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20 September 2022
Out of state man convicted for stalking local victimRead the Press Release
HOUSTON – A 47-year-old Colorado man has admitted to threatening a woman with releasing sexually-explicit images unless she moved with him across the country, announced U.S. Attorney Jennifer B. Lowery.
Moses Cano pleaded guilty to one count of stalking.
Cano and the victim dated for a brief amount of time. At the end of that relationship, Cano made threats to her if she did not agree to come to Colorado with him. The victim refused. In retaliation, he then sent sexually-explicit images of the victim to her place of employment and several of her friends.
As part of his plea, he admitted he took over her Facebook account and used it to send the images and other messages to her contacts. He also posted a sexually-explicit video of the victim to a well-known adult pornography site.
In distress, the victim contacted authorities.
Sentencing has been set for Nov. 30. At that time, Cano faces up to five years in federal prison and a $250,000 maximum possible fine. He has been and will remain in custody pending that hearing.
The FBI conducted the investigation with the assistance of Matagorda County Sheriff’s Office. Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.
Oakland Investment Advisor Charged with Securities FraudRead the Press Release
OAKLAND - John Mendes, a registered investment advisor, was charged in a federal information filed today with securities fraud for trading upon non-public inside information, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Sean Ragan.
According to the information filed in Oakland federal court, Mendes, 39, formerly of Oakland, is a registered representative and investment adviser who learned non-public information from his friend, identified in the information only as “Insider One.” At the time of the allegations in the information, Insider One worked for Granite Construction, Inc. (Granite), a construction materials company headquartered in Watsonville, California. Granite focuses on large scale public and private infrastructure projects and is traded publicly on the New York Stock Exchange. Granite negotiated with and eventually acquired another company in 2018 that also traded on the New York Stock Exchange, Layne Christensen Company (Layne). Layne was a water management, construction, and drilling company headquartered in The Woodlands, Texas. Granite publicly announced the agreement to acquire Layne on February 14, 2018.
The information alleges that Insider One was actively engaged in Granite’s negotiations to acquire Layne and learned non-public information regarding the deal. During this period of time, Insider One was also a friend of Mendes.
The information alleges that from approximately November 2016 through February 2018, in the course of their friendship Insider One disclosed material nonpublic information to Mendes about Granite’s potential acquisition of Layne before that information was available to the public. Mendes had a history of sharing confidences with Insider One, who expected that Mendes would maintain the confidentiality of the nonpublic information. The information asserts that Mendes breached that duty of confidence and used Insider One’s material non-public information to trade on Layne’s stock before Granite’s public announcement on February 14, 2018.
The information describes instances of Mendes’s trading based on inside information and alleges that between November 2017 and January 2018 Mendes purchased Layne stock and options in accounts in the names of family members and in no fewer than 10 clients’ accounts. All of the securities were sold later for a profit following the February 14, 2018, announcement of Granite’s intent to acquire Layne. The purchases and subsequent sales of Layne stock generated profits of about $242,000 in those accounts.
Mendes is expected to make his initial appearance in federal court to face the securities fraud charge later this week.
Mendes is charged in the information with one count of securities fraud in violation of 15 U.S.C. §§ 78j(b) and78ff and Title 17 C.F.R. § 240.10b-5. If convicted of securities fraud, he faces a maximum sentence of 20 years in prison and a fine of $5,000,000. If convicted, he will also be required to pay restitution. Any sentence following conviction, however, would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A federal information merely alleges that crimes have been committed, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
In a separate civil action, the United States Securities and Exchange Commission filed a civil enforcement action today in the Northern District of California alleging that Mendes engaged in insider trading.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the FBI. The U.S. Attorney’s Office and the FBI appreciate the assistance of the Market Abuse Unit of the Securities and Exchange Commission’s Division of Enforcement.
New Orleans Woman Sentenced for Theft of More Than $61,000 in Social Security FundsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that CATHERINE CAMPBELL WILLIAMS, age 69, of New Orleans, Louisiana, was sentenced after previously pleading guilty to Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to court documents, beginning in December 2010 and continuing through 2020, WILLIAMS collected Social Security Administration benefits paid to a deceased relative. In total, WILLIAMS fraudulently received approximately $61,324 in Social Security Administration benefits to which she was not entitled.
U.S. District Judge Greg G. Guidry sentenced WILLIAMS to three (3) years of Probation and imposed a $100 mandatory special assessment fee. In addition, WILLIAMS was ordered to pay restitution to the Social Security Administration in the amount of $61,324.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
Naval Commander Indicted for Distributing Child Sexual Abuse VideosRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Gregory Edward McLean (38, Jacksonville) with two counts of distributing videos depicting the sexual assault of children and one count of possessing files depicting the sexual abuse of young children. If convicted, McLean faces a minimum term of imprisonment of 5 years, and up to 20 years in federal prison on each count. The indictment also notifies McLean that the United States intends to forfeit two cellphones, a Western Digital hard drive, and a USB drive, which are alleged to have been used in the commission of the offenses. McLean was arrested on September 19, 2022. He is being detained pending trial.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Naval Criminal Investigative Service and the Rhode Island State Police, with assistance from the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kelly S. Karase and Kirwinn Mike.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Myrtle Beach Resort Manager Indicted for Fraud Scheme Totaling Nearly $1 MillionRead the Press Release
FLORENCE, SOUTH CAROLINA — A federal grand jury in Florence returned a five-count indictment against Troy Benjamin Bittner, 53, of Myrtle Beach, for defrauding a local resort out of nearly $1 million during the pandemic.
The indictment alleges that Bittner, in his role as manager for Carolina Pines RV Resort, used his access to the company’s credit card reservation system to commit wire fraud. Specifically, although certain guests stayed at Carolina Pines, Bittner would nonetheless use the electronic payment system to initiate a refund as if those guests had cancelled their reservations. According to the indictment, during the Coronavirus pandemic it was not uncommon for guests to cancel reservations. However, rather than direct the refunds to the credit cards on file, Bittner instead issued the refunds to his own various personal credit cards. Over the 26-month window of Bittner’s alleged scheme, he received more than $800,000 in fraudulent refunds at the expense of Carolina Pines.
Bittner faces a maximum penalty of 20 years in federal prison, in addition to forfeiture and restitution.
The case is being investigated by the U.S. Secret Service, Federal Bureau of Investigation, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Derek A. Shoemake is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Mexican National Sentenced to More Than Three Years in Federal Prison for Possessing A FirearmRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Miguel Vargas-Narez (44, Mexico) to 40 months in federal prison following his convictions for possession of a firearm by an alien unlawfully in the United States and illegal reentry into the United States. Vargas entered guilty pleas to the charges on June 1, 2022.
According to the court records, Vargas is a citizen and national of Mexico. He has previously been deported from the United States four times and has been convicted of illegally reentering the United States after being deported on two prior occasions. On November 18, 2021, Vargas fled from Marion County Sheriff’s Office deputies in a stolen vehicle at a high rate of speed. Vargas eventually crashed the vehicle in a pasture but continued to flee on foot. When apprehended by a police K-9 unit, Vargas had a loaded pistol in his waistband. In his pants pockets, deputies discovered another pistol with a scratched-off serial number, 38 rounds of 9mm ammunition, and seven rounds of .25 caliber ammunition. As an person not lawfully present in the United States, Vargas is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the Marion County Sheriff’s Office, the U.S. Border Patrol, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Hannah Nowalk.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Members of the "Bully Gang" Charged in Superseding Indictment with Murders, Racketeering, Arson, Narcotics Trafficking, Money Laundering, and Firearms OffensesRead the Press Release
A superseding indictment was unsealed today in federal court in Brooklyn charging 26 defendants, including nine members and associates of the violent New York City-based street gang known as the “Bully Gang” with various offenses, including racketeering, murder, drug trafficking, money laundering, and firearms offenses. The superseding indictment includes new charges against the following members and associates of the Bully Gang for three murders and one attempted murder in Brooklyn, New York and Queens, New York committed in 2018 and 2020:
- Derrick Ayers, also known as “Dee” is charged with the March 3, 2018 murder of Jonathan Jackson in Brooklyn.
- Franklin Gillespie, also known as “Spazz” and “Frankie Gino,” is charged with the April 11, 2020 murder of Paul Hoilett in Brooklyn.
- Gillespie and Anthony Kennedy, also known as “Biggie,” are charged with the April 15, 2020 murder of Mike Hawley in Queens.
- Demetrius Johnson, also known as “Q,” is charged with the July 18, 2020 attempted murder of a victim in Brooklyn.
The superseding indictment also charged four new defendants, Tiri Brown, also known as “Tyhoe,” Courtney Foster, also known as “Biga,” Avery Goodluck, also known as “Ave,” and Johnson, with narcotics trafficking charges for their role in a scheme to traffic narcotics between New York and Maine.
Ayers, Gillespie, and Kennedy were previously in custody on the underlying indictment. Defendants Brown, Foster, Goodluck, and Johnson were arrested today and will be arraigned this afternoon before United States Chief Magistrate Judge Cheryl L. Pollak.
Breon Peace, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrests and charges and Jocelyn Strauber, Commissioner, New York City Department of Investigation (DOI), announced the new charges.
“As demonstrated by the superseding indictment, the dismantling of the Bully Gang is continuing with its members being held accountable for the cold-blooded murders, mayhem, and narcotics trafficking they unleashed upon the district,” stated United States Attorney Peace. “Reducing gun violence is a high priority for this Office and I commend our prosecutors and law enforcement partners for their relentless efforts to do justice to make our communities safer.”
“This superseding indictment shows the relentless efforts of federal, state, and local partners to hold violent criminals accountable,” ATF Special Agent in Charge DeVito said. “I commend the hard work of the ATF Joint Firearms Task Force, NYPD, NYC Department of Investigation and the U.S. Attorney’s Office for leaving no stone unturned to charge those who commit senseless acts of violence in the name of loyalty to their gang. ATF’s commitment to protecting the public from violent offenders in collaboration with our partners is unwavering.”
“Targeting and dismantling gangs and crews, and preventing the violence so often associated with their illegal activities, are among the highest priorities for the NYPD and our law enforcement partners,” stated NYPD Commissioner Sewell. “By focusing on the relatively small number of people responsible for much of the crime and disorder in New York City and beyond, we remain relentless in our efforts to identify and arrest anyone who involves themselves in such senseless acts.”
DOI Commissioner Jocelyn E. Strauber said, "Gang violence and drug trafficking jeopardize communities within and beyond New York City. DOI and our law enforcement partners are committed to hold accountable those who engage in this very serious criminal conduct. DOI was pleased to assist the United States Attorney's Office for the Eastern District of New York and our other law enforcement partners on this important investigation."
As set forth in the superseding indictment and other court filings, members and associates of the Bully Gang used force and violence to promote its power, terrorize communities in multiple states and enrich themselves and their members. Their members engaged acts of violence including murder, attempted murder, armed robbery, and arson. The superseding indictment adds charges stemming from the gang’s years-long use of violence and brutality to target its enemies. As alleged, on August 21, 2017, Bermon Clarke, a leader in one of the charged narcotics conspiracies, set fire to a house in Blaine, Maine with at least two occupants inside. The March 3, 2018 murder of Jonathan Jackson alleged in the indictment was the culmination of an exchange of gunfire that followed a “gender reveal” party in Brooklyn, New York. As alleged, during a foot chase along Kings Highway, Ayers repeatedly fired on Jackson at close range. The murders of Hoilett and Hawley occurred just days apart in April 2020. As alleged, Gillespie targeted Hoilett, approaching him from behind and firing at the back of Hoilett’s head at point-blank range. Four days later, Gillespie and Kennedy allegedly lured Hawley to a meeting place in Far Rockaway where Hawley was shot and killed.
As alleged, the Enterprise and its co-conspirators also operated a years-long, sophisticated drug trafficking network responsible for trafficking large quantities of dangerous drugs like cocaine base (“crack”), heroin and fentanyl through New York to Maine, and elsewhere. The enterprise’s drug proceeds were collected on a regular basis and laundered through financial transactions and the purchase of high-value assets, including jewelry and cars. During the investigation, law enforcement seized more than $380,000 in cash, more than 15 firearms, six kilograms of cocaine, 600 grams of fentanyl, multiple luxury watches, and four vehicles with concealed “trap” compartments installed.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
To date, 53 defendants have been charged as part of the prosecution with 27 pleading guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Drew G. Rolle, Nicholas J. Moscow, Lindsey R. Oken, and Joy Lurinsky are in charge of the prosecution.
