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30 September 2022
Former Baltimore City Assistant State’s Attorney Facing Federal Charges for Unlawfully Obtaining Phone RecordsRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment late yesterday charging former Baltimore City Assistant State’s Attorney Adam Lane Chaudry, age 43, of Baltimore, Maryland, with 10 counts of fraud in connection with obtaining confidential phone records. The indictment alleges that Chaudry committed the crime knowing that information may be used in furtherance of and with the intent to commit stalking.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Maryland State Prosecutor Charlton T. Howard III; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to the indictment, from June 2009 to June 18, 2021, Chaudry worked as an Assistant State’s Attorney in the Baltimore City State’s Attorney’s Office (“BSAO”). From September 2015 until he left the BSAO Chaudry worked in the BSAO’s Homicide Division. Chaudry maintained a romantic relationship with Victim #1 from May 2005 through January 2018; and with Victim #2 from August 2017 through September 2020. Victims #3, #4, and #5 were long-time friends of Victim #1. At no point were any of the victims a witness or target of any criminal investigation or prosecution by the BSAO.
The indictment alleges that between January 3, 2019 and April 12, 2021, Chaudry caused 33 grand jury and trial subpoenas to be issued for the telephone records of Victim #1. The indictment alleges that Chaudry caused the subpoenas to appear to be related to a “special investigation in the Circuit Court for Baltimore City”; to contain no identifying case number; and to further state, “The information sought in this subpoena is relevant and material to a legitimate law enforcement inquiry.” Other subpoenas contained similar fraudulent information.
In a similar manner, Chaudry allegedly caused grand jury and trial subpoenas to be issued for the telephone records of Victim #2 between February 22, 2019 and April 12, 2021; caused multiple grand jury and trial subpoenas to be issued for the telephone records of Victim #3 between March 12, 2019 and April 21, 2020; caused multiple grand jury and trial subpoenas to be issued for the telephone records of Victim #4 between March 22, 2019 and February 8, 2021; and caused multiple grand jury and trial subpoenas to be issued for the telephone records of Victim #5 between January 21, 2019 and February 18, 2020.
As detailed in the indictment, not only did Chaudry request telephone records for the victims, on January 10, 2019, while Chaudry was living with Victim #2, Chaudry asked an investigator from BSAO to run the name of a relative of Victim #2 who had served time in a detention center in another Maryland county in a case not involving BSAO. There was no grand jury investigation relating to Victim #2 or to Victim #2’s relative. After Victim #2 and Chaudry ended their relationship, Chaudry allegedly caused to be issued subpoenas for jail calls between Victim #2 Victim #2’s incarcerated relative. Chaudry also caused to be issued a subpoena for Victim #2’s relative’s visitor logs. According to the indictment, Chaudry further sent a letter on BSAO letterhead for 911 calls made by Victim #2 that appeared in phone record logs he had obtained. He represented that the records were “pertinent to a legitimate law enforcement inquiry.”
In addition, the indictment alleges that on March 26, 2019, an investigator at BSAO provided Chaudry information that Chaudry had previously requested including Victim #1’s home address, MVA information, and her driver’s license photograph. Chaudry then allegedly used the information, including Victim #1’s driver’s license photograph to contact a hotel to request information about Victims #1 and #3’s stays at the hotel using his BSAO email address. The hotel number appeared in Victim #1’s phone records previously obtained by Chaudry.
If convicted, Chaudry faces a maximum sentence of 10 years in federal prison for each count, with a possible enhancement of five years in prison per count for stalking. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Chaudry will have an initial appearance at a later date in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI and State Prosecutor’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Sean R. Delaney and Special Assistant U.S. Attorney Sarah R. David, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Florida Woman Charged with Embezzling $2 Million from Former EmployerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Catherine Latoski, age 52, formerly of Exeter, Pennsylvania and currently a resident of Davenport, Florida, was charged in a criminal information with committing wire fraud.
According to United States Attorney Gerard M. Karam, the information alleges that Latoski was the Director of Accounting Services for a Scranton-based for-profit educational institution. Beginning in November 2016, through her termination in June 2021, Latoski allegedly charged approximately $2,000,000 in personal expenses on corporate credit cards issued by her former employer, spending the funds on vacations, Disney timeshares and cruises, personal utility bills and shopping expenses, her child’s college tuition, and to fund her and her family members’ personal businesses selling health and beauty products. Latoski then used her accounting position to facilitate having her former employer pay off the credit card charges, including by creating false entries in the company’s books and records to conceal the expenses.
The United States is forfeiting five Disney timeshares purchased by Latoski using the stolen funds, and held in the names of her family members.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
The maximum penalty under federal law for the offense is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Fentanyl Trafficker Sentenced to 40 MonthsRead the Press Release
TUCSON, Ariz. – On September 27, 2022, Carlos Obed Moreno, 32, a United States citizen residing in Mexico, was sentenced by United States District Judge Raner C. Collins to 40 months in prison for attempting to smuggle pills into the United States in exchange for payment. Moreno previously pleaded guilty to Importation of Fentanyl into the United States.
On January 6, 2022, Moreno presented himself for entry into the United States from Mexico at the De Concini Port of Entry in Nogales, Arizona. While at the Port, a Customs and Border Protection Officer noticed a knife in Moreno’s waistband and conducted a pat-down for officer safety. During the pat-down, the officer noticed packages stuffed in Moreno’s boots. Further inspection of the boots revealed the packages contained approximately 628.1 grams of blue fentanyl pills.
Homeland Security Investigations, Nogales, conducted the investigation in this case. Assistant U.S. Attorney Stefani Hepford, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-00259-TUC-RCC-LAB
RELEASE NUMBER: 2022-165_Moreno# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Federal Inmate Sentenced for Possessing Cellphone at LSCI AllenwoodRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 29, 2022, Angel Antonio Anchondo, age 20, an inmate at the Low Security Correctional Institution, Allenwood (LSCI Allenwood), in White Deer, Pennsylvania, was sentenced to two months’ imprisonment by United States Magistrate Judge William I. Arbuckle for possessing a cellphone in prison.
According to United States Attorney Gerard M. Karam, on December 15, 2021, a correctional officer at LSCI Allenwood seized a scarf from Anchondo while pat searching him, and found an LG cellphone and charger hidden within the scarf
The sentence will run consecutively to Anchondo’s current federal sentence for smuggling over 9 kilograms of cocaine into the United States. Additionally, the Federal Bureau of Prisons sanctioned Anchondo by disallowing 40 days of good conduct time, placing him in disciplinary segregation for 30 days, and suspending his commissary and phone privileges for 6 and 12 months respectively.
The case was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Drew O. Inman and Assistant U.S. Attorney George J. Rocktashel prosecuted the case.
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Environmental Justice Coordinator appointed in District of MontanaRead the Press Release
HELENA – U.S. Attorney Jesse Laslovich today announced the appointment of Mark Steger Smith to serve as Environmental Justice Coordinator for the District of Montana.
Smith, who is the Civil Division chief for the U.S. Attorney’s Office’s and has been an assistant U.S. attorney with the office since 2002, will lead efforts to enforce both criminal and civil environmental laws, along with focusing on protecting the rights of residents who are disproportionally burdened by environmental and health hazards. These environmental and health hazards could involve water or air pollution, asbestos, illegal dumping, and housing conditions like lead paint, vermin, or lack of heat. In addition to litigating cases throughout the district, Smith also will coordinate trainings for prosecutors and investigators and attend community meetings to discuss environmental issues.
“Montana is fortunate to have Mark Smith leading our efforts to protect our state’s natural resources and public health. He is a distinguished litigator in our office and brings years of environmental enforcement experience to this coordinator position. The U.S. Attorney’s Office is committed to being responsive to environmental concerns as we continue to ensure Montana has a clean and healthy environment,” U.S. Attorney Laslovich said.
The Justice Department is advancing its environmental justice work through the creation of Environmental Justice coordinators in all 93 U.S. Attorney’s Offices. The U.S. Attorney’s Office will continue to partner and coordinate with the Justice Department’s Environmental and Natural Resources Division as well as client agencies across the federal government.
The public can report suspected violations of environmental laws to the U.S. Attorney’s Office by calling 406-657-6101 or writing the U.S. Attorney’s Office, District of Montana, Attn: Environmental Justice Coordinator, 2601 2nd Ave. N., Suite 3200, Billings, MT 59101.
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Drug Dealer Targeting Portland High School Students Faces Federal ChargesRead the Press Release
PORTLAND, Ore.—A 42-year-old Portland man is facing federal charges for targeting and selling drugs to local high school students.
Jonathon Ash Clark aka “Jonathan Ash Clark” has been charged by federal criminal complaint with possessing with intent to distribute a controlled substance, distributing a controlled substance to a person under the age of 21, and using a minor in drug operations.
According to court documents, on September 28, 2022, Portland Public Schools officials contacted the Portland Police Bureau (PPB) to request assistance locating a missing student. School officials received word that the student was last observed with Clark, a suspected supplier of drugs for students. To quickly locate the student, responding PPB officers requested the assistance of the bureau’s Narcotics and Organized Crime Unit (NOC), the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) Interdiction Task Force (HIT), and Homeland Security Investigations (HSI).
Investigators soon located the missing student with Clark in Powell Park in southeast Portland. Officers contacted Clark and learned that he had an outstanding arrest warrant in Clackamas County for violating a protective order. During his arrest, officers searched Clark’s backpack and located small amounts of cocaine and MDMA, and a digital scale covered in white powder residue. Clark later admitted to selling drugs to minors.
Clark will make his initial appearance in federal court today before U.S. Magistrate Judge Jeffrey Armistead. The government will seek pre-trial detention.
This case was investigated by HIT, PPB NOC, and HSI. It is being prosecuted by Scott Kerin, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
District Man Sentenced to 15 Years in Prison for Fatally Shooting His Father and Separate Robbery in 2017Read the Press Release
WASHINGTON – Bernard Coleman III, 29, of Washington, D.C., was sentenced today to a 15-year prison term for killing his father in March 2017 and then, less than a week later, robbing a man on a street in Northeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Coleman also was sentenced today to an additional three years in prison for offenses committed while he was awaiting sentencing.
Coleman pleaded guilty in December 2019, in the Superior Court of the District of Columbia, to voluntary manslaughter while armed, robbery, and unlawful possession of a firearm. The plea, which was contingent upon the Court’s approval, called for an agreed-upon 15-year sentence. The Honorable Craig Iscoe accepted the plea and sentenced Coleman accordingly.
According to the government’s evidence, in the early morning hours of March 17, 2017, Coleman entered the upstairs bedroom of his 43-year-old father, Bernard Coleman, Jr., in the 4000 block of Cole Boulevard SE, and shot him two times. Mr. Coleman’s body was found when window installers arrived at the home later that morning for an unrelated repair.
Following the shooting, Bernard Coleman III fled the scene, taking his father’s car. He also took his father’s cell phone. Over the next half day, he used his deceased father’s cell phone to send text-responsive messages pretending to be his father. Less than a week later, at about 1 a.m. on March 22, 2017, he robbed a man at gunpoint in the 4100 block of Grant Street NE. Coleman took the man’s cell phone, wallet and umbrella and later used the stolen credit cards.
Coleman was arrested on March 28, 2017, in Southeast Washington. While he was awaiting sentencing, he escaped from St. Elizabeths Hospital, where he was being housed, on Oct. 3, 2020. Coleman created a decoy out of towels and sheets and placed it in his bed to evade notice. According to the government’s evidence, he then participated in another assault and robbery, this time of a manager of a group home for people with intellectual and developmental disabilities; Coleman later admitted to receiving stolen property.
Coleman was re-arrested on Oct. 7, 2020. He has remained in custody ever since.
Coleman also had pleaded guilty to charges of escape and receiving stolen property for the offenses committed while he was awaiting sentencing. The Honorable Rainey R. Brandt sentenced him today to the three-year prison term on those charges.
Following his prison terms, Coleman will be placed on a period of supervised release.
These cases were investigated by the Metropolitan Police Department, with assistance provided by the U.S. Marshals Service and the Capital Area Regional Fugitive Task Force.
The 2017 murder and robbery cases were prosecuted by Assistant U.S. Attorneys Sarah Santiago and Lauren Galloway. Assistance was provided by Assistant U.S. Attorney John Giovannelli, Deputy Chief of the Homicide Section; Assistant U.S. Attorney Christine Macey; former Assistant U.S. Attorney Jennifer Fischer; Paralegal Specialists Stephanie Gilbert and LaShone Samuels; Victim/Witness Advocate Karina Hernandez, and former Victim/Witness Advocate Diana Lim.
The 2020 escape and stolen property cases were prosecuted by Assistant U.S. Attorneys Elizabeth C. Kelley and Felice Roggen. Assistance was provided by Sharon Marcus-Kurn, Chief of the Sex Offense and Domestic Violence Section; Assistant U.S. Attorneys Ryan Creighton, and Caroline Burrell; Lead Paralegal Specialist ReShawn Johnson, and Victim/Witness Advocate Tracey Hawkins.
District Man Pleads Guilty to Assault with a Dangerous Weapon in Confrontation with U.S. Capitol PoliceRead the Press Release
WASHINGTON – Bernard McCutcheon, 26, of Washington, D.C., pleaded guilty today to a charge of assault with a dangerous weapon stemming from an incident in which he confronted U.S. Capitol Police officers while in possession of two Molotov cocktails, announced U.S. Attorney Matthew M. Graves and J. Thomas Manger, Chief of the U.S. Capitol Police.
At the time of the offense, McCutcheon was on probation in another case in which he threw a Molotov cocktail at a woman who was walking on a street in Northwest Washington.
McCutcheon pleaded guilty today in the Superior Court of the District of Columbia. He is to be sentenced on Nov. 3, 2022, by the Honorable Michael O’Keefe.
According to court documents, on July 6, 2022, at approximately 3:30 p.m., McCutcheon was in possession of two Molotov Cocktails on the steps of 25 Massachusetts Avenue NW when U.S. Capitol Police officers responded to a 911 call. As the officers approached McCutcheon, he backed away from them while holding one of the Molotov Cocktails. During this confrontation, that Molotov Cocktail hit the ground near where the officers were standing.
McCutcheon then took out the second Molotov Cocktail. While in close proximity to one of the officers, McCutcheon attempted several times to light the white cloth hanging from the bottle. After failing to light the cloth, McCutcheon fled and ran into a nearby bicycle rack, where the second Molotov Cocktail shattered on the ground. In a search at the time of the arrest, officers found a backpack containing a 2-liter soda bottle containing a pale amber liquid consistent with the appearance and odor of gasoline. McCutcheon has been in custody since his arrest.
