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21 September 2022
Former manager of Prairie View Federal Credit Union indicted on embezzlement chargesRead the Press Release
HOUSTON – A 56-year-old Prairie View woman has been indicted on charges of embezzlement from elderly customers, announced U.S. Attorney Jennifer B. Lowery.
Gloria Jean Hall She is expected to make her initial appearance before U.S. Magistrate Judge Christina Bryan at 2 pm.
A federal grand jury returned the four-count indictment Sept. 15.
The charges allege Hall was the manager at Prairie View Federal Credit Union from February 2000 to August 2020. Beginning in 2010, she allegedly embezzled approximately $211,563 from elderly account holder funds. She created loans totaling nearly $791,000, withdrew the loans and cashed $76,772 in numerous unauthorized checks from accounts at the credit union for her own personal use and benefit, according to the indictment.
Hall allegedly fraudulently formed 58 nominee loans by creating fake share loans in the names of relatives and friends. She transferred money across the loans to make payments among them, according to the charges. She also allegedly created fake monthly loan statements and moved funds mainly from elderly credit union members into the accounts of her relatives and friends.
Hall is charged with three counts of embezzlement by a credit union employee and one count of making false entries in the financial records of the credit union.
If convicted, Hall faces up to 30 years in prison and a possible $1 million maximum fine.
The credit union existed for approximately 85 years. It was one of the oldest continually operational federal credit unions established by a historically black college and university in the United States until its failure and merger with the Cy-Fair Federal Credit Union in early 2022.
The FBI – Bryan Resident Agency conducted the investigation. Assistant U.S. Attorney Quincy L. Ollison is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Former Spring Lake Public Official Pleads Guilty to Embezzling over Half a Million Dollars from TownRead the Press Release
RALEIGH, N.C. – The former finance director and accounting technician for the Town of Spring Lake, Gay Cameron Tucker, pled guilty today to embezzling over $500,000 from the Town of Spring Lake between 2016 and 2021.
“Public officials are entrusted to protect public funds,” said U.S. Attorney Michael Easley. “This defendant breached the public’s trust by using public funds intended for her local community to pay her own personal expenses. Public corruption is a crime that affects all of us and undermines our public institutions. Our office will continue partnering with law enforcement to investigate allegations of public corruption in any form.”
Tucker, 64, of Fayetteville, wrote checks from the Town’s bank accounts for her personal use, forging the signatures of other town officials, including the mayor and town manager. These forged checks were made payable to herself, used to cover her personal expenses, and deposited into bank accounts she controlled.
Tucker pled guilty to one count of Embezzlement from a Local Government Receiving Federal Funds, and one count of Aggravated Identity Theft. Tucker faces up to 12 years in prison.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation is investigating the case and Assistant U.S. Attorneys William M. Gilmore and Karen Haughton are prosecuting the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No 5:22-CR-00118.
Former Postal Employee Sentenced to 13 Months in Prison for Fraud in Connection with Unemployment Insurance BenefitsRead the Press Release
NEWARK, N.J. – A former U.S. Postal Service (USPS) employee was sentenced to 13 months in prison for fraudulently obtaining unemployment insurance benefits, U.S. Attorney Philip R. Sellinger announced.
Khaori Monroe, 29, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Julien X. Neals to an information charging him with one count of wire fraud. Judge Neals imposed the sentence by videoconference on Sept. 20, 2022.
According to documents filed in the case and statements made in court:
Monroe was employed as a mail carrier with the USPS. From July 2020 through October 2020, Monroe and others stole credit/debit cards containing unemployment insurance benefits from a location in New Jersey. Monroe and others then activated the cards and used the cards to obtain more than $40,000.
In addition to the prison term, Judge Neals sentenced Monroe to two years of supervised release and ordered him to pay restitution in the amount of $53,321.05 and forfeiture in the amount of $24,924.16.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in Manhattan; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Defense counsel: Khari O. Moore Esq., Newark, New Jersey
Former Craighead County Clerk Sentenced to 57 Months in Prison for Wire FraudRead the Press Release
LITTLE ROCK—Former Craighead County Clerk Jacob Kade Holliday was sentenced to 57 months in federal prison today for taking more than $1.5 million in county money for his personal use. Holliday, 34, of Jonesboro, was sentenced by United States District Court Judge James M. Moody, Jr., who also imposed three years of supervised release after Holliday completes his prison term.
In June 2020, Craighead County officials reported that a theft had occurred from the Craighead County Clerk’s office. The bank that managed the Clerk’s office account had flagged suspicious activity, and auditors concluded that approximately $1,579,057.03 was missing and had been moved to Holliday’s personal banking accounts.
Law enforcement interviewed Holliday, who admitted to taking the money to fund his businesses: Holliday Development and Management, LLC, and Total Healthcare, LLC, both of which operated restaurants and coffee shops in Jonesboro. Holliday told investigators he planned to pay the money back, but once the COVID-19 pandemic caused most of his businesses to close, he could not replace the money.
Holliday was indicted in December 2020, when a grand jury charged him with 11 counts of wire fraud for each withdrawal he made from the county account. He pleaded guilty in February of this year and acknowledged that his method was to make a transfer from the county account to one of his personal accounts and then get a cashier’s check from his personal account for the same amount. He pleaded guilty to Count 1 of the indictment, which charged him with wire fraud for his first fraudulent transfer of $101,782.97 on January 29, 2020. In his plea agreement, Holliday agreed to pay $1,579,057.03 in restitution to Craighead County.
Holliday is currently serving a 120-month sentence in a state case for forgery, and Judge Moody ordered that his federal sentence will not begin until the state sentence is completed. The FBI, Arkansas State Police, and Craighead County Sheriff’s Department conducted the investigation. Assistant United States Attorney Allison W. Bragg prosecuted the case.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Former Airman sentenced to five years in prison for child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Nicholas Anthony Bianco was sentenced on Sept. 20 to five years in prison. Bianco, 38, pleaded guilty on May 6, 2021, to distribution of child pornography.
In September 2019 and March 2020, Homeland Security Investigation (HSI) received notifications from KIK, a social media platform, of a user sending suspected child pornography through the app. The user account was associated with Bianco, who was a Technical Sergeant with the United States Air Force at the time of his arrest on Oct. 15, 2020. On May 8, 2020, New Mexico State Police (NMSP) executed a search warrant on Bianco’s residence in Alamogordo, New Mexico, seizing multiple digital items including an iPhone. A forensic analysis of the phone revealed child exploitation material.
In his plea, Bianco admitted that he used the phone and the KIK app to send two videos that he knew were child pornography. Bianco acknowledged that the victim in one of the videos was one to three years of age.
Upon his release from prison, Bianco will be subject to five years of supervised release and must register as a sex offender.
HSI investigated this case with assistance from NMSP and the Air Force Office of Special Investigation as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorney Joni Autrey Stahl prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.
The ICAC Task Force Program is a nation-wide network of task forces including over 90 federal, state, local and tribal law enforcement agencies in New Mexico dedicated to investigating, prosecuting and developing effective responses to Internet crimes against children.
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Florida Man Convicted in Business Email Compromise and Money Laundering Scheme Targeting Hedge FundRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict against MUSTAPHA RAJI for his participation in a $1.7 million business email compromise and money-laundering scheme that targeted a Manhattan hedge fund. RAJI was convicted on four counts of conspiracy to commit wire fraud, wire fraud, receipt of stolen property, and conspiracy to commit money laundering. RAJI was convicted after a jury trial before U.S. District Judge Jesse M. Furman which lasted approximately one week. RAJI was previously arrested on December 20, 2019.
U.S. Attorney Damian Williams said: “Email scams that target businesses in this District will not be tolerated. Together with our law enforcement partners, we will continue to zealously prosecute online scammers abroad, and the U.S.-based money launderers they work with, to protect American businesses.”
As reflected in the Indictment, public filings, and the evidence presented at trial:
RAJI participated in an international fraud ring that conducted phishing and other email fraud campaigns. One of those campaigns involved the July 2018 compromise of the business email account of a hedge fund founder in New York. That compromise resulted in the fraudulent diversion of a $1.7 million wire transfer from the hedge fund to a corporate bank account used to facilitate the scheme. RAJI was a registered officer of the company that received the stolen funds, he fabricated documents to cover up the fraudulent transfer of funds from the hedge fund, and he directed a co-conspirator to launder the stolen funds to other co-conspirators domestically and overseas. RAJI took a $50,000 cut for his participation in the scheme.
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RAJI, 52, of Hollywood, Florida, was convicted of one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of receipt of stolen money, which carries a maximum sentence of 10 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.
RAJI is scheduled to be sentenced before Judge Furman on January 11, 2023, at 3:15 p.m.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Catherine Ghosh, Jilan Kamal, Dina McLeod, and Robert B. Sobelman are in charge of the prosecution.
Federal Grand Jury B Indictments Announced- September 2022Read the Press Release
United States Attorney Clint Johnson today announced the results of the September 2022 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Sheamiah Krystin Atkins. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence. Atkins, 40, of Tulsa, allegedly assaulted the victim with a firearm with intent to do bodily harm on Aug. 21, 2022. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Victor A.S. Régal is prosecuting the case. 22-CR-318
Tristan Barlow; Zachary Caughron; Natalie Foutch; Richard Markham; Kolby Milford; Christopher Ruff; and Jacob Shoate. Drug Conspiracy (Count 1); Possession of a Firearm in Furtherance of a Drug Trafficking Crime (Counts 2-7). Barlow, 30; Caughron, 30; Foutch, 20; Markham, 35; Milford, 27; Ruff, 30; and Shoate, 21, all of Tulsa, allegedly conspired together to distribute and to possess with intent to distribute clonazolam. Each defendant is also charged with possessing a firearm in furtherance of a drug trafficking crime. The Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Tulsa Police Department, and Tulsa County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorneys Ben Tonkin and Niko A. Boulieris are prosecuting the case. Find the initial press release announcing charges here. 22-CR-317
Jared Matthew Barnett. Leaving the Scene of a Personal Injury Accident in Indian Country (Count 1); Driving Under the Influence of an Intoxicating Substance in Indian Country (Counts 2,3). On Aug.24, 2022, Barnett, 27, of Glenpool, is alleged to have caused an accident while driving under the influence of an intoxicating substance other than alcohol, failed to render reasonable assistance to the victim, and failed to remain at the scene of the accident. On Aug. 25, 2022, Barnett was involved in a single-vehicle accident and was allegedly found to be driving while under the influence of an intoxicating substance other than alcohol. The FBI and Glenpool Police Department are the investigative agencies. Assistant U.S. Attorney Stephanie Ihler is prosecuting the case. 22-CR-332
David Cortez-Gomez. Unlawful Reentry of a Removed Alien. Cortez-Gomez, 26, a Mexican nation, is charged with unlawfully reentering the United States after having been removed on Oct. 4, 2017, at or near Laredo, Texas. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case. 22-CR-319
Waylon Cody Johnson. Obstructing, Delaying, and Affecting Commerce by Robbery; Robbery in Indian Country; Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Simple Assault (Misdemeanor). On Aug. 21, 2022, Johnson, 32, of Bixby, allegedly robbed a Subway restaurant using a replica firearm and threatened violence against an employee who was younger than 16-years-old. The FBI and Sapulpa Police Department are the investigative agencies. Assistant U.S. Attorney Justin G. Bish is prosecuting the case. 22-CR-320
Gustavo Martinez-Cruz. Reentry of a Removed Alien. Martinez-Cruz, 41, a Mexican national, is charged with unlawfully reentering the United States after having been removed on July 24, 2012, at or near Del Rio, Texas. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney William Rubens is prosecuting the case. 22-CR-330
Justin Eli Muncy. Attempted Coercion and Enticement of a Minor; Commission of Felony Sex Offense Involving a Minor by a Registered Sex Offender; Coercion and Enticement of a Minor; Production of Child Pornography; Receipt and Distribution of Child Pornography; Tampering with a Witness by Corrupt Persuasion; Tampering with a Witness by Corrupt Persuasion (superseding). Muncy, 46, of Lawton, allegedly attempted to coerce an individual he believed to be a minor into engaging in sexual activity from Jan. 27, 2022, to April 14, 2022. Instead, he was messaging an undercover agent. Muncy committed the alleged crime while he was a registered sex offender. In this superseding indictment he is further charged with coercing and enticing a minor to engage in sexual activity using electronic means from Oct. 10, 2021, to on April 14, 2022. He is further charged with having the minor engage in sexual acts for the purpose of producing a visual depiction of the acts; receipt and distribution of child pornography; and with tampering with a witness who was scheduled to testify in court proceedings. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tulsa County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney Leah Paisner is prosecuting the case. 22-cr-187
Andrew Don Rector. Aggravated Sexual Abuse by Force and Threat in Indian Country; Kidnapping in Indian Country; Assault of an Intimate/Dating Partner by Strangling, Suffocating, and Attempting to Strangle and Suffocate in Indian Country. From May 3, 2022, to May 4, 2022, Rector, 32, of Keifer, is alleged to have kidnapped, strangled and sexually assaulted the victim. The FBI and Muscogee Nation Lighthorse Tribal Police Department are the investigative agencies. Assistant U.S. Attorneys Julie A. Childress and Cymetra M. Williams are prosecuting the case. 22-CR-331
Bobby Jean Shanks II. Abusive Sexual Contact with a Minor Under 12 Years of Age in Indian Country; Sexual Abuse of a Minor in Indian Country; Sexual Abuse of an Incapable Victim in Indian Country (superseding). From December 2006 to Dec. 11, 2010, Shanks, 44, of Inola, is alleged to have knowingly engaged in and caused sexual contact with a child. He is further charged with sexually abusing the child when she was between 12 and 16 years old. Finally, between September 2015 and August 2017, he allegedly sexually abused a victim who was physically incapable of declining participation in and communicating unwillingness to engage in those sexual acts. The FBI is the investigative agency. Assistant U.S. Attorney Stephanie Ihler is prosecuting the case. 22-CR-110
Michael Wayne Tiffany; James Allen Quapaw. Felon in Possession of Firearms and Ammunition (Counts 1,4); Sale and Disposal of a Firearm to a Prohibited Person (Count 2); Possession of a Firearm in Furtherance of a Drug Trafficking Crime (Counts 3,8); Possessing and Selling Stolen Firearms (Count 5); Possession of Methamphetamine with Intent to Distribute (Count 6); Carrying a Firearm During and in Relation to a Drug Trafficking Crime (Count 7) (third superseding). Quapaw, 41, of Miami, is charged with being a felon in possession of a Ruger .270 caliber rifle and four rounds of ammunition from Dec. 30, 2021, to Jan. 4, 2022. Quapaw is also charged with selling the firearm and ammunition to Tiffany, 37, of Miami, who is a prohibited person. From Dec. 30, 2021, to Jan. 4, 2022, Tiffany allegedly possessed firearms in furtherance of a drug trafficking crime, namely possession of methamphetamine with intent to distribute. Tiffany is further charged with being a felon in possession of a Ruger .270 caliber rifle, a Remington .243 caliber rifle and eight rounds of ammunition on Jan. 5, 2022. Tiffany and Quapaw are both charged with aiding and abetting each other to possess and sell the Ruger .270 caliber rifle, Remington .243 caliber rifle and eight rounds of ammunition on Jan. 5, 2022. Tiffany is also charged with knowingly possessing with intent to distribute 50 grams or more of methamphetamine on July 16, 2022, and for possessing a firearm during the crime. Additionally, Quapaw is charged with possessing a firearm in furtherance of a drug trafficking crime, namely possession of methamphetamine with intent to distribute. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma Highway Patrol are the investigative agencies. Assistant U.S. Attorneys John E. Brasher and Thomas E. Buscemi are prosecuting the case. 22-CR-222
Johnny Lee Summers. Production of Child Pornography; Coercion and Enticement of a Minor; Sexual Abuse of a Minor in Indian Country; Abusive Sexual Contact with a Minor in Indian Country (superseding). Summers, 22, of Cushing, is charged with three counts of enticing a minor to engage in sexually explicit conduct for the purpose of producing child pornography. He is further charged with using electronic communications to coerce the minor to engage in sexual activity. He is also charged with attempting to engage in a sexual act with the minor between the ages of 12 and 16 from February 2021 to January 2022. Finally, he is charged with knowingly engaging in sexual contact with the minor when the victim was between the ages of 12 and 16 from February 2021 to January 2022. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorneys Valeria G. Luster and Chantelle D. Dial are prosecuting the case. 22-CR-165
Kahlyah Ashlynn White. Child Abuse in Indian Country; Child Neglect in Indian Country. White, 21, of Bartlesville, is charged with abusing three children under the age of 18 and neglecting to protect the children from exposure to illegal activity. Assistant U.S. Attorney Ben Tonkin is prosecuting the case. 22-CR-329
Erie Man Pleads Guilty to Child Sexual Exploitation ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Cindy K. Chung announced today.
