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Wednesday 3 August 2022
Californian Pleads Guilty to Supplying at Least 50 Pounds of Meth to Western PennsylvaniaRead the Press Release
PITTSBURGH, PA – A former resident of Stockton, California, pleaded guilty in federal court to violation of federal narcotics and money laundering laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
Juan Villagran, age 24, pleaded guilty to one count of conspiracy to distribute and possesses with intent to distribute 50 grams or more of methamphetamine before United States District Judge Christy Criswell Wiegand. Villagran was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that Villagran supplied at least 50 pounds of methamphetamine that was shipped from California and Nevada to Jefferson County, Clearfield County, and Allegheny County.
Judge Wiegand scheduled sentencing for Villagran on Dec. 7, 2022, at 10:00 a.m. The law provides for a sentence of not less than ten years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The court ordered that the defendant remain detained pending sentencing.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout
the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach
that leverages the strengths of federal, state, and local law enforcement agencies against criminal
networks.California Meth Dealer Pleads Guilty in Federal CourtRead the Press Release
A California man who was providing meth to dealers in Sioux City and the tri-state area pled guilty August 3, 2022, in federal court in Sioux City.
Francisco Fabian Gurrola-Garcia, age 35, from Los Angeles, California, was convicted of conspiracy to distribute methamphetamine. At the plea hearing, Gurrola-Garcia admitted to conspiring to sell methamphetamine around Sioux City and the tri-state area.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Gurrola-Garcia remains in custody of the United States Marshal pending sentencing. Gurrola-Garcia faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and 5 years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office..
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4055.
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California Man Sentenced to over 5 years in Prison for Unlawful Possession of a FirearmRead the Press Release
BOISE B A Whittier, California man was sentenced to 65 months in federal prison for the unlawful possession of a firearm.
According to court records, Alejandro Velasquez, 49, was found in the back seat of a vehicle that was stopped for a traffic violation in Nampa, Idaho. A K-9, trained to detect odors of controlled substances, positively alerted to the presence of controlled substances in the vehicle. When police searched the vehicle, they discovered approximately 100 fentanyl pills and a Ruger 9mm pistol. Velazquez was prohibited from possessing firearms because of a prior felony drug conviction from California. He admitted to possessing the firearm and that he intended to distribute the fentanyl pills found in his possession.
Velasquez has a criminal history spanning 29 years with prior state convictions for receiving stolen property, transporting controlled substances, possession of controlled substances, and manufacturing controlled substances.
U.S. District Judge Scott W. Skavdahl, from the District of Wyoming, sitting by designation, also ordered Velasquez to serve 3 years of supervised release following his prison sentence. Velasquez pleaded guilty to the charge on May 9, 2022.
U.S. Attorney Joshua D. Hurwit, of the District of Idaho, made the announcement and commended the investigation by the Nampa Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, which led to the charges.
This case was prosecuted by the Special Assistant United States Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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California Man Sentenced to 7 Years in Prison for Traveling to Syracuse Intending to Engage in Sexual Conduct with a ChildRead the Press Release
UTICA, NEW YORK – Edward Mercado, age 35, of Los Angeles, California, was sentenced today to serve 7 years in federal prison for traveling to New York from California for the purpose of engaging in illicit sexual conduct with a 10-year-old child. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his previous guilty plea, Mercado admitted that from May of 2021 through June of 2021 he engaged in numerous telephone conversations and exchanged sexually explicit text messages with an undercover officer posing as the mother of 10-year-old girl. In these telephone calls and text messages, Mercado expressed a desire to engage in sexually explicit conduct with the child. Mercado further admitted that on June 3, 2021, he traveled from California to Syracuse, New York in order to meet with the child and engage in sexual conduct with her at a location in the Ithaca area. Mercado was arrested after arriving at the Syracuse airport and has been in custody since that date.
United States District Judge David N. Hurd also imposed a 15 year term of supervised release, which will start after Mercado is released from prison, and ordered him to pay a $3,000 fine and a $100 special assessment. Mercado will also be required to register as a sex offender.
This case was investigated by the FBI Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI). The case was prosecuted by Assistant U.S. Attorney Geoffrey Brown as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
California Man Sentenced to 10 Years in Federal Prison for Drug Trafficking ConspiracyRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Fair Oaks, California, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on July 11, 2022, by U.S. District Judge Jeffrey L. Viken.
Michael Alberti, age 49, was sentenced to 10 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Alberti was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in March of 2021. He pleaded guilty on February 23, 2022. During his involvement in the conspiracy, the defendant sent methamphetamine from California to South Dakota through the U.S. Postal Service. He received money for the methamphetamine via money wires and cash. Once it arrived in South Dakota, the methamphetamine was then dispersed to others for use and further distribution.
This case was investigated by the U.S. Postal Inspector Service and the Drug Enforcement Agency. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Alberti was immediately returned to the custody of the U.S. Marshals Service.
California Businessman Pleads Guilty to Employment Tax CrimesRead the Press Release
A California businessman pleaded guilty yesterday to willfully failing to account for and pay over employment taxes to the IRS.
According to court documents, Larry Kudsk, of Berkeley, operated two construction businesses, Kudsk Construction Inc. and M. Gutierrez Inc. The companies served as a general contractor or subcontractor on various construction projects, including some government projects. For both companies, Kudsk was responsible for filing quarterly employment tax returns and collecting and paying to the IRS payroll taxes withheld from employees’ wages. Kudsk, however, did not timely file employment tax returns or pay over withholdings to the IRS, for 2014 and the last three quarters of 2015 for M. Gutierrez Inc., and for 2016 for Kudsk Construction Inc. In all, Kudsk caused a tax loss to the IRS of more than $250,000.
Kudsk is scheduled to be sentenced on November 8. He faces a maximum of five years in prison for willful failure to account for and pay over employment taxes. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Stephanie Hinds for the Northern District of California made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Charles A. O’Reilly and Julia M. Rugg of the Tax Division and Assistant U.S. Attorney Katherine Lloyd-Lovett of the U.S. Attorney’s Office are prosecuting the case.
Caldwell Man Sentenced to 5.5 years for Possession with Intent to Distribute MethamphetamineRead the Press Release
BOISE B A Caldwell man was sentenced to 66 months in federal prison for possession with intent to distribute methamphetamine.
According to court records, Shawn Simpson, 56, of Caldwell, Idaho, was found slumped over in the driver’s seat of his vehicle. During the wellness check, Caldwell police officers observed that Simpson was acting erratically. While attempting to assess whether Simpson would need medical attention, another officer deployed their K-9, which is trained to detect odors of controlled substances. The K-9 positively alerted to the presence of controlled substances in the vehicle. A subsequent search of the vehicle uncovered approximately 120 grams of methamphetamine, two digital scales, and over $700 in cash.
Simpson has a criminal history spanning 27 years with prior state convictions for petit theft, forgery, disorderly conduct, multiple convictions of possession of controlled substances with intent to deliver and multiple convictions of possession of controlled substances.
U.S. District Judge Scott W. Skavdahl, from the District of Wyoming, sitting by designation, also ordered Simpson to pay a $500 fine and to serve 5 years of supervised release following his prison sentence. Simpson pleaded guilty to the charge on February 8, 2022.
U.S. Attorney Josh Hurwit, of the District of Idaho, made the announcement and commended the investigation by the Caldwell Police Department, which led to the charges.
This case was prosecuted by the Special Assistant United States Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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Bridgeport Resident Living under a Stolen Identity for 20 Years Pleads GuiltyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ADRIAN JOSEPH, 55, a citizen of St. Lucia last residing in Bridgeport, pleaded guilty yesterday before U.S. District Judge Sarah A. L. Merriam in Bridgeport to offenses related to his acquiring federal documents under an assumed identity.
According to court documents and statements made in court, Joseph has been living in Bridgeport under an assumed identity for approximately 20 years. Using his stolen identity, Joseph has obtained from various governmental agencies multiple identity documents, including a U.S. passport, a Social Security Account Number card, a City of Bridgeport voting registration card, and a Connecticut driver’s license from the Connecticut Department of Motor Vehicles (“CT DMV”). In February 2020, Joseph visited the CT DMV in Norwalk and, using fraudulent identity documents, successfully applied for and received a REAL ID driver’s license.
During the investigation, the individual whose identity Joseph used informed the government that his identity documents were stolen in the late 1990s.
Joseph pleaded guilty to one count of use of a passport secured by a false statement, which carries a maximum term of imprisonment of 10 years, and one count of false representation of a social security account number, which carries a maximum term of imprisonment of five years. Judge Merriam scheduled sentencing for October 25.
Joseph has been detained in federal custody since January 31, 2021.
This matter is being investigated by the U.S. Department of State, Diplomatic Security Service and the Social Security Administration Office of Inspector General, with the assistance of the U.S. Marshals Service Fugitive Task Force, Connecticut Department of Motor Vehicles Police and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Bridgeport Man Sentenced to 30 Months in Prison for Role in Lottery and Romance Fraud SchemesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that STANLEY PIERRE, 35, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for his participation in lottery and romance scams that defrauded primarily elderly victims across the country of millions of dollars.
According to the evidence presented during a trial in this matter, in a lottery scam, scammers notify victims by telephone, through online communications, or by mail, that they have won the lottery. The victims are then told that in order to collect the prize they must pay fees for things like taxes, shipping and processing. Often, once a victim sends a small amount of money, a scammer will ask for larger sums of money with a promise of more winnings. The victims never receive winnings. In a romance scam, scammers take advantage of people looking for companionship by pretending to be prospective companions. Scammers typically create fake online profiles on dating websites that include false personal details such as the death of a spouse, or military service, to lure victims to trust them. Once they have gained the trust of victims, scammers will ask victims for money, falsely claiming to need money for medical or business emergencies, for travel to see the victim, or other purposes.