New Defendants:
TIRI BROWN
Age: 37
Brooklyn, New YorkCOURTNEY FOSTER
Age: 28
Brooklyn, New YorkAVERY GOODLUCK
Age: 32
Brooklyn, New YorkDEMETRIUS JOHNSON
Age: 26
Brooklyn, New YorkDefendants Previously Indicted:
JESSICA ALMEIDA
Age: 33
Detroit, MaineKASSIN APPLING (also known as “Killa” and “Kassim”)
Age: 34
Brooklyn, New YorkDERRICK AYERS (also known as “Dee” and “Mel”)
Age: 34
Rahway, New JerseyTYRONE BANKS (also known as “Ty Hitta”)
Age: 23
Brooklyn, New YorkJANET BLOOD
Age: 47
Troy, MaineDAYVON BOSTICK-SAMUELS (also known as “Daytoe”)
Age: 22
Brooklyn, New YorkJOHNNY CHILES
Age: 36
Brooklyn, New YorkBERMON CLARKE (also known as “G” and “Blue”)
Age: 28
Rahway, New JerseyMIKE GUSTAVO CONNOR (also known as “Gus”)
Age: 21
Brooklyn, New YorkRASHAAD CRAIG (also known as “Skeeno”)
Age: 25
Brooklyn, New YorkRONALD DAVIS (also known as “Ronno”)
Age: 29
Brooklyn, New YorkQUINTEN DELVALLE (also known as “Q”)
Age: 24
Brooklyn, New YorkELIZABETH DUECASTER
Age: 35
Searsport, MaineBRITTANY DUNCAN
Age: 26
Bayonne, New JerseyNEHEMIE ERIL (also known as “Poca”)
Age: 24
Orange, New JerseyCHRISTINA ESTEVEZ
Age: 31
Queens, New YorkLARON ESTRADA (also known as “Yetta”)
Age: 27
Brooklyn, New YorkERICA FAGGIOLE
Age: 44
MaineANTONIO FULTON (also known as “Tone”)
Age: 23
Brooklyn, New YorkFRANKLIN GILLESPIE (also known as “Spazz” and “Frankie Gino”)
Age: 30
Newark, New JerseyROMEO GONZALES
Age: 22
Brooklyn, New YorkNIA GOVAN (also known as “Cam” and “V”)
Age: 29
Boston, MassachusettsKEON GRANT (also known as “Keys”)
Age: 34
Brooklyn, New YorkMOELEEK HARRELL (also known as “Moe Money”)
Age: 31
Brooklyn, New YorkPAUL HARRIS (also known as “Baldhead”)
Age: 31
Brooklyn, New YorkNADINE HEATH
Age: 54
Troy, MaineROBERT HOLT (also known as “Ricky” and “Ghost”)
Age: 33
Brooklyn, New YorkAMANDA HUARD
Age: 38
Raymond, MaineLATRELL JOHNSON (also known as “Barlie Buckz”)
Age: 27
Brooklyn, New YorkANTHONY KENNEDY (also known as “Biggie”)
Age: 34
Queens, New YorkTYQUAWN LANE (also known as “Bicks” and “Tah Tah”)
Age: 27
Brooklyn, New YorkJOANNE LYDEM
Age: 49
Garland, MaineDARIUS MURPHY
Age: 24
Brooklyn, New YorkJESSICA PELKEY
Age: 26
Presque Isle, MaineCHRISHAWN PENN (also known as “Prince”)
Age: 26
Brooklyn, New YorkMICHAEL PEREZ (also known as “White Mike”)
Age: 29
Brooklyn, New YorkJOELLE POCHE (also known as “Rico”)
Age: 21
Brooklyn, New YorkTERRELL RATLIFF (also known as “Rello”)
Age: 29
Brooklyn, New YorkMICHAEL REID (also known as “Half”)
Age: 39
Brooklyn, New YorkISAIAH TERRY SANDIFORD
Age: 21
Brooklyn, New YorkJAMEL SMITH
Age: 23
Bronx, New YorkCHINASA STRACHAN
Age: 33
Brooklyn, New YorkNICOLETTE TOMPKINS
Age: 22
Westfield, MaineAMANDA WALTON (also known as “A”)
Age: 32
Portland, MaineDANIELLE WHITE
Age: 47
Swanville, MaineE.D.N.Y. Docket No. 20-CR-239 (S-8) (BMC)
Media AdvisoryRead the Press Release
ANCHORAGE – The Justice Department’s Office on Violence Against Women (OVW) will host nearly 600 participants, including a record 55 tribal leaders, for the 17th Annual Government-to-Government Violence Against Women Tribal Consultation, September 21 – 23, 2022.
Throughout the consultation, tribal government leaders will provide recommendations on administering tribal funds and programs; enhancing the safety of Alaska Native and American Indian women from domestic and dating violence, sexual assault, homicide, stalking and sex trafficking, along with strengthening the federal response to these crimes; and improving access to local, regional, state, and federal crime information databases and criminal justice information systems.
The consultation is required by law to address the federal administration of tribal funds and programs established under the Violence Against Women Act of 1994 (VAWA) and its subsequent reauthorizations.
U.S. Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco, and Associate Attorney General Vanita Gupta will deliver pre-recorded remarks.
WHO: Office on Violence Against Women
Office of Justice Programs
Office of Tribal Justice
Health and Human Services’ Administration for Children and Families and the Indian Health Service
Department of Interior’s Bureau of Indian Affairs – Office of Justice Services
WHEN: September 21 –22, from 8:30am – 5pm Alaska Standard Time
September 23rd, from 8:30am – 12 pm Alaska Standard Time
WHERE: Hotel Captain Cook, 939 West 5th Avenue Anchorage, Alaska 99501
Join virtually: https://www.ovwconsultation.org/Attend/Register
CONTACT: Media with any question regarding the consultation should reach out to Lisa K. Houghton at 907-350-0408 or [email protected]
NOTES:
OVW Acting Director Allison Randall; OVW Tribal Affairs Division Deputy Director Sherriann Moore; and U.S. Attorney Lane Tucker for the District of Alaska are available for interviews. Please contact Lisa Houghton for more information.
For more information about the consultation schedule, please visit: https://www.ovwconsultation.org/Agenda/Agenda.
Massachusetts Man Indicted for Possession of a Firearm and Ammunition by a Convicted FelonRead the Press Release
CONCORD – Garrito “Tony” Fort, 38, of Randolph, Massachusetts was indicted by a federal grand jury on August 1, 2022, which charged him with one count of possession of a firearm and ammunition by a prohibited person, United States Attorney Jane E. Young announced today.
Fort was arrested in Rhode Island on September 19, 2022, and he is scheduled to make an initial court appearance in the District of New Hampshire on September 20, 2022 at 4:45 pm.
The indictment filed in court alleges that on November 1, 2021, Fort, who had previously been convicted of a felony offense, unlawfully possessed a Taurus 9mm caliber pistol and assorted 9mm ammunition. The alleged conduct occurred in Seabrook, New Hampshire.
The charges in the indictment are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Seabrook Police Department, the New Hampshire State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from Salisbury, Hampton, Hampton Falls, Portsmouth, and Exeter police departments.
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Marshfield Sex Offender Sentenced to 15 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Marshfield, Mo., man who is a registered sex offender was sentenced in federal court today for downloading child pornography to his cell phone.
Michael Ray Jones, 60, was sentenced by U.S. Chief District Judge Beth Phillips to 15 years in federal prison without parole. The court also ordered Jones to serve 10 years on supervised release following incarceration. Jones has a prior conviction for possessing child pornography.
On Oct. 12, 2021, Jones pleaded guilty to one count of receiving child pornography. Jones admitted that he used his cell phone to access and download child pornography.
Jones was stopped by a Missouri State Highway Patrol trooper on U.S. Highway 60 in Webster County, Mo., on July 28, 2020, because the Ford F-150 he was driving had expired license plates. During the stop, Jones showed his cell phone to the trooper, which included multiple images in a photo gallery, and the trooper realized that some of the images were child pornography. During a forensic examination of Jones’s cell phone, investigators found numerous images of child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Manhattan Real Estate Fund Manager Sentenced to Prison for Securities FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOSHUA BURRELL was sentenced today to 48 months in prison for committing securities fraud in connection with the operation of a New York-based investment firm, Activated Capital, LLC (“Activated Capital”). BURRELL previously pled guilty for raising millions of dollars for Activated Capital’s “Opportunity Zone Funds” using fraudulent misrepresentations. U.S. District Judge Lewis A. Kaplan imposed the sentence in Manhattan federal court.
According to statements in the Indictment, and other public filings and statements in court:
From in or about 2019 through in or about 2021, BURRELL obtained millions of dollars of investments for the Activated Tax Advantaged Opportunity Fund, LLC and Activated Capital Opportunity Zone Fund II, LLC (collectively, the “Activated OZ Funds” or the “Funds”) based on fraudulent representations. BURRELL represented, in substance, that the money invested in the Activated OZ Funds would be used to purchase real estate properties in Opportunity Zones and that investors would receive distribution payments out of the Funds’ net real estate investment income. Contrary to those representations, BURRELL caused the Activated OZ Funds to pay putative distributions in amounts greater than the Funds’ net income. From the inception of the Funds in 2019 through approximately February 2021, BURRELL used investor money to help pay distributions totaling approximately $470,000 in a manner akin to a Ponzi scheme. BURRELL also falsely inflated Activate Capital’s assets under management in communications with prospective investors.
To attract additional investment capital for the Activated OZ Funds, BURRELL sought to establish a partnership with an investment bank headquartered in Manhattan (“Company-1”). As part of Company-1’s diligence process, Company-1 asked BURRELL for “[b]acking to show current fund proceeds/acquisitions made.” In response to these requests, BURRELL fabricated documents to make it appear that the Activated OZ Funds were more successful, owned more properties, and were in better financial condition than was actually the case. For example, BURRELL sent Company-1 fake bank statements making it appear that, for the period July 2019 through October 2019, one of the Activated OZ Funds had ending monthly account balances of between approximately $2,094,450 and $2,463,100 when the real account statements for that period showed ending monthly balances of between only $116,369 and $154,399. BURRELL fabricated additional documents to make it falsely appear to Company-1 that an Activated Capital affiliate owned nine properties in Detroit, Michigan, that it had not, in fact, acquired.
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BURRELL, 39, of New York, New York, was also sentenced to a one-year term of supervised release. He was further ordered to pay restitution to his victims in the amount of $5,763,420 and to pay forfeiture in the amount of $107,688.
Mr. Williams praised the investigative work of the United States Postal Inspection Service and thanked the U.S. Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Daniel Loss and Alex Rossmiller are in charge of the prosecution.
Man Who Impersonated DOJ Investigator to Extort Mt. Pleasant Woman for Sex and Money Sentenced to Ten YearsRead the Press Release
CHARLESTON, SOUTH CAROLINA — Brian Lydell Robinson, 39, of Warrenville, was sentenced to ten years in federal prison after pleading guilty to extortion and impersonating an officer of the United States.
Evidence presented to the Court showed that beginning in the Spring of 2019, Robinson used a dating app to contact a Mount Pleasant woman and solicit commercial sex. Using multiple telephone numbers controlled from a single device, Robinson then posed as a Department of Justice (DOJ) investigator working for the U.S. Attorney’s Office investigating a politically connected sex trafficker. Robinson threatened the victim by telling her that she would be prosecuted for prostitution, which would ruin her reputation, unless she assisted in an undercover operation against the sex trafficker who was, in fact, Robinson. In truth there was no investigation, and Robinson extorted money and sex from his victim by posing as the sex trafficker under investigation, the investigator, and a defense lawyer.
“The Defendant terrorized and exploited his victim through extreme deception and intimidation, and he deserves to go to prison,” said U.S. Attorney Adair F. Boroughs. “We will not tolerate predators posing as law enforcement officers. Those who impersonate federal agents, or use the threat of federal prosecution, to exploit the public will encounter actual federal agents and real prosecution. If you have a question about whether a person is actually a law enforcement officer, call the agency using a publicly posted phone number and ask for verification.”
“Stopping those who pose as law enforcement to commit crimes is of utmost importance to law enforcement and the community,” said Homeland Security Investigations (HSI) Special Agent in Charge Ronnie Martinez, who oversees HSI operations in North Carolina and South Carolina. “This sentencing should send a clear message that we are on the hunt for these impostors.”’
“Impersonating an officer threatens the trust and respect law enforcement professionals work to earn every day serving our communities,” said South Carolina Law Enforcement Division (SLED) Chief Mark Keel, “SLED is proud to support the DOJ and HSI in investigations like these to ensure those who seek to prey upon our fellow citizens face the consequences.”
In outlining the scheme, the evidence presented to the Court also showed that after luring the victim across state lines and sexually exploiting her with this ruse, Robinson, acting as the sex trafficker supposedly under investigation, confronted the victim and told her that he knew that she was working for law enforcement. Robinson assured the victim that he could keep them both out of trouble through the services of a well-positioned defense attorney, but said that the victim would owe him money. After Robinson allegedly placed a call to the defense attorney, the victim was contacted by the fictitious federal agent, who claimed that his case had been temporarily suspended because of Robinson’s attorney.