Kenneth L. Blanks, 41, pleaded guilty to two counts before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Blanks received and possessed computer images and movies depicting prepubescent minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for Jan. 30, 2023, at 1:00 pm. The law provides for a total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Blanks on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations and the Erie Police Department conducted the investigation that led to the prosecution of Blanks.
Erie Felon Sentenced for Illegal Gun PossessionRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to time served on his conviction of violating federal firearms laws, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Elias Dominique Raggs, 29, who has been incarcerated since his arrest on February 16, 2021.
According to information presented to the court, on or January 12, 2021, Raggs possessed a firearm while being a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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.
Assistant United States Attorney Paul. S. Sellers prosecuted this case on behalf of the government.
United States Attorney Chung commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Raggs.
Erie Felon Illegally Possessed a FirearmRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney Cindy K. Chung announced today.
William Anthony Eldridge, 58, pleaded guilty to one count before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about May 18, 2020, Eldridge possessed a firearm while being a convicted felon.
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.
Judge Cercone scheduled sentencing for Jan. 30, 2023, at 1:45 pm. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Erie Police Department and the Erie Law Enforcement Crime Task Force-Gun Working Group conducted the investigation that led to the prosecution of Eldridge. The Erie Law Enforcement Crime Task Force-Gun Working Group is a multi-agency taskforce consisting of federal, state, county and local law enforcement partners and agencies that formed in 2015 to combat gun violence in the Erie area.
El Paso Woman Charged with Assault of a Federal Law Enforcement OfficerRead the Press Release
EL PASO – An El Paso woman was arrested this week at the Paso Del Norte Port of Entry on criminal charges related to her alleged assault on a federal law enforcement officer.
According to court documents, Shailene Ashanty Gutierrez, 19, entered the U.S. from the Republic of Mexico at the Paso Del Norte Port of Entry. Gutierrez was a passenger in a vehicle where a small quantity of marijuana and empty rifle magazines were located. The vehicle was sent to secondary inspection and Gutierrez was detained pending further investigation. While detained, Gutierrez became aggressive and kicked and caused injury to two Customs and Border Protection officers.
Gutierrez is charged by federal criminal complaint with one count of assault on a federal law enforcement officer. If convicted, Gutierrez faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Gutierrez is scheduled for a detention hearing on Thursday, September 22, at 9:00 a.m., before U.S. Magistrate Judge Miguel Torres.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and Homeland Security Investigations (HSI) Special Agent in Charge Frank Burrola, El Paso Division made the announcement.
HSI is investigating the case.
Assistant U.S. Attorney Stanley M. Serwatka is prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Echo Park Man Agrees to Plead Guilty to Charges for Attempting to Sexually Traffic Two Children and Distributing Child PornographyRead the Press Release
LOS ANGELES – An Echo Park man has agreed to plead guilty to federal criminal charges for using an online messenger app to attempt to sexually traffic two children – ages 7 and 9 – and for distributing sexually explicit images of children, the Justice Department announced today.
Francisco Anthony Dorame, 41, a.k.a. “dadboss99,” a.k.a. “SEXYCONN,” is charged in an information with one count of attempted sex trafficking of a child under 14 years old and one count of distribution of child pornography. He has agreed to plead guilty to the charges.
Dorame is expected to appear Thursday for his arraignment in United States District Court in downtown Los Angeles. He has been in federal custody since his arrest on a federal criminal complaint in this matter on August 23.
According to his plea agreement filed Tuesday, in May 2022, Dorame used Kik Messenger, a social media messaging platform, to knowingly attempt to traffic two minor children – ages 7 years old and 9 years old. During a Kik conversation, Dorame made two payments, totaling $100, to a person who had access to the victims. Among other things, Dorame requested photographs of the victims, expressed his desire to “play with them right away” upon meeting up, and set a specific date, time, and location for the meeting.
Dorame further admitted in his plea agreement that in April 2022 he used Kik to distribute sexually explicit images of children between the ages of 4 years old and 6 years old.
Once Dorame enters a guilty plea to the criminal charges, he will face a statutory maximum sentence of life imprisonment and a mandatory minimum sentence of 15 years in federal prison.
The FBI is investigating this matter.
Assistant United States Attorneys Kathy Yu and Scott M. Lara of the Violent and Organized Crime Section are prosecuting this case.
Any member of the public who has information related to this matter is encouraged to contact the FBI’s Los Angeles Field Office at 1-800-CALL-FBI (1-800-225-5324).
Drug traffickers sent to prison for transporting narcotics in car batteriesRead the Press Release
LAREDO, Texas – Five members of a drug trafficking organization have received significant sentences their convictions of conspiracy to possess with intent to distribute meth and heroin, announced U.S. Attorney Jennifer B. Lowery.
Felipe De Jesus Garcia, 31, Laredo, pleaded guilty Feb. 3, while Manuel Orozco-Ambriz, 48, also of Laredo, and Mexican national Erick Cuellar-Rodriguez, 31, each pleaded guilty Sept. 9, 2021. Cesar Juarez-Romero, 24, and Jose De Jesus Morales, 37, both Mexican nationals with no legal presence in the United States, pleaded guilty Oct. 4 and Dec. 10, 2021, respectively.
Today, U.S. District Judge Diana Saldana imposed a 360-month term imprisonment for Orozco-Ambriz for the drug trafficking conviction as well as another 24 months for violating the terms of his supervised releases for a prior conviction. The sentences will be served concurrently for a total 30-year-prison term. The court ordered Cuellar-Rodriguez to serve 210 months in prison, while De Jesus Garcia and Juarez-Romero received 51 and 108 months in prison, respectively. Judge Saldana will sentence De Jesus Morales at a later date.
In handing down the sentences, the court noted the significant quantity of illegal drugs coming across the border and acknowledged the significant threat to the public and the court’s role in deterring others who would engage in similar conduct.
In 2018, law enforcement initiated an investigation into a drug distribution network that was responsible for transporting narcotics concealed within car batteries from Mexico into the United States.
Orozco-Ambriz and Cuellar-Rodriguez coordinated the transportation and delivery of multiple car batteries containing meth across the border into Laredo. Law enforcement had identified Juarez-Romero, De Jesus Morales and De Jesus Garcia as they delivered the drug laden items.
As a result of the investigation, authorities seized approximately 44 kilograms of pure meth and one kilogram of heroin.
The Drug Enforcement Administration and Customs and Border Protection conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation dubbed Operation Fox Hound with the assistance of the Texas Department of Public Safety, the Webb County Sheriff’s Office, and La Salle County Sheriff’s Office. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorney Lance Watt prosecuted the case.
Drug trafficker sentenced to 10 months in prisonRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Andy Cordova was sentenced on Sept. 20 to 10 months in prison. Cordova, 33, of Santa Cruz, New Mexico, pleaded guilty on March 2 to possession with intent to distribute heroin.
On July 5, 2020, Cordova was detained by Ohkay Owingeh Casino and Hotel security personnel on suspicion of possessing or distributing drugs on the premises. Cordova was arrested for drug trafficking after law enforcement executed a search warrant for his hotel room and discovered 16.96 grams of heroin.
Upon his release from prison, Cordova will be required to successfully complete treatment at the Santa Fe Recovery Center. Cordova also will be subject to three years of supervised release, to include outpatient mental health counseling.
The Santa Fe Resident Agency of the FBI investigated this case with assistance from the Ohkay Owingeh Police Department and New Mexico State Police. Assistant United States Attorney Alexander F. Flores prosecuted the case.
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Doctor and Office Manager Convicted for Health Care Kickback ConspiracyRead the Press Release
A federal jury convicted a Pennsylvania man and woman today for a scheme to pay and receive kickbacks in exchange for the referral of prescription medications.
According to court documents and evidence presented at trial, Steven J. Valentino, 65, of Haverford, and Michele Miller, 53, of Swarthmore, a doctor and his office manager, respectively, participated in an incentivized prescribing scheme involving injured federal workers and Medicare beneficiaries. Valentino and Miller received kickbacks for referring, ordering, and arranging for medications – including expensive compound medications – to be filled by a Houston pharmacy. Between May 2013 and July 2017, the pharmacy billed the Department of Labor Office of Workers’ Compensation Program (DOL-OWCP) and Medicare approximately $2.5 million and was paid approximately $1.1 million for prescriptions referred, ordered, and arranged by Valentino and Miller in exchange for illegal health care kickbacks.
Valentino and Miller were both convicted of conspiracy to pay and receive health care kickbacks, and each was also convicted of two counts of receiving health care kickbacks. They are scheduled to be sentenced at a later date and face a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Syreeta Scott of the Department of Labor Office of the Inspector General (DOL-OIG) Philadelphia Regional Office; Special Agent in Charge Jeff Krafels of the U.S. Postal Service Office of Inspector General (USPS-OIG) Mid Atlantic Area Field Office; and Special Agent in Charge Maureen Dixon of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) Philadelphia Region made the announcement.
DOL-OIG, USPS-OIG, and HHS-OIG investigated the case.
Acting Assistant Chief Debra Jaroslawicz and Trial Attorney Kelly M. Lyons of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 16 strike forces operating in 27 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Dedham Veterinarian Agrees to Pay $15,000 Settlement to Resolve Allegations of Inadequate Recordkeeping of Controlled SubstancesRead the Press Release
BOSTON – A Dedham veterinarian has agreed to resolve allegations that he maintained inadequate records of controlled substances, improperly stored controlled substances at his office and residence, ordered controlled substances without a Drug Enforcement Administration (DEA) registration, and failed to report he was on probation on his DEA registration forms.
Wilbur M. Salter, II D.V.M., a veterinarian who practices at Animed Pet Hospital in Dedham, has agreed to pay $15,000 to resolve allegations that he violated the civil remedies provisions of the Controlled Substances Act (CSA). The CSA was enacted to prevent the diversion or misuse of controlled substances and requires complete and accurate recordkeeping by medical professionals—including veterinarians—and others involved in the distribution and administration of controlled substances.
According to the settlement agreement, Dr. Salter admitted that he did not furnish required records with respect to Euthanasia Solution, Ketamine, Diazepam 5mg, Hydrocodone liquid, and Diazepam 1mg in connection with a 2019 DEA audit of controlled substances at his practice. As a result, the investigators found CSA violations with respect to these controlled substances. Dr. Salter also admitted that he stored controlled substances at his residence, but did not register his residence with the DEA; improperly stored Tramadol, a controlled substance, in an unlocked cabinet; ordered a schedule IV controlled substance after he no longer held a DEA registration; and did not report that the Board of Registration in Veterinary Medicine had placed him on probation on his subsequent DEA registration forms, as required.
“It is essential that all prescribers—including veterinarians—keep accurate records of controlled substances so that we can identify and prevent any diversion, especially in the midst of a rampant and destructive opioid epidemic,” said United States Attorney Rachael S. Rollins. “We will enforce compliance of these important safeguards.”
“The DEA is committed to ensuring that all registrants are in compliance with the required regulations, which are enforceable through the Controlled Substances Act,” said Brian D. Boyle, Special Agent in Charge of the DEA, Boston Division. “Failure to do so increases the potential for diversion and jeopardizes public health and public safety. DEA pledges to work with our law enforcement and regulatory partners to ensure these rules and regulations are followed.”
During the investigation, Dr. Salter surrendered his DEA registration number and, as part of the settlement, agreed that he would not seek a new DEA registration number.
U.S Attorney Rollins and DEA SAC Boyle made the announcement today. Assistant U.S. Attorney Carol E. Head of Rollins’ Civil Division handled the case.
Convicted Felon Sentenced to 15 Years for Drug TraffickingRead the Press Release
Memphis, TN – Craig Parham, 41, has been sentenced to 180 months in federal prison for drug trafficking. Joseph C. Murphy Jr., United States Attorney announced the sentence today.
According to information presented in court, from September 2017 through March of 2020, Craig
Parham and his co-conspirators formed a group named the Smokey City Bullies or SCB. This group distributed illegal narcotics in the North Memphis (Smokey City) area of Memphis, TN. Most of these individuals displayed their affiliation to the Smokey City Bullies through their Facebook accounts.Furthermore, these Facebook accounts depicted these individuals displaying SCB memorabilia, inside of locations where controlled purchases during this investigation have been made, and in front of other locations where state search warrants have been previously executed. They also posted photographs of themselves displaying drugs, guns, and cash.
The SCBs primarily sold illegal narcotics out of two residences in Smokey City. The first residence was a duplex on North Dunlap St., Memphis, TN. The second residence was located on Keel Avenue, Memphis, TN. Members of the Smokey City Bullies worked rotating shifts to sell illegal narcotics to customers at those houses. These residences were around the corner from one another, and their backyards were adjacent.
This long-term investigation involved confidential informants, undercover buys, undercover surveillance, and Facebook search warrants. Craig Parham participated in the following controlled buys: On December 19, 2019, Parham possessed in his waistband a revolver when he sold approximately
54 grams of a cocaine base to an undercover ATF agent. On March 4, 2020, Parham sold approximately
28 grams of a cocaine base and 14 grams of powder cocaine to an undercover ATF agent inside on Dunlap, Memphis, TN.Craig Parham pled guilty on May 3, 2022.
On September 15, 2022, U.S. Senior Judge John T. Fowlkes, Jr., sentenced Parham to 15 years imprisonment to be followed by three years’ supervised release. There is no parole in the federal system.Assistant United States Attorneys P. Neal Oldham and Wendy K. Cornejo prosecuted this case on behalf of the government.
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Convicted Felon Indicted for Possessing Machinegun Conversion DevicesRead the Press Release
INDIANAPOLIS – Micah Moore, 31, of Indianapolis, was indicted by a federal grand jury for possession of a machinegun and possession of ammunition by a convicted felon.
According to court documents, on July 17, 2022, Moore was in possession of three auto sears as well as multiple live rounds of ammunition. Auto sears are conversion devices designed and intended to convert semiautomatic rifles into fully automatic machineguns. Such devices qualify as machineguns, which are prohibited under federal law. Moore also has three prior felony convictions in state court, including one conviction for robbery and another for unlawful possession of a firearm by a serious violent felon. Moore is federally prohibited from possessing firearms and ammunition because of these convictions.
Moore made his initial court appearance before U.S. Magistrate Judge Tim A. Baker of the U.S. District Court for the Southern District of Indiana. If convicted, he faces a maximum penalty of 10 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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 (ATF), Columbus Field Division, made the announcement.
The ATF investigated the case in conjunction with the Indianapolis Metropolitan Police Department.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kelsey L. Massa who is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Contract Killer Pleads Guilty and Admits to Committing Six Murders and One Attempted Murder in PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Ernest Pressley, 42, of Philadelphia, PA, pleaded guilty before United States District Court Judge Eduardo C. Robreno to one count of conspiracy to commit murder-for-hire and four counts of use of interstate commerce facilities in the commission of murder-for-hire, in connection with Pressley’s role in murdering four victims in Philadelphia between 2017 and 2018, all in exchange for money. As part of the guilty plea, the defendant also admitted to his role in the killing of two other victims in 2016 and 2017, and the attempted murder of a woman in 2018. Charging documents and court filings detailing these crimes were unsealed today in connection with the plea hearing.
In late 2018, the Philadelphia Police Department joined with the Federal Bureau of Investigation to investigate Pressley in connection with the murder of a victim known as S.S., who was shot to death in the parking lot of a Philadelphia apartment complex near 7400 Malvern Avenue in the early morning hours of September 1, 2018. The defendant was captured on video surveillance footage near the scene and in footage retrieved from a bar in Philadelphia the evening before, when he was with S.S. and several other men. Pressley was arrested in connection with this crime on September 7, 2018.