In the earlier case, McCutcheon pleaded guilty earlier this year to a charge of attempted assault with a dangerous weapon. On the afternoon of April 28, 2021, McCutcheon threw a Molotov cocktail at a woman who was walking near a gas station in the 300 block of Rhode Island Avenue NW. The bottle landed on the victim’s foot and burst into flames, catching her shoe on fire and bruising a toe. Shards of glass from the bottle also cut the victim’s shin. On May 20, 2022, McCutcheon was sentenced to 13 months in prison in this case, with all of the time suspended on the condition that he successfully complete 18 months of supervised probation.
In announcing today’s plea, U.S. Attorney Graves and Chief Manger commended the work of those who investigated the case from the U.S. Capitol Police. They also expressed appreciation for the assistance provided by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Police Department (MPD). They acknowledged the efforts of those who worked on the case form the U.S. Attorney’s Office, including Paralegal Specialist Tonya Queen, and Assistant U.S. Attorney Omeed A. Assefi, who investigated and prosecuted the case.
Des Moines Man Sentenced to Federal Prison for Firearm ChargeRead the Press Release
DAVENPORT, IA – Antonio Lashawn Warfield, age 39 of Des Moines, was sentenced on Tuesday, September 27, 2022, to 105 months in prison following his guilty plea to Felon in Possession of a Firearm.
In September 2019, law enforcement was contacted about Warfield driving a silver Chrysler 300 sedan brandishing a pistol and threatening people. About six weeks later, on October 22, 2019, law enforcement conducted a traffic stop on a silver Chrysler 300 sedan driven by Warfield. A search of the car revealed a loaded semi-automatic pistol concealed in the driver’s seat area of the car. At the time of the stop, Warfield knew he had been previously convicted of a felony and was prohibited by law from possessing a firearm.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department investigated the case.
Davenport Man Sentenced to Federal Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, IA – Charles Michael Spiker, age 49 of Davenport, was sentenced on Tuesday, September 27, 2022, to 120 months in prison following his guilty pleas to Conspiracy to Distribute 50 Grams and More of Methamphetamine and Felon in Possession of a Firearm.
According to court documents, law enforcement identified Spiker as part of a drug conspiracy operating in Colorado, California, and the Davenport area. Investigation revealed that, as part of the conspiracy, Spiker was obtaining methamphetamine and distributing it to other dealers and users. When Spiker was arrested, he had a semiautomatic pistol in his pocket. Spiker knew he had previously been convicted of a felony and was prohibited by law from possessing a firearm.
In August 2022, co-defendant Ricardo Renteria Gutierrez, age 49, a Mexican citizen, was sentenced to 360-months in prison for his plea to Conspiracy to Distribute 50 Grams and More of Methamphetamine. In April 2022, co-defendant Oscar Cruz Guzman, age 28 of Riverside, California, was sentenced to 126-months in prison for his plea to Conspiracy to Distribute 50 Grams and More of Methamphetamine.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The United States Drug Enforcement Administration and the Bettendorf Police Department investigated the case.
Charles County Felon Sentenced to 10 Years in Federal Prison for Dealing in Firearms Without a License and for Transporting the Firearms from Out of State with the Intent to Sell ThemRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Deante Mandel Duckett, age 37, of Cheverly, Maryland, to 10 years in federal prison, followed by three years of supervised release, for dealing in firearms without a license and for transporting a firearm with intent to commit a felony. The sentence was imposed on September 28, 2022.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Charles County Sheriff Troy Berry.
According to his guilty plea, between March 2019 and April 2019,although Duckett was not a licensed firearms dealer he engaged in the business of selling firearms. Duckett traveled outside of Maryland to acquire firearms that he transported back to Maryland with the intent to sell them.
As detailed in the plea agreement, on three occasions between March 6 and April 11, 2019, Duckett met with a confidential source and sold the source firearms. Specifically, on March 6, Duckett sold the confidential source a .38 Special caliber revolver for $400. Duckett told the source that he had obtained the gun in Atlanta and brought it back to Maryland. On April 2, Duckett sold the confidential source a 380 cc semi-automatic pistol, a .22 caliber revolver, and a .32 caliber revolver in exchange for $1,200. During the exchange, Duckett stated to the confidential source, “See, I go down south, man.” Finally, on April 11, 2019, Duckett provided the confidential source with one 12-gauge shotgun, one.32 caliber revolver, and one.32 caliber semi-automatic pistol loaded with 7 rounds of ammunition. Duckett admitted that he transported the firearms from outside Maryland prior to their recovery.
On April 22, 2019, Duckett sent the confidential source a text message requesting that the confidential source call him. During the conversation, Duckett informed the confidential source that he was planning to bring 10 to 15 firearms into Maryland from “down yonder.” Duckett elaborated that “somebody just did something, so they putting a couple more out here on the streets, so everybody trying to get rid of what they got . . . .” Law enforcement arrested Duckett before the transaction could take place.
In all, Duckett sold seven firearms to the confidential source, transporting the firearms from outside the state of Maryland for the purpose of engaging in the business of firearms trafficking. Duckett made these transactions after having sustained a felon drug conviction in Charles County in 2014 and an armed robbery conviction in 2009. As a convicted felon, Duckett was prohibited from possessing firearms or ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Erek L. Barron commended the ATF and the Charles County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Geonard F. Butler II and Joseph R. Baldwin, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Canadian Citizen Charged with Attempted Enticement of a MinorRead the Press Release
ALBANY, NEW YORK - Jonathan Woodworth, age 44, a citizen of Canada, was charged yesterday with attempting to entice and coerce a minor into sexual activity.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the criminal complaint, Woodworth exchanged sexually explicit messages over a period of four months with undercover law enforcement officers whom Woodworth believed to be a foster mother and 10-year-old child. Before his arrest, Woodworth traveled by plane and train from the Canadian province of New Brunswick, to Rensselaer County, with a gift for the child with whom Woodworth intended to engage in sexual activity in a cabin he rented in advance of his travel.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty. If convicted, Woodworth faces at least 10 years and up to life in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000. 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.
Woodworth appeared yesterday before United States Magistrate Judge Daniel J. Stewart, who ordered Woodworth detained pending trial.
This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies. This case is being prosecuted by Assistant United States Attorney Ashlyn Miranda 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.
CPAP Clinic Employees Found Guilty of Embezzling from EmployerRead the Press Release
MINNEAPOLIS – A federal jury convicted two men of mail fraud and conspiracy for embezzling several hundred thousand dollars from Park Nicollet Health Services, announced U.S. Attorney Andrew M. Luger.
Following a seven-day trial before Senior U.S. District Judge David S. Doty, Gregory Carl Koch, 59, of Minneapolis, and Jerome David Kangas, 58, of Blaine, were convicted September 28, 2022, of mail fraud and conspiracy to commit mail fraud. Kangas was also convicted of currency transaction structuring.
According to the evidence presented at trial, in June 2013 Kangas was hired as a clinician in the Park Nicollet CPAP clinic, where Koch was the supervisor and later manager. CPAP machines are devices commonly used to treat sleep apnea. Between June 2013 and June 2018, Koch and Kangas defrauded Park Nicollet out of hundreds of thousands of dollars in compensation. Although Kangas worked only afterhours and weekends responding to CPAP patient calls, Koch entered more than 8,500 weekday hours in the Park Nicollet records to cause Kangas to be paid for work he did not perform. On most of the days for which Kangas was paid, the evidence showed that he was either working for another employer or out of town. The evidence at trial also showed that Koch logged into the company network for Kangas and helped Kangas reset his computer password to conceal that Kangas was not working as his job description required. The scheme was discovered when Koch was laid off in 2018 as a result of the acquisition of Park Nicollet by HealthPartners.
The currency transaction structuring related to a 12-day period in July and August 2017 when Kangas made six withdrawals between $5,000 and $5,500 from four different Wells Fargo Bank branches, for a total of $30,500. Federal law requires banks to report currency transactions over $10,000, as a means of detecting financial crimes. Four days after the last $5,500 withdrawal by Kangas, Koch made a $29,300 cash deposit into his own US Bank account.
Koch and Kangas face potential five-year sentences for each count. A sentencing date is not yet scheduled.
This case was the result of an investigation conducted by the FBI.
This case was tried by Assistant U.S. Attorneys Michelle E. Jones and Robert M. Lewis.
Beckley Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Kamaria J. Mitchell, 33, of Beckley, pleaded guilty today to distributing 5 grams or more of methamphetamine.
According to court documents and statements made in court, Mitchell admitted to selling more than 5 grams of methamphetamine to a confidential informant outside of her residence on November 16, 2020. The methamphetamine was tested DEA Laboratory and confirmed to weigh 27.9 grams and was 98% pure.
Mitchell is scheduled to be sentenced on January 19, 2023 and faces a mandatory minimum of five years and up to 40 years in prison, four years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Beckley/Raleigh County Drug and Violent Crime Unit, which is composed of officers from the West Virginia State Police, the Beckley Police Department, and the Raleigh County Sheriff’s Department.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Timothy D. Boggess is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-49.
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Beckley Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Jamal Johnson, 32, of Beckley, pleaded guilty today to possession with intent to distribute 100 grams or more of heroin.
According to court documents and statements made in court, on October 20, 2020, law enforcement officers executed a search warrant at Johnson’s residence and found approximately 832 grams of heroin, 178 grams of methamphetamine, and three firearms: a Colt, model Army Special, .38-caliber revolver; an Eagle Arms, model Eagle-15, multi-caliber rifle; and a Romarm/Cugir, model WASR-10, 7.62 caliber rifle.
Johnson admitted to possessing and intending to sell the heroin and methamphetamine, and to possessing the firearms. At the time of this offense, Johnson was serving a term of supervised release for his conviction for distribution of cocaine in United States District Court for the Southern District of West Virginia on October 27, 2015.
Johnson is scheduled to be sentenced on January 19, 2023 and faces a mandatory minimum of five years and up to 40 years in prison as well as at least four years of supervised release and a $5 million 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 Beckley/Raleigh County Drug and Violent Crime Unit.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorneys Andrew D. Isabell and Alex Hamner are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-13.
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Barrigada Woman Sentenced 120 Months in Federal Prison for Drug TraffickingRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Audrey Jean Wolford (“Wolford”), age 45, from Barrigada, Guam, was sentenced in the United States District Court of Guam to 120 months imprisonment for Conspiracy to Distribute Fifty or More Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 846 and 841(a)(1), and Engaging in Monetary Transaction with Proceeds of Specified Unlawful Activity, in violation 18 U.S.C. § 1957. The Court also ordered five years of supervised release following imprisonment and a mandatory $200 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits. The Court also ordered forfeiture of Wolford’s Barrigada residence, jewelry, and Infiniti vehicle to the government, as they were purchased with illegal drug proceeds.
From January 2013 to February 2019, Wolford, Vincent Raymond Rios (“Rios”), and other co-conspirators agreed to purchase and distribute methamphetamine in Guam. Wolford carried approximately $10,000 cash on her person as she accompanied Rios to purchase drugs from their supplier in the U.S. mainland. Rios packaged the drugs and Wolford prepared the U.S. Postal forms, mailing the packages containing methamphetamine to Guam. Wolford and Rios then traveled back to Guam where they retrieved their drug packages. The methamphetamine was then distributed to Eric Aponik, Joshua Ulloa, Josephine Quintanilla, and numerous other people in Guam, many of whom have been sentenced. The proceeds from the methamphetamine sales were returned to Wolford and Rios.
After the execution of search warrants, it was discovered that Wolford sent and received text messages that recorded her sales of methamphetamine by the gram, plate, and pound. She sold the methamphetamine out of her rental property located at 223 Bejong Street, Barrigada, Guam and met drug customers at hotels and other public places.
In 2016, the Wolford and Rios provided Aponik with $125,000 in drug proceeds that he deposited in his employer’s bank account, Reaction Inc. The company issued a check in the amount of $125,000 to Title Guaranty of Guam, Inc. where Wolford used the laundered money to purchase rental property in Barrigada.
Wolford also paid protection fees to a retired Guam Police Department officer, who advised Wolford how to avoid detection and arrest by law enforcement as she distributed drugs. As part of Wolford’s plea agreement, she agreed that 1,800 grams of methamphetamine were attributable to her conduct.
In June 2020, the district court sentenced Rios to 27 years imprisonment for Conspiracy to Distribute Fifty Grams or More of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1); 20 years imprisonment for Attempted Possession with Intent to Distribute, in violation of 21 U.SC. § 841(a)(1); and 10 years imprisonment for two counts of Money Laundering, in violation of 18 U.S.C. § 1957. Those sentences are being served concurrently at the federal Bureau of Prisons. Rios also forfeited over $1,183,939.00, in addition to a condominium at Apusento Gardens and a home in Gloria Circle, Dededo.
“This case reflects the hard work of the many law enforcement agencies that pursued this drug trafficking organization across multiple jurisdictions,” stated United States Attorney Anderson. “It resulted in substantial criminal penalties, in addition to the forfeiture of a remarkable amount of ill-gotten gains to the government. We will continue to dedicate our resources toward identifying, disrupting, and dismantling these drug organizations in Guam.”
“Ms. Wolford’s actions clearly warrant this sentence,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “The harm that these drugs bring to our communities are clear. The fact that she recruited a retired law enforcement officer in her drug enterprise makes it that much worse.”
"Using the mail to traffic harmful controlled substances hurts members of our community and everyone’s trust. Postal Inspectors will continue to work to keep controlled substances out of the U.S. Mail and our communities" said Kevin Rho, Acting Inspector in Charge, USPIS, San Francisco Division. "I would like to thank Guam Customs and Quarantine Agency, and our federal law enforcement partners for their ongoing commitment to these prosecutions."
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This joint investigation was conducted by the Bureau of Alcohol, Firearms and Explosives, United States Postal Inspection Service, Drug Enforcement Administration, and the assistance from the Guam Customs and Quarantine Agency. The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.
Bulldog Gang Member Sentenced for Ammo PossessionRead the Press Release
FRESNO, Calif. — Brian Zamora, 30, of Fresno, was sentenced today by United States District Judge Jennifer L. Thurston to four years in prison for being a felon in possession of ammunition, United States Attorney Phillip A. Talbert announced.
According to court documents, officers stopped the car Zamora was traveling in after learning that he was a wanted parolee-at-large and had been spotted in the area. Officers found Zamora’s loaded AR-style “ghost gun” without a serial number and 30-round magazine concealed in a duffle bag in the car. Zamora is a felon, so he is prohibited from possessing both firearms and ammunition. In addition to three felony convictions for vehicle theft, one felony conviction for carrying a loaded firearm, two felony convictions for second degree burglary, one felony conviction for felon in possession of a firearm, Zamora was on parole for second degree attempted robbery at the time of the crime.
This case was the product of an investigation by the FBI, the Fresno Police Department Multi-Agency Gang Enforcement Consortium (MAGEC), and the California Department of Corrections and Rehabilitation. Assistant United States Attorney Laura Jean Berger prosecuted the case.