Over the next seven months, Robinson extorted the victim for money to pay for non-existent legal services under the false premise that such services were needed to avoid federal prosecution. When the victim ran out of funds, Robinson extorted sex and pornographic materials from the victim in lieu of payment. The victim went to the police after Robinson demanded that she have sex with multiple men at the same time, and she became fearful that she would be abducted. Robinson has multiple prior convictions for offenses including forgery, obtaining property under false pretenses, and burglary.
United States District Judge Richard M. Gergel sentenced Robinson to 120 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by HSI, SLED, and the Mount Pleasant Police Department. Assistant U.S. Attorneys Chris Schoen and Elliott B. Daniels prosecuted the case.
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Man Pleads Guilty to Distribution of Child Pornography while on Probation for Prior Sex OffenseRead the Press Release
RICHMOND, Va. – A Highland Springs man pleaded guilty today to distribution of child pornography.
According to court documents, Deric Wallace Peacock, 39, used Wickr, an encrypted messaging service, to distribute child pornography using his “vapastor” user account. At the time that Peacock distributed the child pornography, he was on probation for two prior state court convictions for procuring sex acts by computer of an individual believed to be under the age of 15.
Peacock is scheduled to be sentenced on January 24, 2023. Due to his prior enticement conviction, he faces a mandatory minimum of 15 years in prison and a maximum of 40 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. Magistrate Judge Mark R. Colombell accepted the plea.
Assistant U.S. Attorney Carla Jordan-Detamore is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
In 2021, EDVA launched “UnMasked,” a community-based educational outreach and prevention program in Virginia dedicated to raising awareness and educating the community about the prevalence of online sexual exploitation involving children and young adults. UnMasked is a multi-disciplinary partnership of local, state, federal, and non-profit stakeholders. The core curriculum is provided by the National Center for Missing and Exploited Children’s (NCMEC) NetSmartz program. To report an incident involving online sexual exploitation, call 1-800-843-5678 or submit a report at report.cybertip.org. To request an UnMasked event at your school or organization, please contact EDVA’s Community Outreach Coordinator at [email protected].
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-109.
Madison Felon Sentenced to 24 Months for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Dwayne Peeples, 42, Madison, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 24 months in federal prison for possessing a firearm as felon. This prison term will be followed by 3 years of supervised release. Peeples pleaded guilty to this charge on June 15, 2022.
On July 24, 2021, officers with the Madison Police Department stopped a car in which Peeples was a passenger after officers observed Peeples conduct a hand-to-hand drug deal in Penn Park. When a canine officer altered officers to the presence of controlled substances, officers searched the car and located a 9mm firearm along with a loaded magazine in a bag belonging to Peeples. The magazine contained five rounds of hollow-point ammunition.
Peeples is prohibited from possessing a firearm as a result of multiple felony convictions, including a 2006 conviction for distributing crack cocaine in the Western District of Wisconsin. He was released from prison in that case in 2016 and completed supervision in 2019.
In sentencing Peeples, Judge Conley noted that Peeples possessed the firearm under extremely suspicious circumstances, and that the type of ammunition in the magazine can cause extensive damage. Judge Conley stated a custodial sentence was also warranted because of Peeples’ non-compliance with pre-trial supervision during the pendency of the case.
The charge against Peeples was a result of an investigation conducted by the Madison Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Macon Man with Criminal Past Pleads Guilty to Heroin Distribution Resulting from DEA InvestigationRead the Press Release
MACON, Ga. – A Macon resident with a criminal history to include an armed robbery conviction admitted in court that he possessed with the intent to distribute heroin as a result of a federal investigation into drug trafficking in Middle Georgia.
Adrian Howard, 46, of Macon, pleaded guilty to possession with intent to distribute heroin before U.S. District Judge Marc T. Treadwell on Sept. 19. Howard faces a maximum sentence of twenty years in prison to be followed by at least three years of supervised release and a $1,000,000 fine. Sentencing will occur within 90 days.
“Individuals with lengthy criminal pasts who choose to continue engaging in illegal activities which harm our communities will find their cases elevated to the federal level,” said U.S. Attorney Peter D. Leary. “Holding repeat violent offenders accountable for their crimes is one part of a larger strategic effort by local, state and federal law enforcement to reduce crime in every city across the Middle District of Georgia.”
“The distribution of heroin and methamphetamine continue to plague many communities, but DEA and its law enforcement partners are committed to protecting our communities,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “This guilty plea is a direct result of what can be achieved when DEA works tirelessly to disrupt, dismantle and destroy drug distribution networks. This guilty plea is a ‘win’ for the Macon, Georgia, community because this criminal has been removed from the streets.”
According to court documents, the Drug Enforcement Administration (DEA) became aware through a confidential source (CS) in Feb. 2021 that Howard was dealing methamphetamine in Middle Georgia. Two controlled buys of methamphetamine from Howard occurred at a rental home he occupied on Eveline Avenue in Macon in Feb. and March 2021. After the two controlled buys, DEA obtained and executed a search warrant at 1728 Eveline Ave. on March 18, 2021. At the time the search warrant was executed, ten individuals were present at the address, located both inside and outside the residence, including Howard. Agents found two black safes in Howard’s bedroom that were observed in the same location during a previous controlled buy from Howard. The safes contained quantities of heroin, methamphetamine, empty plastic bags, drug related paraphernalia and $2,179 in cash. Underneath a black pillow on Howard’s bed, agents found a stolen handgun. Additional bags containing controlled substances were located throughout the bedroom. Howard admitted in federal court to knowingly possessing with intent to distribute heroin on March 18, 2021.
Howard has a lengthy criminal record that includes a prior felony conviction of armed robbery in Crawford County, Georgia, Superior Court.
The case was investigated by DEA.
Assistant U.S. Attorney Joy Odom is prosecuting the case.
Leader of $3 Million Bank Fraud Scheme Involving Stolen Mail Sentenced to More Than 12 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – The leader of a $3 million bank fraud scheme involving stolen checks and two co-conspirators were sentenced to prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
Terrell Devon Freeman, 35, of Charlotte, was sentenced to 150 months in prison, followed by three years of supervised release. Joshua MacDavid Monteith, 32, of Charlotte, was sentenced to 46 months in prison and three years of supervised release. And Yanalise Simone Hodge, 23, also of Charlotte, was ordered to serve 24 months in prison, followed by three years of supervised release.
According to filed court documents and statements made in court, from October 2020 to September 2021, Freeman was the mastermind of a bank fraud scheme involving stolen mail. The defendants executed the fraud scheme in North Carolina, South Carolina, Georgia, and Virginia and defrauded at least seven financial institutions.
According to court documents, Freeman and his co-conspirators used a stolen U.S. Postal Service key to open USPS collection boxes in the Charlotte area, from which they stole business and personal checks. The USPS key was obtained following the armed robbery of a postal worker in November of 2020.
The co-conspirators then used fraudulent identifications and straw bank accounts to cash the stolen checks. Over the course of the scheme, Freeman and his co-conspirators deposited or attempted to deposit funds from approximately 86 stolen checks totaling over $3 million.
On September 26, 2021, Monteith was arrested after he used the stolen USPS key to open a collection box in the Ballantyne area. Law enforcement located in Monteith’s vehicle 58 stolen checks totaling more than $19,000. On October 4, 2021, Freeman was arrested in Atlanta, Georgia. Law enforcement recovered from Freeman’s vehicle approximately 1,500 stolen checks, totally over $1.5 million.
Freeman, Monteith, and Hodge each pleaded guilty to bank fraud conspiracy. In addition to the prison term imposed, U.S. District Judge Robert J. Conrad Jr. also ordered Freeman to pay more than $394,000 as restitution.
In making today’s announcement, U.S. Attorney King thanked USPIS and CMPD for their investigation of the case.
Assistant U.S. Attorney William T. Bozin, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Las Vegas Man Sentenced to Prison for Mail Fraud ConspiracyRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today by U.S. District Judge Gloria M. Navarro to three years and five months in prison followed by three years of supervised release for his role in a conspiracy to commit mail fraud in connection to the illegal possession of unemployment benefit debit cards issued by the Nevada Department of Employment, Training and Rehabilitation (DETR) and Arizona’s Department of Economic Security (DES).
Vincent Okoye (40) pleaded guilty in June 2022 to conspiracy to commit mail fraud.
According to court documents and admissions made in court, Okoye conspired with others, including co-defendant Jasmine-Royshell Kanisha Black, to obtain DETR and DES debit cards by submitting fraudulent unemployment insurance claims using other peoples’ personal identifying information, such as their names, dates of birth, and social security numbers, without their knowledge or consent. The agencies administer Nevada’s and Arizona’s unemployment insurance program. In total, DETR and DES approved more than $550,000 in benefits for the fraudulent claims.
On July 15, 2020, law enforcement executed a search warrant at Okoye’s residence and found:
- Over $100,000 in U.S. Currency and U.S. Money Orders;
- A forged Canadian passport;
- A postal mailbox master key;
- Over 100 pieces of mail, bearing names and addresses not belonging to Okoye;
- At least 24 pieces of mail from DETR, bearing various names and addresses; and
- At least 100 credit and debit cards not issued in Okoye’s name, including at least 11 debit cards issued by DETR and at least 12 debit cards issued by DES.
U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Karon Ransom for the U.S. Secret Service made the announcement.
The case was investigated by the U.S. Secret Service, U.S. Postal Service Office of Inspector General, and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Jim Fang prosecuted the case.
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Lame Deer man sentenced to 46 months in prison for strangling woman on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — A Lame Deer man who admitted to strangling a woman on the Northern Cheyenne Indian Reservation was sentenced today to 46 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Isaiah Benjamin Antelope, 26, pleaded guilty in April to strangulation.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that in July 2020 the victim went to Antelope’s house in the Lame Deer area, on the Northern Cheyenne Indian Reservation, for Antelope’s help in fixing a flat tire on a car. After trying to fix the tire, Antelope and the victim went inside the house. The victim was scared because the two had argued the day before. The two exchanged words and then Antelope strangled the victim with his hands. Antelope had strangled the victim on other occasions and made her pass out or feel like she was going to pass out.
The U.S. Attorney’s Office prosecuted the case, which was investigated by the FBI.
XXXKC Man Sentenced to 18 Years for Meth Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in a nearly $10 million conspiracy to distribute almost 1,000 kilograms of methamphetamine.
Jesus Banuelos, 23, was sentenced by U.S. District Judge Greg Kays to 18 years and nine months in federal prison without parole.
On Aug. 23, 2021, Banuelos pleaded guilty to one count of conspiracy to distribute methamphetamine, one count of distributing methamphetamine, and one count of being an unlawful user of a controlled substance in possession of a firearm.
Banuelos admitted that he was responsible for the distribution of at least 436.19 grams of pure methamphetamine. Banuelos was involved in the sale of approximately half a pound of methamphetamine to a confidential human source on two occasions in April and May 2019. When Banuelos was arrested during a traffic stop on May 8, 2019, Kansas City police officers could smell the odor of marijuana emanating from the driver’s side window of his vehicle and saw marijuana roaches in the ash tray in plain view. Officers searched his vehicle and found a Glock 9mm handgun. Banuelos told officers he used marijuana three or four days a week.
The court also ordered Banuelos to forfeit to the government $23,974, which represents the proceeds of illegal drug trafficking. Banuelos admitted that he sold 436.19 grams of pure methamphetamine at a price of $2,300 per half pound. The court also held Banuelos responsible for trafficking an additional approximately 1.9 kilograms of methamphetamine, for a total of almost 2.4 kilograms (about 5.2 pounds) of methamphetamine. At $2,300 per half pound, this results in a total amount of $23,974.
At the time of this federal offense, Banuelos was on state probation for stealing an Olympic Arms AR-15 from a pawn shop.
Banuelos admitted he was part of the drug-trafficking organization led by Mirza Alihodzic, 36, of Kansas City, Mo., who pleaded guilty on July 18, 2022, and awaits sentencing. Alihodzic acknowledged that he was responsible for the distribution of at least 45 kilograms of methamphetamine during the conspiracy, which lasted from Sept. 1, 2018, to Nov. 5, 2019.
Banuelos is among five defendants who have been sentenced in this case. Additionally, 13 co-defendants have pleaded guilty, and await sentencing, in two separate indictments that resulted from this investigation.
This case is being prosecuted by Assistant U.S. Attorneys Bradley K. Kavanaugh and Sean T. Foley and Special Assistant U.S. Attorney Stephanie Bradshaw. It was investigated by the Kansas City, Mo., Police Department, the FBI, the Missouri State Highway Patrol, and the Mid-Missouri Drug Task Force.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
KC Man Sentenced to 17 Years for Secretly Recording Child VictimRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for secretly video recording a 14-year-old victim in the victim’s bedroom.
Jonathan Rodger Nelson, 42, was sentenced by U.S. District Judge Stephen R. Bough to 17 years and six months in federal prison without parole.