The ensuing investigation revealed that Pressley was responsible for other murders in Philadelphia, including the killings of two tow truck drivers who worked for the business A. Bob’s Towing on January 12 and 13, 2017. The defendant agreed to kill a tow truck driver known as K.F. in exchange for money, in order to prevent K.F. from testifying as a witness at an assault trial in Philadelphia. In an effort to distract law enforcement from the true motivation for K.F.’s murder and to make it appear as though it was connected to a feud between rival tow truck companies, Pressley selected at random one of K.F.’s co-workers, a victim known as E.R., and shot him to death as he left work on January 12, 2017, near 4500 Melrose Street. The next day, Pressley approached K.F. as he left his home and entered his tow truck, which was being driven by a co-worker, at which time Pressley opened fire, fatally striking K.F. and injuring his co-worker, who was shot several times in his lower body.
As the investigation developed further, Pressley was also identified as the person who shot a victim known as M.R. to death in Philadelphia on January 11, 2017, near the intersection of East Sharpnack and Baldwin Streets, while M.R. worked on his vehicle at a garage in the area.
During the guilty plea allocution before Judge Robreno earlier today, Pressley admitted that he murdered M.R., E.R., K.F., and S.S., in exchange for money and at the direction of a drug trafficker. Around the time of each crime, Pressley used his cellular phone to communicate with his co-conspirator to plan how and when each murder would be carried out. His use of a cell phone to facilitate each of the killings is a federal offense. Pressley’s conviction by way of his guilty plea carries a mandatory life sentence in prison.
Further, Pressley admitted to shooting a victim known as C.Y. to death on July 19, 2016, as C.Y. sat on the porch of a residence near 1500 West Olney Avenue in Philadelphia. The defendant also admitted to his role in providing the location of a man he knew was wanted dead by a Philadelphia drug trafficker, which later resulted in the death of a victim known as Y.H., who was killed as the result of mistaken identity near the intersection of 56th Street and Ithan Street on July 24, 2018. Finally, Pressley admitted that he attempted to kill a woman when he shot her in the arm as she arrived at her Philadelphia home on North Woodstock Street on July 9, 2018. While the woman survived a gunshot wound, she later discovered that her home had been ransacked and several items were stolen, including money and jewelry. Several hours later, Pressley was identified as having sold a Rolex watch belonging to the woman at a Philadelphia pawn shop.
“By his own admission, Ernest Pressley is an incredibly dangerous individual with no qualms about accepting money to calculatedly and cold-bloodedly murder anyone,” said U.S. Attorney Romero. “With today’s guilty plea and thanks to the dedicated efforts of the investigators on this case, this defendant will now spend the rest of his life behind bars for these heinous crimes.”
“We’ve long known that much of Philadelphia’s violent crime is committed by a discrete group of chronic offenders,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Ernest Pressley is a case in point. Today, he’s admitted to murdering six people and trying to kill a seventh. He’s an obvious menace with zero respect for human life and the city is unequivocally safer with him behind bars. The FBI and Philadelphia Police Department are working in lockstep and bringing all our resources to bear, as we home in on these violent criminals leaving bodies in their wake.”
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.
Clearwater Man Pleads Guilty to Distributing MethamphetamineRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Justin Roberson (34, Clearwater) today pleaded guilty to possession with the intent to distribute methamphetamine. Roberson faces a minimum mandatory penalty of 10 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the facts presented at the change of plea hearing, in 2021, DEA agents in Tampa, partnering with law enforcement officers from the Clearwater Police Department (CPD), initiated an investigation into the distribution of methamphetamine within the Middle District of Florida. Agents received information that Roberson was distributing methamphetamine in Clearwater.
On September 15, 2021, Roberson called a confidential source (CS) working with law enforcement and said that he (Roberson) had “a lot” of methamphetamine and was selling it “by the pound.” Through coded conversation, Roberson and the CS agreed to meet at a business associated with Roberson, on North Meteor Avenue in Clearwater, to complete the purchase of the methamphetamine. During the drug transaction, Roberson sold four individual plastic baggies, each containing a crystallized substance inside. The substance obtained from Roberson was later analyzed by the DEA and found to be approximately 893 grams (1.96 pounds) of methamphetamine hydrochloride, a controlled substance.
On July 8, 2022, agents executed a federal search warrant at the North Meteor Avenue location and located a fully loaded AR-15 rifle, ammunition, a kilogram of cocaine, numerous pills—including more than 579 grams of MDMA, a quantity of marijuana, digital scales, baggies, a currency counter, and cash. On that same date, agents also conducted a consent search of Roberson’s residence and located an AK-47 rifle, additional rifle magazines, a Glock handgun, several AR-15 style rifles, and more cash.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by Drug Enforcement Administration and the Clearwater Police Department. It is being prosecuted by Assistant United States Attorney Craig Gestring.
Charlottesville Woman Sentenced for Bank Fraud, Aggravated Identity TheftRead the Press Release
CHARLOTTESVILLE, Va. – A Charlottesville woman, who altered and forged checks she obtained without the consent of the checks’ owners, was sentenced yesterday to 42 months in federal prison.
Samantha Leigh Thomas, 33, pleaded guilty in February 2022 to one count of bank fraud and one count of aggravated identity theft.
According to court documents, Thomas devised a scheme in which she altered or forged stolen checks and then deposited all of her ill-gotten gains into one of five personal checking accounts maintained at five different financial institutions. The eventual loss suffered by the victims exceeded $25,000. In addition to being required to pay back the money she stole, Thomas will be on supervised release for a period of four years after her release from prison.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Damon E. Wood, Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division made the announcement.
The United States Postal Inspection Service and the Albemarle County Police Department investigated the case.
Assistant U.S. Attorney Ronald M. Huber is prosecuting the case.
Charleston Man Sentenced to Serve 115 Months for Firearm ChargeRead the Press Release
CAPE GIRARDEAU - The United States Attorney's Office announced that Duramus T. Coleman, age 38, of Charleston, was sentenced to serve 115 months in federal prison for the offense of possession of a firearm by a convicted felon. Coleman appeared for his sentencing hearing today before United States District Judge Stephen N. Limbaugh, Jr. at the federal courthouse in Cape Girardeau, Missouri.
According to court documents, on October 22, 2021, a Missouri State Highway Patrol trooper conducted a traffic stop of a Chevrolet Monte Carlo traveling on MO Highway 105 with expired license registration tags. Before coming to a stop, the driver of the Monte Carlo attempted to flee and a vehicle pursuit ensued. The driver eventually left the roadway and drove into the front yard of a residence. While the car was still in motion, the driver exited and fled on foot. A woman was standing nearby and advised the trooper that she saw a man run into her home, and she gave permission for the trooper to enter. The door was locked and the landlord was contacted to bring extra keys.
Once inside, the trooper located the driver of the Monte Carlo hiding in a bedroom of the home. The subject was identified as Duramus Coleman and taken into custody without further incident. The trooper returned to the Monte Carlo and observed a pistol in plain-view inside the car.
Coleman was previously convicted of the felony offense of domestic assault in the second degree in Mississippi County and is therefore prohibited from possessing firearms.This case was investigated by the Missouri State Highway Patrol. Assistant United States Attorney Julie Hunter handled the prosecution for the government.
Champaign Man Sentenced to Eight Years in Federal Prison for Child Enticement CrimeRead the Press Release
URBANA, Ill. – A Champaign, Illinois, man, Ozgur Kurt, 46, of the 2800 block of Alton Drive, was sentenced on September 20, 2022, to 96 months’ imprisonment for one count of attempted enticement of a minor.
According to court documents, Kurt engaged in sexually graphic online conversations with an individual whom he believed to be a fifteen-year-old minor. On September 1, 2020, agents of the Federal Bureau of Investigation arrested Kurt when he arrived at a Champaign restaurant to pick up the minor for a sexual encounter. Senior U.S. District Judge Michael M. Mihm sentenced Kurt to the eight-year term of imprisonment, to be followed by five years of supervised release. Judge Mihm also imposed a $5000 fine.
Kurt was indicted in September 2020 and pleaded guilty in March 2022. Kurt has remained in the custody of the U.S. Marshals Service since his arrest.
The Federal Bureau of Investigation, Springfield Field Office, investigated the case. Assistant U.S. Attorney Eugene L. Miller represented the government at sentencing.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Brooklyn Man Sentenced to 30 Years in Prison for Jihadist-Inspired Attack on New York City Police Department OfficersRead the Press Release
Earlier today, in federal court in Brooklyn, Dzenan Camovic was sentenced by United States District Judge Rachel P. Kovner to 30 years in prison for the robbery of a New York City Police Department (NYPD) officer’s firearm and discharging that firearm at several NYPD officers during the course of the robbery. Camovic, who was inspired by terrorism, is a Bosnian citizen illegally in the United States. He will be deported after completing his sentence. He is also scheduled to be sentenced in state court in Brooklyn today to state charges arising out of the same conduct.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Today’s 30-year sentence, along with Camovic’s removal from the United States, guarantees the community will be protected from his hate-filled ideology and actions,” stated United States Attorney Peace. “We will never stop working to protect the safety of our brave law enforcement officers and community from those who would do them harm.”
Mr. Peace expressed his appreciation to the FBI’s New York Joint Terrorism Task Force for its outstanding work on the case and the Kings County District Attorney’s Office for their assistance.
“As today's sentence demonstrates, those who direct hate-fueled violence at anyone - including the brave men and women of law enforcement - will face stiff consequences in our criminal justice system. Along with our partners on the Joint Terrorism Task Force, we remain steadfast in our determination to protect our city and our Nation from terrorists and their violent extremist ideology,” stated FBI Assistant Director-in-Charge Driscoll.
“An attack against New York City police officers is an attack against our city and way of life – and today’s sentencing of Dzenan Camovic sends a clear message that such violence will never be tolerated,” said Police Commissioner Sewell. “Our NYPD family is thankful our brave officers survived this premeditated ambush. I commend our NYPD investigators, our partners in the FBI’s New York Joint Terrorism Task Force, and the prosecutors in the United States Attorney’s Office in the Eastern District of New York, for their work in this case. Together, we will never stop working to protect our city.”
As set forth in court filings and during the plea and sentencing proceedings, on the evening of June 3, 2020, in the midst of a public health emergency and while New York City was under a nightly curfew order, Camovic attacked several uniformed NYPD officers assigned to post near the intersection of Flatbush and Church Avenues in Brooklyn, New York. At approximately 11:50 p.m., Camovic rounded the corner from Flatbush Avenue onto Church Avenue and stabbed one of the officers (Officer 1) in the neck with a knife. After stabbing Officer 1, Camovic chased the second officer (Officer 2), lunging at him and attempting to stab him. Camovic then ran back to Officer 1, attacked him, forcibly took control of Officer 1’s firearm and fired multiple shots at Officer 2 and other officers who responded to the scene. Responding officers ultimately shot Camovic and took him into custody. Several officers suffered injuries during Camovic’s attack and robbery, including Officer 1, who was stabbed in the neck, and Officer 2, who was shot in the hand and lost a finger as a result. A third officer also sustained a gunshot wound to the hand.
During his attack on the police officers, Camovic repeatedly shouted “Allahu Akbar,” a common Arabic phrase meaning “God is the greatest,” that has been used by perpetrators of jihadist terror attacks during the commission of violent attacks. Prior to the attack, Camovic possessed a significant volume of radical jihadist propaganda.
During the sentencing proceeding, and as stipulated in Camovic’s plea agreement, Judge Kovner found that the terrorism enhancement to the United States Sentencing Guidelines—an enhanced sentence for certain criminal conduct that was calculated to influence or affect the conduct of government by intimidation or coercion—is applicable to his offense.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Craig R. Heeren, Artie McConnell and Josh Hafetz are in charge of the prosecution.
The Defendant:
DZENAN CAMOVIC
Age: 22
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-326 (RPK)
Blackfoot Man Sentenced to 30 Years in Prison for Producing Child PornographyRead the Press Release
POCATELLO – Andrew Ray Young, 35, of Blackfoot was sentenced to 30 years in federal prison for coercing a minor to engage in sexual activity and producing and receiving child pornography, U.S. Attorney Josh Hurwit announced today.
According to court records and evidence presented at trial, the investigation began in December 2020, after an individual reported finding sexually explicit Snapchat messages between a 14-year-old child and Young. A detective with the Bonneville County Sherriff’s Office obtained a search warrant for Young’s home and electronic devices. A search of Young’s phone found that Young was having sexual conversations with the child for over eight months. During that time, he had the child produce numerous sexually explicit images and videos. This included 38 files recovered from Young’s phone. The child testified at trial that the Defendant met her online. Through a process of grooming, he convinced her to produce the images and videos.
Visiting Wyoming Chief U.S. District Judge Scott W. Skavdahl also sentenced Young to 25 years of supervised release, which will commence upon completing his prison sentence. Young will also be required to register as a sex offender. Young was convicted by a federal jury sitting in Pocatello on June 22, 2022.
“Protecting the most vulnerable members of our society, our children, has never been more urgent,” said Hurwit. “I thank our federal and local partners for their teamwork and dedication in this case. We will continue our efforts to ensure the safety of Idaho’s children.”
U.S. Attorney Hurwit commended the cooperative efforts of the Bonneville County Sheriff’s Office, Homeland Security Investigations (HSI), the Rexburg, Idaho Falls, and Blackfoot Police Departments, and the Idaho Internet Crimes Against Children (ICAC) task force, which led to charges.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Armed Career Criminal Sentenced to over 20 Years in Prison for Firearm and Drug Related OffensesRead the Press Release
GAINESVILLE, FLORIDA – William Harrison Quarterman, III, 33, of Gainesville, Florida, was sentenced on September 20, 2022, to 21 years in federal prison after he pled guilty to drug trafficking, possessing a firearm in furtherance of drug trafficking, and possessing a firearm as a convicted felon on May 9, 2022. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
Quarterman will serve concurrent sentences of 16 years for the Possession with Intent to Distribute Eutylone (a Schedule I controlled substance) and Possession of a Firearm by Convicted Felon charges, followed by a consecutive 5 years for the Possession of a Firearm in Furtherance of Drug Trafficking charge. The Court also ordered six years of supervised release following Quarterman’s prison term.
“The collaborative efforts of our partners in the Gainesville Gun Violence Initiative continue to produce impactful results, and we will continue working tirelessly to make North Florida safer,” said U.S. Attorney Coody. “This sentence removes a habitual felon from our community and sends a clear message that there are real and severe consequences for federal firearm offenses.”
On April 15, 2021, deputies from the Alachua County Sheriff’s Office were dispatched in reference to a domestic disturbance after Quarterman’s girlfriend called 911 and then left their shared apartment for fear of her own safety. Responding deputies made contact with the victim near the apartment, and while speaking with her about the incident, were alerted that Quarterman was leaving the area in their shared vehicle. After learning that Quarterman had exchanged vehicles with a relative to avoid arrest, deputies again located him on foot in the Veteran’s Memorial Park. When Quarterman noticed a deputy had spotted him, Quarterman fled from deputies on foot and was eventually apprehended by a K9 deputy after he became entangled in dense vegetation in a wooded area near the park.
Alachua County Sheriff Clovis Watson, Jr. added, “We are more effective when we work together in our efforts to combat gun violence and will continue to make public safety a number one priority for our community.”
“We’re always excited to collaborate with partners like the Alachua County Sheriff’s Office,” said ATF Tampa Division Special Agent in Charge Craig W. Saier. “No one law enforcement agency can combat violent crimes alone, which is why the Gainesville Gun Violence Initiative is so important.”
When deputies took Quarterman into custody, he was wearing a multicolored backpack. A search of that backpack revealed a loaded .22 caliber revolver, almost 50 grams of Eutylone packaged for sale in multiple baggies, marijuana, and parsley that Quarterman had dyed red to attempt to sell as “spice.” Quarterman made statements while on scene that the items in the backpack would send him back to prison. Quarterman is a convicted felon, and he was arrested on numerous state charges stemming from this incident.
The Bureau of Alcohol, Tobacco and Firearms adopted the case for federal prosecution and conducted additional investigation. Quarterman had multiple prior felony convictions, including two convictions for selling cocaine, possessing cocaine, a felony domestic battery conviction, and a host of felony convictions related to an armed home invasion robbery he committed with other codefendants. Quarterman had only been out of prison for less than two years after serving a fourteen-year sentence in the Florida Department of Corrections. Quarterman was determined to qualify as an Armed Career Criminal, which provided for an enhanced sentence, including a fifteen-year minimum mandatory term of imprisonment.
This sentencing resulted from the collaborative work of the Alachua County Sheriff’s Office and the Bureau of Alcohol, Tobacco, and Firearms. The case was prosecuted by Assistant United States Attorney Chris Elsey.
