count of possession with the intent to distribute fentanyl in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(C). The maximum statutory penalty for the charge is 20 years imprisonment with a minimum of three years of supervision following release from prison. However, any sentence following a conviction would be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
United States District Judge Vince Chhabria set a sentencing hearing for Escoto on January 23, 2023. Escoto remains in custody while awaiting his sentencing hearing.
Assistant U.S. Attorney Christa Hall is prosecuting the case, with the assistance of Veronica Hernandez. The prosecution is the result of an investigation by DEA and the San Francisco Police Department.
One Pill Can Kill: Beware of pills bought on the street: One Pill Can Kill. Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that purport to mimic the effects of Oxycodone, Percocet, and other drugs, but can be obtained at a lower cost. However, very small variations in the amount or quality of fentanyl creates huge effects on the potency of the counterfeit pills and can easily cause death. Fentanyl has now become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills are usually shaped and colored to resemble pills that are sold legitimately at pharmacies. For example, counterfeit pills known as M30s mimic Oxycodone, but when sold on the street they routinely contain fentanyl. These tablets are round and often light blue in color, though they may be made in many colors, and have “M” and “30” imprinted on opposite sides of the pill.
Northern District of Iowa Takes Part in Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
The Justice Department announced the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled maters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“Those who target the elderly, stealing their money, their medication, and often their sense of safety, represent the most cowardly of criminals,” said United States Attorney Timothy T. Duax. “My office is dedicated to prosecuting such criminals, preventing them from harming others, and returning as much of the stolen money to the victims as possible.”
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.
This past year, the Northern District of Iowa has prosecuted the following individuals who have plead guilty to crimes targeting elderly victims:
- In United States v. Carrie Martin, Martin pled guilty to stealing the identity of an individual who was the power of attorney for Martin’s relatives. Using the stolen identity, Martin stole over $250,000 from her relatives. Martin is currently pending sentencing.
- In United States v. Kelsey Baxter, Baxter pled guilty to stealing pain pills from her victims in a nursing home. Baxter was a nurse working in the nursing home and took pills that were intended for residents at the nursing home. Baxter is pending sentencing.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud. Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833- FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov. Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Northern District of Alabama Takes Part in Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
Birmingham, Ala. – The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“Crimes against older adults target some of the most vulnerable people in our society,” U.S. Attorney Escalona said. “The U.S. Attorney’s Office and our law enforcement partners will continue to vigorously pursue individuals who target older adults in the Northern District of Alabama.”
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.
Cases prosecuted in the Northern District of Alabama included several defendants that fraudulently targeted the elderly in a number of different schemes, including business email compromise scams, romance scams, and unemployment benefits fraud. Notable cases include:
In United States of America v. Benjamin, et al., multiple defendants pled guilty in a business email compromise, account takeover, and check fraud scheme that targeted elderly victims. The attempted loss amount in the case exceeded $13.3 million. One vulnerable victim sent more than $870,000 to a bank account opened by defendants in the scheme that represented the equity of her home. Multiple defendants convicted in the scheme were sentenced to several years of incarceration in the Bureau of Prisons for their crimes.
In United States to Afolabi, et al., the defendant pled guilty to stealing the identities of elderly victims residing in the state of Illinois to file fraudulent unemployment benefits applications during the height of the COVID-19 pandemic. The estimated amount attributed to the defendant’s conduct totaled between $550,000 and $1.5 million. Victims harmed in the scheme were innocent third parties who now have had their personally identified information compromised and exploited, and face the difficulties associated with managing this theft going forward.
As part of the Northern District of Alabama’s elder fraud efforts, it engages in outreach to the community and industry to raise awareness about scams and exploitation and preventing victimization. This year, Assistant United States Attorneys participated in numerous community events designed to increase awareness of potential elder fraud and abuse, including programs for the North Alabama Institute of Internal Auditors and AARP. On June 15, 2022, United States Attorney Prim Escalona appeared on Good Day Alabama on Elder Abuse Awareness Day, to continue the district’s efforts to combat elder fraud and abuse.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 160,000 of those victims cashed checks totaling $62 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult, and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
North County Man Indicted for Multimillion-Dollar Ponzi SchemeRead the Press Release
Assistant U. S. Attorneys Peter S. Horn (619) 546-6795 and Aaron P. Arnzen (619) 546-8384
NEWS RELEASE SUMMARY – October 4, 2022
SAN DIEGO – Richard Lee Ramirez is charged in a federal grand jury indictment with securities fraud and money laundering.
According to the indictment unsealed yesterday, Ramirez ran a fraudulent investment scheme with his company JMJ Capital Group (“JMJ”) and obtained at least $8 million from investors since 2018. The indictment alleges he used investors’ money for personal expenses and to make Ponzi-style payments to other investors, rather than advancing JMJ’s purported business and investment opportunities.
According to the indictment and statements made in court, Ramirez solicited investments in JMJ from dozens of people by falsely telling them JMJ purchased and resold personal protective equipment (PPE), factored accounts receivable, imported and sold furniture, and, among other things, contracted with a cruise line to refurbish ships’ air-conditioning units. Ramirez promised investors returns of approximately 10 to 14 percent within 90 days and 20 to 30 percent within one month, which purportedly would be generated by JMJ’s business opportunities. Ramirez misrepresented to investors that they could withdraw their money at any time. Also, as alleged in the indictment, he sent investors funding agreements and account statements that furthered his fraud by falsely representing returns and the value of investments with JMJ.
According to the indictment, instead of using investors’ money as he said he would, Ramirez used it to pay for luxury cars, travel, potential real-estate transactions, and other personal expenses, and to pay different investors who tried to redeem their investments and returns. Through his fraudulent scheme, according to the indictment and statements in court, Ramirez caused JMJ’s investors to lose money and ultimately stole at least $5 million of the $8 million or more he received from them.
Ramirez, a resident of North San Diego County, was arrested near Mira Mesa on Friday afternoon.
“The U.S. Attorney’s Office is committed to achieving justice for victims of financial fraud,” said U.S. Attorney Randy Grossman. Grossman also cautioned investors to perform their own due diligence and warned the public about business pitches and returns that “seem too good to be true.” Grossman thanked the prosecution team, the FBI and Securities and Exchange Commission for their excellent work on this case.
“Ramirez gained the trust of his clients and allegedly used that trust to fund a life of luxury for himself by taking the hard-earned money of his investors,” said Stacey Moy, Special Agent in Charge of the FBI San Diego Field Office. “The FBI remains committed to pursuing justice for all victims of fraud.”
The United States Attorney’s Office recognizes and appreciates the assistance of the Securities and Exchange Commission on this matter.