Zamora remains in federal custody.
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.
Atlantic Richfield Company Agrees to Complete Multimillion-Dollar Cleanup of the Anaconda Smelter Superfund SiteRead the Press Release
The Atlantic Richfield Company (AR) has agreed to complete its cleanup of the Anaconda Smelter Superfund Site (Site) in Deer Lodge County, Montana, the Department of Justice and the Environmental Protection Agency announced today. The state of Montana, on behalf of the Department of Environmental Quality, is also a signatory to the consent decree that was lodged today in the U.S. District Court in Butte, Montana.
Decades of copper smelting activity at the town of Anaconda polluted the soils in yards, commercial and industrial areas, pastures and open spaces throughout the 300-square-mile Anaconda Site. This pollution has in turn contributed to the contamination of creeks and other surface waters at the Site, as well as of alluvial and bedrock ground water. The closure of smelting operations in 1980 left large volumes of smelter slag, flue dust and hazardous rock tailings that have had to be secured through a variety of remediation methods.
Under the settlement, AR — a subsidiary of British Petroleum — will complete numerous remedial activities that it has undertaken at the Anaconda Site pursuant to EPA administrative orders since the 1990s. Among other actions, AR will finish remediating residential yards in the towns of Anaconda and Opportunity, clean up soils in upland areas above Anaconda and eventually effect the closure of remaining slag piles at the Site. The estimated cost of the remaining Site work, including operation and maintenance activities intended to protect remediated lands over the long-term, is $83.1 million. AR will pay $48 million to reimburse the EPA Superfund Program for EPA and Department of Justice response costs, and will pay approximately $185,000 to the U.S. Forest Service for oversight of future remedial activities on Forest Service-administered lands at the Site.
“We are pleased that Atlantic Richfield has agreed to finalize its long-term cleanup of the Anaconda Site,” said Assistant Attorney General Todd Kim of Justice Department’s Environment and Natural Resources Division. “Today’s consent decree follows other important settlements with Atlantic Richfield over the past two decades that have substantially improved the environment and restored valuable natural resources in the Upper Clark Fork basin. This settlement is also the product of a successful federal-state partnership to secure cleanup of a major hazardous waste site.”
“I was born in Anaconda the same year the smelter closed and while I never saw smoke coming out of the smokestack that still stands over Anaconda, I know what it represents,” said U.S. Attorney Jesse Laslovich for the District of Montana. “It is a symbol representing the hard work of many Anacondans, including members of my family, that built our town, but it’s also a symbol of a Superfund site that has existed for far too long. If the Smokestack represents our past, this consent decree represents our future. Many people, some who are no longer with us, worked diligently to get us to this point and I’m grateful beyond words for all of their work. Our water will be cleaner, our soils will be purer, our slag will be covered, and our future will be brighter because of this historic agreement.”
“This settlement highlights the Agency’s vigorous enforcement to ensure the complete cleanup of the Anaconda Smelter Superfund site,” said EPA Acting Assistant Administrator for Enforcement and Compliance Assurance Larry Starfield. “The work performed under this settlement will further protect the environment and the health of the people who live, work and play in this community.”
“I am very pleased to announce the release of the proposed 2022 sitewide consent decree for the Anaconda Smelter NPL Site,” said EPA Regional Administrator KC Becker. “Over the last several decades, EPA and MDEQ have made great strides in ensuring the cleanup of open space, residential areas, creeks and groundwater by Atlantic Richfield throughout Anaconda-Deer Lodge County. This cleanup of contaminated soils that impact surface waters and remediation of the largest slag piles at Anaconda builds on that progress.”
“This is an important milestone for the people of Anaconda and Montana. A lot of great cleanup work has already been done, and this consent decree will ensure that remaining remediation needs are funded and completed,” said Amy Steinmetz, Montana Department of Environmental Quality Waste Management and Remediation Division administrator.
The consent decree filed today in U.S. District Court in Butte, Montana, is subject to a 30-day public comment period and approval by the federal court. A copy of the consent decree is available on the Department of Justice website at: https://www.justice.gov/enrd/consent-decrees.
Under Montana state law, the Department of Environmental Quality is separately required to put the consent decree out for public comment. The state’s public comment period will run concurrently with the federal public comment period. The consent decree will be available on DEQ’s website at: https://deq.mt.gov/News/publiccomment-folder/Anaconda-CD-9-22.
The consent decree and other information related to the Anaconda Site are available on EPA’s webite page at: www.epa.gov/superfund/anaconda-co-smelter.
Atlantic Richfield Company Agrees to Complete Multimillion-Dollar Cleanup of the Anaconda Smelter Superfund SiteRead the Press Release
WASHINGTON — The Atlantic Richfield Company (AR) has agreed to complete its cleanup of the Anaconda Smelter Superfund Site (Site) in Deer Lodge County, Montana, the Department of Justice and the Environmental Protection Agency announced today. The state of Montana, on behalf of the Department of Environmental Quality, is also a signatory to the consent decree that was lodged today in the U.S. District Court in Butte, Montana.
Decades of copper smelting activity at the town of Anaconda polluted the soils in yards, commercial and industrial areas, pastures and open spaces throughout the 300-square-mile Anaconda Site. This pollution has in turn contributed to the contamination of creeks and other surface waters at the Site, as well as of alluvial and bedrock ground water. The closure of smelting operations in 1980 left large volumes of smelter slag, flue dust and hazardous rock tailings that have had to be secured through a variety of remediation methods.
Under the settlement, AR — a subsidiary of British Petroleum — will complete numerous remedial activities that it has undertaken at the Anaconda Site pursuant to EPA administrative orders since the 1990s. Among other actions, AR will finish remediating residential yards in the towns of Anaconda and Opportunity, clean up soils in upland areas above Anaconda and eventually effect the closure of remaining slag piles at the Site. The estimated cost of the remaining Site work, including operation and maintenance activities intended to protect remediated lands over the long term, is $83.1 million. AR will pay $48 million to reimburse the EPA Superfund Program for EPA and Department of Justice response costs, and will pay approximately $185,000 to the U.S. Forest Service for oversight of future remedial activities on Forest Service-administered lands at the Site.
“We are pleased that Atlantic Richfield has agreed to finalize its long-term cleanup of the Anaconda Site,” said Assistant Attorney General Todd Kim of Justice Department’s Environment and Natural Resources Division. “Today’s consent decree follows other important settlements with Atlantic Richfield over the past two decades that have substantially improved the environment and restored valuable natural resources in the Upper Clark Fork basin. This settlement is also the product of a successful federal-state partnership to secure cleanup of a major hazardous waste site.”
“I was born in Anaconda the same year the smelter closed and while I never saw smoke coming out of the Smokestack that still stands over Anaconda, I know what it represents,” said U.S. Attorney Jesse Laslovich for the District of Montana. “It is a symbol representing the hard work of many Anacondans, including members of my family, that built our town. But it’s also a symbol of a Superfund site that has existed for far too long. If the Smokestack represents our past, this consent decree represents our future. Many people, some who are no longer with us, worked diligently to get us to this point and I’m grateful beyond words for all of their work. Our water will be cleaner, our soils will be purer, our slag will be covered, and our future will be brighter because of this historic agreement.”
“This settlement highlights the Agency’s vigorous enforcement to ensure the complete cleanup of the Anaconda Smelter Superfund site,” said EPA Acting Assistant Administrator for Enforcement and Compliance Assurance Larry Starfield. “The work performed under this settlement will further protect the environment and the health of the people who live, work, and play in this community.”
“I am very pleased to announce the release of the proposed 2022 Sitewide consent decree for the Anaconda Smelter NPL Site,” said EPA Regional Administrator KC Becker. “Over the last several decades, EPA and MDEQ have made great strides in ensuring the cleanup of open space, residential areas, creeks and groundwater by Atlantic Richfield throughout Anaconda-Deer Lodge County. This cleanup of contaminated soils that impact surface waters and remediation of the largest slag piles at Anaconda builds on that progress.”
“This is an important milestone for the people of Anaconda and Montana. A lot of great cleanup work has already been done, and this consent decree will ensure that remaining remediation needs are funded and completed,” said Amy Steinmetz, Montana Department of Environmental Quality Waste Management and Remediation Division administrator.
The consent decree filed today in U.S. District Court in Butte, Mont., is subject to a 30-day public comment period and approval by the federal court. A copy of the consent decree is available on the Department of Justice Web site at: https://www.justice.gov/enrd/consent-decrees.
Under Montana state law, the Department of Environmental Quality is separately required to put the Consent Decree out for public comment. The state’s public comment period will run concurrently with the federal public comment period.
The consent decree and other information related to the Anaconda Site are available on EPA’s Site page at: www.epa.gov/superfund/anaconda-co-smelter.
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Atlanta tax preparer sentenced to prison for filing false client returnsRead the Press Release
ATLANTA - Kyle Self has been sentenced for defrauding the IRS through the submission of false tax returns on behalf of clients.
“Kyle Self scammed the American taxpayers to enrich himself by illegally inflating the amount of tax refunds due to his clients,” said U.S. Attorney Ryan K. Buchanan. “This case serves as a stark warning to other corrupt tax preparers that we will find and prosecute those who exploit the tax system for their personal gain.”
“By submitting fraudulent tax returns Self took advantage of the tax system ultimately for his benefit,” said IRS-Criminal Investigation Assistant Special Agent in Charge Lisa Fontanette. “IRS-Criminal Investigation is committed to investigating tax fraud and other financial crimes and making sure those who abuse the tax system to enrich themselves are brought to justice. We also want taxpayers to choose their tax preparer wisely and look for preparers that will review the return with you. Taxpayers should be wary of any individuals promoting and using schemes to submit false filings to IRS. Should you come across such a scheme, please report it to IRS Criminal Investigation.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Self owned and operated a tax preparation business called DeKalb Tax Services, LLC, which also operated under the names “Tax Shield” and “Instant Tax.” Self filed false tax returns on behalf of his clients between 2015 and 2018 to generate fraudulent tax return payments. Self falsified information related to Schedule Cs, IRA deductions, tuition deductions, capital losses, and head of household filing status, which resulted in a loss to the IRS of $428,175.
For one taxpayer, for example, Self falsely included numerous false statements to inflate her return, claiming that she incurred capital losses on investments, which did not exist. Self fraudulently claimed IRA deductions for the same taxpayer, even though she had no IRA account. Self further claimed deductions for tuition and fees, even though neither the taxpayer nor her son attended school. Self claimed that the taxpayer suffered business losses related to her work as an Uber driver, a job which she had never held. Self also fraudulently reported that the taxpayer’s son was disabled. Self kept much of the money for himself after generating the fraudulently inflated returns.
Kyle Self, 48, of Atlanta, Georgia, has been sentenced to one year, six months in prison to be followed by one year of supervised release and ordered to pay restitution in the amount of $422,936. Self was convicted on these charges on January 11, 2022, after he pleaded guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney David A. O'Neal prosecuted the case.
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.
Aroostook County Man Pleads Guilty to Importing Methamphetamine from CanadaRead the Press Release
BANGOR, Maine: A Calais man pleaded guilty in U.S. District Court in Bangor today to importing methamphetamine, U.S. Attorney Darcie N. McElwee announced.
According to court records, Victor Sousa, 23, crossed from the U.S. into Canada via the Madawaska Port of Entry on July 2, 2019. When he re-entered the country a few hours later, U.S. Customs and Border Protection officers discovered 93 pills hidden in his underwear. The pills had the word “ICE” imprinted on them and later tested positive for methamphetamine. Sousa agreed to be interviewed by law enforcement and admitted that he had gone to Canada to purchase the pills.
Sousa faces up to 20 years in prison and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Customs and Border Protection and Homeland Security Investigations investigated the case.
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Armed Robber Sentenced to More Than 18 Years in PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Christopher Dozier (41, Jacksonville) to 18 years and 8 months in federal prison for two Hobbs Act robberies and brandishing a firearm in furtherance of a violent crime. The court also ordered Dozier to forfeit the firearm and ammunition he possessed as part of the offenses, as well as the money and firearm stolen during the second robbery. Dozier had pleaded guilty on February 2, 2022.
According to court documents, on May 24, 2019, Dozier robbed an adult game room in Jacksonville, attacking and striking an employee in the head. During the robbery, Dozier brandished a .22 caliber pistol at the employee, bound the employee’s hands with wire, and stole cash from the register, along with the employee’s phone. Dozier escaped in a vehicle driven by his accomplice, Brittany Cooper, but the stolen items were recovered outside the business.
Judge Howard previously sentenced Cooper to 42 months in federal prison for aiding and abetting the robbery.
On June 19, 2019, Dozier robbed another game room in Jacksonville. During that robbery, Dozier entered the business, pulled out his .22 caliber revolver, and disarmed the armed security guard. Dozier then brandished his firearm at the cashier, who provided him with $1,877, after which Dozier escaped in a vehicle being driven by an accomplice. Dozier was subsequently arrested for unrelated offenses by local law enforcement in Quincy, Massachusetts, after he had fled Jacksonville.
This case was investigated by the Federal Bureau of Investigation, the Jacksonville Sheriff’s Office, the Florida Department of Law Enforcement, and the Norfolk County (Massachusetts) Sheriff’s Office. It was prosecuted by Assistant United States Attorney David B. Mesrobian.
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.
Arizona Woman Sentenced to 84 Months ImprisonmentRead the Press Release
Memphis, TN – Adalinda Saucedo, 28, formerly of Arizona has been sentenced to 84 months in federal prison for possession with intent to distribute fentanyl. Kevin G. Ritz, United States Attorney, announced the sentence today.
According to information presented in court, on January 24, 2022, an agent with the Shelby County
Sheriff’s Office West Tennessee Drug Task Force, while conducting surveillance along I-40, stopped
Saucedo’s vehicle for speeding. A subsequent search of the vehicle led to the recovery of 5,869 grams of fentanyl.In March 2022, a federal grand jury returned a one-count indictment against Saucedo charging possession with intent to distribute fentanyl. On June 27, 2022, the defendant pled guilty.
On September 29, 2022, United States District Judge Thomas L. Parker sentenced Saucedo to 84 months imprisonment to be followed by four 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).Special Assistant United States Attorney Sean Hord prosecuted this case on behalf of the government. SAUSA Hord was assigned from the 25th Judicial District Attorney’s Office.
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blic Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.
Arizona Man Sentenced to over Five Years in Prison for Fraudulent Citizenship Scheme Targeting ImmigrantsRead the Press Release
LAS VEGAS – A Mohave Valley, Ariz., resident was sentenced today by U.S. District Judge Gloria M. Navarro to five years and 10 months in prison followed by two years of supervised release for orchestrating a fraudulent adult adoption business scheme which promised U.S. citizenship in exchange for money. In addition to imprisonment, Thayer was ordered to pay $852,355 in restitution to his victims.