On Nov. 2, 2021, Nelson pleaded guilty to one count of the attempted production of child pornography. Nelson admitted that he placed a camera, hidden in an alarm clock, in the child victim’s bedroom to secretly record the victim.
The investigation began on March 30, 2018, when a reporting party told police officers she looked at Nelson’s cell phone and saw what appeared to be video footage of the child victim’s bedroom. The reporting party then found a camera hidden in an alarm clock that Nelson had purchased online and placed in the bedroom several weeks before.
During a forensic examination of Nelson’s computer hard drive, investigators found more than 400 video and graphics files from the hidden camera. Investigators also found approximately 85 files from various livestream apps in which Nelson asked females of various ages, including children, to perform certain acts while on camera. For example, Nelson recorded his interaction with a minor female in which he promised her a phone and makeup to undress and engage in sexually explicit behavior.
Additionally, other images or videos of child pornography were found on Nelson’s devices. Nelson admitted using peer-to-peer software to download child pornography, including children as young as seven or eight years old. He admitted to looking for chat groups sharing child pornography.
This case was prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department Awards over $3.5 Million to State of Louisiana to Prevent and Control CrimeRead the Press Release
U.S. Attorney Ronald C. Gathe, Jr. announced that the State of Louisiana has received $3,514,042 from the Department of Justice’s Office of Justice Programs and its component, the Bureau of Justice Assistance, to support a broad range of activities to prevent and control crime based on state and local needs and conditions. Grant funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice or civil proceedings.
The recipient of this award, the Louisiana Commission on Law Enforcement, is a foundation located in Baton Rouge dedicated to improving the operations of the criminal justice and juvenile justice systems and to promoting public safety by providing progressive leadership and coordination within the criminal justice community.
Jury returns guilty verdict in local deed fraud schemeRead the Press Release
HOUSTON – A federal jury sitting in Houston has convicted a 61-year-old Dallas man for money laundering, conspiracy to commit and committing wire fraud, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for half a day before convicting Clarence Roland III on all charges following a eight-day trial.
In 2009, Roland began working with co-conspirator Arlando Jacobs, 57, Oakland, California, in a deed fraud scheme to cancel and challenge mortgage loans held in the name of Jacobs or others. During this time, Roland frequently used the alias Joshua Stein, while Jacobs used Caleb Wright or Dexter Ponzey.
According to testimony, they solicited and received the help of other co-conspirators to establish over 11 business entities or shell companies and office spaces with mailing addresses in Houston, The Woodlands and Katy to carry out the scheme.
The jury heard that Roland and co-conspirators fraudulently acquired real property by manipulating and filing fraudulent deeds and other documents. Roland sold the properties and received profits from the sales. The original mortgage liens were not paid off and the mortgage holders were ultimately defrauded. Some title insurance companies were forced to pay buyer claims who had acquired the title when purchasing the real property Roland sold to them.
The co-conspirators fabricated a series of documents to falsely create the appearance of transferred ownership of real property to the shell companies. In order to do so, they signed documents claiming to represent one of the many entities in the transactions. The same names were used as signors on many documents and purported to represent different entities. They were also fraudulently notarized by using fake notary stamps.
The defense attempted to convince the jury the law allowed him to file fraudulent documents in the real property records to transfer title of houses on which there were mortgages so he could then sell them free of those mortgages. They did not believe those claims and found Roland guilty as charged.
Jacobs pleaded guilty in advance of trial in an unrelated fraud case in the Northern District of Texas and was sentenced to 51 months in prison and ordered to pay restitution of $7.6 million.
U.S. District Judge Lee H. Rosenthal presided over the trial and set sentencing for Jan. 25, 2023. At that time, Roland faces up to 30 years for conspiracy to commit wire fraud affecting a financial institution and 20 years for wire fraud. They also carry potential fines of up to $1 million. For money laundering, he faces another 10 years as well as a fine of $250,000.
Previously released on bond, Roland was taken into custody following the conviction today where he will remain pending sentencing.
The FBI, Federal Housing Finance Agency - Office of Inspector General (OIG) and Housing and Urban Development - OIG conducted the investigation. Assistant U.S. Attorneys John Braddock and John Wakefield are prosecuting the case.
Jury Convicts Man of Bankruptcy Fraud and Tax EvasionRead the Press Release
LAKE CHARLES, La. - United States Attorney Brandon B. Brown announced that a federal jury in Lake Charles returned a guilty verdict late yesterday against Joseph Randall Boswell, Sr., 53, of Elizabeth, Louisiana, following a week-long trial. Boswell was convicted of one count of bankruptcy fraud and one count of tax evasion. United States District Judge James D. Cain, Jr. presided over the trial.
According to evidence presented during the trial, Boswell knowingly and fraudulently concealed property from the United States Bankruptcy Trustee and his creditors through his Chapter 7 Bankruptcy case which he filed in September 2011. Specifically, Boswell concealed monies earned from nominee business and service contracts that could have been paid to his creditors. Boswell attempted to defraud the government by withholding information from the Bankruptcy Court regarding the amount of income he was actually making and property he had an interest in. Boswell was self-employed and withheld information from the court as to companies that he had control of through other family members. Evidence introduced at trial showed that these companies were established in the names of other family members in an attempt to hide the fact that Boswell was controlling and manipulating the business activities for these companies and earning income through contracts negotiated by him.
Boswell was also convicted of attempting to evade and defeat payment of income taxes due and owing by him for the tax years 2001 through 2009. The jury determined that Boswell concealed assets from the Internal Revenue Service by putting them in the names of other family members in order to avoid paying income taxes owed by him of over $597,000.
“This was a complicated case that involved countless hours of work by both attorneys from this office, agents with the Internal Revenue Service-Criminal Investigation, and employees with the U.S. Trustee’s Office,” stated U.S. Attorney Brandon B. Brown. “Those who defraud the government through bankruptcy proceedings and attempt to avoid paying the income tax they owe are a burden to citizens who obey these laws. We will not back down from prosecuting cases involving this type of fraud and are committed to ensuring that these laws are not violated.”
“Yesterday’s guilty verdict is a direct result of the excellent partnership IRS-CI and the U.S. Attorney’s office has in combating violations of Federal law," said Demetrius D. Hardeman, Assistant Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. "This guilty verdict should serve as a deterrent to those who might contemplate similar fraudulent actions and who willfully violate their known legal duty of paying their fair share of taxes.”
Boswell faces a sentence of up to 5 years in prison and three years of supervised release on each count, and a fine of up to $250,000. Sentencing has been set for January 23, 2023 at 1:30 p.m.
The case was investigated by the Internal Revenue Service-Criminal Investigation, and the United States Trustee’s Office and is being prosecuted by Assistant U.S. Attorneys Cytheria D. Jernigan and Earl M. Campbell.
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Iowa Woman Sentenced to Federal Prison for COVID-19 Related Benefit Fraud and Money LaunderingRead the Press Release
A Rockford, Iowa woman who received unemployment benefits in other people’s names, and laundered most of those funds through cryptocurrency transactions, was sentenced September 20, 2022, to more than a year in federal prison.
Stephanie Mendenhall, age 53, from Rockford, Iowa, received the prison term after a March 24, 2022, guilty plea to four counts of theft of government funds and one count of money laundering conspiracy. At the plea hearing, Mendenhall admitted to facilitating false claims for unemployment insurance benefits, which were intended for those in need due to the COVID-19 pandemic, in the names of other people and allowing those funds to be deposited into bank accounts she owned or controlled. Mendenhall received fraudulent unemployment benefits paid through the states of Maine, Michigan, Washington, Arizona, Colorado, Texas, Kansas, and Illinois, including benefits related to COVID-19 relief funds, to which she was not entitled. Mendenhall received at least $35,985 in false unemployment benefits. Mendenhall spent some of the money on herself, but laundered the majority of it by purchasing cryptocurrency and sending it to a co-conspirator. After being indicted in this case, while on pretrial release, Mendenhall attempted to deposit counterfeit checks into other bank accounts she owned.
Mendenhall was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Mendenhall was sentenced to 15 months’ imprisonment. She was also ordered to make $46,378.31 in restitution to the states of Maine, Michigan, Washington, Arizona, Colorado, Texas, Kansas, and Illinois. She must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Mendenhall is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorneys Ron Timmons and Tim Vavricek and was investigated by the Federal Bureau of Investigation and the Department of Labor’s Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-3028.
Follow us on Twitter @USAO_NDIA.
Indianapolis Man Sentenced to 115 Months in Federal Prison for Four Robbery Offenses Committed While on Supervised Release for 2016 RobberiesRead the Press Release
INDIANAPOLIS – Marvin Smith, 37, of Indianapolis, was sentenced to 115 months in federal prison after pleading guilty to two counts of attempted interference with commerce by robbery and two counts of bank robbery.
According to court documents, on April 2, 2022, Smith entered a CVS on East Washington Street in Indianapolis. Smith approached a CVS pharmacy employee and handed her a note demanding 30mg of Oxycodone. The CVS employee entered a code into the lock safe and told Smith it’d take a predetermined amount of time before the safe would open. Smith left without obtaining the Oxycodone.
On that same day, Smith entered a Walgreens on East Eppler Avenue in Indianapolis. Smith approached a Walgreens pharmacy employee and handed her a note demanding 30mg of Oxycodone and demanded she hurry up. The Walgreens employee entered a code into the safe and told Smith the safe would not open for several minutes. Smith again left the pharmacy without obtaining Oxycodone. Smith was observed leaving the parking lot of the pharmacy in black four-door sedan with body damage to the vehicle.
On April 2, 2022, Smith entered a PNC bank on South East Street in Indianapolis. Smith reached over the top of the teller’s window and handed her a plastic grocery style bag. Smith told the teller to fill it and to hurry up. The teller complied and handed the bag of money to Smith. Smith ran out of the bank. An audit of the teller’s drawer indicated a loss of $529.00.
On April 4, 2022, an IMPD officer spotted a black sedan with damage to the front driver’s side fender and a license plate matching the black sedan seen leaving Walgreens at a hotel on the west side of Indianapolis. A record check of the license plate on the black sedan revealed that the plate was registered to Smith.
On April 5, 2022, Smith drove to the area of a Fifth Third bank on East Southport Road in Indianapolis. Smith parked in a parking lot near the Fifth Third bank, walked across an adjoining park lot and entered the bank. Smith threw a robbery note over the counter to the teller demanding $10,000.00 Smith then threw a plastic bag over the counter and told the teller to hurry up. The teller placed the bag with the cash from her teller drawer onto the counter. Smith grabbed the bag, exited
the bank, began running toward his vehicle and drove away from the bank. After Smith turned onto Emerson Avenue, IMPD SWAT initiated a felony car stop disabling Smith’s vehicle. Smith fled the vehicle and ran for a short distance before giving up and lying face down on the ground. Officers approached Smith and confirmed his identity. Smith had $10,000 banded and stacked sitting in plain view on the front passenger floorboard of his vehicle. The stacks of money each had a Fifth Third bank stamp and were dated April 5, 2022. The money was seized by officers while Smith’s vehicle was secured and towed to IMPD facilities. An audit performed later by the bank of the Fifth Third teller’s drawer indicated a loss of $10,000.00.
During Smith’s arrest, an officer observed that Smith’s cell phone was connected to the car’s stereo and IMPD’s dispatch radio traffic was playing through a scanner app over the car’s speakers. Smith was transported to IMPD for an interview where he admitted to the officers that he robbed the Fifth Third bank.
Smith was previously arrested and prosecuted in federal court, in 2016, for two counts of pharmacy robbery. Smith was under federal supervised release at the time of the new offenses.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office; and Police Chief Randal Taylor of the Indianapolis Metropolitan Police Department; made the announcement.
FBI investigated the case in conjunction with IMPD. The sentence was imposed by U.S. District Judge James Patrick Hanlon. As part of the sentence, Judge Hanlon ordered that Smith be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Peter A. Blackett who prosecuted this case.
Hocking County man admits to sexually exploiting children as young as 3 years oldRead the Press Release
COLUMBUS, Ohio – A Logan, Ohio, man pleaded guilty in federal court here today to producing child pornography of a three-year-old child and possessing thousands of images of child sexual abuse, some of which depicted other minor children to whom the defendant had access.
Robert Gemienhardt, 37, was charged federally in April 2022, along with his significant other Carrie Daniels, 41 for their child exploitation offenses. Daniels is set to plead guilty on Oct. 5 to two counts of sexual exploitation of a minor and one count of possession of child pornography.
Gemienhardt pleaded guilty to sexually exploiting a minor – a crime punishable by 15 to 30 years in prison – and possessing child pornography. Gemienhardt also admitted to possessing child pornography of a prepubescent minor, which carries a potential penalty of 10 to 20 years in prison.