Between approximately August 2015 and March 2020, Farouq Fasasi, Rodney Thomas, Jr. and others used lottery scams, romance scams and other fraudulent means to induce elderly victims to provide them with money, gifts and personal details. Victims sent cash, money orders or checks through the mail to various addresses in Connecticut, and also wired or deposited money into bank accounts in Connecticut controlled by conspiracy members and their associates.
Fasasi, Thomas, and other co-conspirators lived together for a time at a residence on Sherman Avenue in New Haven, where many packages containing cash, checks and money orders from victims were delivered.
Pierre used his personal bank accounts and also established business bank accounts to launder money obtained from fraud victims. Some victims transferred money directly into these bank accounts, and checks that were mailed to the Sherman Avenue residence were also deposited into the accounts. For example, in November 2018, $78,373 was deposited into one of Pierre’s business accounts and approximately $58,000 was withdrawn. In December 2018, approximately $91,000 was deposited and more than $116,000 was withdrawn.
Pierre also recruited others to lauder proceeds from the scheme.
The investigation revealed that these scams defrauded more than 200 victims across the U.S. of more than $5 million. Many of the victims were elderly and vulnerable, and some victims lost their life savings. One Connecticut victim lost more than $1 million.
On January 27, 2022, Pierre pleaded guilty to one count of money laundering.
On February 15, 2022, Fasasi, Thomas and Ralph Pierre were found guilty of multiple charges stemming from this scheme. On June 28, 2022, Ralph Pierre was sentenced to 36 months of imprisonment. Fasasi and Thomas await sentencing.
Two other individuals have been charged and convicted of offenses stemming from their participation in this scheme.
Pierre, who is released on a $100,000 bond, is required to report to prison on September 21.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311). For more information, please visit. https://ovc.ojp.gov/program/stop-elder-fraud/providing-help-restoring-hope.
This matter is being investigated by the U.S. Postal Inspection Service, Treasury Inspector General for Tax Administration (TIGTA), Homeland Security Investigations (HSI), U.S. Secret Service, U.S. Army-CID, and New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Heather L. Cherry and Stephanie T. Levick.
Boise Man Sentenced to over 4 Years for Possession of Child PornographyRead the Press Release
BOISE – Justin Yount, 51, of Boise, was sentenced to 57 months in federal prison for possession of child pornography.
According to court records, the investigation began after a citizen witness reported to the Boise Police Department (“BPD”) that she had observed child pornography on Yount’s laptop computer. The witness turned the laptop over to BPD, who obtained a search warrant for Yount’s Boise residence and seized additional electronic devices. During a forensic examination of the devices, BPD located over one thousand files of child pornography. During an interview with BPD, Yount admitted to viewing child pornography.
United States District Judge Scott Skavdahl, from the District of Wyoming, sitting by designation, also ordered Yount to serve 15 years of supervised release following his prison sentence, to forfeit the electronic devices that were used to commit the offense, and to pay $15,000 in restitution to the victims in the images he possessed. As a result of the conviction, Yount will be required to register as a sex offender.
U.S. Attorney Joshua Hurwit, of the District of Idaho, made the announcement and commended the cooperative efforts of the Boise Police Department and the Intermountain West’s Regional Computer Forensics Laboratory which led to charges.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Birmingham Man Sentenced to 25 years in Prison for Sexually Exploiting a MinorRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced a Birmingham man on sex trafficking a minor and sexual exploitation of children, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
United States District Judge Karon O. Bowdre sentenced Jeremy Lynn Alexander, 36, of Birmingham, to 300 months in prison followed by a lifetime of supervised release for sex trafficking a minor and sexual exploitation of children. Alexander pleaded guilty to this charge in November 2020.
According to the plea agreement, on or about July 16, 2021, FBI Birmingham’s Child Exploitation and Human Trafficking Task Force received a priority lead regarding a 14-year-old female reported missing out of Madison, Wisconsin. FBI Birmingham and Homewood Police Special Investigations Unit launched an immediate investigation to find and recover the child. They located her through an advertisement on a website known for commercial sex advertisements. A task force officer responded to the number posted in the advertisement and arrangements were made to meet the victim at a specific location. Members of the task force responded to a local hotel and located the minor victim in the hotel room with Alexander. Further investigation revealed child sexual abuse material involving Alexander and the minor victim located on Alexander’s cell phone. This conviction will require Alexander to register as a sex offender in accordance with the Sex Offender Registration and Notification Act (SORNA).
“I am very grateful for the swift response of the Homewood Police Department and FBI who located and recovered the child victim in this case,” said U.S. Attorney Escalona. “The interstate trafficking of children for the purpose of sexual exploitation is a despicable crime, and my office will make every effort to find and prosecute those who commit this offense.”
“I’m proud of the work of the FBI Birmingham’s Child Exploitation and Human Trafficking Task Force and our partners at the Homewood Police Department to bring Alexander to justice and rescue this young victim. We will not stop our pursuit of those who victimize the most vulnerable members of our community” said FBI SAC Johnnie Sharp, Jr.
FBI Birmingham's Child Exploitation Human Trafficking Task Force (CEHTTF) investigated the case, with the assistance of the Homewood Police Special Investigations Unit. Assistant United States Attorney Darius Greene and Assistant United States Attorney R. Leann White prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Birmingham Man Sentenced to 15 Years in Prison for Cocaine Trafficking ConspiracyRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced a Birmingham man in connection with his involvement in a 2018 cocaine trafficking conspiracy, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Anna M. Manasco sentenced Prentice Delawrence Tanniehill, 46, of Birmingham, Alabama, to 180 months in prison. Tanniehill pleaded guilty in February to conspiracy to possess with the intent to distribute more than five kilograms of cocaine, five separate instances of distributing cocaine, and five counts of using a telephone to commit a drug crime.
“Multiple law enforcement agencies worked together with our Organized Crime Drug Enforcement Task Force to disrupt this drug trafficking conspiracy and put Tanniehill in prison,” said U.S. Attorney Escalona. “Our efforts to reduce the flow of illegal drugs into our communities depend on the skill and determination of our law enforcement partners, and we are grateful for their excellent work in this case.”
“I’m proud of the outstanding work by the FBI North Alabama Safe Streets Task Force to remove Tanniehill from the streets and hold him accountable for his actions,” said FBI SAC Johnnie Sharp, Jr.
The indictment charged Tanniehill with a cocaine distribution conspiracy that involved over five kilograms of cocaine and spanned from July 2017 to October 2018. During this time, Tanniehill sold cocaine to an FBI confidential source on five distinct occasions.
This case is a part of the Organized Crime Drug Enforcement Task Force (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.
FBI investigated the case along with the Birmingham Police Department, Jefferson County Sheriff’s Office, and member agencies of the FBI North Alabama Safe Streets Task Force. Assistant U.S. Attorney Gregory R. Dimler prosecuted the case.
Arizona Man Sentenced for Role in Investment Fraud SchemeRead the Press Release
PORTLAND, Maine: An Arizona man was sentenced today in U.S. District Court in Portland for conspiring to commit wire fraud, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge John A. Woodcock, Jr., sentenced Arthur Merson, 68, of Scottsdale, Arizona to 15 months in prison and three years of supervised release. Merson was also ordered to pay over $3.4 million in restitution to victims. He pleaded guilty on January 24, 2022.
According to court records, in 2017 and 2018, Merson participated in a scheme to defraud involving investments in Standby Letters of Credit (SBLCs). Investors were promised that they could receive a portion of the value of an SBLC, worth millions of dollars, for a much smaller initial investment. Investors were promised returns equal to many times the amounts of their initial investments in a matter of weeks. They were also promised that their money would remain in the attorney trust account of a co-conspirator—who at the time was a licensed attorney in Florida—until confirmation was received that the SBLC had been issued.
In his role as an intermediary between investors and the principal members of the conspiracy, Merson falsely represented to investors that the investment was not risky and that he had been involved in similar successful deals in the past. He also falsely represented that he was an independent consultant who was only going to receive a small finder’s fee, and claimed not to know the details of the transaction or the payouts the clients could expect. In fact, he had a significant independent financial interest in the investment transaction that he affirmatively misled investors about as he responded to investor inquiries.
Two co-defendants, Russell Hearld and Christopher Ochoa, were both sentenced to 29 months in prison on January 24, 2022, and February 11, 2022, respectively.
The FBI investigated the case.
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Akron Man Charged with Buying House and Tesla with Drug Trafficking Proceeds and Defrauding SBARead the Press Release
An Akron man was arrested today and charged in a 26-count indictment with using proceeds obtained from the sale of controlled substances and a wire fraud scheme to purchase a residence in Akron and a Tesla vehicle on separate occasions.
Nicholas R. Crawford, 41, of Akron, Ohio, was charged with 23 counts of money laundering, one count of wire fraud, one count of theft of government funds and one count of engaging in monetary transactions in property derived from specified unlawful activity.
According to the indictment, in June 2018, it is alleged that the defendant purchased a home for $325,000 in Akron, Ohio, using funds that contained proceeds derived from drug trafficking. The indictment states that the defendant knew the proceeds involved were obtained through unlawful means and initiated wire and electronic transfers with the intent to conceal the nature of the drug trafficking funds.
Additionally, the indictment alleges that in July 2020, the defendant defrauded the Small Business Administration (SBA) by submitting a fraudulent COVID-19 Economic Injury Disaster Loan (EIDL) application with fictitious information in order to receive relief funding to which he was not entitled. It is alleged that the defendant intentionally misrepresented personal and financial information in order to obtain an SBA EIDL loan. The indictment states that the defendant then used $105,500 in SBA EIDL loan funding for personal expenses despite certifying that the loan proceeds would only be used for designated business expenses.
In December 2020, court records state that the defendant purchased a 2020 Tesla Model X, using proceeds from the EIDL loan and from the sale of controlled substances.
Crawford is scheduled to be arraigned today before of Judge Donald C. Nugent in Cleveland.
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 FBI, IRS Criminal Investigations (CI) and Akron Police Department. This case is being prosecuted by Assistant U.S. Attorney Damoun Delaviz.