The next hearing in Ramirez’s criminal case is scheduled for November 7, 2022, at 2 p.m., before U.S. District Judge Cynthia A. Bashant.
DEFENDANT Case Number 22-CR-2264-BAS
Richard Lee Ramirez Age: 53 Carlsbad, CA
SUMMARY OF CHARGES
Securities Fraud – Title 18, U.S.C., Sections 78j(b), 78ff, and Title 17, C.F.R., Section 240.10b-5
Money Laundering – Title 18, U.S.C., Section 1957
Criminal Forfeiture – Title 18, U.S.C., Sections 981(a)(1)(C), 982(a)(1), 982(b), and Title 28, U.S.C., Section 2461(c)
Maximum penalty: Twenty years in prison and $5 million fine
AGENCIES
Federal Bureau of Investigations
Securities and Exchange Commission
*The charges and allegations contained in an indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Nampa Man Pleads Guilty to Federal Firearms ViolationRead the Press Release
BOISE – Isaac Bright, 29, of Nampa, Idaho, pleaded guilty to unlawful possession of a firearm, U.S. Attorney Josh Hurwit announced today.
According to court records, on January 29, 2022, a police officer with the Wilder Police Department attempted to conduct a traffic stop on a vehicle driven by Bright. Bright failed to stop, resulting in a high-speed pursuit. Bright was eventually arrested after discharging a firearm at a Wilder Police Officer. When Bright was arrested, he possessed a 9mm caliber pistol. At the time of the arrest, Bright was prohibited from possessing firearms due to a 2016 conviction for unlawful possession of a firearm.
Bright is scheduled to be sentenced on January 11, 2023. He faces a maximum penalty of ten years in federal prison, up to three years of supervised release, and a maximum fine of $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Hurwit, of the District of Idaho, made the announcement and commended the cooperative efforts of the Wilder Police Department and the Treasure Valley Metro Violent Crimes Task Force, which led to charges. The Task Force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
###
Multiple Federal Fraud Charges Filed Against San Francisco Father and SonRead the Press Release
SAN FRANCISCO - Santos Rene Soto and Santos Moises Soto III appeared in federal court today to face a federal indictment charging them with conspiracy, wire fraud, bank fraud, and false statements in a loan application, announced U.S. Attorney Stephanie M. Hinds and FBI San Francisco Special Agent in Charge Robert K. Tripp.
Santos Rene Soto (Santos), 59, and Santos Moises Soto III, also known as Saints Soto (Saints), 39, both of San Francisco, are described in the indictment as a father and son who engaged in multiple frauds. The first charged fraud involves Golden Spear LLC, an artificial intelligence (AI) technology company purportedly based in San Francisco and Barcelona, Spain. Saints was the CEO, and Santos acted as a board member. According to the indictment, GoldenSpear offered clothing retailers an “A.I. Fashion Assistant” that used “visual and textual algorithms” to help retailers identify specific fashion brands and clothing that their customers might want to purchase. The indictment describes that from 2017 to March 2020 Saints raised investment funds by representing to potential investors that GoldenSpear had entered into contracts with, or discussed investments or acquisitions by, numerous established business entities. These representations were false, according to the indictment. GoldenSpear allegedly raised more than $12 million in investment funds.
The indictment further describes that following the onset of the Covid-19 pandemic in early 2020, Saints and Santos began raising investment funds for a new subsidiary of GoldenSpear named “AI Health.” Saints and Santos informed potential investors that AI Health created a wearable device that, using AI, detected the COVID-19 virus in its wearer. Saints and Santos allegedly made numerous representations, including that the devices were being worn in a Los Angeles high school by students and staff, that AI Health was conducting a large study using data from a Los Angeles-based children’s hospital, and that a prominent accounting firm valued AI Health at more than $100 million. The indictment charges that these representations were false. AI Health, according to the indictment, raised more than $2.5 million from investors.
The indictment lastly alleges that Saints and Santos defrauded the Paycheck Protection Program (PPP), a federal government pandemic relief program. The PPP is administered by the U.S. Small Business Administration as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. CARES is a federal law enacted in March 2020 to provide billions of dollars in emergency financial assistance to millions of Americans suffering from the economic effects of the COVID-19 pandemic. The PPP provided forgivable loans to small businesses for job retention and limited other business expenses. The indictment describes that on April 2, 2020, GoldenSpear submitted a PPP application in which Saints and Santos represented that GoldenSpear had 33 employees located in the United States, a monthly payroll of $267,899, and a monthly office rental expense of approximately $18,000. Instead, the indictment alleges, GoldenSpear averaged seven to eight U.S.-based employees and had an average monthly payroll of $67,000 or less. Additionally, the indictment alleges that the address listed on the PPP application for the commercial lease was in fact Santos’s residential address. A PPP loan in an amount of $669,700 was approved and issued based on the misrepresentations of Santos and Saints, the indictment charges.
Santos and Saints made their initial appearance in federal court today before United States Magistrate Judge Thomas S. Hixson. Their next scheduled appearance is scheduled before the same judge on October 12 at 10:30 a.m.
Santos and Saints are charged with one count of conspiracy in violation of 18 U.S.C. § 371, which carries a maximum sentence of five years in federal prison. Saints and Santos are also charged with one count of conspiracy to commit wire fraud in violation of 18 USC §§ 1343 and 1349, which carries a maximum 20 year sentence. Saints is also charged with two counts and Santos is charged with one count of wire fraud, and each count carries a maximum sentence of 20 years. Santos and Saints also face one count of bank fraud in violation of 18 U.S.C. § 1344 and one count of making false statements on a loan application in violation of 18 U.S.C. § 1014, each of which carries a maximum sentence of 30 years. The court may also order additional fines, restitution, and forfeiture on each count. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The charges in the indictment are merely allegations and the defendants are presumed innocent unless proven guilty in a court of law.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. Ross Weingarten and Alethea Sargent are the Assistant U.S. Attorneys who are prosecuting the case, with the assistance of Margoth Turcios. The prosecution is the result of an investigation by the FBI.
Morgantown woman admits to methamphetamine chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Adrianna Bean, of Morgantown, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Bean, 22, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Bean admitted to having methamphetamine in July 2021 in Monongalia County.
Bean faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration Clarksburg Regional Office; the FBI Clarksburg; the Mon Metro Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Monongalia County Sheriff’s Office; the Morgantown Police Department; the WVU Police Department; the DEA Cincinnati District Office; the DEA Detroit Field Division; and the FBI Detroit investigated.
U.S. Magistrate Judge Michael John Aloi presided.