More than 1,000 images and 350 videos depicting child sexual abuse were ultimately recovered from Gemienhardt’s digital media devices, some of which depicted minors as young as toddler age engaged in oral sex, masturbation, bestiality and sexual acts with adults.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received a tip from Kik messenger regarding Gemienhardt’s online child exploitation activities. The Ohio Internet Crimes Against Children (ICAC) Task Force and the Hocking County Sheriff’s Office then began investigating the allegations.
Subsequent search warrants executed by the Hocking County Sherriff’s Office, in conjunction with the FBI, revealed that Gemienhardt and Daniels were acting together and produced child pornography through the grooming and sexual abuse of minor victims they had access to between April and June of 2020.
Gemienhardt and Daniels exchanged thousands of illicit text messages detailing their sexual fantasies about the minor victims. Those text messages further revealed both Gemienhardt and Daniels had plans to act out some of the detailed fantasies by sexually abusing the minors. Daniels also distributed images she created of the sexual abuse of minors to Gemienhardt.
Gemienhardt is a registered sex offender from a prior Franklin County conviction in July 2021.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Hocking County Sheriff Lanny E. North announced the plea entered today before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
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Hocking County man admits to sexually exploiting children as young as 3 years oldRead the Press Release
COLUMBUS, Ohio – A Logan, Ohio, man pleaded guilty in federal court here today to producing child pornography of a three-year-old child and possessing thousands of images of child sexual abuse, some of which depicted other minor children to whom the defendant had access.
Robert Gemienhardt, 37, was charged federally in April 2022, along with his significant other Carrie Daniels, 41 for their child exploitation offenses. Daniels is set to plead guilty on Oct. 5 to two counts of sexual exploitation of a minor and one count of possession of child pornography.
Gemienhardt pleaded guilty to sexually exploiting a minor – a crime punishable by 15 to 30 years in prison – and possessing child pornography. Gemienhardt also admitted to possessing child pornography of a prepubescent minor, which carries a potential penalty of 10 to 20 years in prison.
More than 1,000 images and 350 videos depicting child sexual abuse were ultimately recovered from Gemienhardt’s digital media devices, some of which depicted minors as young as toddler age engaged in oral sex, masturbation, bestiality and sexual acts with adults.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received a tip from Kik messenger regarding Gemienhardt’s online child exploitation activities. The Ohio Internet Crimes Against Children (ICAC) Task Force and the Hocking County Sheriff’s Office then began investigating the allegations.
Subsequent search warrants executed by the Hocking County Sherriff’s Office, in conjunction with the FBI, revealed that Gemienhardt and Daniels were acting together and produced child pornography through the grooming and sexual abuse of minor victims they had access to between April and June of 2020.
Gemienhardt and Daniels exchanged thousands of illicit text messages detailing their sexual fantasies about the minor victims. Those text messages further revealed both Gemienhardt and Daniels had plans to act out some of the detailed fantasies by sexually abusing the minors. Daniels also distributed images she created of the sexual abuse of minors to Gemienhardt.
Gemienhardt is a registered sex offender from a prior Franklin County conviction in July 2021.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Hocking County Sheriff Lanny E. North announced the plea entered today before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
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Hastings Man Sentenced to 10 Years in Prison for Distribution of MethamphetamineRead the Press Release
Acting United States Attorney Steven Russell announced that Zachary D. Ellis, 28, of Hastings, Nebraska, was sentenced today in federal court in Lincoln. United States District Judge John M. Gerrard sentenced Ellis to 120 months in prison for distribution of 50 grams or more of methamphetamine (actual) and 50 grams or more of methamphetamine mixture. After serving his sentence, Ellis will be placed on supervised release for 5 years. There is no parole in the federal system.
On June 3, 2021, under the direction of law enforcement, a confidential informant purchased about an ounce of methamphetamine from Ellis at his residence in Hastings. A lab confirmed that the methamphetamine was about 28 grams of methamphetamine mixture. On June 7, 2021, the same informant, again under law enforcement supervision, purchased two ounces of methamphetamine from Ellis at the same residence. A lab confirmed that the methamphetamine purchased on June 7, 2021 was 55.94 grams of methamphetamine mixture, of which at least 53 grams was actual methamphetamine.
This case was investigated by the Tri-City Drug Enforcement Team (TRIDENT).
Galveston man sentenced for receiving and possessing nearly 100 child pornography filesRead the Press Release
GALVESTON, Texas – A 53-year-old local man has been ordered to prison following his conviction of receiving and possessing child pornography, announced U.S. Attorney Jennifer B. Lowery.
Cedric Robert Cox pleaded guilty July 21, 2021.
Today, U.S. District Judge Jeffery Brown sentenced Cox to 84 months for each of the receiving and possessing convictions, respectively. They will run concurrently for a total 84-month term of imprisonment. Cox was further ordered to pay $9,000 in restitution to known victims and will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Cox will also be ordered to register as a sex offender.
In 2016, authorities discovered Cox using peer-to-peer file sharing software to obtain child pornography images and videos. They executed a search warrant at his residence and seized numerous devices. Further examination revealed the devices contained 32 images and 62 videos containing child pornography as well as search terms indicative of a sexual interest in children. Some of the videos depict a pre-pubescent minor female with her genitals exposed and engaging in various sex acts.
Cox was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations, Webster Police Department and Houston Metro Internet Crimes Against Children Task Force conducted the investigation.
Assistant U.S. Attorney Sherri L. Zack prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Former soldiers sentenced for transporting undocumented citizensRead the Press Release
LAREDO, Texas – Two former soldiers stationed at Fort Hood have been ordered to federal prison for conspiring to transport undocumented aliens within the United States, announced U.S. Attorney Jennifer B. Lowery.
Emmanuel Oppongagyare, 22, pleaded guilty Aug. 11, 2021, while Ralph Gregory Saint-Joie, 19, pleaded guilty the following day.
Today, U.S. District Judge Diana Saldaña imposed a 21-month-term of imprisonment for Oppongagyare, while Saint-Joie received 13 months. Both must also serve three years of supervised release following their sentences. At the hearing, the court heard additional testimony from both men. Oppongagyare remarked that, “On June 13, I made one of the worst mistakes of my life,” while Saint-Joie stated he was ashamed of what he did. In handing down the prison terms, Judge Saldaña commented, “you made a horrible mistake and you’re going to get punished for it. You’re going to go to prison,” and that the defendants were “really vested in trying to make this successful.”
Saint-Joie has been identified as an active duty member of the U.S. Army while Oppongagyare is from the Pennsylvania National Guard. At the time of arrest, each noted they were stationed at Fort Hood.
On June 13, 2021, Oppongagyare and Saint-Joie attempted to go through the Border Patrol (BP) Checkpoint in Hebbronville wearing their army-issued uniforms. Upon inspection, authorities discovered two individuals hidden in the trunk who were determined to be in the country illegally. Authorities promptly took them and the soldiers into custody. At the time of arrest, both Oppongagyare and Saint-Joie were wearing their Army-issued uniforms.
At the time of his plea, Oppongagyare admitted a person he met through Saint-Joie recruited him to pick up the aliens from McAllen and drive them to San Antonio. They expected to be paid once they arrived the destination but did not know the exact amount.
The two Mexican nationals hidden in the vehicle admitted to paying Oppongagyare and Saint-Joie a fee in exchange for passage into the United States. They also identified Oppongagyare and Saint-Joie as the driver and the passenger, respectively, of that vehicle.
The investigation determined Isaiah Gore had hired them and instructed them to wear their uniforms to possibly avoid questioning. Authorities also identified Denerio Williams and Ivory Palmer as being involved in human smuggling. Gore, Williams and Palmer were also indicted, pleaded guilty and later sentenced before U.S. District Judge Marina Garcia Marmolejo.
Both Oppongagyare and Saint-Joie were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and Department of the Army – Criminal Investigations Division conducted the investigation with the assistance of BP conducted the investigation. Assistant U.S. Attorneys Brian Bajew and Mark Hicks prosecuted the case.
Former U.S. Department of Housing and Urban Development Assistant Inspector General Convicted of Falsifying Financial Disclosure FormsRead the Press Release
A federal jury convicted a former Assistant Inspector General for the Department of Housing and Urban Development (HUD) yesterday for engaging in a scheme to conceal his financial indebtedness to a personal friend and government contractor to whom he steered tens of millions of dollars in government business.
According to court documents and evidence presented at trial, Eghbal “Eddie” Saffarinia, 62, of Alexandria, Virginia, engaged in a scheme to conceal material facts, including the nature and extent of his financial relationship with a personal friend who was the owner and chief executive officer of an information technology company. During a period in which Saffarinia received payments and loans from his friend totaling $80,000, Saffarinia disclosed confidential internal government information to his friend and undertook efforts to steer government contracts and provide competitive advantages and preferential treatment to his friend’s company. Saffarinia also failed to disclose this financial relationship and another large promissory note on his public financial disclosure forms.
Saffarinia was convicted of one count of concealing material facts, three counts of making false statements, and three counts of falsifying a record or document. He is scheduled to be sentenced on Dec. 19 and faces a maximum penalty of 80 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; Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office; and Inspector General Thomas A. Monheim of the Intelligence Community made the announcement.
The FBI Washington Field Office and the Office of the Inspector General of the Intelligence Community investigated the case.
Senior Litigation Counsel Edward P. Sullivan and Trial Attorneys Rosaleen T. O’Gara and John P. Taddei of the Criminal Division’s Public Integrity Section prosecuted the case.
Former St. Louis County High School Counselor Admits Sex, Inappropriate Conduct with StudentsRead the Press Release
ST. LOUIS – A former high school counselor in St. Louis County, Missouri on Tuesday admitted having sexual contact with one student and having inappropriate contact with nine others.
James Q. Jenkins, 38, pleaded guilty in front of U.S. District Judge Ronnie L. White to two felonies: coercion and enticement of a minor and transfer of obscene material to minors.
Between Oct. 1, 2020 to Sept. 1, 2021, while a high school counselor, Jenkins engaged in a pattern of inappropriate activity with multiple students.
Jenkins admitted approaching one 15-year-old student at school and telling her he wanted to get to know her better. The student began to go to Jenkins’ office, where they would paint or play board games. Jenkins began to contact the teen on her personal cell phone and via social media. Jenkins told the victim that he was very sexual, requested nude pictures and sent her nude pictures. He claimed he loved her and told her not to tell anyone about their communications while telling the victim that he wanted to have sex with her.
Jenkins approached another teen in the lunchroom and asked her to come see him. He soon began to compliment her body and told her that he wanted to engage in phone sex with her.
A third teen began meeting with Jenkins because of challenges at home. He started communicating with her in a sexual manner, sent her nude pictures of himself and requested pictures in return. He also engaged in sexual conduct with the teen while she was a student, on occasion leaving school early to do so. In his plea agreement, Jenkins disputed the teen’s claim that the first sexual encounter was non-consensual.
Jenkins told a fourth student that another teacher had recommended counseling. Jenkins brought up inappropriate topics, arranged to smoke marijuana with her and asked her to teach him a “sensual” dance.
About six more students reported inappropriate behavior. They told authorities that Jenkins made comments about their bodies, communicated with them on their personal cellular telephones and social media accounts, tried to make plans with them outside of school, showed them sexual videos, took his shirt off, called them by pet names and touched them in a manner that was inappropriate and uncomfortable, Jenkins’ plea agreement says.
Jenkins was counseled by school officials about concerns that he put off seeing male students in need of counseling while demonstrating alarming familiarity and frequency of contact with certain female students, his plea says.
After Jenkins quit in the summer of 2021, claiming his mother was ill, he tried to get work as an elementary school counselor. The investigation also revealed that Jenkins had been counseled and put on administrative leave by the St. Joseph School District in Missouri due to inappropriate behavior with female students, his plea says.
Jenkins is scheduled to be sentenced December 20. He faces a penalty of 10 years to life in prison and a $250,000 fine.
The St. Louis County Police Department investigated this case. Assistant U.S. Attorney Jillian Anderson prosecuted the case.
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. Led by U.S. Attorneys’ Offices and the Department of Justice 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 www.justice.gov/psc.
Former South Georgia pastor, tax preparer sentenced to federal prison for COVID-19 relief fraudRead the Press Release
BRUNSWICK, GA: A three-time convicted felon who held himself out as a pastor, mortician, restaurateur, and tax preparer has admitted lying to receive COVID-19 small business assistance.
Mack Devon Knight, 45, of Stonecrest, Ga., formerly of Kingsland, Ga., was sentenced to 29 months in prison followed by three years of supervised release after previously pleading guilty to two counts of Wire Fraud, said David H. Estes, U.S. Attorney for the Southern District of Georgia. In pleading guilty to the charges, Knight also agreed to pay $149,000 in restitution to the Small Business Administration.