Tuesday 2 August 2022
Woonsocket Man Sentenced to Five Years in Prison for Trafficking Crack CocaineRead the Press Release
PROVIDENCE – A Woonsocket man who led a crack cocaine distribution operation, and who attempted to disguise his involvement by having others deliver drugs that he had arranged to sell, has been sentenced to five years in federal prison, announced United States Attorney Zachary A. Cunha.
According to court documents, during an FBI Safe Streets Task Force and Project Safe Neighborhoods investigation into the sale of crack cocaine in and around Woonsocket in early 2020, Anthony Medeiros, 31, arranged at least four sales of crack cocaine, utilizing text messaging, phone calls, and Snapchat.
On each occasion, in an effort to insulate himself from responsibility for his role in trafficking crack cocaine, Medeiros utilized a “runner” to deliver the drugs that he sold. In at least one instance, Medeiros had his girlfriend deliver crack cocaine that he had arranged to sell.
Arrested and detained in federal custody in October 2020, and indicted in November 2020, Medeiros pleaded guilty on May 6, 2021, to conspiracy to distribute cocaine base; distribution of cocaine base; and two counts of distribution of 28 grams or more of cocaine base. He was sentenced on Monday by U.S. District Court Judge Mary S. McElroy to 60 months of incarceration to be followed by 4 years of federal supervised release.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant U.S. Attorney Stacey P. Veroni.
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Woman Admits Committing Health Care Fraud While Awaiting Sentencing in Another Health Care Fraud CaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that on July 29, 2022, NICOLE STEINER, formerly known as Nicole Balkas, 32, formerly of Stratford and now residing in Edison, New Jersey, pleaded guilty in Bridgeport federal court to a health care fraud offense that she committed while awaiting sentencing in another health care fraud case.
According to court documents and statements made in court, on April 28, 2021, Steiner pleaded guilty to one count of health care fraud related to her operation of Helping Hands Academy, LLC, in Bridgeport, which provided applied behavior analysis services to children diagnosed with Autism Spectrum Disorder (ASD), and was enrolled as a participating provider in the Connecticut Medicaid Program (“Medicaid”). From December 2018 to October 2020, Steiner submitted and caused to be submitted fraudulent claims to Medicaid for applied behavior analysis services that were purportedly provided to Medicaid clients. She submitted claims for dates of service when no applied behavior analysis services of any kind had been provided to the Medicaid clients identified in the claims, and she inflated the number of hours for certain claims even when applied behavior analysis had been provided to the Medicaid clients identified in the claims. Steiner also submitted false Medicaid claims in 2020 using a former employee’s name and performing provider number.
After the Connecticut Department of Social Services (DSS), which administers the Medicaid program in Connecticut, terminated Helping Hands Academy as a provider, Steiner made several false statements and submitted an altered document to DSS in an effort to rescind the termination and to receive payment for previously submitted claims.
Medicaid suffered a loss of $551,311.85 as a result of Steiner’s admitted conduct.
After her guilty plea, Steiner was released on a $50,000 bond. While she was awaiting sentencing in her case, Steiner was a silent partner in another company that provided applied behavior analysis services to children diagnosed with ASD called New Beginnings Children’s Behavioral Health LLC. Steiner was responsible for billing claims to Medicaid, managing payroll, and recruiting and screening potential employees, and she and had access to and used her business partner’s email and other online accounts to operate the company. Steiner and the company engaged in health care fraud by billing Medicaid for thousands of dollars in services not rendered and, in particular, billing for services not rendered by Steiner.
Steiner was arrested on May 2, 2022.
Steiner is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on October 21, 2022. She faces a maximum term of imprisonment of 20 years for the new case, part of which must be imposed consecutively to the sentence she receives in her initial health care fraud case.
Pending sentencing Steiner is released on a $250,000 bond in home detention and under electronic monitoring.
This investigation is being conducted by the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation.
U.S. Attorney Avery acknowledged the valuable cooperation of the Connecticut Department of Social Services in the investigation.
This case is being prosecuted by Assistant U.S. Attorney David T. Huang.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Westbrook Man Admits Illegally Baiting Ducks in Violation of the Migratory Bird Treaty ActRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and James Casey, Regional Chief, Division of Refuge Law Enforcement, announced that DAVID FOSTER, 51, of Westbrook, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to violating the Migratory Bird Treaty Act.
According to court documents and statements made in court, in late September and early October 2020, after receiving an anonymous complaint, the Connecticut Environmental Conservation Police (EnCon) and U.S. Fish and Wildlife Service personnel investigated the spreading of whole kernel corn around a hunting blind on Menunketesuck Island in Westbrook. Foster had received a summons for waterfowl baiting/taking violations in the same area in October 2009. On October 10, 2020, which was the opening day of duck hunting season, officers who had established surveillance near the duck blind observed Foster and two other hunters shoot and retrieve ducks over the area that had been baited. When they finished, officers conducted a compliance check. Under questioning, Foster admitted that he had spread corn over the hunting area to attract ducks.
Judge Dooley scheduled sentencing for October 28, 2022, at which time Foster faces a maximum term of imprisonment of one year and a fine of up to $100,000.
This matter has been investigated by the U.S. Fish and Wildlife Service, Division of Refuge Law Enforcement, and the Connecticut Environmental Conservation Police. This case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
West Georgia Man Pleads Guilty to Possessing with Intent to Distribute 765 Grams of Fentanyl and Fentanyl AnalogueRead the Press Release
COLUMBUS, Ga. – A Columbus resident with a lengthy criminal history pleaded guilty to attempting to distribute nearly 500 grams of fentanyl and 265 grams of a fentanyl analogue.
Michael Schlarman, aka White Mike, 31, pleaded guilty to possession of fentanyl with intent to distribute before U.S. District Judge Clay Land today and faces a mandatory minimum sentence of ten years up to a maximum of life imprisonment to be followed by at least five years of supervised release and a maximum $10,000,000 fine. Sentencing is scheduled for Nov. 29.
“Simply put, illicit fentanyl use kills. A single two milligram dose is potentially lethal, and Michael Schlarman was in possession of approximately 380,000 doses of this drug,” said U.S. Attorney Peter D. Leary. “In 2021, overdose deaths in America hit an all-time high; our office and our law enforcement partners at every level are working to combat the spread of fentanyl – and save lives – in every community across the Middle District of Georgia.”
“While in the midst of this country’s opioid epidemic, deadly drugs like fentanyl continue to ravage many communities,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Consequently, DEA and its law enforcement partners will relentlessly pursue drug dealers like Michael Schlarman who choose to ‘push’ poison in the community for consumption. This defendant will now spend time in federal prison.”
According to court documents and other evidence, on Jan. 26, members of the Muscogee County Sheriff’s Office (MCSO), Drug Enforcement Administration (DEA), Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF) and FBI executed a search warrant at Schlarman’s residence on Wagner Drive in Columbus. Schlarman fled from the rear of the house but was later arrested with the help of DEA Air Support and escorted back to the house without incident. Inside the defendant’s residence, law enforcement found 496.4 grams of fentanyl and 265.5 grams of p-Fluorofentanyl (a fentanyl analogue), plus a Glock 9mm with an extended magazine and a Taurus 9mm with magazine and ammunition. In addition, agents found multiple jars of a cutting agent for drugs, digital scales, a 20-ton hydraulic press, a variety of drug paraphernalia and cash. Schlarman has a lengthy criminal history, including three prior burglary convictions in Muscogee County, Georgia, Superior Court.
The case was investigated by the Muscogee County Sheriff’s Office, DEA, ATF, and FBI.
Assistant U.S. Attorney Christopher Williams is prosecuting the case for the Government.
Wentzville man charged with three St. Louis County armed robberiesRead the Press Release
ST. LOUIS – A man from Wentzville, Mo. appeared in court Tuesday to face charges accusing him of three armed robberies or attempted robberies of St. Louis County businesses and the discharge of a firearm during one of the incidents.
Matthew Sabir, 37, was indicted July 27 in U.S. District Court in St. Louis on three robbery charges, one count of discharging a firearm during a crime of violence and one count of brandishing a firearm during a crime of violence.
He appeared in court briefly Tuesday and is scheduled to appear again Friday.
The indictment accuses Sabir of the armed robbery of a White Castle restaurant at 7380 Olive Boulevard in University City on June 22, the attempted robbery of a BP gas station at 4403 North Hanley Road in Berkeley on June 23 and another robbery of the White Castle that same day. During the second White Castle robbery, Sabir shot at employees, the indictment alleges.
One employee was struck multiple times, court documents say.
Within hours of the second set of robberies, University City and Berkeley police cooperated in identifying Sabir as a suspect.
The robbery charges carry a maximum penalty of 20 years in prison. The discharge of a firearm charge carries a mandatory minimum sentence of 10 years in prison and the brandishing charge carries a minimum 7-year term.
Sabir is also facing charges in St. Louis County Circuit Court.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the FBI, the University City Police Department and the Berkeley Police Department. Assistant U.S. Attorney Linda Lane is prosecuting the case.
Washington State Man Sentenced in Fictitious Social Security Scheme Targeting East Texas ElderlyRead the Press Release
BEAUMONT, Texas – A Kirkland, Washington man has been sentenced to federal prison for fraud violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Aakash Kalpesh Gandhi, 28, pleaded guilty on Nov. 4, 2021, to conspiracy to commit mail fraud and was sentenced to 51 months in federal prison today by U.S. District Judge Marcia Crone. Judge Crone also ordered Gandhi ordered to pay restitution his victims, many of whom are elderly. The exact amount has not yet been determined.