See related case here: https://www.justice.gov/usao-ndwv/pr/michigan-morgantown-drug-ring-disrupted-federal-indictment
Middle District of Florida Takes Part in Justice Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
Tampa, Florida – The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“Protecting our nation’s most vulnerable populations is a priority of our Office,” stated U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to work diligently with our partners in law enforcement and the community to ensure that our seniors are safe and secure from fraud, scams, and financial exploitation.”
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged. This past year, the Middle District of Florida pursued 10 cases involving 11 defendants, who collectively stole more than $22 million from fraud victims, the majority of whom were elderly. See chart below for details.
United States Attorney’s Office for the Middle District of Florida Elder Fraud Cases
Charged Cases
Defendant(s) (Age)
Charge(s)
Maximum Imprisonment
Type of Fraud
Approximate Intended Loss
Amount
Tampa Division
Margarett Chevry (71)
Conspiracy to commit wire fraud
Maximum Prison Term: 20 Years
Wire fraud
Maximum Prison Term: 20 Years
Romance fraud
$727,000
Phillip Roy Wasserman (65)
Conspiracy to commit mail and wire fraud
Maximum Prison Term: 20 Years
Wire fraud
Maximum Prison Term: 20 Years
Mail fraud
Maximum Prison Term: 20 Years
Tax evasion
Maximum Prison Term: 5 Years
Fraud and false statements
Maximum Prison Term: 5 Years
Investment fraud
$6.3 million
These elder fraud cases from the Tampa Division are being handled by AUSAs Jennifer Peresie, Rachelle DesVaux Bedke, and Rachel Jones
Orlando Division
Keith Ingersoll (45)
James Adamczyk (65)
Wire fraud
Maximum Prison Term: 20 Years
Investment fraud
$10 million
This elder fraud case from the Orlando Division is being handled by AUSA Amanda Daniels
Adjudicated Cases
Tampa Division
Kenneth Rossman (63)
Conspiracy
Maximum Prison Term: 5 Years
Aiding and assisting fraud and false statements
Maximum Prison Term: 3 years
Investment fraud
$6.3 million
William Perez (27)
Conspiracy to commit money laundering
Maximum Prison Term: 20 Years
Government impersonator fraud
$246,000
These elder fraud cases from the Tampa Division are being handled by AUSA Rachelle DesVaux Bedke and SAUSA Suzanne Huyler
Sentenced Cases
Tampa Division
Sarafina Braddy (24)
Conspiracy to commit money laundering
Sentence Imposed: 7 days in federal prison
Jamaican lottery fraud
$300,000
Jeffrey Jedlicki (51)
Conspiracy to commit wire fraud
Sentence Imposed: 8 years in federal prison
Investment fraud
$3.24 million
Tracy Jedlicki (56)
Conspiracy to commit wire fraud
Sentence Imposed: 30 months in federal prison
Investment fraud
$3.24 million
Lori Owen (50)
Conspiracy to commit bank, wire, and mail fraud
Sentence Imposed: 5 years, 3 months in federal prison
Investment fraud
$1.38 million
These elder fraud cases from the Tampa Division were handled by AUSAs Rachel Jones and David Chee
Fort Myers Division
Nicole Sprague (38)
Conspiracy to commit mail fraud, mail fraud
Sentence Imposed: 2 years, 9 months in federal prison
Technical support scam
$298,000
This elder fraud case from the Fort Myers Division was handled by AUSA Yolande Viacava
As part of the Middle District of Florida’s elder fraud efforts, we have engaged in community outreach efforts to citizens and industry professionals to raise awareness about scams and exploitation and ways to prevent victimization. This year, the MDFL partnered with the Federal Bureau of Investigation and the Gulfport Police Department to engage senior citizens in discussions about prevalent fraud schemes and various prevention strategies.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults. The Middle District of Florida is one of the original strike force districts.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Massachusetts Man Sentenced to 66 Months in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that TEVIN GONZALEZ, 25, of Holyoke, Massachusetts, was sentenced today by U.S. Circuit Judge Sarah A. L. Merriam in Bridgeport to 66 months of imprisonment, followed by two years of supervised release, for unlawfully possessing firearms.
According to court documents and statements made in court, in the summer of 2021, Gonzalez was involved in shooting and fire-bombing incidents in and around Springfield, Massachusetts. Gonzalez was arrested at a hotel in Enfield, Connecticut, on September 3, 2021. At the time of his arrest, he possessed two semiautomatic pistols.
Gonzalez’s criminal history includes convictions in Massachusetts for felony drug, firearm and resisting arrest offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Gonzalez has been detained since his arrest. On March 25, 2022, he pleaded guilty to unlawful possession of firearms by a felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Massachusetts State Police, Enfield Police Department and Springfield Police Department.
The case was prosecuted by Assistant U.S. Attorney Brendan Keefe through 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. In May 2021, the Justice 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.
Madison County Man Charged with Child Pornography Offenses and Delay of MailRead the Press Release
SYRACUSE, NEW YORK – Ryan Berte, age 33, of Eaton, New York, was indicted on September 29, 2022, for receiving and possessing child pornography and for delay of mail while previously serving as a rural mail carrier for the United States Postal Service.
The announcement was made by United States Attorney Carla B. Freedman and Matthew Modafferi, Special Agent in Charge of the United States Postal Service-Office of Inspector General (USPS-OIG), Northeast Area Field Office.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Berte carry a maximum sentence of 20 years in prison, a mandatory minimum term of 5 years in prison, a fine of up to $250,000, and a term of supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Berte was arraigned yesterday in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter, and was detained pending further proceedings.
This case was investigated by the USPS-OIG and the New York State Police, Bureau of Criminal Investigation (BCI), Computer Crimes Unit (CCU). This case is being prosecuted by Assistant United States Attorney Adrian S. LaRochelle as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Luzerne County Man Sentenced to Five Years’ Imprisonment for Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Marchese, age 30, of Swoyersville, Luzerne County, was sentenced on October 3, 2022, by U.S. District Court Judge Robert D. Mariani, to five years’ imprisonment on the charge of conspiracy to distribute more than fifty grams of methamphetamine.
According to United States Attorney Gerard M. Karam, Marchese previously entered a guilty plea and admitted to conspiring with other individuals to distribute methamphetamine in the Luzerne County area in 2020. The charge resulted from an investigation in May 2020 in which police obtained a search warrant for a residence in Swoyersville where Marchese was residing and seized crystal methamphetamine, a scale, drug packing materials, and $2245 in U.S. Currency.
The investigation was conducted by the Luzerne County Drug Task Force, the Kingston Police Department, the Swoyersville Police Department and the Bureau of Alcohol, Tobacco and Firearms (ATF). Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is also 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.