The Gainesville GVI was established by the United States Attorney’s Office for the Northern District of Florida to stem the escalating gun violence in Gainesville and the surrounding area. As GVI partners, the State Attorney’s Office for the Eight Judicial Circuit, the Bureau of Alcohol, Tobacco and Firearms, the Federal Bureau of Investigation, the U.S. Marshals Service, the Florida Department of Law Enforcement, the Gainesville Police Department, the Alachua County Sheriff’s Office, the Alachua Police Department, the University of Florida Police Department, and the Florida Department of Corrections share this commitment to protecting public safety.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Arcadia Man Charged with Securities Fraud for Stealing Client Funds and Concealing His Investment Firm’s Massive Financial LossesRead the Press Release
LOS ANGELES – A former San Gabriel Valley resident who ran Los Angeles County-based investment companies and was a frequent guest on financial television news programs was charged today in a federal criminal complaint alleging he lied to investors.
James Arthur McDonald Jr., 50, formerly of Arcadia and who is believed to be in hiding, is charged with one count of securities fraud, a crime punishable by up to 20 years in federal prison.
According to an affidavit filed with the complaint, McDonald frequently appeared as an analyst on the CNBC financial TV news network and was the CEO and chief investment officer of two companies: Hercules Investments LLC, based in downtown Los Angeles, and Index Strategy Advisors Inc. (ISA), based in Redondo Beach.
In late 2020, McDonald lost tens of millions of dollars of Hercules client money after adopting a risky short position that effectively bet against the health of the United States economy in the aftermath of the U.S. presidential election. McDonald projected that the COVID-19 pandemic and the election would result in major selloffs that would cause the stock market to drop. When the market decline didn’t occur, Hercules clients lost between $30 million and $40 million, according to the affidavit. By December 2020, Hercules clients were complaining to company employees about the losses in their accounts.
Since McDonald’s compensation for his investment advisory services primarily was based on a percentage of assets under his management – typically 2% of a client’s total assets held by Hercules – the massive losses to Hercules clients significantly decreased the fees McDonald was entitled to collect.
In early 2021, McDonald solicited millions of dollars' worth of funds from investors in the form of a purported capital raise for Hercules but misrepresented how the funds would be used and failed to disclose the massive losses Hercules previously sustained. McDonald – an avid football enthusiast – stated that he planned to launch a publicly traded mutual fund under the ticker symbol “NFLHX.” The losses to Hercules clients and the potential for litigation related to those losses jeopardized the success of that fund because any litigation would have had to be publicly disclosed.
As part of the capital raise, McDonald obtained $675,000 in investment funds from one victim group on March 9, 2021. He then misappropriated those funds in various ways, including spending roughly $174,610 of them at a Porsche dealership. Approximately $109,512 was transferred to the landlord of a home McDonald was renting in Arcadia; and approximately $6,800 was spent on a website that sells designer menswear.
McDonald allegedly also falsely represented to clients that ISA, his other firm, was a registered investment adviser, even though he had withdrawn ISA as a state-registered investment adviser firm in May 2019. He also allegedly sent ISA clients false account statements, including for one client who invested approximately $351,000, later needed the money to make a down payment on a home, was informed by McDonald that much of the money had been lost, and never got his full investment back.
The United States Securities and Exchange Commission subpoenaed McDonald to testify before it in November 2021, but – without advance notice – he failed to appear as required. According to the complaint, McDonald also appears to have terminated his previous phone and email accounts and told one person that he planned to “vanish.”
Anyone with information about McDonald’s whereabouts is encouraged to call the FBI’s Los Angeles Field Office at (310) 477-6565.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI and IRS Criminal Investigation investigated this matter. The SEC filed a civil complaint today charging McDonald and Hercules with violations of federal securities law.
Assistant United States Attorneys Carolyn S. Small and Alexander B. Schwab of the Major Frauds Section are prosecuting this case.
Alleged Drug Dealer Charged with Distributing Fentanyl in Civic Center AreaRead the Press Release
SAN FRANCISCO –A federal grand jury indicted Cesia Medina-Zuniga in connection with an alleged scheme to sell narcotics in the Tenderloin District of San Francisco announced U.S. Attorney Stephanie M. Hinds and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Bob P. Beris.
According to documents filed by the government, since 2019, Zuniga, 26, has commuted “regularly and frequently” from her residence in Oakland to San Francisco’s Tenderloin District to sell narcotics. Further, the government alleges that since 2020, Zuniga added fentanyl to the products that she distributed on the streets of the Tenderloin.
According to the government, an undercover officer contacted Zuniga on July 12, 2022, and requested “yellow,” a slang term for fentanyl. Although she demonstrated she was suspicious of the officer, Zuniga allegedly completed a transaction with him in which she provided just over 8 grams of fentanyl in exchange for $80. Following this first transaction, Zuniga sold increasing quantities and varieties of narcotics to the officer, including methamphetamine and a brightly colored fentanyl dubbed “rainbow.” Following three more transactions on July 19, 2022, July 26, 2022, and August 19, 2022 (involving a total of $2,600, 95 grams of fentanyl, and over 100 grams of methamphetamine), the undercover officer sent a text to Zuniga on September 6, 2022, asking how much fentanyl he could buy for $2,000. After Zuniga allegedly replied that she would sell the officer seven ounces of fentanyl for $2,000, the two arranged to meet on September 8, to complete the transaction. On September 8, 2022, Zuniga was observed leaving her residence in Oakland wearing a black backpack. In connection with her arrest, officers retrieved the backpack which was alleged to have contained 351 grams of suspected fentanyl.
The indictment charges Zuniga with one count of possessing with intent to distribute fentanyl, in violation of 21 U.S.C. § 841(a) and (b)(1)(C), and three counts of possession with intent to distribute over 40 grams of fentanyl, in violation of 18 U.S.C. § 841(a)(1)(C) and (b)(1)(B). If convicted of the first count, Zuniga faces a maximum statutory sentence of 20 years in prison. For each of the three counts under section (b)(1)(B), Zuniga faces a mandatory minimum of five years in prison and a maximum of 40 years in prison, if convicted. However, any sentence after a conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Zuniga remains in custody pending further proceedings. The defendant is next scheduled to appear September 27, 2022, before Magistrate Judge Joseph C. Spero, to be arraigned on the charges in the indictment.
The charges contained in the criminal indictment are only allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being prosecuted by Assistant United States Attorney Alethea M. Sargent with assistance from Claudia Hyslop. The prosecution is the result of an investigation by the DEA and SFPD.
Adams County Man Sentenced to 57 Months for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Charles Leofilos, 34, Grand Marsh, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 57 months in federal prison for possessing a firearm as a felon. This prison term will be followed by 3 years of supervised release. Leofilos pleaded guilty to this charge on July 1, 2022.
On March 15, 2021, officers with the La Crosse Police Department stopped a car driven by Leofilos for a traffic violation. A police canine alerted officers to the presence of controlled substances and officers searched the car. Officers found a handgun containing a loaded magazine concealed behind the steering wheel, as well as heroin hidden in a separate compartment below the steering wheel. Leofilos admitted to borrowing the gun as part of plan to confront one of his passengers over a drug dispute, and to taking the heroin as part of the same plan.
Leofilos is prohibited from possessing a firearm as a result of multiple Wisconsin felony convictions, including substantial battery. Following his release from local custody in connection with this case, Leofilos committed his fifth operating while under the influence offense and was sentenced to 24 months in Wisconsin prison. The sentence in this case will begin afterwards.
In sentencing Leofilos, Judge Conley stated the sentence was justified by the danger implicit in Leofilos’ offense, his lengthy criminal history, his unchecked substance abuse, and prior acts of violence. Judge Conley noted it was “easy to imagine” what could have occurred had officers not stopped Leofilos’ car. Judge Conley also stated that Leofilos posed an ongoing danger to himself, those around him, and the community at large.
The charge against Leofilos was a result of an investigation conducted by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
20 September 2022
Yuba City Man Sentenced to More Than 15 Years in Prison for Child ExploitationRead the Press Release
SACRAMENTO — James Dean Miller, 54, of Yuba City, was sentenced today to 15 years and eight months in prison for sexual exploitation of a child, U.S. Attorney Phillip A. Talbert announced.
Miller pleaded guilty to one count in April 2022. According to court records, on March 17, 2018, Miller produced a surreptitious video of a naked child and still images depicting himself engaged in sexually explicit conduct with the child while she slept. Miller subsequently possessed this child sexual abuse material over a period of several months.
Miller was convicted of state charges of unlawful sexual penetration of an unconscious victim in 2018. Upon his release from state custody, Miller was transferred to federal custody for federal prosecution.
This case was the product of an investigation by the Federal Bureau Investigation and the Yuba County Sheriff’s Department. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Undocumented Individual Sentenced for Illegal Return to the United StatesRead the Press Release
LAS VEGAS – An undocumented individual residing in Las Vegas was sentenced on Friday, September 16, by U.S. District Judge James C. Mahan to three years and five months in prison followed by three years of supervised release for illegally returning to the United States after deportation.
According to court documents, Salamon Ruiz-Lopez (48) had previously been deported five times between 2010 – 2011. In June 2017, Ruiz-Lopez was convicted of Attempted Murder in Clark County District Court, and he was sentenced to 48 – 120 months of custody. Following the completion of his state sentence, Ruiz-Lopez came into ICE custody and was indicted by a federal grand jury.
U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.
The investigation was conducted by U.S. Immigration and Customs Enforcement (ICE). Assistant U.S. Attorney Jared Grimmer prosecuted the case.
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U.S. Attorney’s Office Reaches Agreement with Town of Limerick to Improve Voter AccessibilityRead the Press Release
PORTLAND, Maine: The U.S. Attorney’s Office has reached a settlement agreement with the Town of Limerick to resolve allegations that the town excluded a resident with a disability from voting, U.S. Attorney Darcie N. McElwee announced.
The settlement agreement resolves an Americans with Disabilities Act (ADA) complaint filed by a voter with a mobility impairment who alleged that he was unable to vote at Limerick’s annual town meeting. The voter alleged that he was told that the first floor of Limerick Town Hall was full, and he would need to vote on the second floor which he was unable to access.
Under the ADA, state and local governmental entities may not exclude individuals with disabilities from participating in a voting program. State and local government entities must also make reasonable modifications to ensure that voters with disabilities have an equal opportunity to participate in voting programs unless the modifications would fundamentally alter the nature of the voting program.
Under the settlement agreement, Limerick has agreed to make certain modifications to improve accessibility at its town hall for persons with mobility impairments. In addition, the town agreed to adopt a policy for program accessibility to ensure that all services, programs and activities held at the town hall are readily accessible to and usable by persons with mobility impairments.
“It’s noteworthy that this agreement comes today, on National Voter Registration Day,” McElwee said. “The freedom to participate in elections is a fundamental right, and all voters should and must have an equal opportunity to participate in the voting process. The remedial measures agreed to by Limerick will give individuals with disabilities an equal opportunity to participate in town voting, as required by the ADA. I hope that other cities and towns will proactively comply with this important civil rights law.”
The Town of Limerick cooperated with the U.S. Attorney’s Office during its investigation.
Individuals in Maine who believe their civil rights may have been violated may submit their complaints by accessing https://civilrights.justice.gov/. For more information on the ADA, or to access publications available to assist entities in complying with the ADA, visit ada.gov or call the Justice Department’s toll-free ADA information line at 1-800-514-0301 or 1-800-514-0383 (TDD).
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U.S. Attorney General and Ukrainian Prosecutor General Met to Strengthen Joint Efforts to Hold Accountable Perpetrators of War Crimes and Other Atrocities Committed in UkraineRead the Press Release
U.S. Attorney General Merrick B. Garland and Ukrainian Prosecutor General Andriy Kostin met today in Washington to discuss efforts to hold accountable individuals responsible for war crimes and other atrocities in the wake of Russia’s unprovoked and unjust invasion of Ukraine. The leaders outlined areas for enhanced collaboration and signed a memorandum of understanding (MOU) that will facilitate appropriate cooperation, coordination, and deconfliction between each country’s respective investigations and prosecutions.
“The United States stands by the people of Ukraine in their tireless pursuit to uphold the rule of law and seek justice for victims in the face of Russia’s continued aggression,” said U.S. Attorney General Garland. “Today, the Department of Justice and the Prosecutor General’s Office announced our decision to work more closely together to identify, apprehend, and prosecute individuals involved in war crimes and other atrocities in Ukraine. We will be relentless in these efforts to hold perpetrators accountable.”
“The MOU we signed today allows us to step up our common efforts in ensuring accountability for international crimes,” said Ukraine Prosecutor General Kostin. “Through establishing a formal framework of cooperation, we will strengthen effective investigation and prosecution of crimes committed by Russia in Ukraine and provide a measure of justice to victims.”
The U.S.-Ukraine MOU will promote efficiency in investigations and prosecutions by, consistent with national laws, removing barriers to timely and effective exchanges of information and evidence in investigations and prosecutions by the two countries, and increasing the ease with which technical cooperation may be provided.
The MOU builds on prior efforts by the department following the Attorney General’s trip to Ukraine on June 21, 2022. During that trip, Attorney General Garland announced the launch of a War Crimes Accountability Team to centralize and strengthen the Justice Department’s ongoing work to hold accountable those who have committed war crimes and other atrocities in Ukraine in the wake of Russia’s unprovoked invasion. The team brings together the department’s leading experts in investigations involving human rights abuses, war crimes, and other atrocities; and provides wide-ranging technical assistance, including operational assistance and advice regarding criminal prosecutions, evidence collection, forensics, and relevant legal analysis. A central component of the team’s mission is to further on-going investigations of potential war crimes over which the United States possesses jurisdiction, such as the killing and wounding of U.S. journalists covering the unprovoked Russian aggression in Ukraine.
The leaders also discussed the importance of continuing efforts to counter Russian illicit finance and sanctions evasion. In March, Attorney General Garland announced the establishment of Task Force KleptoCapture (TFKC) to further leverage the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. Government in response to Russian military aggression. TFKC, an interagency law enforcement task force run out of the Office of the Deputy Attorney General, is dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Since it was created, the task force has facilitated the seizure and forfeiture of assets, including superyachts and airplanes, of sanctioned individuals with close ties to the Russian regime; dismantled Russian criminal networks; and enforced sanctions violations, among other actions.
For more information on the Justice Department’s commitment to ensuring accountability on behalf of the victims of war crimes, go to: Attorney General Merrick B. Garland Visits Ukraine, Reaffirms U.S. Commitment to Help Identify, Apprehend, and Prosecute Individuals Involved in War Crimes and Atrocities | OPA | Department of Justice
U.S. Attorney Announces Federal Charges Against 47 Defendants in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – The U.S. Attorney’s Office for the District of Minnesota today announced federal criminal charges against 47 defendants for their alleged roles in a $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic.
“These indictments, alleging the largest pandemic relief fraud scheme charged to date, underscore the Department of Justice’s sustained commitment to combating pandemic fraud and holding accountable those who perpetrate it,” said Attorney General Merrick B. Garland. “In partnership with agencies across government, the Justice Department will continue to bring to justice those who have exploited the pandemic for personal gain and stolen from American taxpayers.”
“Today’s indictments describe an egregious plot to steal public funds meant to care for children in need in what amounts to the largest pandemic relief fraud scheme yet,” said FBI Director Christopher Wray. “The defendants went to great lengths to exploit a program designed to feed underserved children in Minnesota amidst the COVID-19 pandemic, fraudulently diverting millions of dollars designated for the program for their own personal gain. These charges send the message that the FBI and our law enforcement partners remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
“This was a brazen scheme of staggering proportions,” said U.S. Attorney Andrew M. Luger. “These defendants exploited a program designed to provide nutritious food to needy children during the COVID-19 pandemic. Instead, they prioritized their own greed, stealing more than a quarter of a billion dollars in federal funds to purchase luxury cars, houses, jewelry, and coastal resort property abroad. I commend the work of the skilled investigators and prosecutors who unraveled the lies, deception, and mountains of false documentation to bring this complex case to light.”
The 47 defendants are charged across six separate indictments and three criminal informations with charges of conspiracy, wire fraud, money laundering, and bribery.
As outlined in the charging documents, the defendants devised and carried out a massive scheme to defraud the Federal Child Nutrition Program. The defendants obtained, misappropriated, and laundered millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. The defendants exploited changes in the program intended to ensure underserved children received adequate nutrition during the COVID-19 pandemic. Rather than feed children, the defendants enriched themselves by fraudulently misappropriating millions of dollars in Federal Child Nutrition Program funds.