“We need help getting the word out to look out for our neighbors,” said U.S. Attorney Brit Featherston. “Our greatest generation is constantly being attacked by phone and computer scammers. Tricked, our elderly and some not-so elder generations are falling prey to phone scammers who threaten them with jail time if they don’t withdraw, package and mail money across the country. No government agency will threaten you with jail over the phone and then demand cash be wrapped in foil and mailed. Scoundrels like Gandhi take advantage of our senior citizens and he was part of a very large network that houses hundreds of callers who spend their days calling and scamming. When in doubt about a possible scam call or email, contact someone you trust and ask them if the call is legitimate or contact your local law enforcement. Gandhi’s scam would have been thwarted if a victim would have simply googled ‘social security phone scams,’ and the very quick search result would show the phone call was a scam. Preventing someone from being a victim is a lot easier than trying to recover the stolen money after the fact.”
According to information presented in court, Gandhi and his co-conspirators operated a scheme designed to defraud victims throughout the United States. Co-conspirators from call centers based in India would target unsuspecting victims claiming that those victims would suffer financial ruin or criminal liability if they did not immediately send money to correct fictional problems often involving the victim’s social security benefits. To enhance the viability of the scheme, co-conspirators fraudulently identified themselves as government agents to their unsuspecting victims.
Gandhi tracked currency shipments for the conspiracy and recovered packages of United States currency shipped by those who had been victimized by the scheme, including victims within the Eastern District of Texas. Gandhi would receive a fee from a portion of the contents of those packages and deliver the remaining currency to co-conspirators. A majority of the funds were ultimately distributed to various locations in India. Gandhi was indicted by a federal grand jury in Beaumont on July 8, 2021.
The U.S. Attorney’s Office has made a concerted effort to not only prosecute those involved with these illegal activities, but to educate and inform the public on the many fraudulent schemes targeting our seniors and how to avoid them. Assistant U.S. Attorneys across the Eastern District of Texas have visited various senior facilities and community groups to provide outreach and educate the public on how to protect themselves and their families. Groups or organizations that are interested in securing a speaker for their event should contact Assistant U.S. Attorney Camelia Lopez at 972-509-1201.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case was investigated by Homeland Security Investigations in Seattle and Houston, the Seattle (WA) Police Department, Department of Human Services-OIG, Treasury Inspector General for Tax Administration (TIGTA), and the Beaumont Police Department. This case was prosecuted by Assistant U.S. Attorney Jonathan C. Lee.
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Wapello Man Sentenced to Six Months in Federal Prison for Failing to File Income Tax ReturnsRead the Press Release
DES MOINES, IA – Bradley Earl Ewart, age 51, of Wapello, was sentenced Monday, August 1, 2022, to 6 months in prison for failing to file income tax returns. Ewart pleaded guilty on March 24, 2022, to two counts of failure to file income tax returns, one for each of the calendar years 2016 and 2018. The Court imposed a three-month prison sentence on each count, to be served consecutively. Following completion of his prison term, Ewart will be on supervised release for one year. The Court imposed a $20,000 fine.
Since approximately 2004, Ewart has owned and operated Louisa County Millwright, LLC, a business that specializes in grain elevator work, material handling, steel building installation, and fabrication. Ewart failed to file federal income tax returns for the years 2004 to 2014. As part of his plea, Ewart admitted that he knowingly and willfully failed to file tax returns for the years 2015, 2016, 2017, and 2018. Ewart remains responsible for paying his tax liability in full.
“Mr. Ewart admitted that he repeatedly failed to file his federal income tax returns the majority of the time his business was in operation,” said Tyler Hatcher, Special Agent in Charge for the Internal Revenue Service (IRS) – Criminal Investigations. “Earning prison time and a $20,000 fine for this offense sends a clear message that we all have the responsibility to file accurate returns on time and pay our fair share of taxes.”
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. IRS Criminal Investigations investigated the case. The case was prosecuted by Assistant United States Attorney Adam J. Kerndt.
Utica Man Sentenced to 15 Years for Receiving and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – John Seiselmyer, age 50, of Utica, New York, was sentenced today to serve 15 years in federal prison for receiving and possessing child pornography, announced United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police (NYSP) Superintendent Kevin P. Bruen.
As part of his previous guilty plea, Seiselmyer, admitted that from February 2020 to June 2020 he used a laptop computer to download child pornography over the internet using peer-to-peer file sharing software. A subsequent search of Seiselmyer’s apartment revealed that he was in possession of over 9,000 images and 955 video files depicting child pornography. Seiselmyer is a registered sex offender who was convicted in 2007 of Criminal Sexual Act in the First Degree involving a victim who was less than 11 years old.
Chief United States District Judge Glenn T. Suddaby also imposed a 25 year term of supervised release, which will start after Seiselmyer is released from prison, and ordered him to pay a $200 special assessment and restitution in the amount of $30,000. Seiselmyer will also be required to continue to register as a sex offender.
Seiselmyer’s case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), with assistance from the Utica Police Department. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
United States Attorney Adair Boroughs, Justice Department Leadership to Participate in National Night Out Events in Charleston to Promote Community-Police PartnershipsRead the Press Release
CHARLESTON, SOUTH CAROLINA —United States Attorney Adair F. Boroughs will join Deputy Attorney General Lisa O. Monaco to participate in the 39th Annual National Night Out today as part of a department-wide effort to bring attention to events that build stronger communities.
Established in 1984 from a Department of Justice Bureau of Justice Assistance (BJA) grant, the goal of National Night Out is to build relationships with and between communities and law enforcement. National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, better places to live. In most areas of the country, the program culminates annually on the first Tuesday of August.
“I am honored to join our law enforcement partners and community members for National Night Out,” said U.S. Attorney Boroughs. “South Carolina is safer when police officers and the communities they protect see their common goals and build relationships.”
OPEN PRESS
National Night Out in the Greater Charleston Area
WHO: Deputy Attorney General Lisa O. Monaco and United States Attorney Boroughs will attend two National Night Out events in Charleston with both the Charleston Police Department and North Charleston Police Departments.
WHEN: Tuesday, Aug. 2, 2022 approximately 5:30 - 7:30 p.m. EDT
WHERE: Eastside National Night Out with the Charleston Police Department at Mall Park 68 Columbus Street, Charleston, SC
North Charleston Police Department National Night Out at Riverfront Park 1061 Everglades Avenue, Charleston, SC
For information on National Night Out events in your community, visit https://natw.org/.
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U.S. Justice Department Seeks Seizure of Boeing 747 Cargo Plane Grounded in ArgentinaRead the Press Release
WASHINGTON – The U.S. Department of Justice transmitted a request to Argentinian authorities today to seize a Boeing 747-300M cargo plane following the unsealing of a seizure warrant in the U.S. District Court for the District of Columbia. The warrant, which was issued on July 19, 2022, alleges that the U.S.-made plane is subject to forfeiture based on violations of U.S. export control laws related to the unauthorized transfer of the plane from Mahan Air, an Iranian airline affiliated with the Islamic Revolutionary Guard Corp-Qods Force (IRGC-QF), a designated terrorist organization, and Empresa de Transporte Aéreocargo del Sur, S.A. (EMTRASUR), a Venezuelan cargo airline and subsidiary of Consorcio Venezolano de Industrias Aeronáuticas y Servicios Aéreos, S.A (CONVIASA), a Venezuelan state-owned company.
In 2008, the Department of Commerce issued, and has since periodically renewed, a Temporary Denial Order prohibiting Mahan Air from, among other things, engaging in any transaction involving any commodity exported from the United States that is subject to the Export Administration Regulations. As alleged in the seizure warrant, in or around October 2021, Mahan Air violated the Temporary Denial Order and U.S. export control laws when it transferred custody and control of the Boeing aircraft to EMTRASUR without U.S. Government authorization. Additional violations of U.S. export control laws subsequently occurred between February and May 2022 when EMTRASUR reexported the aircraft between Caracas, Venezuela; Tehran, Iran; and Moscow, Russia, without U.S. Government authorization.
Further, as alleged in the seizure warrant, in June 2022, Argentinian authorities detained the flight crew of the Boeing aircraft, including five Iranians. The registered captain of the aircraft was identified as an ex-commander for the IRGC and a shareholder and member of the board of Iranian airline Qeshm Fars Air. Argentinian law enforcement also searched the aircraft and found a Mahan Air flight log documenting the aircraft’s flights after the unlawful transfer to EMTRASUR, including a flight to Tehran, Iran, in April 2022. Mahan Air was designated in 2011 by the U.S. Department of the Treasury’s Office of Foreign Asset Control (OFAC) for providing material support to the IRGC-QF, and Qeshm Fars Air was designated in 2019 for being controlled by Mahan Air and for providing material support to the IRGC-QF.
In addition, CONVIASA, EMTRASUR’s parent company, was designated by OFAC in 2020, and its fleet was blocked pursuant to Executive Order in 2019. Concurrent with today’s action, the Department of Commerce issued a Temporary Denial Order denying the export privileges of EMTRASUR for 180 days with the possibility of renewal.
“The Department of Justice will not tolerate transactions that violate our sanctions and export laws,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Working with our partners across the globe, we will give no quarter to governments and state-sponsored entities looking to evade our sanctions and export control regimes in service of their malign activities.”
“The seizure of this aircraft demonstrates our determination to hold accountable those who seek to violate U.S. sanctions and export control laws,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “We will aggressively seek to prevent sanctioned entities from gaining access to America-made items or profiting from their illegal transfer. Working with our federal and international partners, we will be unflagging in our efforts to bring to justice those who violate these sanctions and to seize assets where appropriate and lawful.”
“Today’s coordinated actions target the unlawful transfer of an Iranian cargo plane to a Venezuelan airline and the airline’s subsequent operation of that plane in violation of our rules,” said Assistant Secretary of Export Enforcement Matthew S. Axelrod of the U.S. Department of Commerce’s Bureau of Industry and Security. “We will continue to take significant and direct enforcement action against foreign airlines operating U.S.-origin aircraft in violation of U.S. export controls.”
“This seizure demonstrates the FBI’s persistence in using all of our tools to hold the Iranian Government and affiliated individuals and companies accountable when they violate U.S. laws,” said Acting Assistant Director of Counterterrorism Kevin Vorndran of the FBI. “The FBI, along with our international partners, will continue to seek out those individuals who contribute to the advancement of Iran’s malign activities and ensure they are brought to justice, regardless of where, or how, they attempt to hide.”