“When Congress provided more than $6.5 billion through the Coronavirus Aid, Relief and Security (CARES) Act to help small businesses struggling financially during the pandemic, fraudsters like Mack Knight came out of the woodwork” said U.S. Attorney Estes. “With our law enforcement partners, we are identifying and holding accountable these scam artists attempting to steal taxpayer funds.”
As described in court documents and testimony, in February and March 2021, Knight applied for Economic Injury Disaster Loans (EIDLs) from the Small Business Administration (SBA) on behalf of multiple Camden County, Ga., businesses. Those EIDL applications falsely claimed that Knight had a series of businesses with hundreds of thousands of dollars of gross revenue prior to the COVID-19 pandemic. Knight admitted that those applications were fraudulent, and he admitted sending fictious documents to the SBA, including a fake tax document and an altered bank record.
As a result of those fraudulent filings, Knight received $149,900 from the SBA on behalf of a claimed tax business, and he used a large portion of the funds to buy a Mercedes-Benz S-Class sedan. As part of his plea agreement, Knight is forfeiting the vehicle to the United States.
Knight has at least three prior felony convictions for other acts of fraud.
“So many businesses needed federal emergency assistance to stay afloat during the pandemic, and this defendant misdirected hundreds of thousands of dollars of that money to his own pockets,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Mack Knight’s actions affected every tax paying citizen, in particular those who needed help the most. The FBI will continue to make every effort to ensure federal funds are used as intended.”
The FBI investigated the case. Knight was prosecuted for the United States by Assistant U.S. Attorneys Jonathan A. Porter and E. Greg Gilluly Jr.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Sacramento Man Pleads Guilty to Failing to File Report of Foreign Bank and Financial AccountsRead the Press Release
SACRAMENTO, Calif. — Virgil Sever Santa, 49, formerly of Sacramento, pleaded guilty today to failing to file a report of foreign bank and financial accounts (FBAR) with the Department of the Treasury, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Virgil Santa’s wife, Maria Santa, was convicted of mail fraud in 2013 and was ordered to surrender in early 2014 for service of her prison sentence. In February 2014, Virgil Santa reported to local law enforcement that his wife was missing and had left a note suggesting that she had committed suicide. Despite search efforts, Maria Santa was not found. It was later determined that she had faked her purported suicide and fled the country to avoid going to prison. Documents obtained from the Romanian government confirmed that Maria Santa eventually made her way to Romania.
According to court documents, in December 2014, Virgil Santa opened a foreign bank account at Banca Comerciala Romana S.A., in Romania, over which he had signatory authority. In April 2015, he caused over $50,000 to be wired from the United States to this foreign bank account. Bank records show that, in June 2015, Virgil Santa added his wife to the account so that she was permitted to make withdrawals in Romania. While Maria Santa was hiding in Romania from United States authorities, the couple made significant withdrawals from the account between April and August 2015.
Because Virgil Santa’s Romanian bank account had a value of over $10,000 in the 2015 calendar year, he was required by law to file an FBAR, in the form of FinCEN Form 114, with the Treasury Department by June 30, 2016. Knowing that he had a duty to file such a report, Santa willfully failed to file an FBAR by the deadline. In 2016, Virgil Santa also filed a U.S. tax return for the 2015 tax year, which also failed to disclose the existence of this foreign account.
In August 2016, federal agents found Maria Santa living as a fugitive with her husband back in Sacramento. She was arrested and eventually pleaded guilty to failing to surrender for service of her prison sentence. On Jan. 24, 2018, she was sentenced to serve a year and a day in prison consecutive to her original 20-month sentence.
This case is the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorneys Robert J. Artuz and Matthew Thuesen are prosecuting the case.
Virgil Santa is scheduled to be sentenced on Nov. 29, 2022, by U.S. District Judge Dale A. Drozd. Santa faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Macomb County Public Works Commissioner Anthony Marrocco Pleads Guilty to ExtortionRead the Press Release
DETROIT – Former Macomb County Commissioner of Public Works Anthony Marrocco pleaded guilty to extortion by withholding county permits from businessmen who refused to contribute to Marrocco’s campaign accounts, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Sarah L. Kull, Special Agent in Charge of the Detroit Field Office of IRS Criminal Investigations.
Marrocco, 73, of Ray Township, Michigan, pleaded guilty before United States District Judge Robert H. Cleland at the Port Huron, Michigan Federal Courthouse.According to the plea agreement, Marrocco served as the Commissioner of Public Works from 1993 through 2016. Marrocco pleaded guilty to Count Three of the Indictment charging him with attempted extortion of a Macomb County developer in April 2016. Marrocco admitted that he pressured the developer to spend thousands of dollars to purchase tickets to one of Marrocco’s fundraisers. Marrocco threatened to delay or withhold approval of county permits sought by the developer if he did not purchase additional tickets to Marrocco’s political fundraiser.
The extortion conviction of Marrocco is the final and most significant development in federal law enforcement’s years-long effort to aggressively investigate and prosecute corruption in suburban Detroit, and Macomb County in particular. Thus far in this effort, some twenty-three public officials and bribe-paying businessmen have been charged and convicted in connection with the Macomb County corruption probe, including two defendants convicted after jury trials, as well as the conviction and imprisonment of elected Macomb County Prosecutor Eric Smith.
United States Attorney Ison said: “The conviction of Marrocco for extortion sends a clear signal that public officials cannot use their governmental power to coerce individuals to contribute to their political campaigns. This conviction symbolizes our years-long crackdown on corruption in Macomb County that has helped to further the rule of law and good government for the county’s citizens.”
“Public officials, whether elected or appointed, hold positions of trust in the eyes of the public and that trust is broken when these officials commit crimes,” said Special Agent in Charge Sarah Kull, Internal Revenue Service – Criminal Investigation, Detroit Field Office. “If you commit a crime, status as a political leader will not protect you from federal prosecution.”
This investigation was conducted by the Federal Bureau of Investigation's Detroit Area Corruption Task Force and the Internal Revenue Service. The Detroit Area Corruption Task Force member agencies include the FBI, State of Michigan Attorney General's Office, Michigan State Police, Detroit Police Department, U.S. Customs and Border Patrol-Office of Professional Responsibility, Internal Revenue Service, and U.S. Department of Homeland Security. The case is being prosecuted by Assistant U.S. Attorneys Steven Cares and Robert Moran.
Former Donora Man Sentenced for His Involvement in Two Drug ConspiraciesRead the Press Release
PITTSBURGH - A former resident of Donora, Pennsylvania, has been sentenced in federal court to 66-1/2 months on his conviction of federal narcotics charges, United States Attorney Cindy K. Chung announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Jamie Lightfoot, Sr., 51, currently incarcerated at the Northeast Ohio Correctional Center.
According to information presented to the court, Lightfoot Sr., even though incarcerated, remained involved in a drug conspiracy involving his son, Jamie Lightfoot, Sr., and other co-defendants. Lightfoot Sr. was also involved in a conspiracy to smuggle steroids into prison during his incarceration.
United States Attorney Chung commended the Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department, and the Perryopolis Police Department, for the investigation leading to the successful prosecution of Lightfoot Sr.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former Disaster Relief Consultant and Retired NYPD Inspector Pleads Guilty to Conspiring to Commit Federal Program Fraud in Connection with New York City’s Hurricane Sandy Recovery EffortsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn Strauber, Commissioner of the New York City Department of Investigation (“DOI”), announced that WALTER MELNICK, a retired Inspector of the New York City Police Department and a disaster relief consultant, pled guilty to conspiring to commit federal program fraud in connection with his work for an Illinois-based consulting firm (“Company-1”) that provided Hurricane Sandy-related recovery services to the City of New York. MELNICK surrendered today and pled guilty before U.S. Magistrate Judge Valerie Figueredo in federal court in Manhattan. The case has been assigned to U.S. District Judge Victor Marrero.
U.S. Attorney Damian Williams said: “As New York City worked to recover from the devastation of Hurricane Sandy, Walter Melnick conspired to misuse funds that were allocated to heal the city in the wake of this disaster, instead attempting to use the funds for his own benefit. I commend the Department of Investigation and this Office for holding to account those who conspire to defraud invaluable federal programs.”
DOI Commissioner Jocelyn Strauber said: “This defendant was hired to help New York City with Hurricane Sandy relief efforts; instead, he conspired to defraud the City’s Office of Management and Budget of almost three hundred and ninety thousand dollars in federal disaster recovery funds. Today, he plead guilty to that conduct, and agreed to pay back those funds to the City. DOI thanks the Office of Management and Budget for its assistance. We will continue to work with our local and federal law enforcement partners to hold accountable those who would seek to defraud the public and to ensure that public funds are used for their intended purpose.”
According to the allegations in the Information, court filings, and statements made in court:[1]
Beginning in or about 2013, in the aftermath of Hurricane Sandy, the City of New York received billions of dollars in federal money to fund Hurricane Sandy-related recovery efforts. The City used certain of these funds to hire Company-1 to assist with Hurricane Sandy relief (the “Sandy Project”). Company-1 hired MELNICK as an independent contractor to work on the Sandy Project.
Between in or about 2013 and in or about 2019, while working on the Sandy Project for Company-1, MELNICK participated in two schemes to defraud the New York City Office of Management and Budget (“NYC-OMB”). First, between in or about January 2013 and in or about October 2017, MELNICK conspired with at least one other individual (“CC-1”) and submitted fraudulent documentation to NYC-OMB via Company-1, falsely claiming that he was renting and living in an apartment in New York in order to obtain lodging and travel reimbursements. Upon learning that this first fraudulent scheme was under investigation, MELNICK told CC-1 to lie to law enforcement. Second, between in or about 2017 and in or about 2019, while working on the Sandy Project, MELNICK conspired with at least two individuals, including another employee of Company-1 (“CC-2”) and a family member (“CC-3”), to purchase a property that CC-2 used to submit fraudulent reimbursement requests to NYC-OMB via Company-1 for lodging expenses to which CC-2 was not entitled. CC-2 transferred the proceeds from this fraudulent scheme to CC-3, who used part of the proceeds to pay the mortgage and maintenance for the property and retained the rest. In or about March 2022, MELNICK made false statements to the Government in connection with this second fraudulent scheme.
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WALTER MELNICK, 77, of Treasure Island, Florida, pled guilty to one count of conspiring to commit federal program fraud, which carries a maximum sentence of five years in prison. Under the terms of his plea agreement, MELNICK agreed to forfeit $387,749 and to pay restitution to NYC-OMB in the amount of $387,749.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge. MELNICK is scheduled to be sentenced by Judge Marrero on January 20, 2023, at 10 a.m.
Mr. Williams praised the outstanding investigative work of DOI.
This matter is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jane Kim and Catherine Ghosh are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Information constitutes only allegations, and every fact described herein should be treated as an allegation.
Former Broadcom Engineer Sentenced to Eight Months in Prison for Theft of Trade SecretsRead the Press Release
SAN JOSE – Peter Kisang Kim, a former Broadcom Inc. engineer, was sentenced today to eight months in prison for trade secret theft involving Broadcom trade secrets, announced United States Attorney Stephanie M. Hinds and FBI Special Agent in Charge Sean Ragan. The sentence was handed down by the Hon. Beth Labson Freeman, United States District Judge.
Kim, 51, a resident of Ben Lomond, pleaded guilty to the crimes on May 10, 2022. According to documents filed in the case, Broadcom is headquarted in San Jose and its products include networking chips used in equipment sold worldwide, including for enterprise and data center networking. In July 2020, Kim had been employed by Broadcom for over twenty years and worked as a principal design engineer at the company. He worked on various Broadcom products during his time at the company, including the Trident family of chips frequently used in high-volume data centers.
Kim resigned from Broadcom effective July 17, 2020, and in the days before he left Broadcom, Kim copied more than 500 Broadcom files from its document repository system. In pleading to trade secret theft, he admitted to possessing Broadcom trade secrets related to the Trident family of chips, including those contained in test plans, design verification environment files, and design specifications. He admitted that he knowingly possessed the Broadcom trade secrets knowing that he took them from Broadcom. He also acknowledged that Broadcom took reasonable measures to keep the Broadcom trade secrets secret, including by storing the trade secrets on non-public document repositories in which the access permissions were restricted, requiring appropriate nondisclosure agreements to be executed before the trade secrets could be shared outside Broadcom, and in view of the confidentiality agreements Kim signed with Broadcom and the annual trainings he received, among other things.
Less than two weeks after he left Broadcom, Kim began working as IC Design Verification Director for a startup company based in the People’s Republic of China (“PRC”). Kim acknowledged in his plea agreement that the company was seeking to become a leading chip designer focused on the PRC’s domestic market for networking chips at the time. During Kim’s employment at his new company, Kim repeatedly accessed and referenced the Broadcom trade secrets on his personal electronic devices as well as the laptop issued by his new employer, as he admitted in his plea agreement. Further, Kim reviewed the Broadcom trade secrets on his company-issued laptop while also working on verification, test plan, and architecture documents for his new employer.