The Federal Child Nutrition Program, administered by the U.S. Department of Agriculture (USDA), is a federally-funded program designed to provide free meals to children in need. The USDA’s Food and Nutrition Service administers the program throughout the nation by distributing federal funds to state governments. In Minnesota, the Minnesota Department of Education (MDE) administers and oversees the Federal Child Nutrition Program. Meals funded by the Federal Child Nutrition Program are served by “sites.” Each site participating in the program must be sponsored by an authorized sponsoring organization. Sponsors must submit an application to MDE for each site. Sponsors are also responsible for monitoring each of their sites and preparing reimbursement claims for their sites. The USDA then provides MDE federal reimbursement funds on a per-meal basis. MDE provides those funds to the sponsoring agency who, in turn, pays the reimbursements to the sites under its sponsorship. The sponsoring agency retains 10 to 15 percent of the funds as an administrative fee.
During the COVID-19 pandemic, the USDA waived some of the standard requirements for participation in the Federal Child Nutrition Program. Among other things, the USDA allowed for-profit restaurants to participate in the program, as well as allowed for off-site food distribution to children outside of educational programs.
Aimee Bock was the founder and executive director of Feeding Our Future, a nonprofit organization that was a sponsor participating in the Federal Child Nutrition Program. The indictments charge Bock with overseeing a massive fraud scheme carried out by sites under Feeding Our Future’s sponsorship. Feeding Our Future went from receiving and disbursing approximately $3.4 million in federal funds in 2019 to nearly $200 million in 2021.
As part of the charged scheme, Feeding Our Future employees recruited individuals and entities to open Federal Child Nutrition Program sites throughout the state of Minnesota. These sites, created and operated by the defendants and others, fraudulently claimed to be serving meals to thousands of children a day within just days or weeks of being formed. The defendants created dozens of shell companies to enroll in the program as Federal Child Nutrition Program sites. The defendants also created shell companies to receive and launder the proceeds of their fraudulent scheme.
To carry out the scheme, the defendants also created and submitted false documentation. They submitted fraudulent meal count sheets purporting to document the number of children and meals served at each site. The defendants submitted false invoices purporting to document the purchase of food to be served to children at the sites. The defendants also submitted fake attendance rosters purporting to list the names and ages of the children receiving meals at the sites each day. These rosters were fabricated and created using fake names. For example, one roster was created using names from a website called “www.listofrandomnames.com.” Because the program only reimbursed for meals served to children, other defendants used an Excel formula to insert a random age between 7 and 17 into the age column of the rosters.
Despite knowing the claims were fraudulent, Feeding Our Future submitted the fraudulent claims to MDE and then disbursed the fraudulently obtained Federal Child Nutrition Program funds to the individuals and entities involved in the scheme.
In exchange for sponsoring these sites’ fraudulent participation in the program, Feeding Our Future received more than $18 million in administrative fees to which it was not entitled. In addition to the administrative fees, Feeding Our Future employees solicited and received bribes and kickbacks from individuals and companies sponsored by Feeding Our Future. Many of these kickbacks were paid in cash or disguised as “consulting fees” paid to shell companies created by Feeding Our Future employees to make them appear legitimate.
When MDE attempted to perform necessary oversight regarding the number of sites and amount of claims being submitted, Bock and Feeding Our Future gave false assurances that they were monitoring the sites under its sponsorship and that the sites were serving the meals as claimed. When MDE employees pressed Bock for clarification, Bock accused MDE of discrimination and unfairly scrutinizing Feeding Our Future’s sites. When MDE denied Feeding Our Future site applications, Bock and Feeding Our Future filed a lawsuit accusing MDE of denying the site applications due to discrimination in violation of the Minnesota Human Rights Act.
In total, Feeding Our Future opened more than 250 sites throughout the state of Minnesota and fraudulently obtained and disbursed more than $240 million in Federal Child Nutrition Program funds. The defendants used the proceeds of their fraudulent scheme to purchase luxury vehicles, residential and commercial real estate in Minnesota as well as property in Ohio and Kentucky, real estate in Kenya and Turkey, and to fund international travel.
“Exploiting a government program intended to feed children at the time of a national crisis is the epitome of greed,” said IRS - Criminal Investigation Special Agent in Charge Justin Campbell, Chicago Field Office. “As alleged, the defendants charged in this case chose to enrich themselves at the expense of children. Instead of feeding the future, they chose to steal from the future. IRS – Criminal Investigation is pleased to join our law enforcement partners to hold these defendants accountable.”
United States v. Aimee Marie Bock, et al., 22-CR-223 (NEB/TNL), charges 14 defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In April 2020, Safari Restaurant enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owners of Safari Restaurant and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $32 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and travel.
United States v. Abdiaziz Shafii Farah, et al., 22-CR-124 (NEB/TNL), charges eight defendants with conspiracy, wire fraud, federal programs bribery, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In April 2020, Empire Cuisine and Market LLC enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. The owners of Empire Cuisine and Market LLC and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $40 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, travel, real estate, and property in Kenya.
United States v. Qamar Ahmed Hassan, et al., 22-CR-224 (NEB/TNL), charges eight defendants with conspiracy, wire fraud, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In August 2020, S & S Catering Inc. enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owner of S & S Catering and other co-conspirators opened sites across the Twin Cities and claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $18 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles and real estate.
United States v. Haji Osman Salad, et al., 22-CR-226 (NEB/TNL), charges five defendants with wire fraud, conspiracy to commit money laundering, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. The owner of Haji’s Kitchen LLC and other co-conspirators enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. The co-conspirators opened sites across the state of Minnesota, as well as multiple shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $25 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and travel.
United States v. Liban Yasin Alishire, et al., 22-CR-222 (NEB/TML), charges three defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs, federal programs bribery, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. The owner of Community Enhancement Services Inc. and other co-conspirators opened multiple sites and shell companies in the JigJiga Business Center in Minneapolis. Over the course of the fraud scheme, the defendants claimed to have served hundreds of thousands of meals. Based on their fraudulent claims, the defendants received more than $1.6 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and beach property in Kenya.
United States v. Sharmake Jama, et al., 22-CR-225 (NEB/TNL), charges six defendants with wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. In September 2020, Brava Restaurant & Café LLC, a site located in Rochester, Minnesota, enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owners of Brava Restaurant & Café and other co-conspirators claimed to have served millions of meals from Brava Restaurant & Café and falsely claimed to have a contract with Rochester Public Schools. Based on their fraudulent claims, the defendants received approximately $4.3 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and property on the Mediterranean coast of Turkey.
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The following defendants are named in the United States v. Aimee Marie Bock, et al. indictment:
- Aimee Marie Bock, 41, of Apple Valley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery. Bock was the founder and executive director of Feeding Our Future. Bock oversaw the $240 million fraud scheme carried out by sites under Feeding Our Future’s sponsorship.
- Abdikerm Abdelahi Eidleh, 39, of Burnsville, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Eidleh was an employee of Feeding Our Future who solicited and received bribes and kickbacks from individuals and sites under the sponsorship of Feeding Our Future. Eidleh also created his own fraudulent sites.
- Salim Ahmed Said, 33, of Plymouth, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Said was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
- Abdulkadir Nur Salah, 36, of Columbia Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdulkadir Salah was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Sharif Omar-Hashim, 39, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Omar-Hashim created a company called Olive Management Inc., a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Abdi Nur Salah, 34, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Abdi Salah registered Stigma-Free International, a non-profit entity used to carry out the scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul.
- Abdihakim Ali Ahmed, 36, of Apple Valley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdihakim Ahmed created ASA Limited LLC, a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Mohamed Artan, 37, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, conspiracy to commit money laundering, and money laundering. Artan registered Stigma-Free International, a non-profit entity used to carry out the scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul.
- Abdikadir Ainanshe Mohamud, 30, of Fridley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Mohamud ran the Stigma-Free Willmar site. This site claimed to have served approximately 1.6 million meals and received more than $4 million in fraudulent Federal Child Nutrition Program funds.
- Abdinasir Mahamed Abshir, 30, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdinasir Abshir ran the Stigma-Free Mankato site. This site claimed to have served more than 1.6 million meals and received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Asad Mohamed Abshir, 32, of Mankato, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Asad Abshir ran the Stigma-Free Mankato site. This site claimed to have served more than 1.6 million meals and received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Hamdi Hussein Omar, 26, of St. Paul, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Omar ran the Stigma-Free Waite Park site. This site claimed to have served more than 500,000 meals and received more than $1 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Abdullahi Ghedi, 32, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering. Ghedi created ASA Limited LLC, a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Abdirahman Mohamud Ahmed, 54, of Columbus, Ohio, is charged with conspiracy to commit money laundering and money laundering. Abdirahman Ahmed was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
The following defendants are named in the United States v. Abdiaziz Shafii Farah, et al. indictment:
- Abdiaziz Shafii Farah, 33, of Savage, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, money laundering, and false statements in a passport application. Abdiaziz Farah was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.
- Mohamed Jama Ismail, 49, of Savage, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Ismail was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.
- Mahad Ibrahim, 46, of Lewis Center, Ohio, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Ibrahim was the president and owner of ThinkTechAct Foundation, a Minnesota non-profit organization that also operated under the name Mind Foundry Learning Foundation. ThinkTechAct and Mind Foundry created dozens of sites throughout Minnesota, including in Minneapolis, St. Paul, Bloomington, Burnsville, Faribault, Owatonna, Shakopee, Circle Pines, and Willmar. ThinkTechAct received more than $18 million in fraudulent Federal Child Nutrition Program funds.
- Abdimajid Mohamed Nur, 21, of Shakopee, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Abdimajid Nur created Nur Consulting LLC to receive and launder Federal Child Nutrition Program funds from Empire Cuisine and Market, ThinkTechAct, and other entities involved in the scheme.
- Said Shafii Farah, 40, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Said Farah, the brother of Abdiaziz Farah, was an owner of Bushra Wholesalers LLC, a shell company used to launder fraudulent Federal Child Nutrition Program funds.
- Abdiwahab Maalim Aftin, 32, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, conspiracy to commit money laundering, and money laundering. Aftin was an owner of Bushra Wholesalers LLC, a shell company used to launder fraudulent Federal Child Nutrition Program funds.
- Mukhtar Mohamed Shariff, 31, of Bloomington, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Shariff was the chief executive officer of Afrique Hospitality Group, a shell company used to fraudulent obtain and launder Federal Child Nutrition Program funds.
- Hayat Mohamed Nur, 25, of Eden Prairie, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Hayat Nur, the sister of Abdimajid Nur, participated in the scheme by creating and submitting fraudulent meal count sheets, attendance rosters, and invoices.
The following defendants are named in the United States v. Qamar Ahmed Hassan, et al. indictment:
- Qamar Ahmed Hassan, 53, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, money laundering, conspiracy to commit money laundering, and money laundering. Hassan was the owner and operator of S & S Catering Inc., a for-profit restaurant and catering business that participated in the scheme as a distribution site and as a vendor for other sites. S & S Catering received more than $18 million in fraudulent Federal Child Nutrition Program funds.
- Sahra Mohamed Nur, 61, of Saint Anthony, Minnesota, is charged with conspiracy to wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Nur ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Abdiwahab Ahmed Mohamud, 32, of Brooklyn Park, Minnesota is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Mohamud ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Filsan Mumin Hassan, 28, of Brooklyn Park, Minnesota is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Hassan ran a site called Youth Higher Educational Achievement that falsely claimed to serve up to 4,300 meals a day.
- Guhaad Hashi Said, 46, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Hashi ran a site under the name Advance Youth Athletic Development that falsely claimed to serve up to 5,000 meals a day.
- Abdullahe Nur Jesow, 62, of Columbia Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Jesow ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Abdul Abubakar Ali, 40, of St. Paul, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Abdul Ali ran a site called Youth Inventors Lab that falsely claimed to have served a total of approximately 1.5 million meals in a seven-month period.
- Yusuf Bashir Ali, 40, of Vadnais Heights, Minnesota is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Yusuf Ali ran a site called Youth Inventors Lab that falsely claimed to have served a total of approximately 1.5 million meals in a seven-month period.
The following defendants are named in the United States v. Haji Osman Salad, et al. indictment:
- Haji Osman Salad, 32, of St. Anthony, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Salad was the principal of Haji’s Kitchen and received approximately $11.6 million in fraudulent Federal Child Nutrition Program funds.
- Fahad Nur, 38, of Minneapolis, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Nur was the principal of The Produce LLC, a vendor and purported food supplier who received more than $5 million in fraudulent Federal Child Nutrition Program funds.
- Anab Artan Awad, 52, of Plymouth, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Awad was the president of Multiple Community Services, MCA. Awad claimed more than $11 million in fraudulent Federal Child Nutrition Program funds.
- Sharmarke Issa, 40, of Edina, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Issa created a company called Minnesota’s Somali Community and was the manager of Wacan Restaurant LLC. Issa fraudulently caused MDE to pay out more than $7.4 million in Federal Child Nutrition Program funds.
- Farhiya Mohamud, 63, of Bloomington, Minnesota, is charged with conspiracy to commit money laundering, and money laundering. Mohamud was the principal and CEO of Dua Supplies and Distribution Inc., a shell company that laundered millions of dollars of fraudulently obtained Federal Child Nutrition Program funds.
The following defendants are named in the United States v. Liban Yasin Alishire, et al. indictment:
- Liban Yasin Alishire, 42, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, and money laundering. Alishire was the president and owner of Community Enhancement Services, Inc., a company located in the JigJiga Business Center in Minneapolis. Community Enhancement Services was a cultural mall owned and operated by Alishire and co-defendant Khadar Jigre Adan. Community Enhancement Services received more than $1.6 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Yasin Ali, 57, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Ali created a second program site, run by Lake Street Kitchen, and located in the JigJiga Business Center in Minneapolis.
- Khadar Jigre Adan, 59, of Lakeville, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Adan was the CEO of Lake Street Kitchen, which was a program site located in the JigJiga Business Center in Minneapolis.
The following defendants are named in the United States v. Sharmake Jama, et al. indictment:
- Sharmake Jama, 34, of Rochester, Minnesota, is charged with wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering. Sharmake Jama was a principal of Brava Restaurant and Café LLC. Brava Restaurant received approximately $4.3 million in fraudulent Federal Child Nutrition Program funds.
- Ayan Jama, 43, of Rochester, Minnesota is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Ayan Jama was a principal of Brava Restaurant and Café LLC. Ayan Jama also created shell companies to launder fraudulent proceeds.
- Asha Jama, 39, of Lakeville, Minnesota is charged with conspiracy to commit money laundering and money laundering. Asha Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Fartun Jama, 35, of Rosemount, Minnesota is charged with conspiracy to commit money laundering and money laundering. Fartun Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Mustafa Jama, 45, of Rochester, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Mustafa Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Zamzam Jama, 48, of Rochester, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Zamzam Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
Criminal informations:
- Bekam Addissu Merdassa, 39, of Inver Grove Heights, Minnesota, is charged with one count of conspiracy to commit wire fraud.
- Hadith Yusuf Ahmed, 34, of Eden Prairie, Minnesota, is charged with one count of conspiracy to commit wire fraud.
- Hanna Marekegn, 40, of Edina, Minnesota, is charged with one count of conspiracy to commit wire fraud.
United States Attorney Andrew Luger thanks the FBI, IRS – Criminal Investigations, the U.S. Department of State’s Diplomatic Security Service, and the U.S. Postal Inspection Service for their collaboration and skilled investigative work in bringing these indictments.
Assistant U.S. Attorneys for the District of Minnesota Joseph H. Thompson, Harry M. Jacobs, Chelsea A. Walcker, Matthew S. Ebert, and Joseph S. Teirab are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Announces Federal Charges Against 47 Defendants in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
The Department of Justice announced today federal criminal charges against 47 defendants for their alleged roles in a $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic.
“These indictments, alleging the largest pandemic relief fraud scheme charged to date, underscore the Department of Justice’s sustained commitment to combating pandemic fraud and holding accountable those who perpetrate it,” said Attorney General Merrick B. Garland. “In partnership with agencies across government, the Justice Department will continue to bring to justice those who have exploited the pandemic for personal gain and stolen from American taxpayers.”