This matter is being investigated by the Department of Commerce, Bureau of Industry and Security’s Miami Field Office and the FBI Miami Field Office.
Assistant U.S. Attorney Rajbir Datta of the U.S. Attorney’s Office for the District of Columbia, Assistant U.S. Attorney Andy Camacho of the Southern District of Florida, and Trial Attorney Elizabeth Abraham of the Counterintelligence and Export Control Section are handling the seizure and investigation, with assistance from Paralegal Specialist Brian Rickers and Legal Assistant Jessica McCormick. The Justice Department’s Office of International Affairs provided significant assistance in working with the Argentinian authorities.
A photograph of the TARGET Aircraft from Sept. 6, 2019 with the Mahan Air livery and logo. A photograph of the TARGET Aircraft from Jan. 23, 2022 with the EMTRASUR livery and logo.U.S. Attorney Vanessa R. Waldref to Take Part in Spokane’s National Night Out Against Crime to Promote Community-Police PartnershipsRead the Press Release
Spokane – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that members of her office will participate in community events held as part of Spokane’s National Night Out Against Crime this evening at various events in the Spokane area. U.S. Attorney Waldref, along with United States Attorneys and Department of Justice officials from across the country, are partnering with local law enforcement to attend National Night Out Events throughout the nation.
Established in 1984 from a Department of Justice Bureau of Justice Assistance (BJA) grant, the goal of National Night Out is to build relationships with and between communities and law enforcement. National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, better places to live. In most areas of the country, the program occurs annually on the first Tuesday of August. This year, approximately 40 National Night Out Events are scheduled in various Spokane neighborhoods.
“Building safe and strong communities is a Justice Department priority,” said U.S. Attorney Waldref. “When we build trust and support within the communities we serve, law enforcement is most effective. This is why events such the National Night Out are so important. By bringing community members and law enforcement officers together, we help to bridge the gap and build trust between law enforcement officers and the neighborhoods they serve.”
National Night Out with U.S. Attorney Waldref
WHO: U.S. Attorney for the Eastern District of Washington Vanessa R. Waldref will join officials from the U.S. Attorney’s Office and the Spokane Police Department at various locations in Spokane.
WHEN: Tuesday, August 2, 2022 from approximately 4:00 – 8:00 p.m. EDT
WHERE: Cannon Park, 1511 N Elm St, Spokane, WA 99201
Glass Playfield, 627 E Heroy Ave, Spokane, WA 99207
For more information on National Night Out events, visit https://natw.org/. For information about event at Cannon Park, visit https://www.facebook.com/events/5167445383359861/.
U.S. Attorney Dena J. King Takes Part in National Night OutRead the Press Release
CHARLOTTE, N.C. – Dena J. King, U.S. Attorney for the Western District of North Carolina, will join residents, law enforcement, community organizations, and community
leaders to commemorate the 39th Annual National Night Out.
U.S. Attorney King and her staff will visit neighborhoods throughout the Charlotte area today hosting National Night Out events.
Established in 1984 from a Department of Justice Bureau of Justice Assistance (BJA) grant, the goal of National Night Out is to strengthen relationships between communities and law enforcement. National Night Out is a community-building and crime prevention campaign that promotes collaborative law enforcement community partnerships. Each year, communities nationwide participate in neighborhood events, block parties, festivals, safety demonstrations, seminars, and activities that heighten crime and drug prevention awareness and generate support for and participation in local anticrime efforts. These events help strengthen neighborhood ties, foster police-community partnerships, and demonstrate a shared commitment for safe communities.
“National Night Out is an opportunity for neighbors, community organizations, businesses and community leaders to join forces with law enforcement in building community-based partnerships. Bridging the gap between law enforcement and the community and promoting mutual trust is vital to increasing public safety, and that begins with getting to know the people we serve and protect,” said U.S. Attorney King.
For more information about National Night Out, please visit www.natw.org.
Two women admit armed robbery of Billings Heights casino; discarding loaded firearms on elementary school propertyRead the Press Release
BILLINGS — Two women accused of stealing liquor at gunpoint from a Billings Heights casino, firing a warning shot while fleeing and ultimately discarding two loaded firearms on elementary school property admitted robbery and firearms charges, U.S. Attorney Jesse Laslovich said.
Taliah Jeneane Ramirez, 22, of Billings, pleaded guilty today to a superseding information charging her with robbery affecting commerce, possession of a firearm in furtherance of a crime of violence and possession of a firearm in a school zone. Co-defendant Makyla Shayd Fetter, 28, of Harlem, pleaded guilty on July 28 to the same charges.
Ramirez and Fetter each face a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the robbery crime and a mandatory minimum seven years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the crime of possessing a firearm in a crime of violence. In addition, the defendants face a maximum of five years in prison, not to be run concurrent to any other sentence, a $250,000 fine and three years of supervised release, on the crime of possession of a firearm in a school zone.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The government alleged in court documents that on March 20, Fetter and Ramirez entered the Magic Diamond Casino in the Billings Heights, and Fetter removed five bottles of Southern Comfort liquor from a shelf. When an employee approached Fetter and asked to see her identification, Fetter pulled out a pistol, pointed it at the clerk and said, “here’s your (obscenity) ID.” Meanwhile, another employee had moved to block the doors. Fetter then pointed the firearm at the second employee, who moved away from the doors. The defendants got into a Buick, and before leaving, Ramirez took out another pistol and fired a round into the air. In a statement later, Ramirez said that Fetter told her to fire a round to prevent people from following them or identifying the vehicle.
The government further alleged that the Billings Police Department responded to the robbery and attempted a traffic stop of the Buick. The car fled at more than 80 mph, and the officer stopped a pursuit after a few blocks to avoid risks to civilians. The vehicle crashed a short time later after going through a fence at Ponderosa Elementary School. Law enforcement officers found the car abandoned with multiple bottles of Southern Comfort on the front passenger floorboard. During a search of the area, officers found Fetter, who was attempting to hide in grass next to a fence. Ramirez had fled. Officers searched Fetter but did not find a firearm. However, officers found a loaded gun that had been dropped in the middle of the playground. The next day, the school principal contacted the Billings Police Department about a second firearm that had been found on the school grounds by a student, who summoned a faculty member. A police officer determined that the second firearm also was loaded. Both firearms were determined to have been stolen.
Assistant U.S. Attorney Colin M. Rubich is prosecuting the case, which was investigated by the FBI, Billings Police Department, Yellowstone County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Two arrested in $39M personal protection equipment fraud schemeRead the Press Release
HOUSTON – Two suburban Houston men have been charged with conspiracy to commit and committing wire fraud during the COVID-19 pandemic involving medical-grade nitrile gloves, announced U.S. Attorney Jennifer B. Lowery.
Authorities took Caleb Jordan McCreless, 32, Richmond, and Christopher Luke McGinnis, 39, Spring, into custody today. They are expected to make their initial appearance before U.S. Magistrate Judge Yvonne Ho at 2 p.m. Aug. 3.
The six-count indictment returned July 28 charges McCreless and McGinnis with conspiracy to commit wire fraud. McCreless also faces an additional five counts of wire fraud.
The indictment alleges McCreless purported to have access to medical-grade nitrile gloves during the ensuing demand for medical personal protection equipment amidst the COVID-19 pandemic. Medical companies allegedly paid him $39 million to buy the in-demand gloves. However, McCreless did not have any gloves at all and never delivered them to anyone that had made purchases, according to the charges.
McGinnis served as a logistics operator and delayed or stalled the delivery process when companies became concerned about their order of gloves not arriving, according to the charges.
Healthcare professionals who were on the frontlines during the fight against COVID-19 were expected to use the gloves, according to the charges.
As a result of this scheme, one victim allegedly lost over $13 million.
The indictment also includes the forfeiture of the residence of McCreless in Ft. Bend County which is valued at over $2 million. The charges allege the house was purchased with money profited during the scheme.
If convicted, both men face up to 20 years in federal prison and a possible $250,000 maximum fine.
The FBI and Harris County Constable’s Office - Precinct 1 conducted the investigation. Assistant U.S. Attorney Thomas H. Carter is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Two Men Indicted in Separate Bankruptcy Fraud SchemesRead the Press Release
SAN JUAN, Puerto Rico – Jorge Droz Yapur and Yamil Fonseca Salgado were indicted by a federal Grand Jury in relation to separate bankruptcy fraud schemes, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.
Jorge Droz Yapur was indicted in a bankruptcy fraud scheme for making materially false representations from May 2019 to August 2021 in order to defraud creditors as part of a bankruptcy proceeding, In re: Jorge Droz Yapur, Case No. 19-02999(MCF), all in violation of 18 U.S.C. § 157. Additionally, he is charged with nine counts of concealment of assets during his bankruptcy proceedings in violation of 18 U.S.C. § 152, and eight counts of making false statements in relation to such bankruptcy proceedings, in violation of 18 U.S.C. § 152.
The indictment alleges that during his bankruptcy proceedings, Jorge Droz Yapur concealed assets and income by using a bank account in his adult son’s name. It further alleges that Jorge Droz Yapur testified under oath that his mother was at an elderly home and provided Puerto Rico tax returns as part of the bankruptcy proceedings wherein he claimed his mother as a dependent between the years 2015, 2016, 2017 and 2018, when in fact, he knew his mother had passed away in the year 2011.
If convicted, Jorge Droz Yapur may be sentenced to up to five years of imprisonment for each violation of 18 U.S.C. § 157 and § 152, a two hundred and fifty thousand dollar fine, and three years of supervised release.
Separately, Yamil Fonseca Salgado was indicted in a bankruptcy fraud scheme where it is alleged that he made materially false representations between April 2018 and May 2022 in five separate bankruptcy cases in order to defraud his minor child of child support payments, all in violation of 18 U.S.C. § 157. Additionally, he is charged with one count of willful failure to pay approximately $107,200 in child support payments in violation of 18 U.S.C. § 228, and thirteen counts of false statements during his bankruptcy proceedings, in violation of 18 U.S.C. § 152.