###
Lexington Woman Sentenced for Wire Fraud and Money LaunderingRead the Press Release
LEXINGTON, Ky. – A Lexington woman, Jyoti Agrawal, 51, was sentenced to 42 months in federal prison on Friday, by Chief U.S. District Judge Danny C. Reeves, for conspiracy to commit wire fraud, wire fraud, and money laundering.
According to evidence at her trial, Agrawal was a co-owner of the company ScienceTomorrow, with Subhadarshi Nayak. In December 2013, Agrawal agreed with Nayak to electronically submit a proposal containing a fabricated letter of support from a key subcontractor, in order to increase their chances of receiving a Phase II SBIR grant from the U.S. Department of Energy (DOE), in the amount of $999,266, to research and develop a scanning electron microscope detector. Agrawal knew the fake letter inflated the budget an out-of-state university had provisionally authorized in support of the project.
In 2014, the DOE awarded the Phase II grant to ScienceTomorrow, in part relying on this misrepresentation. Agrawal ultimately received more than a million dollars for the electron detector project from the DOE, and $500,000 from Kentucky’s state matching funds program, which depends on the lawful receipt of a federal grant award.
The evidence further showed that Agrawal had controlled the money and that Nayak left the project early on. Ultimately, the out-of-state university did not work on the project, as proposed, and received no payments. Bank records established Agrawal had personally accumulated over $440,000 of DOE grant funds during the two-year performance period. Agrawal also spent an additional $146,000 of the DOE Phase II funds on an Executive MBA degree in Chicago, during this time, partially supporting her money laundering conviction. Subsequently, Agrawal submitted false certifications to the DOE, stating all funds had been expended in accordance with the DOE’s terms and conditions; however, the evidence at trial revealed she hadunlawfully retained over $300,000 of the DOE funds she certified she had spent on the project.
A federal jury convicted Agrawal in April 2022. Nayak was sentenced in December 2021.
“When grants are fraudulently obtained and their funding is misappropriated, it is more than just a theft of money,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “The loss of taxpayer money is bad enough; but worthy applicants are also deprived of fair opportunities and the fundamental goals of the important programs are frustrated. It causes real damage and, as this prosecution and sentence confirm, can have real consequences.”
“Protecting the integrity of the Small Business Innovation Research and other grant programs is a priority for the EPA Office of Inspector General,” said Environmental Protection Agency Inspector General Sean O’Donnell. “We take seriously our responsibility to identify and investigate attempts by grantees to defraud the federal government and taxpayers.”
“This sentencing demonstrates the ongoing commitment of the Department of Energy Office of Inspector General to protect the DOE from fraud, waste and abuse. False claims and other misrepresentations related to Department grants will not be tolerated, whether in the SBIR program or any other,” said Department of Energy Inspector General Teri L. Donaldson, “I would like to thank our investigators and forensic accountants as well as the EPA OIG and the U.S. Attorney’s Office for their excellent work on this joint investigation.”
As part of her sentencing, Agrawal was ordered to pay restitution in the amount of $1,048,255.00 to U.S. Department of Energy and $500,000.00 to the Kentucky Cabinet for Economic Development, Office of Entrepreneurship and Small Business Innovation (SBIR state matching funds program).
Under federal law, Agrawal must serve 85 percent of her prison sentence; and upon her release from prison, she will be under the supervision of the U.S. Probation Office for three years.
United States Attorney Shier; Inspector General O’Donnell; Inspector General Donaldson and Cynthia Bruce, Special Agent in Charge, Defense Criminal Investigative Service, U.S. Department of Defense, jointly announced the sentence.
The investigation was conducted by the EPA-OIG, DOE-OIG, and DOD DCIS. The United States was represented by Assistant United States Attorney Tashena A. Fannin.
###
Lee County Man Sentenced to 38 Years in Prison for Sexual Exploitation of Two ChildrenRead the Press Release
Montgomery, Alabama – Today, U.S. Attorney Sandra J. Stewart announced that Brandon Thomas Hart, 33, from Smiths Station, Alabama, was sentenced to 38 years in prison for sexually exploiting two children.
According to Hart’s plea agreement and other court records, an investigation began in September 2020 when law enforcement in Dallas, Texas became aware of sexually explicit images—images that appeared to include minors— being shared through a messaging app called Kik. FBI agents in Texas were able to trace the origin of the messages back to Smiths Station and Hart was identified as a potential suspect. Further investigation by the Lee County, Alabama Sheriff’s Office and the FBI confirmed those suspicions. In his plea agreement, Hart specifically admitted to inducing two minors under the age of 18 to engage in sexually explicit conduct for him to photograph. Hart also admitted that he recorded explicit images of the two minors while they were not conscious and distributed the images online using Kik.
On June 29, 2022, Hart pleaded guilty to the charges. Three months later, on September 30, Hart received the 38-year sentence. Following his prison sentence, Hart will be on supervised release for the remainder of his life and will be required to register as a sex offender. There is no parole in the federal system. Related state charges remain pending.
This case was investigated by the Lee County Sheriff’s Office and the FBI. Assistant United States Attorney J. Patrick Lamb prosecuted the case.
Kanawha County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Jonathan Kennedy, 41, of St. Albans, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on June 30, 2022, law enforcement officers were dispatched to Leon Sullivan Way in Charleston in response to a report of shots fired. Officers found a bullet hole at the entrance of Jet Life Apparel and obtained a search warrant for the store’s video surveillance system, which showed two firearms inside the store: a Dickinson, model XXPA, 12-gauge shotgun; and a Smith & Wesson, model M&P 15, 5.56-caliber rifle. The video surveillance footage also showed Kennedy running across the store while holding the shotgun following an apparent altercation outside.
Officers recovered both firearms from a vehicle in an alley near Jet Life Apparel. Each firearm was loaded with a high-capacity drum magazine.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Kennedy knew he was prohibited from possessing a firearm because of his felony convictions for interstate travel in aid of drug trafficking and use of a communication facility in furtherance of an unlawful act in the United States District Court for the Southern District of West Virginia on December 3, 2014.
Kennedy is scheduled to be sentenced on January 25, 2023, and faces a maximum penalty of 15 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
Chief United States District Judge Thomas E. Johnston presided over the hearings. Assistant United States Attorney Nowles Heinrich is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-145.
###
Justice Department Releases Information on Efforts to Protect the Right to VoteRead the Press Release
Consistent with longstanding Justice Department practices and procedures, the Civil Rights Division is providing information about its efforts to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation and suppression in the upcoming Nov. 8, 2022, general election.
The Civil Rights Division is responsible for ensuring compliance with the civil provisions of federal statutes that protect the right to vote, and with the criminal provisions of federal statutes prohibiting discriminatory interference with that right. The Civil Rights Division undertakes its important work to protect the right to vote all throughout each year, and this year’s work continues longstanding department tradition.