“Today’s indictments describe an egregious plot to steal public funds meant to care for children in need in what amounts to the largest pandemic relief fraud scheme yet,” said FBI Director Christopher Wray. “The defendants went to great lengths to exploit a program designed to feed underserved children in Minnesota amidst the COVID-19 pandemic, fraudulently diverting millions of dollars designated for the program for their own personal gain. These charges send the message that the FBI and our law enforcement partners remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
“This was a brazen scheme of staggering proportions,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “These defendants exploited a program designed to provide nutritious food to needy children during the COVID-19 pandemic. Instead, they prioritized their own greed, stealing more than a quarter of a billion dollars in federal funds to purchase luxury cars, houses, jewelry, and coastal resort property abroad. I commend the work of the skilled investigators and prosecutors who unraveled the lies, deception, and mountains of false documentation to bring this complex case to light.”
The 47 defendants are charged across six separate indictments and three criminal informations with charges of conspiracy, wire fraud, money laundering, and bribery.
As outlined in the charging documents, the defendants devised and carried out a massive scheme to defraud the Federal Child Nutrition Program. The defendants obtained, misappropriated, and laundered millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. The defendants exploited changes in the program intended to ensure underserved children received adequate nutrition during the COVID-19 pandemic. Rather than feed children, the defendants enriched themselves by fraudulently misappropriating millions of dollars in Federal Child Nutrition Program funds.
The Federal Child Nutrition Program, administered by the U.S. Department of Agriculture (USDA), is a federally-funded program designed to provide free meals to children in need. The USDA’s Food and Nutrition Service administers the program throughout the nation by distributing federal funds to state governments. In Minnesota, the Minnesota Department of Education (MDE) administers and oversees the Federal Child Nutrition Program. Meals funded by the Federal Child Nutrition Program are served by “sites.” Each site participating in the program must be sponsored by an authorized sponsoring organization. Sponsors must submit an application to MDE for each site. Sponsors are also responsible for monitoring each of their sites and preparing reimbursement claims for their sites. The USDA then provides MDE federal reimbursement funds on a per-meal basis. MDE provides those funds to the sponsoring agency who, in turn, pays the reimbursements to the sites under its sponsorship. The sponsoring agency retains 10 to 15 percent of the funds as an administrative fee.
During the COVID-19 pandemic, the USDA waived some of the standard requirements for participation in the Federal Child Nutrition Program. Among other things, the USDA allowed for-profit restaurants to participate in the program, as well as allowed for off-site food distribution to children outside of educational programs.
Aimee Bock was the founder and executive director of Feeding Our Future, a nonprofit organization that was a sponsor participating in the Federal Child Nutrition Program. The indictments charge Bock with overseeing a massive fraud scheme carried out by sites under Feeding Our Future’s sponsorship. Feeding Our Future went from receiving and disbursing approximately $3.4 million in federal funds in 2019 to nearly $200 million in 2021.
As part of the charged scheme, Feeding Our Future employees recruited individuals and entities to open Federal Child Nutrition Program sites throughout the state of Minnesota. These sites, created and operated by the defendants and others, fraudulently claimed to be serving meals to thousands of children a day within just days or weeks of being formed. The defendants created dozens of shell companies to enroll in the program as Federal Child Nutrition Program sites. The defendants also created shell companies to receive and launder the proceeds of their fraudulent scheme.
To carry out the scheme, the defendants also created and submitted false documentation. They submitted fraudulent meal count sheets purporting to document the number of children and meals served at each site. The defendants submitted false invoices purporting to document the purchase of food to be served to children at the sites. The defendants also submitted fake attendance rosters purporting to list the names and ages of the children receiving meals at the sites each day. These rosters were fabricated and created using fake names. For example, one roster was created using names from a website called “www.listofrandomnames.com.” Because the program only reimbursed for meals served to children, other defendants used an Excel formula to insert a random age between seven and 17 into the age column of the rosters.
Despite knowing the claims were fraudulent, Feeding Our Future submitted the fraudulent claims to MDE and then disbursed the fraudulently obtained Federal Child Nutrition Program funds to the individuals and entities involved in the scheme.
In exchange for sponsoring these sites’ fraudulent participation in the program, Feeding Our Future received more than $18 million in administrative fees to which it was not entitled. In addition to the administrative fees, Feeding Our Future employees solicited and received bribes and kickbacks from individuals and companies sponsored by Feeding Our Future. Many of these kickbacks were paid in cash or disguised as “consulting fees” paid to shell companies created by Feeding Our Future employees to make them appear legitimate.
When MDE attempted to perform necessary oversight regarding the number of sites and amount of claims being submitted, Bock and Feeding Our Future gave false assurances that they were monitoring the sites under its sponsorship and that the sites were serving the meals as claimed. When MDE employees pressed Bock for clarification, Bock accused MDE of discrimination and unfairly scrutinizing Feeding Our Future’s sites. When MDE denied Feeding Our Future site applications, Bock and Feeding Our Future filed a lawsuit accusing MDE of denying the site applications due to discrimination in violation of the Minnesota Human Rights Act.
In total, Feeding Our Future opened more than 250 sites throughout the state of Minnesota and fraudulently obtained and disbursed more than $240 million in Federal Child Nutrition Program funds. The defendants used the proceeds of their fraudulent scheme to purchase luxury vehicles, residential and commercial real estate in Minnesota as well as property in Ohio and Kentucky, real estate in Kenya and Turkey, and to fund international travel.
“Exploiting a government program intended to feed children at the time of a national crisis is the epitome of greed,” said Special Agent in Charge Justin Campbell of the IRS Criminal Investigation, Chicago Field Office. “As alleged, the defendants charged in this case chose to enrich themselves at the expense of children. Instead of feeding the future, they chose to steal from the future. IRS – Criminal Investigation is pleased to join our law enforcement partners to hold these defendants accountable.”
United States v. Aimee Marie Bock, et al., 22-CR-223 (NEB/TNL), charges 14 defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In April 2020, Safari Restaurant enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owners of Safari Restaurant and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $32 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and travel.
United States v. Abdiaziz Shafii Farah, et al., 22-CR-124 (NEB/TNL), charges eight defendants with conspiracy, wire fraud, federal programs bribery, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In April 2020, Empire Cuisine and Market LLC enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. The owners of Empire Cuisine and Market LLC and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $40 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, travel, real estate, and property in Kenya.
United States v. Qamar Ahmed Hassan, et al., 22-CR-224 (NEB/TNL), charges eight defendants with conspiracy, wire fraud, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In August 2020, S & S Catering Inc. enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owner of S & S Catering and other co-conspirators opened sites across the Twin Cities and claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $18 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles and real estate.
United States v. Haji Osman Salad, et al., 22-CR-226 (NEB/TNL), charges five defendants with wire fraud, conspiracy to commit money laundering, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. The owner of Haji’s Kitchen LLC and other co-conspirators enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. The co-conspirators opened sites across the state of Minnesota, as well as multiple shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $25 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and travel.
United States v. Liban Yasin Alishire, et al., 22-CR-222 (NEB/TML), charges three defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs, federal programs bribery, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. The owner of Community Enhancement Services Inc. and other co-conspirators opened multiple sites and shell companies in the JigJiga Business Center in Minneapolis. Over the course of the fraud scheme, the defendants claimed to have served hundreds of thousands of meals. Based on their fraudulent claims, the defendants received more than $1.6 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and beach property in Kenya.
United States v. Sharmake Jama, et al., 22-CR-225 (NEB/TNL), charges six defendants with wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. In September 2020, Brava Restaurant & Café LLC, a site located in Rochester, Minnesota, enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owners of Brava Restaurant & Café and other co-conspirators claimed to have served millions of meals from Brava Restaurant & Café and falsely claimed to have a contract with Rochester Public Schools. Based on their fraudulent claims, the defendants received approximately $4.3 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and property on the Mediterranean coast of Turkey.
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The following defendants are named in the United States v. Aimee Marie Bock, et al. indictment:
- Aimee Marie Bock, 41, of Apple Valley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery. Bock was the founder and executive director of Feeding Our Future. Bock oversaw the $240 million fraud scheme carried out by sites under Feeding Our Future’s sponsorship.
- Abdikerm Abdelahi Eidleh, 39, of Burnsville, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Eidleh was an employee of Feeding Our Future who solicited and received bribes and kickbacks from individuals and sites under the sponsorship of Feeding Our Future. Eidleh also created his own fraudulent sites.
- Salim Ahmed Said, 33, of Plymouth, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Said was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
- Abdulkadir Nur Salah, 36, of Columbia Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdulkadir Salah was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Sharif Omar-Hashim, 39, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Omar-Hashim created a company called Olive Management Inc., a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Abdi Nur Salah, 34, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Abdi Salah registered Stigma-Free International, a non-profit entity used to carry out the scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul.
- Abdihakim Ali Ahmed, 36, of Apple Valley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdihakim Ahmed created ASA Limited LLC, a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Mohamed Artan, 37, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, conspiracy to commit money laundering, and money laundering. Artan registered Stigma-Free International, a non-profit entity used to carry out the scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul.
- Abdikadir Ainanshe Mohamud, 30, of Fridley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Mohamud ran the Stigma-Free Willmar site. This site claimed to have served approximately 1.6 million meals and received more than $4 million in fraudulent Federal Child Nutrition Program funds.
- Abdinasir Mahamed Abshir, 30, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdinasir Abshir ran the Stigma-Free Mankato site. This site claimed to have served more than 1.6 million meals and received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Asad Mohamed Abshir, 32, of Mankato, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Asad Abshir ran the Stigma-Free Mankato site. This site claimed to have served more than 1.6 million meals and received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Hamdi Hussein Omar, 26, of St. Paul, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Omar ran the Stigma-Free Waite Park site. This site claimed to have served more than 500,000 meals and received more than $1 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Abdullahi Ghedi, 32, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering. Ghedi created ASA Limited LLC, a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Abdirahman Mohamud Ahmed, 54, of Columbus, Ohio, is charged with conspiracy to commit money laundering and money laundering. Abdirahman Ahmed was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
The following defendants are named in the United States v. Abdiaziz Shafii Farah, et al. indictment:
- Abdiaziz Shafii Farah, 33, of Savage, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, money laundering, and false statements in a passport application. Abdiaziz Farah was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.
- Mohamed Jama Ismail, 49, of Savage, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Ismail was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.
- Mahad Ibrahim, 46, of Lewis Center, Ohio, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Ibrahim was the president and owner of ThinkTechAct Foundation, a Minnesota non-profit organization that also operated under the name Mind Foundry Learning Foundation. ThinkTechAct and Mind Foundry created dozens of sites throughout Minnesota, including in Minneapolis, St. Paul, Bloomington, Burnsville, Faribault, Owatonna, Shakopee, Circle Pines, and Willmar. ThinkTechAct received more than $18 million in fraudulent Federal Child Nutrition Program funds.
- Abdimajid Mohamed Nur, 21, of Shakopee, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Abdimajid Nur created Nur Consulting LLC to receive and launder Federal Child Nutrition Program funds from Empire Cuisine and Market, ThinkTechAct, and other entities involved in the scheme.
- Said Shafii Farah, 40, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Said Farah, the brother of Abdiaziz Farah, was an owner of Bushra Wholesalers LLC, a shell company used to launder fraudulent Federal Child Nutrition Program funds.
- Abdiwahab Maalim Aftin, 32, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, conspiracy to commit money laundering, and money laundering. Aftin was an owner of Bushra Wholesalers LLC, a shell company used to launder fraudulent Federal Child Nutrition Program funds.
- Mukhtar Mohamed Shariff, 31, of Bloomington, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Shariff was the chief executive officer of Afrique Hospitality Group, a shell company used to fraudulent obtain and launder Federal Child Nutrition Program funds.
- Hayat Mohamed Nur, 25, of Eden Prairie, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Hayat Nur, the sister of Abdimajid Nur, participated in the scheme by creating and submitting fraudulent meal count sheets, attendance rosters, and invoices.
The following defendants are named in the United States v. Qamar Ahmed Hassan, et al. indictment:
- Qamar Ahmed Hassan, 53, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, money laundering, conspiracy to commit money laundering, and money laundering. Hassan was the owner and operator of S & S Catering Inc., a for-profit restaurant and catering business that participated in the scheme as a distribution site and as a vendor for other sites. S & S Catering received more than $18 million in fraudulent Federal Child Nutrition Program funds.
- Sahra Mohamed Nur, 61, of Saint Anthony, Minnesota, is charged with conspiracy to wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Nur ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Abdiwahab Ahmed Mohamud, 32, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Mohamud ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Filsan Mumin Hassan, 28, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Hassan ran a site called Youth Higher Educational Achievement that falsely claimed to serve up to 4,300 meals a day.
- Guhaad Hashi Said, 46, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Hashi ran a site under the name Advance Youth Athletic Development that falsely claimed to serve up to 5,000 meals a day.
- Abdullahe Nur Jesow, 62, of Columbia Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Jesow ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Abdul Abubakar Ali, 40, of St. Paul, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Abdul Ali ran a site called Youth Inventors Lab that falsely claimed to have served a total of approximately 1.5 million meals in a seven-month period.
- Yusuf Bashir Ali, 40, of Vadnais Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Yusuf Ali ran a site called Youth Inventors Lab that falsely claimed to have served a total of approximately 1.5 million meals in a seven-month period.
The following defendants are named in the United States v. Haji Osman Salad, et al. indictment:
- Haji Osman Salad, 32, of St. Anthony, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Salad was the principal of Haji’s Kitchen and received approximately $11.6 million in fraudulent Federal Child Nutrition Program funds.
- Fahad Nur, 38, of Minneapolis, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Nur was the principal of The Produce LLC, a vendor and purported food supplier who received more than $5 million in fraudulent Federal Child Nutrition Program funds.
- Anab Artan Awad, 52, of Plymouth, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Awad was the president of Multiple Community Services, MCA. Awad claimed more than $11 million in fraudulent Federal Child Nutrition Program funds.
- Sharmarke Issa, 40, of Edina, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Issa created a company called Minnesota’s Somali Community and was the manager of Wacan Restaurant LLC. Issa fraudulently caused MDE to pay out more than $7.4 million in Federal Child Nutrition Program funds.
- Farhiya Mohamud, 63, of Bloomington, Minnesota, is charged with conspiracy to commit money laundering, and money laundering. Mohamud was the principal and CEO of Dua Supplies and Distribution Inc., a shell company that laundered millions of dollars of fraudulently obtained Federal Child Nutrition Program funds.
The following defendants are named in the United States v. Liban Yasin Alishire, et al. indictment:
- Liban Yasin Alishire, 42, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, and money laundering. Alishire was the president and owner of Community Enhancement Services Inc., a company located in the JigJiga Business Center in Minneapolis. Community Enhancement Services was a cultural mall owned and operated by Alishire and co-defendant Khadar Jigre Adan. Community Enhancement Services received more than $1.6 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Yasin Ali, 57, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Ali created a second program site, run by Lake Street Kitchen, and located in the JigJiga Business Center in Minneapolis.
- Khadar Jigre Adan, 59, of Lakeville, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Adan was the CEO of Lake Street Kitchen, which was a program site located in the JigJiga Business Center in Minneapolis.
The following defendants are named in the United States v. Sharmake Jama, et al. indictment:
- Sharmake Jama, 34, of Rochester, Minnesota, is charged with wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering. Sharmake Jama was a principal of Brava Restaurant and Café LLC. Brava Restaurant received approximately $4.3 million in fraudulent Federal Child Nutrition Program funds.
- Ayan Jama, 43, of Rochester, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Ayan Jama was a principal of Brava Restaurant and Café LLC. Ayan Jama also created shell companies to launder fraudulent proceeds.
- Asha Jama, 39, of Lakeville, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Asha Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Fartun Jama, 35, of Rosemount, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Fartun Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Mustafa Jama, 45, of Rochester, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Mustafa Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Zamzam Jama, 48, of Rochester, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Zamzam Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
Criminal informations:
- Bekam Addissu Merdassa, 39, of Inver Grove Heights, Minnesota, is charged with one count of conspiracy to commit wire fraud.
- Hadith Yusuf Ahmed, 34, of Eden Prairie, Minnesota, is charged with one count of conspiracy to commit wire fraud.
- Hanna Marekegn, 40, of Edina, Minnesota, is charged with one count of conspiracy to commit wire fraud.
United States Attorney Andrew Luger thanked the FBI, IRS Criminal Investigation, and the U.S. Postal Inspection Service for their collaboration and skilled investigative work in bringing these indictments.
Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Chelsea A. Walcker, Matthew S. Ebert, and Joseph S. Teirab for the District of Minnesota are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two New York City Correction Officers Plead Guilty to Accepting Bribes in Exchange for Smuggling Contraband into Rikers Island for Gang MembersRead the Press Release
Earlier today, in federal court in Brooklyn, New York City correction officer Krystle Burrell pleaded guilty to bribery, admitting that she accepted nearly $10,000 in bribe payments in exchange for smuggling contraband into Rikers Island. On August 16, 2022, New York City correction officer Katrina Patterson pleaded guilty to bribery, admitting that she accepted more than $34,000 in bribe payments in exchange for smuggling contraband into Rikers Island. Burrell and Patterson are employed by the New York City Department of Corrections (DOC). Burrell’s proceeding was held before United States District Judge Kiyo A. Matsumoto, and Patterson’s proceeding was held before United States District Judge Carol Bagley Amon.
Breon Peace, United States Attorney for the Eastern District of New York, Ricky J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.
“The defendants threw in their lot with Bloods gang members and betrayed their sworn duty to maintain the safety of incarcerated individuals and other correction officers at Rikers Island by smuggling cell phones and drugs into the jail,” stated United States Attorney Peace. “This Office and our law enforcement partners are committed to rooting out corruption at Rikers Island.”
DOI Commissioner Jocelyn E. Strauber said, "These two Correction Officers took bribes in return for smuggling contraband to inmates, crimes that risked the safety and security of the jails and willfully circumvented Correction Department regulations. These violations of their duty carry serious consequences, including termination from their City employment. DOI and our law enforcement partners will continue to target contraband smuggling and other misconduct that destabilizes the City’s jails.”
“When correction officers betray their oath to serve and protect, the public is put at risk and the entire law enforcement community is tarnished,” stated NYPD Commissioner Sewell. “We have zero tolerance for such misconduct. With today’s guilty plea, Ms. Burrell joins Ms. Patterson in publicly acknowledging that their actions were immoral, unethical, and without integrity – diametrically opposed to the core requirements of our profession. I commend all of our partners for their dedication to uncovering and eradicating corruption in all of its forms.”
“These officers were tempted by greed to betray their duty. By taking bribes to smuggle prohibited contraband to incarcerated known gang members, they violated the oath they swore and became criminals themselves,” said HSI New York Acting Special Agent in Charge Patel. “HSI is committed to making our communities safer by disrupting gang activity wherever it occurs, whether on the streets or in prisons.”
According to court documents and facts presented at the guilty plea proceedings, Patterson accepted at least $34,090 in bribes from co-conspirators on behalf of co-defendant Michael Ross in exchange for Patterson smuggling contraband into the Robert N. Davoren Center on Rikers Island for Ross. Ross, who was incarcerated on unrelated offenses, arranged for the bribes to be sent to Patterson. DOC personnel subsequently located narcotics and cell phones in Ross’s cell. Law enforcement also recovered Patterson’s text messages, including messages where a co-conspirator told Patterson that some of the contraband would be “4 black joints in 1 paper,” and Patterson responded, “it better be wrapped so many times I don’t want to smell it.”
Burrell accepted bribes in exchange for smuggling contraband into the Anna M. Kross Center on Rikers Island for co-defendant Terrae Hinds, facilitating Hinds’ contraband smuggling business and permitting Hinds and others to violate DOC regulations. Hinds, who was incarcerated on unrelated offenses, arranged for approximately $9,780 in bribe payments to be sent to Burrell. In exchange, Burrell smuggled at least two unauthorized cell phones to Hinds, and also facilitated Hinds’ sale of narcotics and other contraband items at the Anna M. Kross Center.
When sentenced, Burrell faces up to 10 years’ imprisonment and Patterson faces up to five years’ imprisonment. Ross, who is a Bloods gang member, has also pleaded guilty to a bribery offense and is awaiting sentencing. Charges against Hinds remain pending.
The government’s case is being handled by the Office’s Public Integrity Section. The government’s case is being prosecuted by Assistant United States Attorney Philip Pilmar.
The Defendants:
KATRINA PATTERSON
Age: 31
Jamaica, New YorkE.D.N.Y. Docket No. 22-CR-196 (CBA)
KRYSTLE BURRELL
Age: 35
Lawrence, New YorkE.D.N.Y. Docket No. 22-CR-195 (KAM)
Two Men Sentenced to Federal Prison for Illegally Possessing Firearms in RockfordRead the Press Release
ROCKFORD — Two men have been sentenced to federal prison terms for illegally possessing firearms in Rockford.
U.S. District Judge Iain D. Johnston on Friday sentenced RAHIME BRIGGS, 25, of Rockford, to six years and ten months, and, in a separate case, sentenced D’LEON JOHNSON, 25, of Rockford, to four years and two months.
Briggs and Johnson pleaded guilty earlier this year to charges of illegal firearm possession. As previously convicted felons, they were prohibited by federal law from possessing firearms.
Briggs admitted in a plea agreement that he illegally possessed a handgun and rifle on Feb. 1, 2021, in Rockford. Johnson admitted in a plea agreement that he illegally possessed two handguns and a drum-style magazine loaded with ammunition on March 15, 2021, in Rockford.
The sentences were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Office of the ATF; and Carla Redd, Chief of the Rockford Police Department. The government was represented by Assistant U.S. Attorney Robert Ladd.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Tucson Man Indicted for Migrant Smuggling and Threatening to Murder a Border Patrol AgentRead the Press Release
TUCSON, Ariz. – On September 8, 2022, a federal grand jury in Tucson returned a six-count indictment against Jesus Alberto Ibarra-Barraza, 31, of Tucson, Arizona, for Conspiracy to Transport Illegal Aliens for Profit, four counts of Transportation of an Illegal Alien for Profit, and one count of Threats to Murder an Employee of the United States.
The indictment alleges that on March 16, 2022, Ibarra-Barraza attempted to transport four undocumented noncitizens in his vehicle. After encountering law enforcement, Ibarra-Barraza stopped his vehicle, allowed the passengers to exit, then fled at a high rate of speed. Shortly after, he crashed his vehicle, resulting in serious bodily injury to himself. While at the hospital, Ibarra-Barraza verbally confronted a United States Border Patrol agent and threatened to kill the agent upon his release from the hospital.
Each charge in the indictment carries a maximum penalty of 10 years in federal prison and a fine of up to $250,000, or both.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Customs and Border Protection’s U.S. Border Patrol conducted the investigation in this case. Assistant U.S. Attorney Nathaniel Walters, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-22-01958-SHR-MSA
RELEASE NUMBER: 2022-157_Ibarra-Barrazaa
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Airline Employees Based at PHL International Airport Indicted for Reservation Skimming Fraud SchemeRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Taylor Thompson, 27; Tiana Fairfax, 29, both of Philadelphia, PA, and Theodore Robinson, 29, of Upper Darby, PA, were arrested and charged by Indictment with seven counts of wire fraud in connection with their scheme to defraud their employer, a national airline carrier, out of ticket fare revenue by recruiting customers to book inexpensive flights which they didn’t intend to use, upgrading those customers to more expensive flights which the customers actually wanted by using supervisors’ computer access codes, and then charging the customers a ‘commission’ and pocketing that money rather than charging the customer the full price of the upgraded flight.
The Indictment alleges that in 2017 and 2018, defendant Thompson was an employee in a supervisory role with a major U.S. airline headquartered in Florida, and defendants Fairfax and Robinson worked as customer service agents with the same airline. In those jobs, the defendants had access to the airline’s computerized reservation system and were able to book flight reservations; supervisors like Thompson had the ability to use a special code at their discretion to make changes in the reservation system without charging customers the additional costs associated with modified reservations. In general, if a passenger changed their itinerary, airline policy required that the passenger pay the full price of the modified itinerary, which was often more expensive than the itinerary that the passenger originally booked. Although supervisors had the ability to modify a reservation without assessing those charges, under Airline policy, those charges were only to be waived under extenuating circumstances, such as a death in the passenger's family.
In March 2018, Thompson allegedly approached another employee and co-schemer about participating in a scheme to skim money from airline fares, and asked that employee for access to their Cash App account in order to receive payments directly from customers. Thompson made money from the scheme by charging customers for whom she booked and modified a flight reservation more for the flight than the price of the original itinerary (that is, the amount that was paid to the airline), but less than the true cost of the new, modified itinerary. The defendant retained the additional amount paid to her by the customer as a commission for her services. Defendants Fairfax and Robinson allegedly joined the scheme by modifying flight reservations for customers without charging them the difference in cost by utilizing Thompson’s supervisory airline credentials. In 2018, when Thompson was terminated by the airline, a second co-schemer was approached to join the scheme in order to utilize their supervisory credentials in order to modify flight reservations.
According to the Indictment, between December 2017 and August 2018, all three defendants along with the two co-schemers modified more than 1,700 flight reservations without compensating the airline for the increased cost of those modified reservations, for a total loss to the airline of more than $283,000.
“As alleged, these defendants used access and privileges granted by virtue of their employment to cheat the airline reservation system and skim money off the top for themselves,” said U.S. Attorney Romero. “We will continue to work with our law enforcement partners to investigate and prosecute fraud schemes wherever they occur.”
“Supplementing your paycheck by scamming your employer is a criminally bad career move,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Fraud is never the ticket to lasting financial gain, as these defendants have now discovered. Instead, it’s landed them in court to answer for their alleged actions. The FBI stands ready to investigate financial crimes wherever they may occur.”
The case was investigated by Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Jessica Rice.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
St. Louis Man Sentenced to Nearly 6 Years in Prison for Identify Theft, Other CrimesRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a St. Louis man to five years and 10 months in prison for using stolen or fake identification documents to buy, lease or steal three cars and a $5,600 puppy.
Samuel Stoddard, 26, pleaded guilty in June to eight felony counts in two criminal cases: aggravated identity theft, identity theft, possession of a stolen motor vehicle, access device fraud, possession of five or more identification documents, possession of document-making implements, possession of falsely made securities and interstate transportation of a stolen vehicle.
Stoddard admitted being found in possession of a series of fake or stolen identification documents and vehicle registration materials after a court-authorized search of his home in St. Louis. He’d already created a fake Missouri driver’s license that another person used to rent a 2019 Chevrolet Malibu and a fake Illinois title for the car to prevent the rental company from getting it back.
After the search, he used a fake temporary driver’s license in the name of a Webster Groves man to buy a $5,600 German Shepherd puppy from a Lake St. Louis company. He used other fake identification documents to lease a 2021 Volvo XC90 worth more than $56,000 from a Kansas car dealer and buy another XC90 worth $41,000 from a St. Louis County dealer.
Stoddard also forged the name of another individual and used a fraudulently obtained credit card to pay towing and impound fees for a 2020 Acura RDX. The vehicle was in the custody of a St. Louis tow yard because it had been reported as having been fraudulently purchased from a St. Louis area dealership.
After his arrest on the federal charges, he used another jail inmate to help him conceal the proceeds of his crimes as well as the material he used to commit them, according to his guilty plea.
After Stoddard fled from federal pretrial supervision and became a fugitive, he continued his criminal activities in Kentucky, Tennessee, and Georgia before he was arrested and returned to federal custody in Missouri.
For three years, Stoddard “just kept engaging in fraud on top of fraud,” Assistant U.S. Attorney Tracy Berry said during the sentencing hearing Tuesday.
The Missouri Department of Revenue, the U.S. Postal Inspection Service, the U.S. Secret Service and police departments in the Missouri jurisdictions of Manchester, O’Fallon, St. Charles, St. Charles County, St. Louis, St. Louis County and Webster Groves investigated this case. Assistant U.S. Attorney Tracy Berry prosecuted the case.
Spirit Lake, ND, Man Sentenced to 30 Years in Federal Prison for Production and Distribution of Child PornographyRead the Press Release
Fargo – United States Attorney Jennifer Klemetsrud Puhl announced that Johnson Shae Tollefson, age 29 of Spirit Lake, ND, appeared before Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, and was sentenced to 30 years in prison after having plead guilty on February 8, 2022, to Production, Distribution and Possession of Child Pornography. Judge Welte also sentenced Tollefson to lifetime of supervised release and he ordered Tollefson to pay $12,000 in restitution to four victims who were depicted in the images of child pornography.
This case came to the attention of law enforcement after the social networking website Tumblr reported that the Tumblr user "hornybiguysstuff" uploaded child pornography images during a private blog via the platform on December 19, 2019. A subsequent investigation by Homeland Security Investigation and North Dakota Bureau of Criminal Investigation revealed that the user "hornybiguysstuff" was in reality Tollefson. Tollefson produced child pornography in Dilworth, Minnesota, that depicted a toddler-age female. While in North Dakota, Tollefson subsequently distributed the child pornography to other Tumblr users in exchange for other child pornography.
A federal grand jury in the District of Minnesota returned an Indictment charging Tollefson with production of child pornography and a federal grand jury in North Dakota returned an Indictment charging him with distribution and possession of child pornography. The Minnesota Indictment was eventually transferred to the District of North Dakota and Tollefson plead guilty to both Indictments in North Dakota. The two cases were combined for sentencing.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorney’s Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the North Dakota Bureau of Criminal Investigation and Homeland Security Investigations, and the case was prosecuted by the United States Attorney’s Office, with United States Attorney Jennifer Puhl assigned to the case.
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South Carolina Inmate Sentenced to Federal Prison for Role in Military Sextortion SchemeRead the Press Release
CHARLESTON, SOUTH CAROLINA — Darnell Khan, 39, was sentenced to seven years in federal prison after pleading guilty to his role in a scheme to extort and defraud military members that was operated from the South Carolina Department of Correction (SCDC).
Evidence presented to the Court showed that while serving a 25-year sentence in SCDC for voluntary manslaughter and attempted armed robbery, Khan smuggled smartphones into SCDC and used the internet to join internet dating websites. Once on the internet dating websites, Khan would pose as a young woman, target young men who were in the military, and solicit nude photographs. Once the photographs were received, Khan and others posed as the father of the young woman, claimed that the young woman was underage, and accused the military member of being in possession of child pornography. Khan and others then threatened to have the military members arrested or dishonorably discharged unless they paid money.
From January 2017 to July 2017, due to this extortion, service members transferred funds to Khan totaling $62,500.71, which investigators traced to at least 40 victims.
“Mr. Khan knowingly used deceit to prey on those who serve our nation. This is inexcusable,” said U.S. Attorney Adair F. Boroughs. “This case also shows that nothing good comes from smartphones in prison. Inmates use them to continue criminal activity behind bars, and we hope this prosecution helps state officials in their efforts to eliminate and disable contraband phones in prison.”
“The Defense Criminal Investigative Service will not tolerate these organized criminals targeting our service members,” said Special Agent in Charge Christopher Dillard, Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “We will continue to work with our law enforcement partners to protect our Warfighters from sextortion crimes and hold these criminals accountable.”
“Mr. Khan deserves to be held fully accountable for his leading role in this reprehensible and criminal network targeting military service members,” said Special Agent in Charge Erin Carmichael of the Naval Criminal Investigative Service (NCIS) Carolinas Field Office. “NCIS will not tolerate the existence of sextortion rings like this that degrade the readiness of our military force. NCIS thanks the U.S. Attorney’s Office and our law enforcement partners for their substantial efforts to keep our service members and their families safe from harm.”
“This is another in a long line of cases that would be stopped if we had the ability to jam cellphone signals in state prisons,” said Bryan Stirling, Director of SCDC. “I am calling on Congress to support a hearing on the Cellphone Jamming Reform Act and allow states to use technology to stop inmates from using these illegal phones to prey on innocent victims.”
United States District Judge Richard M. Gergel sentenced Khan to 84 months in federal prison, to be followed by a three-year term of court-ordered supervision. This sentence will be served after Khan completes his 25-year state prison sentence. There is no parole in the federal system.
This case was investigated by DCIS, NCIS, and SCDC. Assistant U.S. Attorneys Katherine Orville and Amy Bower prosecuted the case.
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Sorority Treasurer gets 45 months for Wire FraudRead the Press Release
Oxford, Miss. – An Oxford woman was sentenced last Friday to 45 months in prison for wire fraud committed while she was a volunteer for the Kappa Delta sorority at Mississippi State University.
Court records state that Betty Jane Cadle, 75, issued checks from the Kappa Delta House Corporation banking account to herself and to a business she and her daughter owned in Oxford, Mississippi without authority. According to court documents, from 2012 through 2019, Cadle stole $2.9 million from the Kappa Delta Sorority House Corporation.