The indictment alleges that Yamil Fonseca Salgado concealed in several bankruptcy filings, assets, income and his connection to a maintenance company by the name of CMM Janitorial, Inc. The indictment further alleges that Yamil Fonseca Salgado concealed, in several bankruptcy filings, that he received money transfers via ATH Móvil from the bank account of a construction company controlled by close family members. A Construction company which in turn collected monies from the public housing management company Yamil Fonseca Salgado worked for, and that he further received money through the use and control of a Banco Popular de Puerto Rico bank account in his grandmother’s name where he accessed funds for routine personal expenses.
If convicted, Yamil Fonseca Salgado may be sentenced to up to two years for violating 18 U.S.C. § 228, five years of imprisonment for each violation of 18 U.S.C. § 157 and § 152, a two hundred and fifty thousand dollar fine, and three years of supervised release.
“The fraudulent use of bankruptcy and other court proceedings to defraud creditors or defraud children of child support payments are of grave concern, and the U.S. Attorney’s Office remains vigilant in the effort to hold accountable those who would defraud the government,” said U.S. Attorney Muldrow.
“Together with U.S. Attorney Muldrow and our law enforcement partners, we will continue to pursue fraud and abuse in bankruptcy cases,” stated Mary Ida Townson, U.S. Trustee for Georgia, Florida, Puerto Rico, and Virgin Islands (Region 21). “I am thankful for the appointment by the U.S. Attorney of two Special Assistant U.S. Attorneys from our San Juan office that will allow us to prosecute all those who engage in fraudulent conduct.” The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
“As the primary investigative agency responsible for addressing bankruptcy fraud, the FBI takes these cases very seriously. The relief offered by federal bankruptcy proceedings can be life-saving for honest individuals who have fallen on hard times due to legitimate reasons. Unfortunately, bankruptcy can also be used by wrong doers for a variety of sinister reasons,” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “This not only causes creditors to lose money, but also results in higher fees and even higher taxes for the innocent. We urge the public to report bankruptcy fraud by contacting the U.S. Trustees Program at [email protected] or to the FBI by calling 787-987-6500 or visiting tips.FBI.gov”.
“We are proud to be a part of the team that brought defendant Fonseca Salgado to justice for evading his child support obligations,” said Scott J. Lampert, Special Agent in Charge of the Office of Inspector General’s New York Regional Office which also covers Puerto Rico. “The Office of Inspector General will continue to work closely with our law enforcement partners to ensure that individuals like the defendant are held accountable for their actions when they violate the law.”
Both cases were referred to the U.S. Attorney’s Office for prosecution by the San Juan office of the U.S. Trustee. The Jorge Droz Yapur matter was investigated by the FBI and is being prosecuted by Special Assistant U.S. Attorney José Capó Iriarte from the Office of the U.S. Trustee. The Yamil Fonseca Salgado matter was investigated by the U.S. Department of Health and Human Services of Inspector General (HHS-OIG) and is being prosecuted by Special Assistant U.S. Attorney José Capó Iriarte and Special Assistant U.S. Attorney José C. Díaz Vega from the Office of the U.S. Trustee.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Three Men, Who Acquired and Transferred Almost 1,000 Guns, Charged with Firearms TraffickingRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned three indictments charging Radamés Revilla-Machín, Roberto Miranda-Schmidt, and Luis Matos-Rosa with the unlicensed business of dealing in firearms, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is in charge of the investigation, with the collaboration of the Puerto Rico Police Bureau (PRPB).
According to the indictments, since 2012 Revilla-Machín and Miranda-Schmidt have transferred over 820 firearms in Puerto Rico. Since 2019, Matos-Rosa has transferred over 100 guns. Several of these transfers occurred within 72 hours of the defendants’ acquisitions of the guns. The three defendants advertised guns for sale on websites, such as comprayventadearmas.com and pewpewpr.com. None of these individuals had a license to sell firearms. In 2019, ATF sent Revilla-Machín a letter advising him to stop engaging in the unlicensed business of dealing in guns.
“Working with our local partners to tackle violent crime is a top priority of the Justice Department,” said U.S. Attorney Muldrow. “Today’s arrests are yet another example of our commitment to combating violent crime and illegal firearms trafficking. We will continue to investigate and disrupt the networks that put guns into our communities -- oftentimes with tragic consequences.”
“Today’s arrests mark significant strides in ATF and PRPB efforts to combat firearms trafficking Puerto Rico,” said Christopher A. Robinson, Special Agent in Charge of ATF Miami Field Division. “This collaborative effort enhances our violent crime prevention strategy by apprehending those who place firearms in the hands of criminals.”
Assistant U.S. Attorneys Linet Suárez and Jonathan Gottfried of the Violent Crimes and National Security Section are in charge of the prosecution of the case. If convicted, each defendant faces a sentence of up to five years in prison.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Syracuse Man Sentenced to 84 Months for Drug ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Carlos Esteras, 41, of Syracuse, NY was sentenced today to serve 84 months in prison following his conviction for conspiring to distribute and possess with intent to distribute fentanyl and possessing fentanyl with the intent to distribute, announced United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his prior guilty plea, Esteras admitted that between June and July 2021, he conspired with others to distribute fentanyl in the Syracuse, NY area. Esteras personally distributed or possessed with intent to distribute at least 124 grams of fentanyl. Esteras had previously been convicted of three felony and 15 misdemeanor offenses in state court.
Chief United States District Judge Glenn T. Suddaby also sentenced Esteras to a four-year term of supervised release to begin after he serves his term of imprisonment and ordered him to pay a forfeiture judgment in the amount of $5,760, which represented the proceeds from drug sales.
This case was investigated by the DEA-Syracuse Resident Office, which includes Task Force Officers from the City of Auburn Police Department, the City of Syracuse Police Department, the New York State Police, and the Oneida County Sheriff’s Office. Other agencies that assisted in this investigation included the New York State Police, the Onondaga County Sheriff’s Office, the Onondaga County District Attorney’s Office, the U.S. Department of Homeland Security-Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.
St. Louis man sentenced to five years in prison for gun crime after domestic violence incidentRead the Press Release
ST. LOUIS – A convicted felon from St. Louis who was caught with a gun by police responding to a domestic violence incident was sentenced by U.S. District Judge Catherine D. Perry Tuesday to five years in federal prison.
De’Aliz’e Jones, 25, pleaded guilty in May to a charge of being a felon in possession of a firearm. He admitted that on Dec. 30, 2020, he argued with his girlfriend at an apartment in the 3600 block of Shaw Boulevard in St. Louis, resulting in a call to police.
Jones said he’d been kicked out of his apartment. Officers found Jones’ girlfriend with a cut lip, a bloody nose and a large bruise on her forehead. They also noticed that Jones had a Glock 17 9mm semi-automatic pistol with a large capacity magazine on his ankle, and arrested him for being a felon in possession of a firearm.
Jones has two prior robbery convictions and a conviction on a 2018 domestic violence charge and was on probation at the time of the incident.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Zachary Bluestone prosecuted the case.
Sixteen Members of Own Every Dollar Gang Charged in Manhattan Federal Court with Racketeering and Narcotics OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Frank A. Tarentino III, the Special Agent-in-Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), Keechant Sewell, the Commissioner of the New York City Police Department (“NYPD”), and Kevin P. Bruen, the Superintendent of the New York State Police (“NYSP”), announced the unsealing of an Indictment charging 16 members and associates of the Own Every Dollar (or “OED”) gang, a subset of the Trinitarios, with committing various racketeering, narcotics, and firearms offenses, including murder and attempted murder.
JOWENKY NUNEZ, JR., a/k/a “Juju,” JERRIN PENA, a/k/a “Rooga,” a/k/a “Perry,” JUSTIN DEAZA, a/k/a “Booka,” a/k/a “Pepito,” WILSON MENDEZ, a/k/a “Tati,” BRIAN HERNANDEZ, a/k/a “Malikai,” HUGO RODRIGUEZ, a/k/a “Juice,” MAYOVANEX RODRIGUEZ, a/k/a “Menorcito,” JOHANN ZAPATA, a/k/a “Zapata,” ELVIS TREJO, a/k/a “Po Po,” STEVEN JOAQUIN, a/k/a “Baby Gunz,” IYAURY RODRIGUEZ-ROSARIO, a/k/a “Bricha,” JOWENKY NUNEZ, SR., a/k/a “Bala,” ARGENIS TAVAREZ, a/k/a “Nose,” a/k/a “A-Kash,” VICTOR COLON, a/k/a “V,” JOSE GUTIERREZ, a/k/a “G,” and NIJMAH MARTE, a/k/a “N,” a/k/a “Nena,” are members or associates of the OED gang.
The Indictment charges five defendants—JOWENKY NUNEZ, JR., JERRIN PENA, BRIAN HERNANDEZ, MAYOVANEX RODRIGUEZ, and IYAURY RODRIGUEZ-ROSARIO—with committing one or more of a total of five murders in the Bronx and Manhattan. Eleven of the defendants—JOWENKY NUNEZ, JR., JERRIN PENA, JUSTIN DEAZA, WILSON MENDEZ, BRIAN HERNANDEZ, HUGO RODRIGUEZ, ELVIS TREJO, STEVEN JOAQUIN, IYAURY RODRIGUEZ-ROSARIO, JOWENKY NUNEZ, SR., and ARGENIS TAVAREZ—are charged with committing one or more of a total of 12 attempted murders.
U.S. Attorney Damian Williams said: “Our indictment alleges that for the past four years, OED has wreaked havoc in this City – committing multiple murders, numerous armed robberies, shootings, assaults, and also dealing dangerous drugs, including fentanyl. The defendants charged today include OED’s leadership and some of the gang’s most violent members, who we allege murdered five victims over the past four years, committed 13 shootings, and committed seven robberies or attempted robberies. The charges we unseal today required the partnership and dedication of our law enforcement partners. It required us to work together, side by side, across jurisdictions, to protect the people. I want to thank all of our partners here today for their hard work on these and so many other investigations.”