“This prison sentence should serve as a warning that taking advantage of vulnerable victims, regardless of citizenship status, will be investigated and prosecuted,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “There is no price tag for U.S. citizenship. The U.S. Attorney’s Office and FBI are committed to exposing criminal schemes and holding fraudsters seeking to capitalize on others accountable to the fullest extent of the law.”
“This individual shamefully took advantage of trusting victims, who believed in the promise of U.S. citizenship, for his own financial gain,” said Special Agent in Charge Spencer L. Evans for the FBI. “This case should serve as a warning to others that the FBI and our law enforcement partners will remain steadfast in our efforts to dismantle criminal enterprises that strive to bypass our laws by deceptive and fraudulent means.”
After a seven-day trial in April 2022, Douglas Lee Thayer (70) was found guilty of two counts of mail fraud.
According to court documents and evidence at trial, in 2015 and 2016, Thayer operated U.S. Adult Adoption Services Inc. (USAAS), a business that promised its clients — who consisted mostly of Asian immigrants — U.S. citizenship in exchange for money. Thayer fraudulently represented to his clients that they would be adopted by U.S. citizens. This would supposedly allow the clients to obtain new birth certificates and, subsequently, obtain U.S. citizenship for themselves. USAAS collected at least $7,000 per client from at least 160 victims — many of whom borrowed money to pay Thayer. In total, Thayer received at least $852,355 in payments.
This case was investigated by the FBI. Assistant U.S. Attorney Jessica Oliva prosecuted the case.
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Annapolis Man Sentenced to 10 Years in Federal Prison for Drug Trafficking ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Keith L. Brown, a/k/a “Clown Brown”, age 64, of Annapolis, Maryland, to 10 years in federal prison for possession with intent to distribute phencyclidine, crack, heroin, and cocaine. Khayr Basimibnbrown, age 42, of Annapolis, Maryland, Brown’s son and co-defendant, had previously pleaded guilty to conspiracy to possess with intent to distribute fentanyl, heroin, PCP, and cocaine. He was sentenced to 10 years in federal prison by Chief Judge Bredar in August 2022.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration, Washington Division; Chief Edward Jackson of the Annapolis Police Department; and Anne Arundel County State’s Attorney Anne Colt Leitess.
According to his guilty plea, law enforcement observed Brown conduct narcotics transactions in which narcotics customers routinely stood in lines outside of one of the Monroe Street residences before Brown’s arrival. For example, on January 6, 2022, after an individual was observed walking in the vicinity of the location in which Brown frequently sold narcotics, the individual overdosed. According to the first responders, the non-fatal overdose was attributed to PCP.
On January 13, 2022, law enforcement executed a search and seizure warrants at eight residences in Annapolis, Maryland, including Brown’s residence where officers seized 47 grams of PCP, 55.5 grams of crack cocaine, 6.2 grams of heroin, and 71 grams of cocaine. On the same day, law enforcement executed a search and seizure warrant at an Annapolis apartment which Basimibnbrown frequently visited. After executing the warrant, law enforcement found 145.05 grams of cocaine, 67.19 grams of PCP, and 59.56 grams of a cutting agent within a child’s closet. In total, law enforcement seized $32,695 in cash as well as a firearm.
United States Attorney Erek L. Barron commended the FBI, DEA, the Annapolis Police Department, and the Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Joan C. Mathias and LaRai Everett, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Albuquerque man convicted on federal firearms chargeRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that a federal jury returned a guilty verdict on Sept 29 on Jonathan Tony Sanchez. The jury convicted Sanchez, 36, of Albuquerque, of being a felon in possession of a firearm.
A federal grand jury indicted Sanchez on Jan. 25. According to the indictment and other court records, law enforcement was seeking Sanchez after he absconded from parole. On March 10, officers with the New Mexico Corrections Department (NMCD) Security Threat Intelligence Unit (STIU) and deputies with the Bernalillo County Sheriff’s Office (BCSO) located Sanchez at an apartment on Wellesley Drive NE in Albuquerque. They also found a .40 caliber pistol in the apartment. DNA on the pistol matched Sanchez’s DNA.
At the time of the arrest, Sanchez was on parole for possession of a controlled substance and had previous convictions for robbery, trafficking a controlled substance and receiving/transferring a stolen vehicle. As a convicted felon, Sanchez cannot possess firearms or ammunition.
Sanchez will remain in custody pending sentencing, which has not been scheduled. He faces up to 10 years in prison.
The FBI Albuquerque Field Office and the NMCD STIU investigated this case with assistance from BCSO. Assistant United States Attorneys Ry Ellison and Randy M. Castellano are prosecuting the case.
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29 September 2022
Yanier Tellez Sentenced to 70 Months for Conspiracy, Bank Fraud, and Aggravated Identity TheftRead the Press Release
GREENEVILLE, Tenn. – On September 29, 2022, Yanier Tellez, 32, currently of Tampa, Florida, was sentenced to 70 months in federal prison by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Tellez, a citizen of Cuba, previously pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft in violation of 18 U.S.C. § 371, bank fraud in violation of 18 U.S.C. § 1344, and aggravated identity theft in violation of 18 U.S.C. § 1028A. Tellez was ordered to pay $39,899.97 in restitution, and he will be on supervised release for three years following his release from prison.
According to court records, in November 2017, Tellez and a previously sentenced coconspirator, Lazaro Quintana Martinez, 26, of Tampa, Florida, travelled to East Tennessee from Tampa, Florida to commit identity theft. The two used one or more skimming devices to collect account numbers and personal identifying information from unsuspecting customers. A skimming device was installed at a local business and would collect the credit and debit card numbers and other personal identifying information from customers who used the machine when making purchases. Once Tellez and Martinez obtained the account numbers and other information from the skimming device, they would re-encode that information onto magnetic-stripe cards such as prepaid gift cards and use the fraudulent cards to obtain cash, purchase money orders, and purchase gift cards at local ATM machines and local point of sale terminals throughout East Tennessee. Local store surveillance footage captured them committing their crimes, including footage from local Walgreens, CVS, and Kroger stores.
Upon return to Florida, Tellez was stopped for a traffic violation in Lee County, and he had thumb drives containing over 300 account numbers and corresponding customer information. According to court records, the average yield for each compromised account number was over $1,400 in fraudulent transactions. When stopped, Tellez also had a counterfeit gift card in his wallet that contained the account information of a resident of Greeneville, Tennessee, who banked with Eastman Credit Union. That card had the handwritten zip code for Greeneville on the back of the card.
Martinez previously pled guilty to the conspiracy and aggravated identity theft and was sentenced to 24 months in prison in the Eastern District of Tennessee. He was also sentenced to 51 months in prison in the Middle District of Florida for additional identity theft offenses.
Eastman Credit Union, a local financial institution that discovered fraudulent transactions, suffered actual losses from the scheme of $39,899.97.
The criminal indictment was the result of an investigation by the United States Secret Service, the Johnson City Police Department, the Kingsport Police Department, and the Lee County, Florida Sheriff’s Office. The investigation was led by United States Secret Service Senior Special Agent Thomas R. Whitehead.
Assistant United States Attorney Mac D. Heavener, III represented the United States.
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Woodland Man Pleads Guilty to Firearms Trafficking and Unlawful Gun PossessionRead the Press Release
SACRAMENTO, Calif. — Justin Wade Johnson, 38, of Woodland, pleaded guilty today to the unlawful sale of a firearm to a felon and being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Johnson is one of 27 federal defendants arrested in February 2018 on narcotics and weapons-related charges as part of Operation Silent Night, a multi-agency law enforcement investigation into coordinated criminal activity in Woodland. Johnson is the 27th and final defendant to plead guilty. Beginning in the spring of 2016, the investigation uncovered organized criminal activity in Woodland with ties to criminal organizations in California’s jail and prison system. Although centered in Yolo County, the investigation revealed that at least nine other California counties were negatively impacted by these criminal organizations: Sacramento, Sutter, Colusa, Yuba, Del Norte, Solano, Fresno, Santa Clara, and Siskiyou.
Johnson is a felon who is prohibited from possessing any firearm because he was previously convicted of felonies for assault with a deadly weapon, possessing a weapon while being a prisoner, and possession of marijuana for sale. In October 2017, Johnson sold an AR-15 rifle to a convicted felon. At the time of the sale, Johnson knew that he was selling the rifle to a felon. Later in October, law enforcement executed a search warrant at Johnson’s storage unit in Woodland and seized a shotgun, a rifle, and four handguns.
Operation Silent Night is the product of an investigation by the FBI, the California Department of Corrections and Rehabilitation, the Yolo County District Attorney’s Office, the Woodland Police Department, and the California Highway Patrol. The following agencies provided substantial assistance: the Colusa County Sheriff’s Office, the Sacramento Police Department, the Sacramento County Sheriff’s Office, the West Sacramento Police Department, the Yolo County Sheriff’s Office, the Davis Police Department, the Yuba City Police Department, the Yuba County Sheriff’s Office, the Sutter County Sheriff’s Office, the Solano County Sheriff’s Office, the Vacaville Police Department, the Correctional Intelligence Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the U.S. Postal Inspection Service, and the Drug Enforcement Administration. Assistant U.S. Attorney Justin Lee is prosecuting the cases. Johnson is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Feb. 23, 2023. Johnson faces a maximum statutory penalty of 20 years in prison and a $500,000 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.
The other defendants that have been convicted are listed below:
- Aldo Arellano, 28, of Marysville, was convicted of distribution of methamphetamine and sentenced to eight years in prison;
- Raul Barajas, 24, of Woodland, was convicted of conspiracy to possess with intent to distribute and to distribute controlled substances and was sentenced to five years in prison;
- Patrick Botello, 36, of Pelican Bay State Prison, was convicted of conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin. He is scheduled to be sentenced on Oct. 6, 2022;
- Israel Covarrubias, 30, of Woodland, was convicted of conspiracy to possess with intent to distribute and to distribute controlled substances and carrying a firearm during and in relation to a drug trafficking crime and was sentenced to 15 years in prison;
- Mike Do, 40, of Sacramento, was convicted of being a felon in possession of a firearm and was sentenced to three years of supervised release;
- Milton Escobedo, 33, of Woodland, was convicted of distribution of cocaine and was sentenced to 33 months in prison;
- Rachel Felix, 43, of Woodland, was convicted of distribution of methamphetamine and was sentenced to seven years in prison;
- Daisy Gonzalez, 37, of Termo, was convicted of conspiracy to manufacture marijuana and was sentenced to four years of supervised release;
- Ashley Habash, 32, of Marysville, was convicted of conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and was sentenced to five years of supervised release;
- Jose Heredia, 39, of Los Banos, was convicted of conspiracy to manufacture marijuana and was sentenced to five years in prison;
- Edgar Jimenez, 23, of Sacramento, was convicted of using a cellphone to facilitate a drug trafficking offense and was sentenced to three years in prison;
- Stefanie Lavan, 69, of Woodland, was convicted of possession with intent to distribute methamphetamine and was sentenced to two years in prison;
- John Lemus, 35, of Woodland, was convicted of being a felon in possession of a firearm and was sentenced to 46 months in prison;
- Jose Madrigal-Vega, 37, Woodland, was convicted of conspiracy to possess with intent to distribute and to distribute controlled substances and was sentenced to eight years in prison;
- Victor Magana, 28, of Woodland, was convicted of conspiracy to distribute methamphetamine and was sentenced to 11 years in prison;
- Carlos Martinez, 43, of Woodland, was convicted of possession of a firearm in furtherance of a drug trafficking crime and was sentenced to five years in prison;
- James Masterson, 28, of Newcastle, Pennsylvania, was convicted of using a cellphone to facilitate a drug trafficking offense and was sentenced to four years in prison;
- Brenda Miranda, 25, of Napa, was convicted of conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and was sentenced to five years of supervised release;
- Reginald Pajimola, 28, of Marysville, was convicted using a cellphone to facilitate a drug trafficking offense and was sentenced to two years of supervised release;
- Blas Ramirez, 24, of Sacramento, was convicted of unlawful possession of a firearm and was sentenced to 18 months in prison;
- Mercedez Silva-Sims, 26, of Colusa, was convicted of conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and was sentenced to five years of supervised release;
- Joshua Sims, 27, of Colusa, was convicted of conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin, and attempted distribution of methamphetamine and was sentenced to 10 years in prison;
- Erica Umbay, 47, of Woodland, was convicted of being a felon in possession of a firearm and was sentenced to six years in prison;
- Trevor White, 27, of Sacramento, was convicted of conspiracy to possess with intent to distribute and to distribute controlled substances and was sentenced to 10 years in prison;
- Ricardo Villa, 43, of Woodland, was convicted of conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin. He is scheduled to be sentenced on Nov. 3, 2022.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
WMATA Senior Program Manager Pleads Guilty to Carrying Out Procurement SchemeRead the Press Release
WASHINGTON – A former senior manager for the Washington Metropolitan Area Transit Authority (WMATA) pleaded guilty today to carrying out a scheme in which he and others manipulated the agency’s procurement process in favor of a company that was paid more than $1.3 million for items and services over a period of more than nine years.
Scottie Borders, 61, of Arlington, Virginia, pleaded guilty in the U.S. District Court for the District of Columbia to conspiracy to commit wire fraud. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, Borders faces a likely range of 33 to 41 months in prison, a fine of up to $150,000, and restitution. The Honorable Christopher R. Cooper scheduled sentencing for Jan. 19, 2023.
The announcement was made by U.S. Attorney Matthew Graves, Acting Washington Metropolitan Area Transit Authority Inspector General Rene Febles, and Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division.
According to the statement of offense submitted to the Court and admitted by Borders, Borders worked full-time as a Senior Program Manager for WMATA. In this capacity, he was involved in the selection, award, and administration of WMATA contracts with various vendors, contractors, and suppliers.
The charge involves payments to a firm identified in the court documents as “Company 1.” This company, based in Millville, New Jersey, was a producer and supplier of traffic signs and safety products to various individuals, entities, and government agencies, including WMATA. As detailed in court documents, from approximately January 2011 through September 2020, in the District of Columbia, and elsewhere, Borders and others engaged in a scheme to unlawfully enrich themselves by securing the selection, award, and administration of contracts, bids, and purchase agreements between “Company 1” and WMATA for various traffic signs and safety products based on materially false representations made to WMATA, via wire, concerning the nature of the contracts, bids, and purchase agreements involving “Company 1” and others.
Borders was the primary point of contact for all business conducted between WMATA and “Company 1.” He abused his position at WMATA, and his understanding of the contracting and procurement process, to manipulate bids for items and services in favor of the company by using materially false and fraudulent representations made to WMATA via wire by Borders and his co-conspirators.