Kim admitted in his plea agreement that, having taken the Broadcom trade secrets for reference purposes, he knew that having them could advance the quality of his work as an employee for his new employer and therefore economically benefit the company. Kim also admitted that he knew that his actions could injure Broadcom, including because his new employer was seeking to become a competitor to Broadcom by developing competing products abroad.
On November 4, 2021, a federal grand jury indicted Kim charging him with eighteen counts of trade secret theft associated with Broadcom. Pursuant to his plea agreement, Kim pleaded guilty to three counts. In accordance with the terms of his plea agreement, the remaining counts were dismissed today in connection with his sentencing.
In addition to the prison term, Judge Freeman imposed a three-year term of supervised release on Kim following incarceration, restitution to the victim Broadcom, and a fine.
The cases were prosecuted by Assistant U.S. Attorneys Eric Cheng and Kyle Waldinger from the Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California, with the assistance of Margoth Turcios, Kathy Tat, and Megan Pagaduan. The prosecutions are the result of investigations by the Federal Bureau of Investigation.
Former Bakersfield DMV Employee Pleads Guilty to Issuing Commercial Driver’s Licenses to Unqualified Drivers in Exchange for BribesRead the Press Release
FRESNO, Calif. — Ulises Pena, 39, a former California Department of Motor Vehicles employee in Bakersfield, pleaded guilty Monday to illegally producing California commercial driver’s licenses (CDL) in exchange for bribes, U.S. Attorney Phillip A. Talbert announced.
According to court records, Pena was a Motor Vehicle Representative at the DMV and was responsible for processing driver’s license applications. From January 2015 through August 2016, he arranged for the passage of written tests for students from co-defendant Bikramjit Singh Pannu’s truck driving school who were having trouble passing the tests in exchange for payments from Pannu. Pena improperly accessed the students’ DMV records and altered them to show that the students had passed the tests when that was not true. His alterations caused the fraudulent issuance of CDLs to the unqualified students.
This case is the product of an investigation by Homeland Security Investigations and the California DMV’s Internal Affairs Division. Assistant U.S. Attorneys Joseph Barton and David Gappa are prosecuting the case.
Charges are pending against Pannu. He is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Pena has agreed to cooperate with the government in its ongoing case against Pannu. Pena is scheduled to be sentenced by U.S. District Judge Ana de Alba on Dec. 12, 2022. Pena faces a maximum penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Food Drive Makes a difference for Those on a Fixed IncomeRead the Press Release
Staff from the United States Attorney’s Office for the Southern District of Florida (USAO-SDFL) served hundreds of locals this morning during a Farm Share Food Distribution at Gwen Cherry Park in Miami.
Staff was at it bright and early, setting up tents and tables to get food and pet supplies ready to distribute.
The line of cars stretched around the park’s main building long before 9 a.m. event kick-off. On today’s menu was whole chicken, milk, an assortment of bread, canned vegetables and pasta, as well as dog and cat food.
“I think it helps the community because we have food deserts throughout this district that we live in,” said J.D. Smith, Chief of Law Enforcement Coordination and Community Outreach Section, USAO-SDFL. “People are disabled, they’re unemployed, they’re senior citizens on a fixed income and it’s important for them to have a resource to add to whatever budget they have for food each month.”
Several people in line echoed this sentiment as they waited for their supplies.
“It helps me out a lot because it helps my social security check go a bit further,” one said. “I try to be here every time they hold one of these … if I can get up early enough. Everyone you see in line has been here for several hours.”
Another person waiting in line said, “These food drives are very important to me because I am disabled and on a fixed income.”
Department of Justice staff members hold these drives four times per month by partnering with Farm Share, Miami-Dade County Parks and Recreation, and Miami-Dade Police Department—South District. Click here for times and locations as they do change.
Anyone interested in volunteering for these events may call (305) 961-9134 to speak with someone at the U.S. Attorney’s Office.
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Federal Jury Convicts Repeat Offender of Drug Trafficking and Firearms ChargesRead the Press Release
CHARLOTTE, N.C. – A Charlotte federal jury has convicted Josue Aldana, 28, of Charlotte, of two counts of possession of a firearm by a convicted felon and one count of possession with intent to distribute marijuana, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney presided over the two-day trial, which ended today.
According to filed court documents and evidence presented at trial, on the evening of April 19, 2021, officers with the Charlotte Mecklenburg Police Department (CMPD) responded to a service call that an individual, later identified as Aldana, was causing a domestic disturbance. Trial evidence established that officers responding to the service call recovered from Aldana’s vehicle his cell phone, a pistol, and ammunition for a different caliber firearm. Aldana is a convicted felon, and he is not permitted to possess firearms.
According to evidence presented at trial, two days later, on April 21, 2021, investigators searched Aldana’s residence in Matthews, N.C. Investigators found a revolver in Aldana’s bedroom, which was loaded with the same type of ammunition found in Aldana’s vehicle two days prior. Law enforcement identified Aldana’s fingerprint on the revolver. Investigators also seized nearly a quarter kilogram of marijuana and a digital scale inside a backpack located in Aldana’s bedroom. On Aldana’s cell phone, investigators found photographs of marijuana being weighed on digital scales for distribution.
According to statements made in court during a related proceeding in August 2021, when the aforementioned events occurred, Aldana was on federal supervised release after serving a prison sentence for murder in aid of racketeering and conspiracy to commit the same from the U.S. District Court for the Eastern District of New York. Judge Whitney revoked Aldana’s supervised release based on the above-described events and ordered Aldana serve three years in federal prison.
Aldana now faces a separate sentencing hearing for today’s trial convictions, which will be set at a later date. Aldana currently remains in custody.
In making today’s announcement, U.S. Attorney King commended CMPD, the U.S. Marshals Service, and the U.S. Probation Office for their investigation of the case, and thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration for their assistance.
Assistant U.S. Attorney Taylor G. Stout, of the U.S. Attorney’s Office for the Western District of North Carolina in Charlotte, is prosecuting the case.
Dual Resident Doctor Indicted for Tax EvasionRead the Press Release
A federal grand jury recently returned a one-count indictment charging Melissa Rose Barrett, age 48, of Baton Rouge, Louisiana, and Clive, Iowa, with tax evasion. Barrett appeared for her arraignment and pled not guilty to the pending charges.
Barrett, a physician, owned and operated an urgent care clinic known as Stat Care Clinics, L.L.C. d/b/a Central Stat Care. According to the indictment, for tax years 2007 through 2017, Barrett owed significant taxes totaling approximately $1.6 million, excluding interest and penalties. While not paying her taxes, Barrett made millions of dollars in purchases, including a boat, a personal residence, real property, an airplane, and other items totaling at least $6.7 million.
This matter is being investigated by the Internal Revenue Service, Criminal Investigations Unit and is being prosecuted by Assistant United States Attorney Edward H. Warner.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Denver Felon Pleads Guilty to Weapons and Drug ChargesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Brian Shamar Thompson, age 35, of Denver, pleaded guilty to one count of possession of a firearm by a convicted felon and possession of cocaine with intent to distribute.
According to the plea agreement, on March 31, 2022, at 9:23 p.m., officers were dispatched to the 3300 block of North Cherry Street in Denver regarding a report of multiple shots fired. When officers arrived, they observed Brian Shamar Thompson, who matched the subject description, along with a white SUV which had an expired registration in his name.
While looking into the vehicle from the outside, officers observed a black pistol with an extended magazine wedged between the driver’s seat and the center console. The handle was sticking out with the barrel toward the floor. After seizure, the firearm was determined to be a Glock, model 22, .40 caliber pistol. Inserted into the semi-automatic pistol was a high-capacity magazine which was capable of holding more than 15 rounds of ammunition. The firearm was loaded with one round of .40 caliber ammunition in the chamber and twelve rounds of .40 caliber ammunition in the magazine. Multiple expended shell casings (both .40 cal. and 9mm) were located at the scene. Subsequent investigation tied seized 9mm shell cases to additional unlawful discharge investigations occurring over the preceding weeks.
Thompson was detained and placed in the back of a patrol car. When officers checked his criminal history, they found that he had been convicted of multiple felonies. Thus, he was a prohibited possessor of firearms. Notably, on June 8, 2017, Thompson was previously arrested for possession of a weapon by previous offender. Thompson pleaded guilty in United States District Court of Colorado (case #2017CR218) and was sentenced on December 1, 2017. He was on federal supervised release when he was again arrested on March 31, 2022.
When officers checked on Thompson in the back seat of the patrol car, they noticed a large amount of white powder (later determined to be cocaine) on the floor and seat of the vehicle under Thompson and on his clothing. Thompson also had a bag of cocaine in his hands behind his back.
Judge Daniel D. Domenico presided over the change of plea hearing on September 20, 2022. The defendant is scheduled to be sentenced on January 12, 2023. The defendant is in custody pending sentencing.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Denver Police Department. It is being prosecuted by Assistant United States Attorney Bradley Giles.
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.
D.C. Man Sentenced to 10 Years in Prison for Attempting to Steal More than $31 Million in COVID-19 FundsRead the Press Release
WASHINGTON – Elias Eldabbagh, 31, of Washington, D.C., was sentenced today to 10 years in prison for carrying out a scheme to steal more than $31 million under the CARES Act and laundering the proceeds of the crime. Eldabbagh succeeded in stealing $2,385,000 under the Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loan (EIDL) program.
The announcement was made by U.S. Attorney Matthew M. Graves, Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration, Office of the Inspector General.
“This defendant shamelessly took advantage of a global health crisis to create his own get-rich scheme at the expense of the government’s COVID relief programs,” said U.S. Attorney Graves. “He stole more than $2.3 million – and tried to collect many millions more – that was targeted for small businesses and employees struggling to get by. While others were suffering, this defendant was draining government money to purchase a Tesla, invest in speculative stock options and cryptocurrency, and cover rent, hotels, dog boarding, and other personal expenses. Today’s sentence holds him accountable for these crimes and demonstrates our resolve to prosecuting those who cheat government programs.”
“Elias Eldabbagh is facing the consequences of shamelessly stealing an identity and trying to steal tens of millions of dollars of taxpayer money that the CARES Act provided for legitimate business owners and employees during a time of national crisis,” said IRS-Criminal Investigation Special Agent in Charge Waldon. “Although he succeeded in fraudulently receiving nearly $2.4 million to pursue an extravagant lifestyle, it was short lived due to the efforts of our IRS-CI special agents and law enforcement partners. IRS-CI will continue to root out and pursue COVID-19-related and other financial fraudsters to hold these criminals accountable.”
“OIG relentlessly will pursue fraudsters that seek selfish gain from SBA programs intended to support American small business,” said SBA OIG’s Eastern Region Special Agent in Charge McCall-Brathwaite. “OIG is focused on rooting out bad actors in these vital SBA programs. I want to thank the Department of Justice and our law enforcement partners for their dedication and commitment to seeing justice served.”
Eldabbagh pleaded guilty on April 8, 2022, in the U.S. District Court for the District of Columbia, to wire fraud and laundering the proceeds of the wire fraud scheme. He was sentenced by the Honorable Trevor N. McFadden. Following his prison term, Eldabbagh will be placed on three years of supervised release. He also must pay $2,452,050 in restitution. The judge also ordered the forfeiture of a Tesla and seized bank accounts, as well as a money judgment in the amount of $2,385,000.
From July 2020 through May 2021, Eldabbagh used his company, Alias Systems, LLC, to fraudulently apply for at least 25 PPP loans totaling more than $30 million. He also submitted at least four false EIDL applications totaling $950,000. During the course of his scheme, Eldabbagh used a stolen identity to disguise the ownership of Alias Systems, LLC, and used the same stolen identity to submit the vast majority of the applications. In support of his fraudulent applications, Eldabbagh used stolen identities, stolen tax returns and stolen financial records from a Washington, D.C. consulting company. Eldabbagh fraudulently doctored the stolen documents to appear to be tax returns and payroll records of his company, Alias Systems, LLC. Eldabbagh successfully stole $2,385,000 from the PPP and EIDL programs.
Eldabbagh wired the proceeds of his scheme to at least 13 separate bank and brokerage accounts and to purchase a Tesla Model 3. Eldabbagh then converted at least $288,000 of proceeds from fiat currency into multiple cryptocurrencies. Using fraud proceeds, Eldabbagh conducted over 2,000 transactions involving at least 43 different cryptocurrencies.
Eldabbagh also used the money he stole to pay for rent, hotels, dog boarding, attorney fees, ride shares, electronics, and various personal expenses.