DEA Special Agent-in-Charge Frank Tarentino said: “These arrests and seizures amplify our commitment and focus to safeguard our communities from the perils of violent crime, and the destruction that follows. The DEA works in partnership with our law enforcement partners having two goals in mind: saving lives and making our communities healthy and safe. I applaud the U.S. Attorney’s Office, Southern District of New York and the New York Drug Enforcement Task Force comprising DEA, NYPD, and NYSP for their diligence and commitment to this impactful investigation.”
NYPD Commissioner Keechant Sewell said: “These individuals lived by a brutal code of street violence – where firearms were recklessly pulled out and indiscriminately fired, where innocent lives were disregarded, where families and neighborhoods were traumatized and torn apart. Now they will no longer be able to terrorize New Yorkers. And make no mistake: Organized groups like this do terrorize. They sow fear and disorder, and they show zero respect for the lives of the people who reside and work in the neighborhoods where they wreak havoc. The vast resources and untiring efforts of the NYPD and our law enforcement partners, across multiple agencies, are concentrated on the nexus of gangs, guns, and drugs that drive much of the crime in New York City. And all the people we serve are safer today because of our collaboration.”
NYSP Superintendent Kevin P. Bruen said: “The charges brought today against these dangerous individuals are a direct result of the vigilant work conducted by law enforcement partners. These partnerships were instrumental in shutting down this racketeering operation, took dangerous drugs and weapons off our streets, and interrupted heinous crimes in our neighborhoods. Let this be a strong message that New York State will not tolerate those who bring drugs and violence into our communities.”
As alleged in the Indictment unsealed today in Manhattan federal court and in statements made in court filings[1]:
OED Acts of Violence
The following murders, attempted murders, shootings, and gunpoint robberies and attempted robberies were perpetrated in part so that the following members and associates of OED could maintain or increase their positions in the OED racketeering enterprise operating in the Southern District of New York:
- On August 31, 2018, JOWENKY NUNEZ, JR. shot and killed Nicolas Vargas in the vicinity of 232nd Street in the Bronx, and aided and abetted the same.
- On April 14, 2019, JOWENKY NUNEZ, JR. and JERRIN PENA shot and killed Hector Cruz in the vicinity of West 135th Street in Manhattan, and aided and abetted the same.
- On January 24, 2020, JOWENKY NUNEZ, JR., BRIAN HERNANDEZ, WILSON MENDEZ, STEVEN JOAQUIN, and ARGENIS TAVAREZ shot at a rival gang member in the vicinity of West 136th Street in Manhattan, and aided and abetted the same.
- In February 2020, JOWENKY NUNEZ, JR., JERRIN PENA, BRIAN HERNANDEZ, and ARGENIS TAVAREZ shot at rival gang members in the vicinity of West 138th Street in Manhattan, and aided and abetted the same.
- On March 30, 2020, JOWENKY NUNEZ, JR. and STEVEN JOAQUIN shot at a rival narcotics trafficker in the vicinity of West 180th Street in Manhattan, and aided and abetted the same. Photographs of NUNEZ, JR. (on the left) and JOAQUIN (on the right) committing that shooting are below:
- On April 18, 2020, JOWENKY NUNEZ, SR. shot at an individual in the vicinity of Audubon Avenue in Manhattan, and aided and abetted the same.
- On May 13, 2020, JUSTIN DEAZA and WILSON MENDEZ shot at rival narcotics traffickers in the vicinity of West 184th Street in Manhattan, and aided and abetted the same.
- On May 15, 2020, BRIAN HERNANDEZ shot at a rival narcotics trafficker in the vicinity of West 188th Street in Manhattan, and aided and abetted the same.
- On June 26, 2020, JOWENKY NUNEZ, JR., STEVEN JOAQUIN, and IYAURY RODRIGUEZ-ROSARIO shot at rival narcotics traffickers during a high-speed chase through Washington Heights in Manhattan, and aided and abetted the same.
- On July 2, 2020, JOWENKY NUNEZ, JR., BRIAN HERNANDEZ, and IYAURY RODRIGUEZ-ROSARIO shot and killed Richard Dominguez and Israel Cabrera in the vicinity of Sedgewick Avenue in the Bronx, and aided and abetted the same.
- On July 5, 2020, JOWENKY NUNEZ, JR. and IYAURY RODRIGUEZ-ROSARIO shot at rival gang members in the vicinity of West 136th Street in Manhattan, and aided and abetted the same.
- On July 18, 2020, JOWENKY NUNEZ, JR. shot at an individual in the vicinity of West 183rd Street in Manhattan, and aided and abetted the same.
- On October 22, 2020, JOWENKY NUNEZ, JR. and JUSTIN DEAZA shot at individuals in the vicinity of Valentine Avenue in the Bronx, and aided and abetted the same.
- On December 13, 2020, WILSON MENDEZ robbed an individual at gunpoint, in the vicinity of West 188th Street in Manhattan, and aided and abetted the same.
- On August 12, 2021, HUGO RODRIGUEZ and JOWENKY NUNEZ, SR. engaged in a shootout with each other in the vicinity of West 183rd Street in Manhattan, and aided and abetted the same. A photograph of NUNEZ, SR., committing that shooting is below:
- In August 2021, JUSTIN DEAZA robbed an individual at gunpoint, in the vicinity of West 28th Street in Manhattan, and aided and abetted the same.
- In September 2021, JUSTIN DEAZA attempted to rob an individual at gunpoint, in the vicinity of the FDR Drive in Manhattan, and aided and abetted the same.
- In September 2021, JUSTIN DEAZA and WILSON MENDEZ robbed an individual at gunpoint, in Queens, and aided and abetted the same.
- On January 22, 2022, JOWENKY NUNEZ, JR., JERRIN PENA, ELVIS TREJO, and STEVEN JOAQUIN robbed and shot several individuals in the vicinity of West 145th Street in Manhattan, and aided and abetted the same.
- On February 7, 2022, MAYOVANEX RODRIGUEZ shot and killed Anthony Savarese in the vicinity of Andrews Avenue in the Bronx, and aided and abetted the same.
- On February 14, 2022, HUGO RODRIGUEZ and ELVIS TREJO robbed several individuals at gunpoint in the vicinity of West 203rd Street in Manhattan, and aided and abetted the same.
- On March 4, 2022, JOWENKY NUNEZ, JR. and ELVIS TREJO shot at a rival gang member in the vicinity of Dyckman Street in Manhattan, and aided and abetted the same. A photograph of NUNEZ, JR., committing that shooting is below:
Narcotics Trafficking and Firearms Use
Between 2018 and July 2022, JOWENKY NUNEZ, JR., JERRIN PENA, JUSTIN DEAZA, WILSON MENDEZ, BRIAN HERNANDEZ, HUGO RODRIGUEZ, MAYOVANEX RODRIGUEZ, JOHANN ZAPATA, ELVIS TREJO, STEVEN JOAQUIN, IYAURY RODRIGUEZ-ROSARIO, JOWENKY NUNEZ, SR., ARGENIS TAVAREZ, VICTOR COLON, JOSE GUTIERREZ, and NIJMAH MARTE conspired to distribute and possess with intent to distribute fentanyl, heroin, cocaine, crack cocaine, oxycodone, ecstasy, and marijuana. In addition, these defendants used, carried, and possessed firearms in furtherance of their narcotics trafficking, and aided and abetted the same.
Firearms Trafficking
Between May 2020 and October 2020, JOWENKY NUNEZ, JR., JERRIN PENA, and IYAURY RODRIGUEZ-ROSARIO unlawfully obtained approximately thirteen firearms in Pennsylvania and transported those firearms to New York for use by members of OED.
* * *
H. RODRIGUEZ, 26, M. RODRIGUEZ, 27, ZAPATA, 20, TREJO, 21, JOAQUIN, 20, and NUNEZ, SR., 39, were all arrested yesterday, and will be presented today before United States Magistrate Judge Katharine H. Parker. Today, RODRIGUEZ-ROSARIO, 41, was arrested and will be presented in the Eastern District of Pennsylvania. NUNEZ, JR., 20, PENA, 20, DEAZA, 21, MENDEZ, 20, HERNANDEZ, 22, COLON, 24, GUTIERREZ, 20, and MARTE, 22, were charged in a prior indictment and have been presented on those charges. TAVAREZ, 23, has not been arrested at this time. This case is assigned to United States District Judge J. Paul Oetken.
Charts containing the names, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the NYPD and DEA. Mr. Williams also thanked the Manhattan District Attorney’s Office, the Bronx District Attorney’s Office, the Office of the Special Narcotics Prosecutor, the New York State Police, and the NYPD Task Force Officers assigned to this Office for their assistance in the investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Kevin Mead, Sarah L. Kushner, and Ashley C. Nicolas are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
DEFENDANT(S)
MAX. TERM OF IMPRISONMENT
Count One: Conspiracy to Commit Racketeering
(18 U.S.C. § 1962(d))
Jowenky Nunez, Jr.
Jerrin Pena
Justin Deaza
Wilson Mendez
Brian Hernandez
Hugo Rodriguez
Mayovanex Rodriguez
Johann Zapata
Elvis Trejo
Steven Joaquin
Iyaury Rodriguez-Rosario
Jowenky Nunez, Sr.
Argenis Tavarez
Life Imprisonment
Count Two: Murder in Aid of Racketeering
(18 U.S.C. §§ 1959(a)(1) and 2)
Jowenky Nunez, Jr.
Brian Hernandez
Iyaury Rodriguez-Rosario
Death or a Mandatory Minimum Sentence of Life Imprisonment
Count Three: Use of a Firearm to Commit Murder (18 U.S.C. § 924(j)(1))
Jowenky Nunez, Jr.