For example, Borders and his co-conspirators falsified price quotes and bids on behalf of companies that either did not submit bids to do business with WMATA or did not know that their information was being used in connection with specific WMATA bids. Borders also provided individuals at “Company 1” with information about potential competitors’ bids. The purported quotes and fraudulent bid proposals were made up to ensure that the company secured the lucrative WMATA purchase orders and contracts at issue. Additionally, Borders added unnecessary items to purchase orders that he submitted to WMATA on behalf of the company.
Ultimately, WMATA paid “Company 1” for such invoices and orders secured and submitted through Borders. Borders also procured purchase orders on behalf of WMATA, for equipment from the company that Borders knew was unnecessary, substandard, and/or never actually provided to WMATA.
During the relevant period, WMATA paid the company more than $1.3 million for various services and items, including poles, decals, bus stop signs, flags, and tools. In exchange for facilitating these fraudulent bids and orders on behalf of WMATA, Borders was provided with items of value, including NFL tickets, by individuals affiliated with the company.
This investigation was conducted by the FBI’s Washington Field Office and the Washington Metropolitan Area Transit Authority, Office of Inspector General. The prosecution is being handled by Assistant U.S. Attorney Anne P. McNamara of the U.S. Attorney’s Office for the District of Columbia.
Violent Felon Sentenced to 32 Months in Federal Prison for Illegal Possession of a Firearm While Serving Community Corrections Probation SentenceRead the Press Release
INDIANAPOLIS – Bryan Glass, 25, of Indianapolis, was sentenced to 32 months in federal prison after pleading guilty to possession of a firearm by a convicted felon.
According to court documents, on February 18, 2020, officers visited the Glass residence off Wakefield Road, in Indianapolis, to conduct a community corrections compliance check. Officers entered the residence and asked Glass if there were any weapons in the home. Glass refused to answer. Officers searched the residence and found a loaded 9mm handgun and an additional 59 rounds of ammunition.
At the time of the search, Glass was on probation in Marion County, Indiana after two separate prior felony convictions. Glass was convicted for the armed robbery of a store clerk. While Glass was in jail for the armed robbery, he attacked another inmate, striking him in the jaw with a close fist, resulting in the inmate needing surgery to repair a fractured jaw. Glass was convicted of battery resulting in serious bodily injury for his assault of the fellow inmate. Glass is prohibited from possessing firearms under federal law due to these prior felony convictions.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Columbus Field Division (ATF), made the announcement.
ATF investigated the case in conjunction with the Indianapolis Metropolitan Police Department. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Glass be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney William L. McCoskey who prosecuted this 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.
Violent Child Sex Trafficker Sentenced to More Than 38 Years in PrisonRead the Press Release
SAN JOSE – Ariel Guizar-Cuellar was sentenced to 460 months in prison in connection with multiple child-sex-trafficking-related charges for his role in a Bay Area conspiracy to exploit minors for child pornography and sex trafficking, announced United States Attorney Stephanie M. Hinds and FBI Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Honorable Beth L. Freeman, U.S. District Judge. Judge Freeman also sentenced one of Guizar-Cuellar’s co-defendants, Araceli Mendoza, to serve a 120-month prison term for her role in the same conspiracy.
Guizar-Cuellar, 41, and Mendoza, 30, both of San Jose, are two of four defendants convicted in the child sex trafficking scheme. The other two co-defendants are Jocelyn Contreras, 29, of Redwood City, and Alyssa Anthony, 30, of Gilroy. Guizar-Cuellar, Contreras, and Anthony all pleaded guilty to their respective roles in the conspiracy; in October 2021, a jury convicted Mendoza for her role in the conspiracy and for the sex trafficking of one minor victim. Judge Freeman scheduled sentencing hearings for Contreras and Anthony on November 8, 2022.
According to the defendants’ guilty pleas and the evidence submitted at Mendoza’s trial, Guizar-Cuellar was the leader, primary facilitator, enforcer, and main financial beneficiary of the operation. Guizar-Cuellar admitted that over a 16-month period, he and the other three defendants established and operated an illegal prostitution enterprise that exploited numerous women and children. Guizar-Cuellar acknowledged in his plea agreement that he and the other defendants, operated a commercial sex venture and recruited, enticed, harbored, and transported several minor females to work as prostitutes and exotic dancers. Guizar-Cuellar rented rooms at various hotels and motels in San Jose, Santa Clara, and Sunnyvale, Calif., for prostitution activities and told minor females not to tell anyone that they were minors. The youngest of the victims recruited into the prostitution enterprise were 15 years old at the time. Court records in the case demonstrate that the defendants received thousands of dollars from the prostitution of their victims and then flaunted the profits in part to recruit more victims.
The documents in the case provide a harrowing description of the treatment of the minor victims. According to trial evidence and testimony, Guizar-Cuellar subjected both the child victims and his female co-defendants to physical and sexual abuse. In addition, the victims were shuttled daily throughout the Bay Area and sexually exploited. They were isolated from their families and support systems; deprived of food and sleep; and given cocaine, alcohol, and other substances to keep them compliant. They were deliberately supplied methamphetamine to keep them awake so they could meet nightly profit quotas. Defendants posted online prostitution advertisements repeatedly over many months using pictures of the children posed naked and in provocative lingerie. After one victim escaped and returned home, Guizar-Cuellar sought to shame her by distributing videos of the victim engaged in sexual intercourse with a customer on social media sites—the government’s sentencing memorandum describes how Guizar-Cuellar, Mendoza, and Anthony all are heard on the video clips mocking the girl and laughing at her.
A federal grand jury indicted all four defendants on April 7, 2016. Guizar-Cuellar was charged with one count of conspiracy to commit sex trafficking of children, in violation of 18 U.S.C. § 371; three counts of sex trafficking of children, in violation of 18 U.S.C. § 1591; and one count of sexual exploitation of children, in violation of 18 U.S.C. § 2251. On May 7, 2019, Guizar-Cuellar pleaded guilty to all the charges. Mendoza was charged in the original and superseding indictments with conspiracy and three counts of sex trafficking of children. On October 6, 2021, a jury convicted Mendoza of the conspiracy charge and one of the child sex trafficking counts.
In addition to the prison terms, Judge Freeman also ordered Guizar-Cuellar and Mendoza to serve terms of supervised release and to pay restitution to their victims. Guizar-Cuellar remains in federal custody following the imposition of his sentence. Judge Freeman ordered Mendoza to self-surrender to the Bureau of Prisons in January 2023.
Contreras and Anthony both pleaded guilty to separate superseding Informations charging them with conspiracy to commit sex trafficking of children. Contreras entered her plea on September 4, 2019, and Anthony entered hers on July 21, 2020. Both await sentencing in November 2022.
Assistant U.S. Attorneys Marissa Harris, Annie Hsieh, and Sarah Griswold are prosecuting the case with the assistance of Nina Burney, Sahib Kaur, and Elise Etter. The prosecution is the result of an investigation by the FBI, the San Jose Police Department, and the Santa Clara County District Attorney’s Office Bureau of Investigation, with assistance from the Santa Clara County Human Trafficking Task Force.
Varna Man Sentenced to Six Years in Prison for Receipt of Child PornographyRead the Press Release
PEORIA, Ill. – A Varna, Illinois man, Brian M. Lord, 50, of the 1900 block of County Road 800 North, was sentenced on September 29, 2022, to six years in prison to be followed by 12 years of supervised release, for receipt of child pornography. Lord will also be required to register as a sex offender and pay a total of $24,000 in restitution to victims of his offense.
At the sentencing hearing before U.S. District Judge James E. Shadid, the United States presented evidence that the National Center for Missing and Exploited Children (NCMEC) received a cyber tipline report from MeWe, an online social networking service, indicating 21 viewable images of child pornography were uploaded to an account connected to Lord. FBI agents obtained a search warrant for Lord’s house, car, and electronic devices. They found on Lord’s cell phone 161 images and 26 videos of child pornography, some of which depicted children as young as about two years old.
Lord was indicted on July 7, 2021, and pleaded guilty on May 26, 2022.
The statutory penalties for receipt of child pornography are 5 to 20 years imprisonment, 5 years to a lifetime of supervised release, up to a $250,000 fine, along with special assessments, and restitution to victims.
The Federal Bureau of Investigation, Springfield Field Office, was responsible for the investigation and Assistant U.S. Attorney Keith Hollingshead-Cook represented the United States in the prosecution.
The case against Lord was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Vacaville Parolee Indicted for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Eric Terrell Christian, 31, of Vacaville, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on July 21, 2022, Christian failed to yield during an attempted law enforcement traffic stop and sped away from the officer. Moments after this evasion, a witness called 911 and reported seeing a firearm in a parking lot Christian had just driven through. On Aug. 11, 2022, officers attempted to stop Christian; he fled on foot from his car but was quickly apprehended. In his vehicle, officers located a Glock handgun with a round in the chamber and another 17 rounds in an inserted high-capacity magazine. Officers subsequently searched the apartment in this complex that Christian had access to and located a Palmetto Arms AR-style pistol with a round in the chamber and 40 rounds in an inserted, high-capacity magazine. Christian is not allowed to possess firearms because he has previously been convicted of three felony offenses, including two convictions for assault with a deadly weapon. Christian was on parole from his second assault conviction when he committed the current offenses.
This case is the product of an investigation by the Vacaville Police Department, California Department of Corrections and Rehabilitation - Division of Adult Parole Operations, the Solano County District Attorney’s Office, the FBI’s Solano County Violent Crimes Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, Christian faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
U.S. Department of Justice announces surge of resources to fight violent crime in HoustonRead the Press Release
HOUSTON - The U.S. Department of Justice, together with numerous law enforcement partners, met today at Jack Yates High School in Houston to announce a new initiative that will surge law enforcement tools and resources to target gangs who are terrorizing communities in Houston.
“This new violent crime initiative, led by the Criminal Division’s Organized Crime and Gang Section (OCGS), will surge the tools and resources we use to investigate and prosecute violent crime nationally and apply those tools to gangs who are terrorizing communities here in Houston,” said Assistant Attorney General Kenneth A. Polite Jr., of the Justice Department’s Criminal Division.
The new initiative will include federal prosecutors from OCGS, our nation’s foremost experts in charging federal racketeering (RICO) prosecutions, as well as dedicated investigative agents, analysts and forensic experts from the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshals Service, Houston Police Department (HPD) and the Harris County Sherriff’s Office (HCSO).
“Together we will employ a data-driven approach to strategically identify and prosecute the worst of the worst criminals and gang members who are responsible for a disproportionate amount of violent crime in underserved communities in Houston,” said Assistant Attorney General Polite.
The initiative will also include efforts to invest in prevention, intervention and reentry. Today the Justice Department’s Office of Justice Programs announced grant awards totaling $100 million to help communities across the U.S. reduce gun crime and other serious violence. Included in that announcement is a $2 million award to Harris County in Houston to provide funding to community and hospital-based violence interruption programs.
“If we work together to battle the problem, we can make a difference,” said U.S. Attorney Jennifer Lowery of the Southern District of Texas. “This is our community, too, and we want to do all we can to make sure everyone feels safe here in Houston.
As part of the announcement, Assistant Attorney General Polite and U.S. Attorney Lowery met with Yates students to hear directly from them about the violence and gang activity in their neighborhoods. They also met with various community and faith-based leaders and business owners in the Third Ward.
Joining Assistant Attorney General Polite and U.S. Attorney Lowery in the press conference today were Chief Troy Skinner of the HPD; Special Agent in Charge James Smith, FBI Houston Field Office; Special Agent in Charge Fred Milanowski, ATF Houston, Sheriff Ed Gonzalez, HCSO, and Associate Deputy Director Cornelia Sigworth, of the Justice Department’s Office of Justice Programs.
OCGS is leading the new violent crime initiative in coordination with the U.S. Attorney’s Office for the Southern District of Texas and will include dedicated investigative agents, analysts and forensic experts from the FBI, ATF, U.S. Marshals Service, HPD, HCSO as well as many other federal, state and local law enforcement agencies.
U.S. Department of Justice Announces Surge of Resources to Fight Violent Crime in HoustonRead the Press Release
HOUSTON – The U.S. Department of Justice, together with numerous law enforcement partners, met today at Jack Yates High School in Houston to announce a new initiative that will surge law enforcement tools and resources to target gangs who are terrorizing communities in Houston.
“This new violent crime initiative, led by the Criminal Division’s Organized Crime and Gang Section (OCGS), will surge the tools and resources we use to investigate and prosecute violent crime nationally and apply those tools to gangs who are terrorizing communities here in Houston,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.
The new initiative will include federal prosecutors from OCGS, our nation’s foremost experts in charging federal racketeering (RICO) prosecutions, as well as dedicated investigative agents, analysts and forensic experts from the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshals Service, Houston Police Department (HPD), and the Harris County Sherriff’s Office (HCSO).
“Together we will employ a data-driven approach to strategically identify and prosecute the worst of the worst criminals and gang members who are responsible for a disproportionate amount of violent crime in underserved communities in Houston,” said Assistant Attorney General Polite.
The initiative will also include efforts to invest in prevention, intervention and reentry. Today the Justice Department’s Office of Justice Programs announced grant awards totaling $100 million to help communities across the U.S. reduce gun crime and other serious violence. Included in that announcement is a $2 million award to Harris County in Houston to provide funding to community and hospital-based violence interruption programs.
“If we work together to battle the problem, we can make a difference,” said U.S. Attorney Jennifer Lowery of the Southern District of Texas. "This is our community, too, and we want to do all we can to make sure everyone feels safe here in Houston.”
As part of the announcement, Assistant Attorney General Polite and U.S. Attorney Lowery met with Yates students to hear directly from them about the violence and gang activity in their neighborhoods. They also met with various community and faith-based leaders and business owners in the Third Ward.
Joining Assistant Attorney General Polite and U.S. Attorney Lowery in the press conference today were Chief Troy Skinner of the HPD; Special Agent in Charge James Smith, FBI Houston Field Office; Special Agent in Charge Fred Milanowski, ATF Houston; Sheriff Ed Gonzalez, HCSO; and Associate Deputy Director Cornelia Sigworth of the Justice Department’s Office of Justice Programs.
OCGS is leading the new violent crime initiative in coordination with the U.S. Attorney’s Office for the Southern District of Texas and will include dedicated investigative agents, analysts and forensic experts from the FBI, ATF, U.S. Marshals Service, HPD, HCSO as well as many other federal, state, and local law enforcement agencies.
U.S. Attorney’s Office Announces Commitment to Environmental Justice and Seeks Reporting of Environmental Justice ConcernsRead the Press Release
United States Attorney Jennifer Klemetsrud Puhl announced today that the United States Attorney’s Office for the District of North Dakota is encouraging members of the public to report environmental justice concerns to the Department of Justice.