The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including: the Voting Rights Act; the National Voter Registration Act; the Uniformed and Overseas Citizens Absentee Voting Act; the Help America Vote Act; and the Civil Rights Acts. Collectively, these laws:
- Prohibit election practices that have either a discriminatory purpose or a discriminatory result on account of race, color or language minority status;
- Prohibit intimidation of voters;
- Allow voters who need assistance in voting because of disability or inability to read or write to receive assistance from a person of their choice (other than agents of their employer or union);
- Require minority language election materials and assistance in certain jurisdictions;
- Require accessible voting systems for voters with disabilities;
- Require that provisional ballots be offered to voters who assert they are registered and eligible to vote in the jurisdiction, but whose names do not appear on poll books;
- Require states to provide for absentee voting for uniformed service members serving away from home, their family members also away from home due to that service, and U.S. citizens living abroad; and
- Require covered states to offer the opportunity to register to vote through offices that provide driver licenses, public assistance and disability services, as well as through the mail; and to take steps regarding maintaining voter registration lists.
The Civil Rights Division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA), which prohibits discrimination in voting based on disability. The ADA applies to all aspects of voting, including voter registration, selection and accessibility of voting facilities, and the casting of ballots on Election Day or during early voting, whether in-person or absentee.
The Civil Rights Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.
Leading up to Election Day, Nov. 8, 2022, the Civil Rights Division will implement a comprehensive program to help ensure the right to vote, including the following:
- The Civil Rights Division will lead monitoring in the field on Election Day to observe compliance with federal voting rights laws.
- Division attorneys in Washington, D.C., will be ready to receive complaints of potential violations of any of the statutes the Civil Rights Division enforces. Attorneys in the division will coordinate within the Department of Justice and will take appropriate action concerning these complaints before, during, and after Election Day.
- Individuals with complaints related to possible violations of federal voting rights laws can call the department’s toll-free telephone line at 800-253-3931, and also can submit complaints through a link on the department’s website, at https://civilrights.justice.gov/.
- Individuals with questions or complaints related to the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or submit a complaint through a link on the department’s ADA website, at gov.
All complaints related to violence, threats of violence or intimidation at a polling place should be reported first to local police authorities by calling 911; after alerting local law enforcement to such emergencies by calling 911, the public should contact the department.
Closer to election day, the department expects to provide additional information regarding its efforts to protect the right of vote and the election process, including where the Civil Rights Division will monitor elections in the field on Election Day.
For more information about the department’s work to ensure compliance with federal civil and criminal laws related to voting, please visit Voting | Department of Justice.
Justice Department Finds Nevada Unnecessarily Segregates Children with Behavioral Health Disabilities in InstitutionsRead the Press Release
The Department of Justice announced today that it has concluded an investigation into whether the State of Nevada subjects children with behavioral health disabilities to unnecessary institutionalization in violation of Title II of the Americans with Disabilities Act (ADA).
The Justice Department determined that Nevada violates the ADA by failing to provide adequate community-based services to children with behavioral health disabilities, relying instead on segregated, institutional settings like hospitals and residential treatment facilities. Hundreds of children are isolated in residential treatment facilities each year though they could remain with their families if provided necessary, community-based services. Over a quarter of these children stay over a year, and some of them are placed outside of Nevada, far from their homes. Nevada also fails to connect children who have been placed in institutions with services to allow them to successfully return to the community.
“Children with disabilities should receive the services they need to remain with their families and in their communities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division looks forward to working with Nevada to bring the State into compliance with federal law and prevent the unnecessary institutionalization of children.”
The department’s investigation found Nevada lacks needed community-based services such as intensive in-home services, crisis services, intensive care coordination, respite, therapeutic foster care and other family-based supports. As a result, hundreds of Nevada children are segregated for months, often very far from home. Nevada officials have expressed a desire to work with the department to resolve the identified issues.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Expands Transnational Elder Fraud Strike Force to Protect Older Americans from FraudRead the Press Release
The Justice Department announced today that as part of its continuing efforts to protect older adults and to bring perpetrators of fraud schemes to justice, it is expanding its Transnational Elder Fraud Strike Force, adding 14 additional U.S. Attorney’s Offices. Since 2019, current Strike Force members — including the Department’s Consumer Protection Branch, six U.S. Attorneys’ Offices, the FBI, U.S. Postal Inspection Service, and Homeland Security Investigations — have brought successful cases against the largest and most harmful global elder fraud schemes and worked with foreign law enforcement to disrupt criminal enterprises, disable their infrastructure, and bring perpetrators to justice. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat sophisticated fraud schemes that target or disproportionately impact older adults. The expansion will increase the total number of U.S. Attorneys’ Offices comprising the Strike Force from six to 20, including all of the U.S. Attorneys’ Offices in the states of California, Arizona, Texas, Florida, Georgia, Maryland, and New York.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“At the FBI, we swear an oath to protect the American people, and this includes our most vulnerable populations like the elderly,” said FBI Director Christopher Wray. “Efforts like these display our unwavering dedication to protecting our older citizens and combating fraudsters who look to exploit them. I am proud of the work by FBI agents and analysts, as well as our local, state, and federal law enforcement partners, in bringing those criminals to justice. If you think you may be a victim of elder fraud, or you know someone who is, we encourage you to reach out. We are here to help.”
“The U.S. Postal Inspection Service is a longstanding member of the Transnational Elder Fraud Strike Force," said Chief Gary Barksdale of the Postal Inspection Service. Postal inspectors are proud to contribute to the impactful cases that help numerous victims, many of them older Americans, and aid in the recovery of their losses through restitution. Postal inspectors have a long history of protecting the vulnerable, and our ongoing efforts demonstrate the Postal Inspection Service’s continued commitment to the task. We are excited to learn of the Department of Justice’s decision to expand the strike force.”
The strike force expansion will further enhance the Department’s existing efforts to protect older adults from fraud and exploitation. During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged. The matters tackled by the Department and its partners ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims.
In the past year, the Department has held multiple transnational organized crime syndicates to account for their targeting of older Americans. On Sept. 16, 2022, for instance, the Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the Southern District of California secured a guilty plea from the Chief Executive Officer of a global telecommunications provider for serving as a gateway carrier for Indian-based fraudulent robocalls that targeted elderly Americans. Similarly, in September 2021, the U.S. Attorneys’ Offices for the Eastern and Northern Districts of Texas secured two indictments collectively charging 34 individuals with, allegedly, facilitating a range of schemes, including romance scams. In March 2022, an individual charged by the U.S. Attorney’s Office for the Central District of California was sentenced to nine years in prison for participating in an international scheme that placed phone calls purportedly from government agents warning victims that they faced arrest or that their identities or assets were in jeopardy.