In May 2021, IRS-CI executed seizure warrants on Eldabbagh’s bank accounts and investment accounts. Eldabbagh proceeded to make multiple attempts to transfer seized funds prior to being thwarted by federal agents. As part of his plea agreement, Eldabbagh had agreed to forfeit the Tesla Model 3, the contents of 21 bank accounts, and he had agreed to liquidate his interest in the cryptocurrency obtained with proceeds and to remit the funds to the United States government.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted in or around March 2020 and was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief that had been provided by the CARES Act was the authorization of billions in forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (PPP).
An Economic Injury Disaster Loan (“EIDL”) is a Small Business Administration administered loan designed to provide assistance to small businesses that suffer substantial economic injury as a result of a declared disaster. An EIDL helped businesses meet necessary financial obligations that could have been met had the disaster not occurred. It provided relief from economic injury that the disaster caused and permitted businesses to maintain a reasonable working capital position during the period that the disaster affected.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Waldon, and Special Agent in Charge McCall-Brathwaite commended the work of those who investigated the case from IRS-CI and the SBA Office of the Inspector General. This case was prosecuted by Assistant U.S. Attorney Leslie A. Goemaat of the Fraud, Public Corruption, and Civil Rights Section, supported by Paralegal Specialist Mariela Andrade.
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On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Court of Appeals Upholds Conviction and 17½-Year Sentence for East Stroudsburg Financial Planner Who Defrauded ClientsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 19, 2022, the United States Court of Appeals for the Third Circuit affirmed both the conviction and 210-month sentence of Anthony Diaz, age 54, formerly of East Stroudsburg, Pennsylvania. That sentence was imposed by United States District Court Judge Malachy E. Mannion on March 26, 2021, after Diaz was convicted by a jury on multiple counts of wire fraud and mail fraud.
According to United States Attorney Gerard M. Karam, from approximately 2008 through April 2015, Diaz owned and operated Financial Planners Group of America, a financial planning business in East Stroudsburg and Scotrun, Pennsylvania. Diaz persuaded his clients to invest in high risk, illiquid “alternative investment products,” including real estate investment trusts, business development companies, oil and gas drilling companies, and equipment leasing companies. Diaz convinced clients to invest their life savings in the alternative investments through a series of false representations, including that the investments were low-risk, with guaranteed protection of principle and guaranteed rates of return, and that the investments were liquid, giving investors access to their funds in an emergency.
On appeal, Diaz asserted a litany of challenges to his conviction and sentence, prompting the Court of Appeals to remark, “On appeal, parties sometimes throw everything against the wall to see what sticks. Here, nothing does.” The Court of Appeals found that the government properly presented evidence of the full scope of Diaz’s scheme to defraud, including conduct occurring after the wires and mailings that were specifically charged in the indictment. For instance, evidence showed that Diaz was terminated by five broker-dealers and permitted to resign by a sixth broker-dealer. Diaz’s former employees testified that they were ordered to conceal his firings and lie to the clients about his changes between broker-dealers. Diaz also was suspended by the Certified Financial Planners Board of Standards in 2013, and under investigation by the Financial Industry Regulatory Authority and the Pennsylvania Department of Banking, both of whom ultimately barred Diaz from the securities industry in 2015. Diaz’s clients testified that he failed to disclose and concealed the true nature of his firings, suspension, and regulatory investigations.
The Court of Appeals upheld the admission of that evidence, finding the concealment of such information from clients to be intrinsic to Diaz’s offenses. Likewise, testimony that Diaz and a former employee destroyed documentation to stymy a regulatory investigation was deemed properly admitted, despite coming to light for the first time mid-trial.
In affirming Diaz’s sentence, the Court of Appeals upheld a sentencing enhancement imposed by the District Court for defrauding at least 25 victims, holding that although the District Court did not specifically identify each victim at sentencing, it was entitled to draw reasonable inferences from the record in support of the enhancement. The Court of Appeals likewise upheld four other sentencing enhancements for engaging in a scheme that involved sophisticated means, violating securities laws (even though no securities law charge was included in the indictment), having an aggravating role in directing others to engage in criminal activity, and obstruction of justice for committing perjury when testifying during trial. Overall, the Court of Appeals found Diaz’s sentence substantively reasonable, noting that the District Court sentenced him more than four years below his advisory guidelines.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Phillip Caraballo and Robert O’Hara prosecuted the case.
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Clothing Wholesaler Agrees to Plead Guilty to Violating U.S. Drug Trafficking Sanctions and Committing $6.4 Million Customs FraudRead the Press Release
LOS ANGELES – A Paramount-based clothing wholesale company has agreed to plead guilty to federal criminal charges for undervaluing imported garments in a scheme to avoid paying almost $6.4 million in customs duties and for doing business with a woman in Mexico who has ties to the Sinaloa drug cartel, the Justice Department announced today.
Ghacham Inc., which does business under the “Platini” brand name, is charged in a two-count information with conspiracy to pass false and fraudulent papers through a customhouse and conspiracy to engage in any transaction or dealing in properties of a specially designated narcotics trafficker under a statute known as the Foreign Narcotics Kingpin Designation Act.
Also charged today is Mohamed Daoud Ghacham, 38, of Bell, a Ghacham Inc. executive who is charged with one count of conspiracy to pass false and fraudulent papers through a customhouse. Both defendants also signed plea agreements filed today in United States District Court and are expected to make their initial court appearances on November 18.
According to court documents, Ghacham Inc. imported clothing from China and submitted fraudulent invoices to United States Customs and Border Protection (CBP) that undervalued the shipments, allowing it to avoid paying the full amount of tariffs owed on the imports.
At Mohamed Ghacham’s direction, the Chinese suppliers prepared two invoices for the clothing ordered by Ghacham Inc. – a true invoice, which reflected the actual price paid for the goods, and a fraudulent “customs invoice,” which reflected an understated price. Ghacham Inc. submitted the customs invoices to CBP and customs brokers to fraudulently reduce the tariffs owed on the imports, while it maintained the true invoices in its accounting records.
Ghacham Inc. and Mohamed Ghacham admitted that, between July 2011 and February 2021, they undervalued imported garments by more than $32 million and failed to pay customs duties approximately $6,390,792.
Ghacham Inc. also illegally conducted business with Maria Tiburcia Cazarez Perez in violation of the Kingpin Act, which prohibits people and businesses in the United States from doing business with her. Cazarez Perez was previously designated a “Specially Designated Narcotics Traffickers” under the Kingpin Act for her participation in the financial network of Ismael “El Mayo” Zambada Garcia and Victor Emilio Cazares Salazar, two leaders of the Mexico-based Sinaloa Cartel. Cazares Salazar was sentenced to 15 years in federal prison for drug trafficking activities in federal cases out of San Diego and New York City.
Upon entering guilty pleas, Ghacham Inc. will face a statutory maximum penalty of a $10.5 million fine and five years’ probation – during which time it will be required to implement an effective anti-money laundering compliance and ethics program with an outside compliance monitor, and Mohamed Ghacham will face up to five years in federal prison.
Homeland Security Investigations and CBP investigated this matter. The U.S. Department of Commerce Office of Export Enforcement, Treasury Department’s Office of Foreign Assets Control, and IRS Criminal Investigation provided significant assistance.
Assistant United States Attorneys Alexander B. Schwab of the Major Frauds Section and Diana L. Pauli of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Cleveland Heights Man Charged with Stealing Packages from the Mail and Cash from the United States Postal ServiceRead the Press Release
CLEVELAND - A federal grand jury has returned a two-count indictment charging Brandon Monteal Williams, 32, of Cleveland Heights, Ohio, with theft of mail by a postal employee and misappropriation of postal funds.
According to the indictment, from January to March 2022, Williams, a former mail processing clerk with the United States Postal Service and assigned to the Brooklyn, Ohio, branch, allegedly stole numerous parcels from the U.S. mail, including 10 cell phones and five pairs of high-valued sneakers totaling over $8,700.
Additionally, the indictment alleges that Williams stole not more than $1,000 in money and property from the Postal Service while employed with the agency.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This case was investigated by the U.S. Postal Service Office of Inspector General (USPS OIG) and is being prosecuted by Assistant U.S. Attorney Andrea Isabella.
Clarksville Man Sentenced to 9 Months in Federal Prison for $1.1 Million Tax Fraud SchemeRead the Press Release
NEW ALBANY – Tracy E. Leonard, 53, of Clarksville, Indiana, was sentenced to nine months in federal prison after pleading guilty to subscribing to a false federal income tax return.
According to court documents, Leonard operated a private investigation business in Clarksville. From 2015 to 2019, Leonard hid his income from the IRS by cashing 186 business income related checks, at a Clarksville check cashing business, rather than depositing the checks into a bank account. The check cashing business charged Leonard a fee of up to 10% to cash each check. During 2018 and 2019, Leonard cashed checks weekly that were typically over $25,000 and often over $50,000.
There was a significant discrepancy between the amount of the checks received and cashed by Leonard and what he reported as income on his federal income tax returns for 2015 through 2019. Leonard’s unreported income for the 5 years exceeded $1.1 million. Leonard also owes the IRS $300,339 for taxes lost due to his filing of false tax returns.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Justin Campbell, Special Agent in Charge, Chicago Field Office, IRS-Criminal Investigation, made the announcement.
U.S. Attorney Myers thanked Assistant United States Attorney James M. Warden, who is prosecuting this case.
IRS-Criminal Investigation investigated the case. The sentence was imposed by U.S. District Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Leonard be supervised by the U.S. Probation Office for two years following his release from federal prison. Restitution will be set in a future court order.
Child Sex Trafficker Sentenced to 20 Years in PrisonRead the Press Release
ANCHORAGE – An Anchorage man was sentenced by Chief U.S. District Judge Sharon L. Gleason to 20 years in prison followed by 20 years of supervised release for sex trafficking a minor and production and possession of child pornography. He was also ordered to pay $23,070 in restitution.
According to court documents, Jayshon Moore, aka “China,” 39 began having sexual encounters with the minor victim when she was 15 years old. In 2018, he created numerous sexually explicit videos of the minor which were saved on social media. Moore possessed two videos of child pornography in his Snapchat account. In the spring of 2019, Moore sex trafficked the minor victim – then 16 – setting prices, arranging transactions, and taking the money she earned from commercial sex acts.
Moore was previously convicted of drug trafficking and firearms offenses, and he was arrested in June 2019 after violating terms of his supervised release. Law enforcement executed a search of Moore’s residence and found additional evidence of sex trafficking. Moore was convicted by a federal jury in April 2022.
U.S. Attorney S. Lane Tucker of the District of Alaska and Special Agent in Charge Antony Jung of the FBI Anchorage Field Office made the announcement.
The Federal Bureau of Investigation (FBI) Child Exploitation and Human Trafficking Task Force and the Anchorage Police Department investigated the case. The task force marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims.
Assistant U.S. Attorneys Jennifer Ivers and Michael Ebell 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 U.S. Attorneys’ Offices, Project Safe Childhood combines 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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For more information about the myths and facts of human trafficking and how to get help:
National Human Trafficking Hotline
1-888-373-7888 or Text 233733
https://humantraffickinghotline.org/what-human-trafficking/myths-misconceptions
Office on Trafficking in Persons
https://www.acf.hhs.gov/otip/about/myths-facts-human-trafficking
Polaris Project
https://polarisproject.org/myths-facts-and-statistics/
Career Offender Is Sentenced to More Than 19 Years in Federal Prison for Drug TraffickingRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad Jr. sentenced Timothy Herron, 48, of Charlotte, to 235 months in prison and six years of supervised release for drug trafficking, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed documents and court proceedings, on January 7, 2021, the Charlotte-Mecklenburg Police Department (CMPD) received information through its Crime Stoppers system that an individual was storing firearms and selling narcotics from his hotel room near the Charlotte Douglas International Airport. Officers investigating the complaint determined that the individual was Herron. Subsequently, CMPD officers conducted a search of Herron’s hotel room, seizing heroin, cocaine, crack cocaine, and digital scales. The officers also seized two handguns, one of which had been reported stolen, and approximately $5,000 in cash.
On July 9, 2021, Herron pleaded guilty to possession with intent to distribute heroin, cocaine, and crack cocaine. At today’s sentencing hearing, Herron’s sentence was enhanced due to his classification as a “Career Offender” based on multiple prior convictions, including Possession with Intent to Sell/Deliver Cocaine in 1994, three charges of Robbery with Dangerous Weapon in 2000, federal Hobbs Act robbery in 2012, and Possession with Intent to Sell/Deliver Cocaine in 2018.
This case is the result of Organized Crime Drug Enforcement Task Force (OCDETF) operation which has led to the federal prosecution of more than 60 individuals for drug trafficking. Law enforcement have also seized more than 27 kilograms of cocaine, 3.5 kilograms of heroin, 29 kilograms of fentanyl, 49 kilograms of methamphetamine, 70 firearms, more than $385,000 in cash, and over $800,000 in other property.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, Homeland Security Investigations, CMPD, the Huntersville Police Department, and the Gastonia Police Department for their coordination and investigation of the case.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.