The United States Attorney’s Office is coordinating with various components of the Department of Justice to promote the goal of environmental justice and that all communities may live in a safe and healthy environment through the fair and effective enforcement of the Nation's laws. Environmental justice is the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies. Environmental justice issues can arise under many different circumstances and may involve various federal civil and criminal laws.
Community members that have any environmental justice concerns to report or would like additional information are encouraged to contact the Environmental Justice Coordinator for the District of North Dakota by calling the U.S. Attorney’s Office at 701-530-2420. Members of the public may also submit reports of suspected environmental violations through the Environmental Protection Agency’s website.
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Two Men Indicted for Unlawfully Possessing U.S. Postal Service Key and Possession of Stolen MailRead the Press Release
HUNTSVILLE, Ala. – A federal grand jury this week indicted two Birmingham men with possession of stolen mail and the unlawful possession of Postal Service keys, announced U.S. Attorney Prim F. Escalona, U.S. Postal Inspection Service Inspector-in-Charge Scott D. Fix, Houston Division, and U.S. Secret Service Special Agent in Charge Patrick Davis.
A two-count indictment filed in U.S. District Court charges Khory Deontay Lowe, II, 18, and Dejuan Alexander Wallace, 41, both of Birmingham, with one-count of possession of stolen mail. Lowe was also charged with one-count of unlawful possession of a Postal Service key. The incident occurred in Madison County on September 6, 2022.
If you like to report United States Postal Service mail theft or other crimes committed through or towards the United States Postal Service, please contact the United States Postal Inspection Service at 1-877-876-2455 or https://www.uspis.gov/report.
U.S. Postal Inspection Service and U.S. Secret Service investigated the case, along with the Huntsville Police Department. Assistant U.S. Attorney Davis Barlow is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Two Former eBay Executives Sentenced to Prison for CyberstalkingRead the Press Release
BOSTON – The former Senior Director of Safety & Security at eBay, Inc. and the company’s former Director of Global Resiliency were sentenced to prison today for their roles in a cyberstalking campaign targeting the editor and publisher of a newsletter that eBay executives viewed as critical of the company.
James Baugh, 47, of San Jose, Calif., was sentenced by U.S. District Court Judge Patti B. Saris to 57 months in prison and two years of supervised release. Baugh was also ordered to pay a fine of $40,000. David Harville, 50, of Las Vegas, Nev., was sentenced to two years in prison and two years of supervised release. Harville was also ordered to pay a fine of $20,000. On April 25, 2022, Baugh pleaded guilty to one count of conspiracy to commit stalking through interstate travel and through facilities of interstate commerce, two counts of stalking through interstate travel, two counts of stalking through facilities of interstate commerce, two counts of witness tampering and two counts of destruction, alteration and falsification of records in a federal investigation. On May 12, 2022, Harville pleaded guilty to one count of conspiracy to commit stalking through interstate travel and through facilities of interstate commerce, two counts of stalking through interstate travel and two counts of stalking through facilities of interstate commerce.
“The internet is incredibly powerful. It brings community, information, and even merchandise right to our homes. Mr. Baugh and Mr. Harville used the internet’s power to harass and intimidate a couple who did nothing—nothing—other than publish content that our First Amendment protects. The defendants’ toxic brand of online and real-world harassment, threats, and stalking was outrageous, cruel and defies any explanation—all the more because these men were seasoned and highly paid security executives backed by the resources of a Fortune 500 corporation. Their behavior was reprehensible. The just sentences the Court imposed today will take Mr. Baugh and Mr. Harville offline and out of our community for some time. This should serve as a strong reminder to all that holding positions of wealth and privilege does not absolve or shield criminals from accountability and incarceration. The government’s investigation continues,” said United States Attorney Rachael S. Rollins.
“Both men demonstrated a clear contempt for the law when they weaponized eBay’s security department to engage in an incredibly disturbing pattern of retaliatory harassment and intimidation to torment this couple, who, thankfully, did not let their fear silence them,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “While today’s sentencings cannot erase the substantial distress their victims suffered, it does make it crystal clear that anyone who goes online to threaten, intimidate, or harass others will face real-world consequences, including federal prison time.”
Harville and Baugh were arrested and charged in June 2020. Co-conspirators and former eBay employees Philip Cooke, Brian Gilbert, Stephanie Popp, Veronica Zea and Stephanie Stockwell previously pleaded guilty for their roles in a conspiracy to cyberstalk the victims. Cooke was sentenced in July 2021 to 18 months in prison. Gilbert, Popp, Zea and Stockwell are awaiting sentencing.
Between approximately Aug. 5, 2019 and Sept. 6, 2019, Harville, Baugh and their co-conspirators at eBay agreed to engage in a harassment campaign targeting a husband and wife in Natick, Mass. for their roles in publishing a newsletter that reported on issues of interest to eBay sellers. Senior executives at eBay were frustrated with the newsletter’s tone and content as well as the substance of comments posted beneath the newsletter’s articles. The harassment campaign arose from communications between those senior executives and Baugh, who was eBay’s senior security employee.
The defendants and their co-conspirators executed a three-part harassment campaign intended to intimidate the victims and to influence their reporting about eBay. The campaign included sending anonymous and disturbing deliveries to the victims’ home; sending private Twitter messages and public tweets criticizing the newsletter’s content; threats to visit the victims in Natick; and traveling to Natick to surveil the victims and installing a GPS tracking device on their car.
The deliveries ordered to the victims’ home included a book on surviving the death of a spouse, a bloody pig mask, a fetal pig, a funeral wreath and live insects. The harassment also featured Craigslist posts inviting members of the public to experience sexual encounters at the victims’ home.
The threatening Twitter messages were written as if they had been sent by eBay sellers who were unhappy with the victims’ coverage in the newsletter. Some of these messages posted the victims’ home address and threatened to show up at their home.
On Aug. 15, 2019, Baugh, Harville and a co-conspirator traveled from California to Natick to surveil the victims and install a GPS tracking device on the victims’ car. The victims spotted the surveillance team and contacted local police. Harville also purchased tools intending to break into the victims’ garage and lied to an eBay investigator who was responding to the Natick Police’s request for assistance.
After learning of the police’s investigation, Harville and Baugh deleted digital evidence related to the cyberstalking campaign. Additionally, Baugh made false statements to police and internal investigators and falsified records intended to throw the police off the trail.
U.S. Attorney Rollins, FBI SAC Bonavolonta and Natick Police Chief James G. Hicks made the announcement today. eBay provided valuable assistance and cooperation with the investigation. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Two Armed Methamphetamine Traffickers Are Handed Down Lengthy Prison TermsRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Lawrence Jeffrey Brooks, 41, of Mount Holly, N.C., to 396 months in prison followed by 10 years of supervised release, and Dustin Blair Henry, 39, of Charlotte, to 235 months in prison and five years of supervised release for drug trafficking and firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed documents and information introduced at the sentencing hearings,
Brooks was the leader of a large drug trafficking organization operating in Mecklenburg County, of which Henry was a member. Court records show that, over the course of the drug conspiracy, the defendants conducted multiple drug transactions involving the sale of methamphetamine and illegally possessed firearms.
According to court documents, on January 29, 2019, law enforcement learned that Henry, who at the time was on post-release supervision stemming from a state drug conviction, sold methamphetamine to an individual. As a result, law enforcement conducted a search of Henry’s residence and seized four firearms, which Henry was prohibited from possessing. In February 2019, Brooks and Henry robbed at gun point two individuals over the course of a drug transaction. And, on May 14, 2019, law enforcement conducted a traffic stop of Brooks’s vehicle, from which they seized one kilogram of methamphetamine and two handguns that belonged to Brooks. As a convicted felon, Brooks is prohibited from possessing firearms. During a subsequent search of Brooks’s storage unit, law enforcement seized eight kilograms of methamphetamine.
On April 28, 2022, Brooks pleaded guilty to conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm by a felon. Henry pleaded guilty on February 26, 2020, to conspiracy to distribute methamphetamine, distribution of methamphetamine, and possession of a firearm by a felon. Both men are currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation, which to date has led to the federal prosecution of more than 60 individuals for drug trafficking. Law enforcement have also seized more than 49 kilograms of methamphetamine, 29 kilograms of fentanyl, 27 kilograms of cocaine, 3.5 kilograms of heroin, 70 firearms, more than $385,000 in cash, and over $800,000 in other property.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, Homeland Security Investigations, the Charlotte Mecklenburg Police Department, the Huntersville Police Department, the Gastonia Police Department, and the Mount Holly Police Department for their coordination and investigation of the case.
Assistant United States Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Three Ms-13 Members Convicted of Racketeering, Murder, Extortion, and Federal Drug Charges After Three Week TrialRead the Press Release
Greenbelt, Maryland – Today, a federal jury convicted Luis Flores-Reyes, a/k/a “Maloso,” “Lobo,”’ and “Viejo Lovvon,” age 41, of Arlington, Virginia; Jairo Jacome, a/k/a “Abuelo,” age 40, of Langley Park, Maryland; and Brayan Contreras-Avalos, a/k/a “Anonimo,” and “Humilde,” age 27, of Langley Park, Maryland, on federal charges related to a racketeering enterprise known as La Mara Salvatrucha, or “MS-13.” Jacome and Flores-Reyes were also found guilty of murder in aid of racketeering. Jacome was convicted of an extortion conspiracy and Flores-Reyes was also convicted of extortion conspiracy. The jury also found Contreras-Avalos and Flores-Reyes guilty of a drug distribution conspiracy.
The convictions were announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; Special Agent in Charge Frank A. Tarentino III of the Drug Enforcement Administration – New York Division; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Marcus Jones of the Montgomery County Police Department.
“These defendants wreaked havoc within our communities through murder, extortion, and drug trafficking, now they will be held accountable,” said U.S. Attorney for the District of Maryland Erek L. Barron. “We will relentlessly prosecute MS-13gang members who terrorize our Maryland communities with intimidation and violence.”
“MS-13 terrorizes communities throughout the United States and abroad, using fear, violence, and intimidation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “MS-13 exploits vulnerable young people and immigrant communities that may not have easy access to law enforcement. This prosecution demonstrates the Department of Justice’s commitment to dismantling this criminal organization and protecting all people.”
“Members of MS-13, including Flores-Reyes, Jacome, and Contreras-Avalos, sow fear and violence in local communities through murder, extortion, drug trafficking, and witness tampering,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “Today’s convictions represent some of the finest work the FBI and its partners undertake to hold violent gang members to account for the irreparable harm they have inflicted on humanity. The investigation and its results should also serve as yet another reminder of the consequences to be faced by those who traffic in violence. We and our partners remain committed to working together to aggressively pursue and dismantle these criminal enterprises who continue to threaten the residents of our communities.”
“MS-13 and gang violence plague our communities and impede law abiding citizens and their right to live without fear and intimidation,” said DEA Special Agent in Charge Frank Tarentino. “These convictions are a testament to DEA and law enforcement’s commitment to ensuring the American public’s health and safety.”
“Today’s conviction highlights HSI’s commitment to protecting public security and the keeping our communities safe,” said HSI Acting Executive Associate Director Steve K. Francis. “We will continue working with our local, state, and federal partners to disrupt and dismantle transnational criminal organizations such as MS-13.”
“There aren’t adequate words to describe the gruesome nature of the crimes committed by the three defendants,” said Special Agent in Charge James C. Harris of the Homeland Security Investigations (HSI) Baltimore field office. “The acts that Flores-Reyes, Jacome, and Contreras-Avalos committed are horrific and clearly warrant the convictions they received today. HSI Baltimore is proud to have worked with our federal, state, and local law enforcement partners to bring these three to justice. We will continue to work tirelessly to protect the law-abiding citizens of Maryland from notorious transnational gangs like MS-13.”
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. Jacome was the highest-ranking member of the local Langley Park Salvatrucha, or “LPS” clique. Flores-Reyes and Contreras-Avalos were leaders within the Sailors Clique, which held territory in Maryland, Virginia, New York, New Jersey, Texas and El Salvador.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang and to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control.” One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.
According to court documents and evidence presented at trial, the defendants ran an extortion scheme in and around Langley Park, extorting local businesses by charging them “rent” for the privilege of operating in MS-13 “territory.” Flores-Reyes and Contreras-Avalos also trafficked illegal drugs, including marijuana, and cocaine. A large share of the proceeds of the gang’s illegal activities were sent to gang leadership in El Salvador to further promote the illicit activities of the gang, using structured transactions and intermediaries to avoid law enforcement scrutiny.
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang and opens the door to promotion to a leadership position.
As detailed during their trial, Flores-Reyes, Jacome, and Contreras-Avalos participated in at least six murders, including four minor victims, during the period of the conspiracy. Most of the victims were purported gang rivals except for one minor victim. For example, in June 2016, members of MS-13, including Contreras-Avalos, stabbed to death two individuals living on the streets of Hyattsville, Maryland, who gang members believed to be members of the 18th Street gang. The investigation revealed no evidence that the victims were in fact members of any gang.
Among the most important rules of MS-13 is the prohibition against talking to law enforcement, embodied by the maxim ver, oir, y callar – see, hear, and say nothing. The gang enforced this rule by placing a “green light” – an order to kill – on any member of MS-13 who was thought to be informing on the gang. In December 2016, Jacome directed and participated in the murder of a 14-year-old member of MS-13 who was suspected of talking to the police. The boy’s remains were discovered more than 18 months later in the woods outside of Germantown, Maryland.
Additionally, in March 2017, a member of the Sailors Clique, who was hiding from law enforcement in the Lynchburg, Virginia, area, after committing a murder in 2016 in Gaithersburg, Maryland, had a dispute with a local high school student over marijuana. In response, Flores-Reyes told a group of MS-13 members to drive down to Lynchburg and murder this student. The gang members kidnapped the student from his front lawn and cut his hand off before killing him. After the murder, Flores-Reyes helped to hide and protect his fellow MS-13 members from law enforcement.
Flores-Reyes and Jacome face a mandatory sentence of life in prison. Contreras-Avalos faces a maximum sentence of life in prison. U.S. District Judge Paula Xinis has not scheduled sentencing hearings at this time.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
United States Attorney Erek L. Barron and Assistant Attorney General Kenneth A. Polite, Jr. commended the FBI, DEA, HSI, Prince George’s County Police Department, Montgomery County Police Department, Virginia State Police, Lynchburg Police Department, Prince William County Police Department, Nassau County District Attorney’s Office, the Bedford County Commonwealth’s Attorney’s Office and the Bedford County Sheriff’s Office for their work in the investigation. Mr. Barron and Mr. Polite thanked Assistant U.S. Attorneys Timothy F. Hagan, Chris M. Sarma, William Moomau, Assistant Director Catherine Dick of the Department of Justice Consumer Protection Division and Trial Attorney Alexander Gottfried of the Justice Department’s Criminal Division, who are prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Three MS-13 Leaders Convicted of Racketeering ConspiracyRead the Press Release
A federal jury convicted three men for conspiring to participate in La Mara Salvatrucha, a transnational criminal enterprise, commonly known as MS-13, through a pattern of racketeering activity, including murder, extortion, drug trafficking, money laundering, and witness tampering.