Many schemes connected to transnational criminal organizations involved impersonation to convince victims into sending money to fraudsters. “Grandparent scams” are especially pernicious versions of such schemes. Those scams typically begin when a fraudster contacts an older adult and poses as either a family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and urgently needs money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations (RICO) Act, a federal judge described such scams “heartbreakingly evil.” That case was brought by the Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the Southern District of California and investigated by the FBI’s San Diego Elder Justice Task Force. The Department also prosecuted other grandparent scam cases during the last year in the Middle District of Pennsylvania, Western District of Pennsylvania, District of Maryland, Central District of California, Southern District of Illinois, and Southern District of Indiana.
Other cases advanced by the Department over the past year with a more local nexus involved schemes in which individuals who knew their victims took advantage of those victims’ trust. For instance, in March 2022, the U.S. Attorney’s Office for the Northern District of Ohio convicted at trial an investment advisor, charged in 2020, who stole more than $9.3 million from his customers; the advisor was sentenced to nearly 22 years in prison. In September 2022, the U.S. Attorney’s Office for the Eastern District of Missouri secured charges against a bank branch manager who, allegedly, stole $175,000 from elderly customers by, among other things, logging into customer accounts and transferring funds.
Efforts to Return Money to Victims
The Department and its law enforcement partners continue to use all of the tools available to return money to elder fraud victims, including forfeiture, remission, restoration, restitution, and direct payments. As part of the Department’s efforts since September 2021, approximately 550,000 fraud victims were notified that they could be eligible to receive a payment. More than 150,000 of those victims cashed checks totaling $52 million,* and thousands more are eligible to receive checks.
In one matter resolved on Sept. 15, 2022, Wiland Inc., a consumer data company, agreed through a non-prosecution agreement to pay $4.4 million in victim compensation for its acknowledged sale of consumer data to operators of fraudulent schemes. Victims of fraud schemes that used consumer data sold by Wiland (many of whom were older adults) were targeted with “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services if victims paid a fee. Many victims lost thousands of dollars. The matter was prosecuted by the Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of Colorado, and was investigated by the U.S. Postal Inspection Service.
Victim compensation paid by Wiland as part of its resolution with the Department will be added to a fund previously developed in connection with cases brought against two other marketing companies by the Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of Colorado, with the support of the U.S. Postal Inspection Service. The two companies, Epsilon Data Management LLC and KBM Group LLC, entered into deferred prosecution agreements in January 2021 and June 2021, respectively, that required them to distribute $127.5 million and $33.5 million, respectively, to victims who were included on consumer lists sold by Epsilon and KBM Group to fraudsters. In addition, all three of the companies agreed through their resolutions to implement significant compliance and reporting obligations to prevent the recurrence of misconduct.
Compensation payments associated with the Epsilon, KBM, and Wiland resolutions have been, and will continue to be, sent directly to eligible victims identified through a review of relevant evidence by the Department of Justice. Information about compensation payments is available here.
The Department also continued its efforts to return money to consumers, especially older Americans, who were victimized by scams and paid fraudsters via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March 2020, more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud. The Money Laundering and Asset Recovery Section of the Department’s Criminal Division and numerous U.S. Attorneys’ Offices secured and are administering the resolution with Western Union. Information about payments made through the Western Union resolution is available here.
In addition, the FBI’s Internet Crimes Complaint Center (IC3) successfully employed its Recovery Asset Team (RAT) to identify ongoing elder fraud schemes and to freeze victims’ funds before they could reach fraudsters’ pockets. Over the last 12 months, the IC3 RAT worked approximately 375 incidents involving older adult victims, freezing over $21 million, making recovery and return of those funds possible.
The Consumer Financial Protection Bureau also published a report that provides the first comprehensive description of the experience of how and when older adults recover funds they have lost to fraud and exploitation. The report derives insights from interviews with older adults, caregivers, and professionals.
Public Education, Outreach, and Fraud Reporting
In conjunction with today’s announcement, the Department, the Consumer Financial Protection Bureau, the Department of Health and Human Services’ Administration for Community Living, the COPS Office, AmeriCorps Seniors, and other agencies and components are conducting outreach to raise public awareness of grandparent scams. Free awareness materials related to grandparent scams are available from the CFPB here and from the FTC here.
The Department also commended FinCEN for releasing an advisory to alert financial institutions to the rising trend of elder financial exploitation. Filings under the Bank Secrecy Act (BSA) are a critical tool in the fight to protect older adults, and the Department is engaging with financial institutions to amplify FinCEN’s advisory and emphasize the importance of BSA filings.
Reporting from consumers about fraud and fraud attempts is critical to law enforcement efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available through the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases referenced in today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
* The original version of this release stated the number of victims as 160,000 and the check amount totaling $62 million. The correct numbers are 150,000 victims and $52 million.
Jury Convicts Virgin Islands Man of Multi-Kilogram Cocaine ConspiracyRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Avery Lans (55, Virgin Islands) guilty of conspiracy to distribute cocaine. Lans faces a minimum mandatory sentence of 10 years, and up to life, in federal prison. His sentencing hearing is scheduled for December 5, 2022. Lans and his conspirator, Wayne Ellsworth Stout, Jr. (35, Miami), were indicted on June 15, 2022. Stout pleaded guilty on August 19, 2022.
According to the evidence presented at trial, on June 1, 2022, Stout drove from Miami to Orlando and retrieved a grey and teal duffle bag from a storage locker in the Edgewater area. Agents from Homeland Security Investigations (HSI) were conducting surveillance on Stout as he traveled from Miami to Orlando and as Stout left the storage locker and headed to the parking lot of a restaurant in the Winter Park area. At approximately 1:45 p.m., Lans arrived and received the duffle bag during a short, 30-second meeting. After circling the block, Lans led HSI surveillance agents to the corner of Lee and Wymore, where Lans abruptly turned in an attempt to escape while dropping the duffle bag out of his passenger side window. After a brief, high-speed chase, Lans was detained and the duffle bag was retrieved. The bag contained five kilograms of cocaine, wrapped in black tape with a marking on it:
When HSI agents searched the storage locker in Edgewater, they located three coolers containing 109 kilograms of cocaine, some of which contained the same black and gold marking as the five-kilogram bricks that Lans was carrying:
A kilogram of cocaine was estimated to be worth at least approximately $27,000. Lans was carrying $135,000 worth of cocaine at the time he attempted to flee. The storage locker contained cocaine valued at nearly $3 million.