Representatives of the sorority spoke at the sentencing hearing and recounted how Cadle had bullied the sorority members and maintained an attitude of superiority to avert any questions about the finances of the sorority house.
“The defendant abused her position of trust and authority by stealing money she was entrusted with for her own personal gain.” Said U.S. Attorney Clay Joyner. “The Northern District of Mississippi’s United States Attorney’s Office will continue to prosecute those that abuse their positions to steal from others.”
In announcing the sentence, U.S. District Judge Glen H. Davidson also imposed a restitution judgment in the amount of $2,940,853.80.
Cadle is scheduled to report to prison on October 24. Assistant U.S. Attorney Parker S. King prosecuted the case.
Slidell Woman Pleads Guilty to Theft of Government FundsRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that LINDA REED HILL (“HILL”), age 75, of Slidell, Louisiana, pled guilty today to Theft of Government Funds in violation of Title 18, United States Code, Section 641.
Beginning in or about May 1, 2004, and continuing until in or about February 28, 2021, HILL did knowingly embezzle, steal, purloin, and convert to her use, money belonging to the United States and a department and agency thereof, namely the Social Security Administration, to which she knew she was not entitled, when she withdrew funds from a joint JP Morgan Chase account under her own name and Individual “A’s” name.
Prior to April 28, 2004, Individual “A” received SSA Retirement Survivor Insurance disability benefits (“RSI”). After Individual “A’s” death, from approximately May 2004 to February 2021, Individual “A” continued to receive monthly SSA disability benefits in an amount ranging from $1,310.00 - $1,518.00 per month, totaling $319,696.00, which was deposited by SSA into a joint JP Morgan Chase Savings account, shared by HILL and Individual “A.” The monthly SSA funds were then taken from the joint account, transferred to two different accounts listed under HILL’s name, and withdrawn by HILL.
HILL faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee.
“Social Security benefits fraud is a criminal offense, which DOJ and my office takes very seriously,” said U.S. Attorney Duane A. Evans. “For several years, Ms. Hill fraudulently received disability benefits from the Social Security Administration (SSA) by claiming monies not designated for her. This plea illustrates that our office will continue to collaborate with SSA Office of the Inspector General and other investigative agencies to identify those who commit SSA fraud for their personal gain.”
”For nearly two decades, Ms. Hill intentionally stole hundreds of thousands of dollars from SSA,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to hold those accountable who defraud Social Security programs.”
Sentencing in this matter is scheduled for January 10, 2023, before United States District Judge Greg G. Guidry.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of Inspector General with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Seven Members of Bounty Hunter Bloods Gang Indicted for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – Seven members of a New Jersey gang associated with the Bounty Hunter Bloods were charged by indictment today with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, U.S. Attorney Philip R. Sellinger announced today.
The Indictment charges Walter Boyd, a/k/a “Walt,” a/k/a “Walt Daddy,” 34, Isiah Daniels, a/k/a “Ice,” 33, Joel Lyons, a/k/a “Jayski,” 21, Gede Maccelus, a/k/a “G Baby,” 21, Armando Ortiz, a/k/a “Mando,” 24, Malik Stringer, a/k/a “Rambo,” 24, and Kimani Wanyoike, a/k/a “Ki,” 21, all of Somerset and Middlesex County, New Jersey with a racketeering conspiracy that included multiple murders, fraud schemes, and narcotics distribution. Daniels and Wanyoike are in federal custody on previously filed related federal charges. Lyons and Ortiz are currently serving terms of imprisonment in state prison. Boyd, Maccelus, and Stringer are currently in state custody on pending state charges related to the charges filed today. All defendants’ will have initial appearances to be scheduled.
The charges are the result of a long-running investigation, coordinated between the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Middlesex County Prosecutor’s Office, the Somerset County Prosecutor’s Office, the New Brunswick Police Department, and the Franklin Township Police Department.
According to documents filed in this case and statements made in court:
Boyd, Daniels, Lyons, Maccelus, Ortiz, Stringer, and Wanyoike, each were allegedly members and associates of the Bounty Hunter Bloods, who operated under the umbrella of the neighborhood street gangs known as “Parkside” in Somerset and “The Ville” in New Brunswick. Gang members, including the defendants, are alleged to have also engaged in numerous violent acts on behalf of and for the benefit of the gang, including assaults, shootings, and murders, some of which targeted rival gang members, including the following:
• On or about June 12, 2020, Daniels, along with other gang members drove at least two cars to a gathering to pay homage to a purported rival gang member who had passed away. At the gathering, members of the Bounty Hunter Bloods gang got out of their cars and shot into a vehicle in the area of Churchill Avenue in Franklin Township;
• On or about August 1, 2020, Maccelus, Wanyoike, and other gang members, at Ortiz’s direction, drove to the area of the Hope Manor housing complex in the “Down Bottom” area of New Brunswick in a stolen vehicle. Upon arriving, Wanyoike and another gang member exited the vehicle and shot Victim 1, a purported gang rival, as well as Victims 2 and 3;
• On or about September 13, 2020, Lyons, Daniels, and other gang members used a stolen car to commit a shooting in New Brunswick that caused the deaths of Victim 4, a purported gang rival, and Victim 5, and resulting in injuries to Victims 6, 7, 8, 9, 10, 11, and 12; • On or about July 19, 2021, Wanyoike possessed a firearm that had been used in a shooting on or about April 30, 2021, in North Brunswick, New Jersey where at least seven rounds of .40 caliber ammunition were discharged from a red Hyundai motor vehicle as it chased at Victim 13, a purported rival of the Bounty Hunter Bloods Enterprise;
• On or about June 18, 2021, Boyd and other gang members gathered outside a hospital in New Brunswick to support and pay homage to a high-ranking member of the Bounty Hunter Bloods gang, who had been shot by purported rivals hours prior. Upon seeing a white Jeep they concluded was occupied by rivals, Boyd and two other gang members followed the Jeep to the area of Easton Avenue in New Brunswick. After stopping, one of the gang members shot into the Jeep, killing Victim 14 and causing injury to Victim 15;
• On or about July 24, 2021, Stringer, while gathered with other gang members, possessed a firearm and attempted to fire it at a purported rival gang member in New Brunswick;
• On or about January 9, 2022, Stringer, while with another gang member in New Brunswick, got into a confrontation regarding narcotics distribution with purported rival gang members and shot at them, killing Victim 16 and causing injury to Victim 17; and
• On or about January 20, 2022, Maccelus, while with another gang member in Franklin Township, possessed a loaded firearm that had been used in a shooting in New Brunswick that same day.
In addition to these violent acts, Bounty Hunter Bloods members, including the defendants, are alleged to have routinely distributed narcotics in and around the gang’s turf in both New Brunswick and Somerset. Gang members also engaged in various wire and bank fraud schemes to enrich themselves and fellow members of the gang, including schemes to defraud the federal Paycheck Protection Program.
Boyd, Daniels, Lyons, and Stringer each face a maximum sentence of life imprisonment for the racketeering conspiracy, while Maccelus, Ortiz, and Wanyoike each face a maximum sentence of twenty years’ imprisonment. All defendants face a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James Dennehy, investigators of the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone, investigators of the Somerset County Prosecutor’s Office, under the direction of Prosecutor John McDonald, the New Brunswick Police Department, under the direction of Director Anthony Caputo, and the Franklin Township Police Department, under the direction of Director of Public Safety Quovella Mayweather, for the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Kendall Randolph of the District of New Jersey’s Organized Crime and Gangs Unit in Newark and Assistant U.S. Attorney Tracey Agnew of the Trenton Office.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Serial Bank Robber Sentenced to Prison for Bank FraudRead the Press Release
DETROIT – A man previously convicted and imprisoned for four bank robberies was sentenced last week to 71 months in federal prison for stealing the identities of ten people to commit bank fraud, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Special Agent in Charge James Tarasca of the FBI’s Detroit Field Office.
Rynell Roberts, 39, of Redford, Michigan, was sentenced before Chief United States District Court Judge Sean F. Cox. Court records show that Roberts was previously convicted of four bank robberies back in 2008. During all of the bank robberies, Roberts threatened tellers with a firearm, even firing a pistol inside the bank during one of the robberies. After being released from prison on the armed bank robbery charges, Roberts switched to fraud to steal from banks.
According to court records, Roberts was sentenced for using stolen identifications to make approximately $119,000 in purchases at area retail stores. He admitted that he used the names and stolen personal identifiers of ten individuals to open fraudulent credit accounts to make these purchases. As part of his sentence, Roberts was ordered to pay $119,000 in restitution.
U.S. Attorney Ison stated, “Identification theft not only robs individuals of time and peace of mind, but it also causes unwarranted damage to the credit of law-abiding citizens. All consumers ultimately bear the costs of these crimes. My office remains committed to holding identity thieves accountable.”
“It is a misperception that identity theft is a victimless crime,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “Victims of this type of fraud can spend significant time and effort clearing up financial issues caused by the greed of these criminals and often causing a significant financial burden to the victim in the process. The FBI will continue to investigate these thieves and protect Michiganders from this type of criminal activity.”
This case was prosecuted by Assistant United States Attorney Philip A. Ross. The case was investigated by the Federal Bureau of Investigation with assistance from the Blackmon Township and Grosse Isle Police Departments.
San Francisco Resident Sentenced to Six Years in Prison for Possession of Guns, Ammunition, and DrugsRead the Press Release
SAN FRANCISCO – Samuel Polanco was sentenced to 72 months for being a felon in possession of ammunition and in connection with a scheme to sell methamphetamine and Suboxone, announced United States Attorney Stephanie M. Hinds and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Patrick T. Gorman. The sentence was handed down by the Hon. Richard Seeborg, Chief United States District Judge.
Polanco pleaded guilty to the charges on June 28, 2021. According to the plea agreement, Polanco admitted that on September 17, 2020, he was arrested on an outstanding warrant by members of the San Francisco Police Department. Polanco was arrested near his white Jaguar SUV that he parked outside the SoMa Park Inn in San Francisco. Having been previously convicted of a felony, Polanco was not permitted to possess a firearm or ammunition. Nevertheless, at the time of his arrest, Polanco was in possession of a privately manufactured, unserialized 9mm caliber pistol, or “ghost gun,” and a magazine containing 10 rounds of unfired 9mm ammunition. Additional rounds of ammunition were found in his car, including 28 rounds of unfired 9mm ammunition and 17 rounds of unfired .40 caliber ammunition.
In addition to illegally possessing these items, Polanco admitted that he also was in possession of narcotics. Specifically, Polanco acknowledged that at the time of his arrest, he was found with approximately 210 grams of methamphetamine and 45.33 grams of fentanyl in the folds of his skin. Polanco admitted in his plea agreement that he knowingly possessed the methamphetamine with the intent to distribute it.
Polanco also pleaded guilty to an additional crime that he committed after his arrest. Specifically, beginning March 25, 2021, Polanco was detained in pretrial custody at Santa Rita Jail and, while detained, asked a confederate outside of the jail to send him Suboxone (in the form of sublingual strips), a Schedule III controlled substance. Polanco admitted that he received the strips, used the drugs himself, and distributed the drugs to other inmates in exchange for payment in currency or commissary items. Polanco admitted he possessed the Suboxone with the intent to distribute it to other inmates.
On June 24, 2021, the government filed a superseding information charging Polanco with being a felon in possession of ammunition, in violation of 18 U.S.C. § 922(g)(1); possession with intent to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1), (b)(1)(B)(viii); and possession with intent to distribute Suboxone, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(E)(i). Polanco pleaded guilty to all three counts.
In addition to the prison term, Chief Judge Seeborg also ordered Polanco to a four-year term of supervised release.
The case was prosecuted by Assistant U.S. Attorney Joseph Tartakovsky. The prosecution is a result of investigations by the San Francisco Police Department and Alameda County Sheriff’s Office.
Rotterdam Man Pleads Guilty to Marijuana and Gun OffensesRead the Press Release
ALBANY, NEW YORK – Tyquan Armstrong, aka “Moose,” age 43, of Rotterdam, New York, pled guilty yesterday to conspiring to distribute and possessing with intent to distribute marijuana and possessing firearms in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.
In pleading guilty, Armstrong admitted to being a member of a marijuana-trafficking organization that shipped large quantities of marijuana from Fresno, California, to locations throughout the United States, including the Capital Region of New York. The marijuana was shipped from Fresno through UPS and FedEx and, to track the packages, Armstrong’s co-conspirator text-messaged him shipping receipts with tracking information. Armstrong admitted to receiving at least 19 packages of marijuana from Fresno at his apartment in Rotterdam between July 2021 and June 2022, which he sold in and around Schenectady, New York. Armstrong also admitted that his participation in the conspiracy involved at least 50 kilograms, or 110 pounds, of marijuana.
On June 15, 2022, law enforcement executed a search warrant at Armstrong’s apartment in Rotterdam and discovered 7 vacuum-sealed packages of marijuana weighing 10 pounds, which Armstrong planned to sell. The apartment contained two money counters and $18,723 in cash, which was earned by the defendant selling marijuana. Law enforcement also seized a loaded .357 revolver, a loaded .22 caliber “ghost gun,” and 125 rounds of .357 ammunition. Armstrong possessed the revolver and “ghost gun” to protect his marijuana and marijuana proceeds.
The defendant’s apartment also contained a gold Rolex watch, gold chain with a diamond-encrusted cross pendant, and two gold rings encrusted with diamonds, all of which were purchased with marijuana proceeds. Armstrong will forfeit $18,723 in cash, the Rolex, jewelry, firearms, and ammunition.
At sentencing, Armstrong faces at least 5 years and up to life in prison, a term of post-release supervision of at least 6 years and up to life, and a fine of up to $2 million. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the ATF and DEA, and is being prosecuted by Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia.
Peoria Man Sentenced to 126 Months in Prison for Possession with Intent to Distribute Methamphetamine and Possession of a Firearm with Drug TraffickingRead the Press Release
PEORIA, Ill. – A Peoria, Illinois man, Raphael Thompson, 34, of the 1100 block of East Arcadia, has been sentenced consecutively to 66 months in prison for possession with intent to distribute at least 5 grams of methamphetamine and 60 months, for possession of a firearm in furtherance of drug trafficking. The total sentence of 126 months is to be followed by five years of supervised release.
At the sentencing hearing before U.S. District Judge James Shadid, the United States presented evidence that law enforcement officers investigated Thompson for drug sales and obtained a search warrant for his residence on East Arcadia in Peoria. When officers searched the house, they found a loaded Jimenez Arms .380 caliber handgun with a defaced serial number, 55.6 grams of a substance that was determined to contain 31.1 grams of pure methamphetamine, approximately 5.17 grams of crack cocaine, 30 methamphetamine pills, and a digital scale. Thompson admitted that he possessed the crack cocaine and “molly” pills and had been selling drugs.
Thompson was indicted in March 2022 and has remained in the custody of the U.S. Marshals Service. He pleaded guilty on May 11, 2022.
The statutory penalties for possession with intent to distribute 5 grams or more of methamphetamine are 5 to 40 years imprisonment and 4 years to life of supervised release. The penalties for possession of a firearm in furtherance of drug trafficking are 5 years to life imprisonment, consecutive to any other sentence, and up to 5 years of supervised release. Fines of up to $250,000 are also possible.
The U.S. Department of Justice Drug Enforcement Administration, with the assistance of the Peoria Police Department, investigated the case. Assistant U.S. Attorney Keith Hollingshead-Cook represented the United States in the prosecution.
The case against Thompson is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Parkersburg Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Joshua Dean Sprague, 42, of Parkersburg, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on May 4, 2022, law enforcement officers in Parkersburg attempted to pull over a vehicle driven by Sprague, who fled at a high rate of speed onto Interstate 77. The chase led to Seventh Street before Sprague lost control of his vehicle and crashed into another vehicle. A mother and her daughter were in the other vehicle and were treated for injuries at the scene. After crashing his vehicle, Sprague fled on foot but was apprehended. Sprague was in possession of a Ruger, model LCP, .380-caliber semi-automatic pistol.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Sprague knew he was prohibited from possessing a firearm because of his prior felony convictions for malicious assault on a correctional officer, escape from an institution and aggravated robbery in Harrison County Circuit Court on February 10, 2004.
Sprague is scheduled to be sentenced on December 20, 2022, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Senior United States District Judge John T. Copenhaver Jr. presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-140.
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