According to court documents and evidence presented at trial, Luis Flores-Reyes, aka Maloso, aka Lobo, 41, of Arlington, Virginia; Jairo Jacome, aka Abuelo, 40, of Langley Park, Maryland; and Brayan Contreras-Avalos, aka Anonimo, aka Malia, aka Humilde, 27, of Langley Park, Maryland, ran a protection scheme with MS-13 in and around Langley Park, extorting local businesses by charging them “rent” for the privilege of operating in MS-13 “territory.”
MS-13 is organized into a series of sub-units or “cliques” that operate in specific geographic locations. Jacome was the highest-ranking member in a local clique called Langley Park Salvatrucha, or LPS. Flores-Reyes and Contreras-Avalos were leaders within the powerful Sailors Clique, which held territory in Maryland, Virginia, New York, New Jersey, Texas, and El Salvador.
“MS-13 terrorizes communities throughout the United States and abroad, using fear, violence, and intimidation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This conviction demonstrates the Department of Justice’s commitment to dismantling this violent criminal organization.”
Flores-Reyes, Jacome, and Contreras-Avalos also participated in at least six murders during the period of the conspiracy, mostly of victims who they believed to be gang rivals. In June 2016, members of MS-13, including Contreras-Avalos, stabbed to death two homeless individuals, who were believed to be members of the 18th Street gang, in Hyattsville, Maryland.
The gang also trafficked in illegal drugs, including marijuana, heroin, and cocaine. A large share of the proceeds of the gang’s illegal activities were sent to gang leadership in El Salvador to further promote the illicit activities of the gang, using structured transactions and intermediaries to avoid law enforcement scrutiny.
“These defendants wreaked havoc within our communities through drug trafficking, extortion, fear, and murder – now they will be held accountable,” said U.S. Attorney Erek L. Barron for the District of Maryland. “We will relentlessly prosecute those who terrorize our communities with intimidation and violence.”
In March 2017, a member of the Sailors Clique, who was hiding from law enforcement in the Lynchburg, Virginia-area, had a dispute with a local high school student over marijuana. In response, Flores-Reyes commanded a squad of MS-13 members drive to Lynchburg and murder the high school student. The gang members kidnapped the student from his front lawn and cut his hand off before killing him. After the murder, Flores-Reyes helped to hide and protect the killers from law enforcement.
Among the most important rules of MS-13 is the prohibition against talking to law enforcement, embodied by the maxim ver, oir, y callar – see, hear, and say nothing. The gang enforced this rule by placing a “green light” – an order to kill – on any member of MS-13 who was thought to be informing on the gang. In December 2016, Jacome directed and participated in the murder of a 14-year-old member of MS-13 who was suspected of talking to the police. The boy’s remains were discovered 18 months later in the woods outside of Germantown, Maryland.
“Members of MS-13, including Flores-Reyes, Jacome, and Contreras-Avalos, sow fear and violence in local communities through murder, extortion, drug trafficking, and witness tampering,” said Assistant Director in Charge Steven M. D'Antuono of the FBI Washington Field Office. “Today's convictions represent some of the finest work the FBI and its partners undertake to hold violent gang members to account for the irreparable harm they have inflicted on humanity. The investigation and its results should also serve as yet another reminder of the consequences to be faced by those who traffic in violence. We and our partners remain committed to working together to aggressively pursue and dismantle these criminal enterprises who continue to threaten the residents of our communities.”
“Today’s conviction highlights HSI’s commitment to protecting public security and the keeping our communities safe,” said Acting Executive Associate Director Steve K. Francis of Homeland Security Investigations (HSI). “We will continue working with our local, state, and federal partners to disrupt and dismantle transnational criminal organizations such as MS-13.”
Flores-Reyes, Jacome, and Contreras-Avalos were each convicted of racketeering conspiracy. Flores-Reyes and Jacome were additionally convicted of murder in aid of racketeering and extortion conspiracy, and Flores-Reyes and Contreras-Avalos were convicted of conspiracy to distribute controlled substances. No sentencing date has been set. Flores-Reyes and Jacome face a mandatory penalty of life in prison. Contreras-Avalos faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Washington Field Office, HSI Baltimore, DEA New York Field Division, DEA Baltimore District Office, Prince George’s County Police Department, Montgomery County Police Department, Virginia State Police, Lynchburg Police Department, Prince William County Police Department, and Bedford County Sheriff’s Office investigated the case. The Nassau County District Attorney’s Office also provided valuable assistance.
Trial Attorney Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Timothy Hagan and Christopher Sarma for the District of Maryland are prosecuting the case.
Springfield, Illinois, Man Sentenced to 66 Months’ Imprisonment for Possession with Intent to Distribute Marijuana, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and COVID-19 FraudRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Demetrius Robertson, 30, of 2000 block of South 8th Street, was sentenced on September 27, 2022 to an aggregate 60 months’ imprisonment for possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime. Robertson also was sentenced to a consecutive six months’ imprisonment and six months’ home confinement for wire fraud connected to pandemic Paycheck Protection Program (PPP) loans. Each term of imprisonment was to be followed by a two-year term of supervised release, all to run concurrently. Additionally, Robertson must pay restitution in the amount of $45,327.00 in connection with the wire fraud offense.
At Robertson’s sentencing hearing, the government presented evidence that Robertson was found in possession of an illegal firearm after neighbors noticed he was walking around with a gun. The government also presented evidence that Robertson fraudulently obtained two separate PPP loans.
Also at the hearing, U.S. District Judge Sue E. Myerscough found that Robertson knowingly possessed the firearm, a Glock 29 handgun, in furtherance of a drug trafficking crime, specifically possession of marijuana with intent to distribute. Additionally, Judge Myerscough found that Robertson provided false information on applications to obtain PPP loans. Robertson received a total of $40,327.00 in loan funds.
Judge Myerscough also noted that the illegal possession of firearms is a profoundly serious crime, and that the safety of the community is jeopardized as a result of firearms offenses. Judge Myerscough went on to note the serious impact that Covid-19 fraud has had on the community, stating that Robertson’s receipt of loan funds likely meant another business folded because they were unable to obtain aid.
A federal grand jury returned an indictment charging Robertson with the weapon and drug charges in May 2021 and returned a second, separate indictment charging Robertson with the fraud offenses in February 2022. Robertson pleaded guilty in May 2022.
“The people of the Central District of Illinois have a right to live a life free from gun violence,” said U.S. Attorney for the Central District of Illinois Gregory K. Harris. “This office will continue to hold firearms offenders and drug traffickers accountable. It also is unconscionable that criminals sought to capitalize on the pandemic by stealing funds meant for hard working small businesses.”
The United States Secret Service; the Bureau of Alcohol, Tobacco, and Explosives; the Illinois State Police; and the Springfield Police Department investigated the case. Assistant U.S. Attorney Sarah E. Seberger represented the government in the prosecution.
Sioux City Man Back to Federal Prison for Second Time for Violations of Supervised Release ConditionsRead the Press Release
A man who violated the terms of his supervised release after imprisonment, was sentenced September 28, 2022, to more than 2 years in federal prison.
William Sun, 59, from Sioux City, Iowa, received the prison term after a hearing was held regarding his violations.
Evidence at the revocation hearing showed Sun had failed to report to U.S. Probation within 72 hours, traveled outside the jurisdiction without prior approval, failed to comply with substance abuse treatment, and failed to follow U.S. Probation instructions. Sun was previously sentenced to federal prison in 2013, to 120 months’ imprisonment for conspiracy to distribute methamphetamine, distribution of methamphetamine within 1000 feet of a protected location, and distribution of methamphetamine. Sun also had his first term of supervised release revoked in July of 2021, for similar violations, was sentenced to 11 months in federal prison and was only released shortly before his most recent violations and revocation.
Sun was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Sun was sentenced to 27 months’ imprisonment. There is no parole in the federal system. Sun is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the U.S. Probation Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 12-4061. Follow us on Twitter @USAO_NDIA.
Sex Offender Sentenced to Prison for Escaping Halfway HouseRead the Press Release
ALBANY, NEW YORK – Glyn Frink, age 51, of Albany, was sentenced today to 3 years in prison for escaping from a residential re-entry center in September 2021, announced United States Attorney Carla B. Freedman and United States Marshal David L. McNulty.
Frink pled guilty on June 1, 2022. He admitted that he had been ordered to reside at a halfway house as part of a prior federal term of imprisonment, and that on September 25, 2021, he signed out of the halfway house to go to work and failed to return at 6 p.m. as required. He then remained in the Albany area without approval and failed to notify Albany Police of his change of address as required under the sex offender registry laws, until March 7, 2022, when he was arrested at a fast food restaurant in Albany.
Following his release from prison, Frink will continue serving a 15-year term of supervised release.
This case was investigated by the United States Marshals Service and prosecuted by Assistant U.S. Attorney Benjamin S. Clark.
Scottsdale Man Convicted of Tax EvasionRead the Press Release
PHOENIX, Ariz. – Last week, Ryan C. Patterson, 34, of Scottsdale, Arizona, was found guilty by a federal jury on three counts of Tax Evasion. Sentencing is scheduled for December 5, 2022, before United States District Judge John J. Tuchi.
Patterson, a contractor specializing in remodels, failed to accurately report his income between calendar years 2014 and 2016. He received checks from customers made out to him personally and then deposited the checks into his personal checking accounts. He also received payments in cash from customers that he failed to report. At trial, the government introduced evidence that Patterson failed to report over $1.9 million in gross income and avoided paying a combined total of $700,000 in taxes due over the span of the three charged tax years.
The evidence at trial revealed that Patterson reported a loss of $38,000 in 2016 despite, in the same year, purchasing a primary residence for $445,000 along with other lavish expenditures.
"The American tax system provides government services critical to our residents," said U.S. Attorney Gary Restaino. "Every time someone cheats the tax system, the burden of providing vital services increases for taxpayers who pay their fair share. The jury’s verdict has sent a clear message that tax cheats will not be tolerated."
Internal Revenue Service - Criminal Investigation conducted the investigation in this case. Assistant U.S. Attorneys Kevin M. Rapp and Aron Ketchel, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00724-PHX-JJT
RELEASE NUMBER: 2022-164_Patterson# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Russian Oligarch Oleg Vladimirovich Deripaska and Associates Indicted for Sanctions Evasion and Obstruction of JusticeRead the Press Release
The Justice Department announced today the unsealing of an indictment charging a U.S. citizen and three citizens of the Russian Federation with violating new U.S. sanctions imposed earlier this year in response to Russia’s unprovoked military invasion of Ukraine.
According to court documents, Oleg Vladimirovich Deripaska, aka Oleg Mukhamedshin, 52; and Natalia Mikhaylovna Bardakova, aka Natalya Mikhaylovna Bardakova, 45, both citizens of the Russian Federation (Russia), and Olga Shriki, 42, a New Jersey resident and naturalized U.S. citizen, are charged with conspiring to violate U.S. sanctions imposed on Deripaska and one of Deripaska’s corporate entities, Basic Element Limited (Basic Element). Shriki is further charged with obstruction of justice based on her alleged deletion of electronic records relating to her participation in Deripaska’s sanctions evasion scheme following receipt of a grand jury subpoena requiring the production of those records. Bardakova is charged with one count with making false statements to agents of the FBI. Additionally, Ekaterina Olegovna Voronina, aka Ekaterina Lobanova, 33, is charged with making false statements to agents of the U.S. Department of Homeland Security at the time of Voronina’s attempted entry into the United States for the purpose of giving birth to Deripaska’s child. Shriki was arrested this morning.
“In the wake of Russia’s unjust and unprovoked invasion of Ukraine, I promised the American people that the Justice Department would work to hold accountable those who break our laws and threaten our national security. Today’s charges demonstrate we are keeping that promise,” said Attorney General Merrick B. Garland. “The Justice Department will not stop working to identify, find, and bring to justice those who evade U.S. sanctions in order to enable the Russian regime.”
“As today’s charges reveal, while serving the Russian state and energy sector, Oleg Deripaska sought to circumvent U.S. sanctions through lies and deceit to cash in on and benefit from the American way of life,” said Deputy Attorney General Lisa O. Monaco. “But shell companies and webs of lies will not shield Deripaska and his cronies from American law enforcement, nor will they protect others who support the Putin regime. The Department of Justice remains dedicated to the global fight against those who aid and abet the Russian war machine.”
According to court documents, Deripaska, the owner and controller of Basic Element, a private investment and management company for Deripaska’s various business interests, was subjected to economic sanctions on April 6, 2018. On that day, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Deripaska as a Specially Designated National (SDN), in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to the national security and foreign policy of the United States (the OFAC Sanctions). In designating Deripaska, OFAC explained that Deripaska was sanctioned for having acted or purported to act for or on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation, as well as for operating in the energy sector of the Russian Federation economy.
“Today’s indictment reflects the FBI’s commitment to use all of the tools at our disposal to aggressively pursue those who attempt to evade the United States’ economic countermeasures against the Russian government,” said FBI Director Christopher Wray. “We will continue to aggressively prosecute those who violate measures imposed to protect the national security and foreign policy of the United States, especially in this time of Russia’s unprovoked aggression toward Ukraine.”
“The indictment unsealed today signals the United States’ ongoing support for the people of Ukraine in the face of continued Russian belligerence,” said U.S. Attorney Damian Williams for the Southern District of New York. “The enforcement of sanctions is a vital tool wielded by this Office and our law enforcement partners as we seek to deter Russian aggression, and today’s indictment should be taken as a warning that, try as they might, individuals violating these sanctions will be held accountable.”
Following his designation by OFAC, Deripaska conspired with others to evade and to violate those sanctions in various ways and over the course of several years. Deripaska, through the corporate entity Gracetown Inc., illegally utilized the U.S. financial system to maintain and retain three luxury properties in the United States (the U.S. Properties), and further employed Olga Shriki and Natalia Mikhaylovna Bardakova to utilize U.S. financial institutions to provide hundreds of thousands of dollars’ worth of services for his benefit in the United States. For example, in or about 2019, Shriki facilitated for Deripaska’s benefit the sale of a music studio in California for over $3 million. Deripaska had owned the studio through a series of corporate shell companies that obscured his actual ownership. Following the sale of the studio, Shriki attempted to expatriate over $3 million in proceeds through one such shell company, Ocean Studios California LLC, to a Russia-based account belonging to another Deripaska company.