This case was investigated by Homeland Security Investigations, with assistance from the Orange County Sheriff’s Office, the Orlando Police Department, the Sunrise Police Department, and the Golden Beach Police Department. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Jury Convicts Illinois Man for sending MDMA through the U.S. Postal Service for DistributionRead the Press Release
East St. Louis, Ill. – Delon Echols, 31, of Belleville, Illinois, was convicted by a federal jury on Thursday, September 29, 2022, for sending MDMA through the mail with the intent to later distribute it.
According to court documents and evidence presented at trial, Echols utilized the Dark Web to order
MDMA from the Netherlands. Echols shipped the drugs through the U.S. Postal service to an unwitting individual in Mascoutah, Illinois. In August of 2019, the individual learned about the package containing narcotics and immediately went to the Mascoutah Police Department. Police discovered that 911.5 grams of MDMA was concealed in vacuum sealed bags inside whey protein jugs to avoid detection. At trial, the individual discussed how Echol's actions put both her and her family at risk.“This case serves as a great example of how a concerned member of the public working with law enforcement can help make our communities safer,” said United States Attorney Rachelle Aud Crowe.
“I join with our law enforcement partners in thanking her for her courage in coming forward. This case also demonstrates yet another way in which drug trafficking is not a victimless crime.”Sentencing has been scheduled for January 10, 2023, in front of United States District Judge
Stephen P. McGlynn. Attempted Possession with Intent to Distribute is punishable up to 20 years in prison.The Drug Enforcement Administration, Mascoutah Police Department, and United States Postal
Inspection Service conducted the investigation.
The case was prosecuted by Assistant U.S. Attorneys Karelia S. Rajagopal and Kimberly S. Arshi.Jonesboro Woman Sentenced to 20 Months in PrisonRead the Press Release
LITTLE ROCK—A Jonesboro woman was sentenced to prison for misusing more than $143,000 in disability payments intended for her injured veteran husband. Brandi Goldman, 49, was sentenced to 20 months in federal prison today by United States District Judge James M. Moody, Jr.
In 2013, Goldman was married to a United States Army Reservist who suffered a severe traumatic brain injury in a service-connected accident. As a result of this injury, her husband had many serious physical challenges, and Goldman was appointed as his guardian. Her husband began receiving disability payments, and Goldman signed a fiduciary agreement with Veterans Affairs (VA) detailing the terms of her management of his finances.
In part, the agreement stated that funds were to be used for the beneficiary and that Goldman was not permitted to borrow, loan, or gift money belonging to the beneficiary. When Goldman officially took over her husband’s accounts in April 2015, through November 2017 after her activity was reported to authorities, she received $258,613.54 in VA disability payments and $36,000 in Social Security payments. During that timeframe, she withdrew $199,649.30 in cash and accrued about $900 in ATM and overdraft fees.
Goldman admitted to spending much of the cash to fund her methamphetamine habit, spending $150 on methamphetamine two to three times per week. She also admitted that five other people moved into the residence with her and her husband, none of whom paid rent or contributed to expenses, some of whom she regularly gave cash. Goldman also admitted paying $68,000 in cash for another home, furnishings for the home, a vehicle, and a motor home. She told investigators she purchased vehicles for several people and gave money to her daughters as well as her husband’s parents.
“To steal from a veteran who is incapacitated is an egregious crime. However, that this crime was committed by a fiduciary is particularly pathetic,” said Special Agent in Charge Jeffrey Breen of the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “Today’s sentence should send a clear message that the VA OIG will vigorously investigate those who would exploit our nation’s most vulnerable veterans.”
A grand jury indicted Goldman in July 2020 with one count of misappropriation by a fiduciary and one count of theft of government funds. In June 2022, she pleaded guilty to misappropriation by a fiduciary in exchange for the other count being dismissed. In addition to prison, Judge Moody sentenced Golden to 3 years of supervised release and ordered her to pay $143,000 in restitution.
The case was investigated by the Veterans Affairs – Office of the Inspector General and the Social Security Administration – Office of the Inspector General. Assistant United States Attorney Liza Brown prosecuted the case for the United States.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Highlands County Methamphetamine Dealer Sentenced to Decade in Federal PrisonRead the Press Release
MIAMI – Doyle Van Roan, 64, was sentenced today by U.S. District Judge Donald L. Graham to 120 months in prison for drug trafficking. Roan previously pled guilty to possession with intent to distribute 50 grams or more of methamphetamine.
On February 19, 2021, law enforcement officers seized from Roan’s home approximately 65 grams of methamphetamine, packaged in three separate bags, two of which were marked as “1/2”. They also seized several smaller bags of methamphetamine, digital scales, and drug paraphernalia. At the time, Roan was on Alabama state probation for manufacturing methamphetamine.
As part of his guilty plea in this case, Roan admitted that all of the methamphetamine was his and that he sold it from his Avon Park home.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Deanne L. Reuter, Special Agent in Charge, Drug Enforcement Administration, Miami Field Division; and Paul Blackman, Sheriff, Highlands County Sheriff’s Office, announced the sentence.
DEA Miami and Highlands County Sheriff’s Office investigated this case. Assistant U.S. Attorney Michael D. Porter prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-14009.
###
Gynecologist and pharmacist plead guilty to operating massive “pill mill” networkRead the Press Release
ATLANTA – Anthony Mills, a former Atlanta gynecologist, and Raphael Ogunsusi, a licensed pharmacist who owned two pharmacies, have pleaded guilty for their roles in operating an Atlanta-area “pill mill” network that supplied addicts and drug dealers with large amounts of dangerous prescription drugs through illegal prescribing and dispensing.
“Mills and Ogunsusi are now admitted drug dealers who violated the public’s trust by engaging in black-market sales of staggering amounts of dangerous opioid pills,” said U.S. Attorney Ryan K. Buchanan. “With opioid overdoses continuing to rise in Georgia, our office will continue to devote resources to prosecuting licensed professionals who fuel rather than help to stem the opioid epidemic.”
“The dispensing of addictive prescription pain medication under the guise of a doctor’s care isn’t about the good of the community or an individual’s specific health needs – it’s about greed,” said Robert J. Murphy, the Special Agent in Charge of the DEA’s Atlanta Field Division. “Individuals like these defendants who operated a ‘pill mill’ are nothing more than drug dealers who are licensed to wear white coats and carry stethoscopes. They will now face the consequences for their criminal actions.”
“These pleas should serve as a warning to any medical professional considering exploiting their patients for profit: you will be caught, you will be prosecuted, and you will pay a steep price,” said Lisa Fontanette, Assistant Special Agent in Charge IRS Criminal Investigation, Atlanta Field Office. “IRS-CI remains committed to working with our law enforcement partners to bring those seeking to enrich themselves at the expense of their patients, to justice.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Anthony Mills was a medical doctor licensed to practice medicine in the State of Georgia since 1997, and whose specialty was listed with the medical board as “Gynecology.” Since at least October 2018, Mills operated a “pill mill” out of his personal residence, where he issued prescriptions for controlled substances (such as large quantities of oxycodone) to drug addicts and drug dealing “sponsors” in exchange for cash payments. Mills did not obtain necessary prior medical records of his “patients,” conduct physical exams, or do anything to establish a valid patient-physician relationship. Instead, he issued prescriptions in the names of individuals he never met or evaluated. Some of the prescriptions that Mills issued were in the names of individuals whose identities had been stolen and others who were incarcerated or deceased at the time Mills wrote the prescriptions.
A large percentage of the illegitimate prescriptions written by Mills to drug-dealing sponsors were filled by licensed pharmacist Raphael Ogunsusi through his pharmacies, Evansmill Pharmacy and Retox Pharmacy. Ogunsusi knew that Mills operated a pill mill out of his home, and that Mills prescribed in excess of medically appropriate dosages and combinations of controlled substances. But Ogunsusi nonetheless dispensed controlled substances pursuant to prescriptions issued by Mills and others, which Ogunsusi knew were issued without a legitimate medical purpose and outside the usual course of professional practice.
Ogunsusi accepted large cash payments in exchange for filling these illegal prescriptions, including as much as $900 to fill just one prescription for oxycodone and $500 to fill one prescription for Percocet. Ogunsusi knew these prices were well above the market value for legitimate prescriptions. To disguise the significantly inflated prices that he was charging to dispense illegal controlled substance prescriptions, Ogunsusi falsified, and directed others to falsify, the pricing information on his pharmacy computers to give the appearance that he had charged market prices for the controlled substance prescriptions. Ogunsusi also required sponsors to purchase a battery of additional non-controlled substances, which he referred to as the “Shebang,” as a condition for filling illegal controlled substance prescriptions. The purpose of these non-controlled substances was to maximize profits for his illegal dispensing. Ogunsusi also directed his pharmacy employees, including another licensed pharmacist, to dispense the illegal prescriptions.
Ogunsusi also pled guilty to money laundering based upon his purchase of an airplane using the proceeds of his illegal drug dispensing and distribution.
In addition to Mills and Ogunusi, pharmacist Moses Kirigwi, as well as sponsors Brittany Tinker and Keandre Bates, pleaded guilty to conspiring with Mills and Ogunsusi. Criminal charges remain pending against eight additional defendants.
Anthony Mills, 56, of Atlanta, Georgia, will be sentenced on February 7, 2023. Keandre Bates and Moses Kirigwi will be sentenced on February 6, 2023. Sentencing dates for Ogunsusi and Brittany Tinker have not yet been scheduled.
This case is being investigated by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorneys David A. O’Neal and Laurel Boatright Milam are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Framingham Woman Sentenced for Benefits FraudRead the Press Release
BOSTON – A Framingham woman was sentenced yesterday for fraudulently receiving Social Security disability benefits, MassHealth, Supplemental Nutrition Assistance Program (SNAP) benefits and Section 8 housing assistance.
Maribel Rodriguez, 63, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to time served (approximately one day) and three years of supervised release, with the first 15 months to be spent in home confinement. She was also ordered to pay restitution in the amount of $253,199.57 to the agencies she defrauded. On March 4, 2022, Rodriguez pleaded guilty to four counts of theft of public funds and two counts of making false statements.
Over a period of approximately 12 years, Rodriguez stole $68,223 in Social Security benefits, $1,908 in MassHealth benefits, $21,790 in SNAP benefits (previously known as Food Stamps) and $161,277 in Section 8 housing assistance benefits. In June 2016, she falsely informed the Social Security Administration that she lived alone when, in fact, she was living with her husband. Similarly, Rodriguez falsely told the Marlborough Community Development Authority in May 2017 that she was the only member of her household.
United States Attorney Rachael S. Rollins; Sharon MacDermott, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip M. Coyne, Special Agent in Charge of the Department of Health and Human Service’s Office of Inspector General, Boston Regional Office; Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office, made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of Rollins’ Major Crimes Unit prosecuted the case.
Former hacker sentenced for stealing computer power to mine cryptocurrency and stealing the personal information of more than 100 million peopleRead the Press Release
Seattle – A 37-year-old former Seattle tech worker was sentenced today in U.S. District Court in Seattle to time served and 5 years of probation including location and computer monitoring for seven federal crimes connected to her scheme to hack into cloud computer data storage accounts and steal data and computer power for her own benefit, announced U.S. Attorney Nick Brown. Paige A. Thompson a/k/a ‘erratic,’ was arrested in July 2019, after Capital One alerted the FBI to Thompson’s hacking activity. A federal jury found her guilty in June 2022, following a seven-day trial. At the sentencing hearing U.S. District Judge Robert S. Lasnik said, time in prison would be particularly difficult for Ms. Thompson because of her mental health and transgender status.
“While we understand the mitigating factors, we are very disappointed with the court’s sentencing decision. This is not what justice looks like,” said U.S. Attorney Nick Brown. “Ms. Thompson’s hacking and theft of information of 100 million people did more than $250 million in damage to companies and individuals. Her cybercrimes created anxiety for millions of people who are justifiably concerned about their private information. This conduct deserves a more significant sanction.”
Thompson was found guilty of wire fraud, five counts of unauthorized access to a protected computer and damaging a protected computer.
Using Thompson’s own words in texts and online chats, prosecutors showed how Thompson used a tool she built to scan Amazon Web Services accounts to look for misconfigured accounts. She then used those misconfigured accounts to hack in and download the data of more than 30 entities, including Capital One bank. With some of her illegal access, she planted cryptocurrency mining software on new servers with the income from the mining going to her online wallet. Thompson spent hundreds of hours advancing her scheme, and bragged about her illegal conduct to others via text or online forums.
Asking the court to impose a seven-year sentence, prosecutors wrote in their sentencing memo, “…Thompson’s crimes … were fully intentional and grounded in spite, revenge, and willful disregard for the law. She exhibited a smug sense of superiority and outright glee while committing these crimes…. Thompson was motivated to make money at other people’s expense, to prove she was smarter than the people she hacked, and to earn bragging rights in the hacking community.”
“I am proud of how quickly our cyber task force worked together to recover the victims’ personal information and prevent further harm,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle Field Office. “This case is a good example of why companies and individuals who believe their data has been stolen online should immediately contact the FBI.”
Judge Lasnik scheduled a December 1, 2022, hearing to determine the amount of restitution Thompson must pay to her victims.
The case was investigated by the FBI Seattle Cyber Task Force. The case is being prosecuted by Assistant United States Attorneys Andrew Friedman, Jessica Manca and Tania Culbertson.