Bardakova – largely based in Russia – directed Shriki to engage in particular illegal transactions on Deripaska’s behalf. These instructions included directing Shriki to obtain U.S. goods and technology for Deripaska. Moreover, between in or about May 2018 and in or about 2020, Bardakova instructed Shriki to purchase and send flower and gift deliveries on behalf of Deripaska to Deripaska’s social contacts in the United States and Canada. The deliveries included, among others, Easter gift deliveries to a U.S. television host, two flower deliveries to a then-former Canadian Parliament member, and two flower deliveries in 2020 to Voronina while she was in the United States in 2020 to give birth to Deripaska’s child.
Then, in or about 2020, Shriki and Bardakova helped Deripaska’s girlfriend, Voronina, travel from Russia to the United States, so she could give birth to Deripaska’s and Voronina’s child in the United States. Despite Deripaska’s ongoing support for the Russian regime, he funded hundreds of thousands of dollars of transactions so that his child would take advantage of the U.S. health care system and U.S. birthright citizenship. Despite Deripaska’s ongoing support for the Russian regime, Deripaska distrusted the safety of the Russian hospital system. As alleged, Shriki orchestrated the payment of approximately $300,000 worth of U.S. medical care, housing, childcare, and other logistics to support Voronina to give birth in the United States, which resulted in the child receiving U.S. citizenship. As part of this scheme, Deripaska counseled Voronina on obtaining a U.S. visa, including by telling her to be “careful” ahead of an interview by U.S. immigration authorities. Voronina thereafter applied for and obtained a U.S. visa for a purported 10-day tourism visit without disclosing her intent to travel and stay in the United States for approximately six months to give birth to Deripaska’s child. Following the birth, Shriki, Bardakova, and Voronina conspired to conceal the name of the child’s true father, Deripaska, going so far as to change, slightly, the spelling of the child’s last name.
Later, in or about 2022, Shriki and Bardakova attempted to facilitate Voronina’s return to the United States to give birth to Deripaska’s and Voronina’s second child. This second attempt included Bardakova and Voronina’s attempt to use false statements to conceal Deripaska’s funding and secure Voronina’s entry into the United States – an attempt that was thwarted, and Voronina was denied entry and returned immediately to Istanbul, through which she had flown from Russia to the United States.
Deripaska, Bardakova and Shriki, are charged with one count of conspiring to violate and evade U.S. sanctions, in violation of the International Emergency Economic Powers Act, which carries a maximum sentence of 20 years in prison. Shriki is further charged in one count of destruction of records, which carries a maximum sentence of 20 years in prison. Bardakova and Voronina are each further charged with one count of making false statements to federal agents, which carries a maximum sentence of five years in prison. The indictment also provides notice of the United States’ intention to forfeit from Deripaska the proceeds of his offense, including the U.S. Properties and the proceeds from the sale of the music studio. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI New York Field Office and Counterintelligence Division are investigating the case, with valuable assistance provided by the Department of Homeland Security and the Justice Department’s National Security Division, Counterintelligence and Export Control Section.
Assistant U.S. Attorneys Anden Chow and Vladislav Vainberg are prosecuting the case.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2 and run out of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Russian Oligarch Oleg Vladimirovich Deripaska and Associates Indicted for Sanctions Evasion and Obstruction of JusticeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York and Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging OLEG VLADIMIROVICH DERIPASKA, a/k/a “Oleg Mukhamedshin,” and NATALIA MIKHAYLOVNA BARDAKOVA, a/k/a “Natalya Mikhaylovna Bardakova,” citizens of the Russian Federation (“Russia”), and OLGA SHRIKI, a New Jersey resident and naturalized U.S. Citizen, with conspiring to violate United States sanctions imposed on DERIPASKA and one of DERIPASKA’s corporate entities, “Basic Element.” SHRIKI is further charged with obstruction of justice based on her deletion of electronic records relating to her participation in DERIPASKA’s sanctions evasion scheme following receipt of a Grand Jury subpoena requiring the production of those records. BARDAKOVA and is charged in one count with making false statements to agents of the Federal Bureau of Investigation. Additionally, EKATERINA OLEGOVNA VORONINA, a/k/a “Ekaterina Lobanova,” is also charged with making false statements to agents of the Department of Homeland Security at the time of VORONINA’s attempted entry into the United States for the purpose of giving birth to DERIPASKA’s child. SHRIKI was arrested this morning.
U.S. Attorney Damian Williams said: “The indictment unsealed today signals the United States’ ongoing support for the people of Ukraine in the face of continued Russian belligerence. The enforcement of sanctions is a vital tool wielded by this Office and our law enforcement partners as we seek to deter Russian aggression, and today’s indictment should be taken as a warning that, try as they might, individuals violating these sanctions will be held accountable.”
Andrew C. Adams, Director of Task Force KleptoCapture said: “Despite his cozy ties with the Kremlin and his vast wealth acquired through ties to a corrupt regime, Deripaska did all he could to lead a life in a stable, free, democratic society – even if that meant lying and evading U.S. sanctions. The hypocrisy in seeking comfort and citizenship in the United States, while enjoying the fruits of a ruthless, anti-democratic regime, is striking. That Deripaska practiced that hypocrisy through lies and criminal sanctions evasion has made him a fugitive from the country he so desperately wished to exploit.”
FBI Assistant Director Michael J. Driscoll said: “Russian oligarch, Oleg Deripaska, was sanctioned in April 2018 as part of the U.S. response to the Russian Government’s engagement in worldwide malign activity and its annexation of Crimea, Ukraine. Since that time, Deripaska has continued to circumvent those sanctions through an international network of enablers and facilitators. We will not idly standby while Russian oligarchs brazenly subvert our laws and simultaneously seek benefit from U.S. goods and services for themselves and their families. Today’s actions demonstrate the FBI’s commitment to protecting U.S. national interests through the identification and disruption of Kremlin-linked oligarchs’ criminal networks.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:[1]
DERIPASKA, the owner and controller of Basic Element Limited (“Basic Element”), a private investment and management company for DERIPASKA’s various business interests, was subjected to economic sanctions on April 6, 2018. On that day, the United States Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated DERIPASKA as a Specially Designated National (“SDN”) in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to the national security and foreign policy of the United States (the “OFAC Sanctions”). In so designating DERIPASKA, OFAC explained that DERIPASKA was sanctioned for having acted or purported to act for or on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation, as well as for operating in the energy sector of the Russian Federation economy.
Following his designation by OFAC, DERIPASKA conspired with others to evade and to violate those sanctions in various ways and over the course of several years. DERIPASKA, through the corporate entity “Gracetown Inc.,” illegally utilized the U.S. financial system to maintain and retain three luxury properties in the United States (the “U.S. Properties”) and further employed OLGA SHRIKI and NATALIA MIKHAYLOVNA BARDAKOVA to utilize U.S. financial institutions to provide hundreds of thousands of dollars’ worth of services for his benefit in the United States. For example, in or about 2019, SHRIKI facilitated for DERIPASKA’s benefit the sale of a music studio in California for over $3 million. DERIPASKA had owned the studio through a series of corporate shell companies that obscured his actual ownership. Following the sale of the studio, SHRIKI attempted to expatriate over $3 million in proceeds through one such shell company, “Ocean Studios California LLC,” to a Russia-based account belonging to another DERIPASKA company.
BARDAKOVA – largely based in Russia – directed SHRIKI to engage in particular illegal transactions on DERIPASKA’s behalf. These instructions included directing SHRIKI to obtain U.S. goods and technology for DERIPASKA. Moreover, between in or about May 2018 and in or about 2020, BARDAKOVA instructed SHRIKI to purchase and send flower and gift deliveries on behalf of DERIPASKA to DERIPASKA’s social contacts in the United States and Canada. The deliveries included, among others, Easter gift deliveries to a U.S. television host, two flower deliveries to a then-former Canadian Parliament member, and two flower deliveries in 2020 to VORONINA while she was in the United States in 2020 to give birth to DERIPASKA’s child.
Then, in or about 2020, SHRIKI and BARDAKOVA helped DERIPASKA’s girlfriend, VORONINA, travel from Russia to the United States so she could give birth to DERIPASKA’s and VORONINA’s child in the United States. Despite DERIPASKA’s ongoing support for the Russian regime, he funded hundreds of thousands of dollars of transactions so that his child could take advantage of the U.S. healthcare system and U.S. birthright. SHRIKI orchestrated the payment of approximately $300,000 worth of U.S. medical care, housing, childcare, and other logistics to aid VORONINA and DERIPASKA’s efforts to help VORONINA give birth in the United States, which resulted in the child receiving U.S. citizenship. DERIPASKA counseled VORONINA on obtaining a visa to travel to the United States, including by telling her to be “careful” ahead of an interview by U.S. immigration authorities. VORONINA thereafter applied for and obtained a U.S. visa for a purported ten-day tourism visit without disclosing her intent to travel and stay in the United States for approximately six months to give birth to DERIPASKA’s child. Following the birth, SHRIKI, BARDAKOVA, and VORONINA conspired to conceal the name of the child’s true father, DERIPASKA, going so far as to change, slightly, the spelling of the child’s last name.
Later, in or about 2022, at DERIPASKA’s further behest and for his further benefit, SHRIKI and BARDAKOVA attempted to facilitate VORONINA’s return to the United States to give birth to DERIPASKA’s and VORONINA’s second child. This second attempt included BARDAKOVA and VORONINA’s attempt to use false statements to conceal DERIPASKA’s funding and secure VORONINA’s entry into the United States – an attempt that was thwarted, and VORONINA was denied entry and returned immediately to Istanbul, through which she had flown from Russia to the United States.
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DERIPASKA, 52, and BARDAKOVA, 45, of Russia, and SHRIKI, 42, of New Jersey, are charged with one count of conspiring to violate and evade U.S. sanctions, in violation of the International Emergency Economic Powers Act, which carries a maximum sentence of 20 years in prison. SHRIKI is further charged in one count of destruction of records, which carries a maximum sentence of 20 years in prison. BARDAKOVA and VORONINA, 33, of Russia, are each further charged in one count of making false statements to federal agents, which carries a maximum sentence of five years in prison. The Indictment also provides notice of the United States’ intention to forfeit from DERIPASKA the proceeds of his offense, including the U.S. Properties and the proceeds from the sale of the music studio.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division and thanked the Department of Homeland Security and the Department of Justice’s National Security Division, Counterintelligence and Export Control Section for their assistance.
On March 2, 2022, the Attorney General announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Anden Chow and Vladislav Vainberg are in charge of the case.
The charges in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Richmond Doctor to Pay Penalties for Allegedly Violating the Controlled Substances ActRead the Press Release
RICHMOND, Va. – A Richmond physician has agreed to pay $50,000 in civil penalties for allegedly issuing prescriptions in violation of the Controlled Substances Act.
The government alleged that, in 2019, Dr. Salman Akbar, 55, issued seven prescriptions for tramadol, a Schedule IV opioid, and lorazepam, a Schedule IV benzodiazepine, to an undercover Drug Enforcement Administration (DEA) Task Force Officer over the course of four visits to Akbar’s office. The government alleged that Akbar issued the prescriptions outside the usual course of professional practice in Virginia, and not for a legitimate medical purpose.
The Controlled Substances Act regulates individuals and companies that manufacture, distribute, and dispense controlled substances. The law aims to protect public health and safety from the dangers posed by highly addictive or dangerous controlled substances, including the diversion or improper use of such substances, while also ensuring that patients have access to pharmaceutical controlled substances for legitimate medical purposes.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the DEA’s Washington Division- Richmond District Office.
The matter was investigated by former Assistant U.S. Attorney Ilene Albala and Assistant U.S. Attorney Robert McIntosh. The civil claims settled by this agreement are allegations only; there has been no admission of civil liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER
Richfield Springs Man Pleads Guilty to Embezzling from Labor UnionRead the Press Release
SYRACUSE, NEW YORK – Jay Garnsey, 38, pleaded guilty yesterday to embezzling assets from a labor union, announced United States Attorney Carla B. Freedman and District Director Jonathan Russo of the Boston-Buffalo District Office for the United States Department of Labor, Office of Labor Management Standards (DOL-OLMS).
From about late 2015, until December 2019, Garnsey was employed by Remington Arms in Ilion, NY and the financial secretary of the union that represented its employees. As part of his guilty plea, Garnsey admitted that, while he was financial secretary, he embezzled money from the union by, among other things, submitting fraudulent reimbursement vouchers. Garnsey admitted embezzling over $38,000 in union funds.
Sentencing is scheduled for January 25, 2023, before District Judge David N. Hurd in Utica, New York, at which time Garnsey faces a maximum sentence of up to five years in prison, a fine of up to $250,000, and a post-imprisonment term of supervised release of up to three 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. Garnsey also agreed to pay to the union $38,172.76 in restitution.
This case was investigated by the DOL-OLMS and the Ilion Police Department. The case is being prosecuted by Assistant United States Attorney Thomas Sutcliffe.
Registered Sex Offenders Sentenced for Possession of Child PornographyRead the Press Release
GREENSBORO – A North Carolina man was sentenced today to 240 months in prison followed by a twenty-year term of supervised release, for possession of child pornography after a tip to the National Center for Missing and Exploited Children led to his arrest.
According to court documents, Kevin Richard Heidel, 38, who was a registered sex offender, was identified by investigators from the Davidson County Sheriff’s Office (DCSO) after a NCMEC tip revealed that an Instagram user in Davidson County was suspected of uploading images of suspected child pornography to the platform in 2019. In December 2019, DCSO investigators executed a search warrant at Heidel’s residence where they located a cell phone that contained child pornography. Further investigation revealed child pornography on another phone belonging to Heidel that was located in the front yard of one of Heidel’s neighbors.
Heidel is the third registered sex offender to be sentenced this month. On September 22, 2022, Christopher Lea Kahele, 40, of Moore County, was sentenced to 240 months imprisonment followed by 25 years of supervised release, for possession of child pornography. That same day, a Randolph County man, Luis Armando Diaz-Otero, 33, was sentenced to 150 months imprisonment followed by 20 years of supervised release after a tip from NCMEC regarding a Google account led to his arrest and conviction for possession of child pornography.
The Davidson County Sheriff’s Office, the North Carolina State Bureau of Investigation (NCSBI), the North Carolina Department of Public Safety Probation and Parole (NCDPS), and Homeland Security Investigation (HSI) assisted with the Heidel investigation. The Moore County Sheriff’s Office, the NCDPS, and the Federal Bureau of Investigation assisted with the Kahele investigation. The Randolph County Sheriff', the NCSBI, and HSI assisted in the Diaz-Otero investigation. All three cases were prosecuted by Assistant United States Attorney Kennedy Gates.
The cases were brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. The initiative is led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and focuses on coordinating federal, state, and local resources to better identify and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. www.projectsafechildhood.gov.
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