Brian Hernandez
Iyaury Rodriguez-Rosario
Death or Life Imprisonment; Mandatory Minimum Sentence of 5 years
Count Four: Murder in Aid of Racketeering
(18 U.S.C. §§ 1959(a)(1) and 2)
Jowenky Nunez, Jr.
Brian Hernandez
Iyaury Rodriguez-Rosario
Death or a Mandatory Minimum Sentence of Life Imprisonment
Count Five: Use of a Firearm to Commit Murder
(18 U.S.C. §§ 924(j)(1) and 2)
Jowenky Nunez, Jr.
Brian Hernandez
Iyaury Rodriguez-Rosario
Death or Life Imprisonment; Mandatory Minimum Sentence of 5 years
Count Six: Murder in Aid of Racketeering
(18 U.S.C. §§ 1959(a)(1) and 2)
Mayovanex Rodriguez
Death or a Mandatory Minimum Sentence of Life Imprisonment
Count Seven: Use of a Firearm to Commit Murder (18 U.S.C. §§ 924(j)(1) and 2)
Mayovanex Rodriguez
Death or Life Imprisonment; Mandatory Minimum Sentence of 5 years
Count Eight: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Brian Hernandez
Argenis Tavarez
20 years’ Imprisonment
Count Nine: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii), and 2)
Brian Hernandez
Argenis Tavarez
Life Imprisonment; Mandatory Minimum Sentence of 10 years
Count Ten: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Jerrin Pena
Brian Hernandez
Argenis Tavarez
20 years’ Imprisonment
Count Eleven: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii), and 2)
Jerrin Pena
Brian Hernandez
Argenis Tavarez
Life Imprisonment; Mandatory Minimum Sentence of 10 years
Count Twelve: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Jowenky Nunez, Sr.
20 years’ Imprisonment
Count Thirteen: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii), and 2)
Jowenky Nunez, Sr.
Life Imprisonment; Mandatory Minimum Sentence of 10 years
Count Fourteen: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Justin Deaza
Wilson Mendez
20 years’ Imprisonment
Count Fifteen: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii), and 2)
Justin Deaza
Wilson Mendez
Life Imprisonment; Mandatory Minimum Sentence of 10 years
Count Sixteen: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Brian Hernandez
20 years’ Imprisonment
Count Seventeen: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii), and 2)
Brian Hernandez
Life Imprisonment; Mandatory Minimum Sentence of 10 years
Count Eighteen: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Jowenky Nunez, Jr.
Steven Joaquin
Iyaury Rodriguez-Rosario
20 years’ Imprisonment
Count Nineteen: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii), and 2)
Jowenky Nunez, Jr.
Steven Joaquin
Iyaury Rodriguez-Rosario
Life Imprisonment; Mandatory Minimum Sentence of 10 years
Count Twenty: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Jowenky Nunez, Jr.
Iyaury Rodriguez-Rosario
20 years’ Imprisonment
Count Twenty-One: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii) and 2)
Jowenky Nunez, Jr.
Iyaury Rodriguez-Rosario
Life Imprisonment; Mandatory Minimum Sentence of 10 years
Count Twenty-Two: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Jowenky Nunez, Jr.
20 years’ Imprisonment
Count Twenty-Three: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii), and 2)
Jowenky Nunez, Jr.
Life Imprisonment; Mandatory Minimum Sentence of 10 years
Count Twenty-Four: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Jowenky Nunez, Jr.
Justin Deaza
20 years’ Imprisonment
Count Twenty-Five: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii), and 2)
Jowenky Nunez, Jr.
Justin Deaza
Life Imprisonment; Mandatory Minimum Sentence of 10 years
Count Twenty-Six: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Hugo Rodriguez
20 years’ Imprisonment
Count Twenty-Seven: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii), and 2)
Hugo Rodriguez
Life Imprisonment; Mandatory Minimum Sentence of 10 years
Count Twenty-Eight: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Jowenky Nunez, Sr.
20 years’ Imprisonment
Count Twenty-Nine: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii), and 2)
Jowenky Nunez, Sr.
Life Imprisonment; Mandatory Minimum Sentence of 10 years
Hobbs Act Robbery (18 U.S.C. §§ 1951 and 2)
Jowenky Nunez, Jr.
Jerrin Pena
Elvis Trejo
Steven Joaquin
20 years’ Imprisonment
Count Thirty-One: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii), and 2)
Jowenky Nunez, Jr.
Jerrin Pena
Elvis Trejo
Steven Joaquin
Life Imprisonment; Mandatory Minimum Sentence of 10 years
Count Thirty-Two: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Jowenky Nunez, Jr.
Elvis Trejo
20 years’ Imprisonment
Count Thirty-Three: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii), and 2)
Jowenky Nunez, Jr.
Elvis Trejo
Life Imprisonment; Mandatory Minimum Sentence of 10 years
Count Thirty-Four: Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3) and 2)
Wilson Mendez
20 years’ Imprisonment
Count Thirty-Five: Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3) and 2)
Justin Deaza
20 years’ Imprisonment
Count Thirty-Six: Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3) and 2)
Justin Deaza
20 years’ Imprisonment
Count Thirty-Seven: Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3) and 2)
Justin Deaza
20 years’ Imprisonment
Count Thirty-Eight: Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3) and 2)
Justin Deaza
Wilson Mendez
20 years’ Imprisonment
Count Thirty-Nine: Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3) and 2)
Hugo Rodriguez
Elvis Trejo
20 years’ Imprisonment
Count Forty: Conspiracy to Distribute Controlled Substances (21 U.S.C. § 846)
Jowenky Nunez, Jr.,
Jerrin Pena
Justin Deaza
Wilson Mendez
Brian Hernandez
Hugo Rodriguez
Mayovanex Rodriguez
Johann Zapata
Elvis Trejo
Steven Joaquin
Iyaury Rodriguez-Rosario
Jowenky Nunez, Sr.
Argenis Tavarez
Victor Colon
Jose Gutierrez
Nijmah Marte
Life Imprisonment; Mandatory Minimum Sentence of 10 years
Count Forty-One: Possession of a Firearm in Furtherance of a Drug Trafficking Crime (18 U.S.C. §§ 924(c)(1)(A)(i) and 2)
Jowenky Nunez, Jr.,
Jerrin Pena
Justin Deaza
Wilson Mendez
Brian Hernandez
Hugo Rodriguez
Mayovanex Rodriguez
Johann Zapata
Elvis Trejo
Steven Joaquin
Iyaury Rodriguez-Rosario
Jowenky Nunez, Sr.
Argenis Tavarez
Victor Colon
Jose Gutierrez
Nijmah Marte
Life Imprisonment; Mandatory Minimum Sentence of 5 years
Count Forty-Two: Interstate Transportation or Receipt of Firearms (18 U.S.C. §§ 922(a)(3), 924(a)(1), and 2)
Jowenky Nunez, Jr.
Jerrin Pena
Iyaury Rodriguez-Rosario
5 years’ Imprisonment
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Sioux Falls Man Sentenced to 10 Years for Sex Trafficking of a ChildRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Sioux Falls, South Dakota, man convicted of Sex Trafficking of a Child was sentenced on July 27, 2022, by U.S. District Judge Karen E. Schreier.
Robert Eugene Stefani, age 46, was sentenced to 121 months in federal prison, followed by five years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $5,100.
Stefani was indicted by a federal grand jury on July 7, 2021. He pled guilty on March 24, 2022.
The conviction stemmed from incidents between June of 2019 and October 2020. Stefani paid cash to a 15-year-old girl in exchange for sex with him on multiple occasions in Sioux Falls. The meetings between the two were arranged over the internet and the use of cell phones.
This case was investigated by the FBI and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Stefani was immediately remanded to the custody of the U.S. Marshals Service.
Schenectady Man Sentenced to 60 Months for Distributing Heroin and Cocaine BaseRead the Press Release
ALBANY, NEW YORK – Gregory Sherrills, Jr., age 40, of Schenectady, New York, was sentenced today to 60 months in prison for distributing heroin and cocaine base.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In pleading guilty, Sherrills Jr. admitted to selling heroin and cocaine base to another person on seven occasions between December 2019 and March 2021 at various locations in the city of Schenectady. In total, the defendant distributed approximately 120 grams of heroin and 60 grams of cocaine base. This conviction represented his fourth felony drug conviction.
United States District Judge Mae A. D’Agostino also ordered that Sherrills Jr. serve a 4-year term of supervised release following his release from prison,
This case was investigated by the FBI and the Schenectady Police Department, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
San Angelo Tax Preparers Found Guilty of $18 Million Tax FraudRead the Press Release
A federal jury returned a guilty verdict against three San Angelo tax preparers whose fraudulent tax returns cost the IRS roughly $18 million, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Hugo Cesar Granados, the 60-year-old manager of Columbia Tax Service, his adult daughter, Blanca L. Granados, his adult son, Hugo Alberto Granados, and his employee, Saul Garcia-Soto, were indicted in May 2021. Mr. Garcia-Soto pleaded guilty to assisting in the preparation and presentation of false documents on July 12, 2022. The remaining defendants elected to proceed to trial and were convicted Friday evening of conspiracy to defraud the United States and multiple counts of aiding in the preparation and presentation of false documents.
Following the reading of the verdict, all three were immediately remanded into the custody of the U.S. Marshals Service.
“Columbia Tax Service doctored clients’ tax returns to inflate clients’ refunds and line the Granados’s pockets. Such blatant fraud is an affront to all conscientious taxpayers,” said U.S. Attorney Chad Meacham. “As is their right, the Granadoses opted for a trial by jury. We are proud to have obtained a guilty verdict. I’m thankful to the IRS Criminal Investigation agents who ran this case to ground and to the members of the jury, who gave three days of their lives to bring these defendants to justice.”
“When Hugo Cesar Granados, along with his daughter and son, used their family tax return preparation business, Columbia Tax Service, to file false tax returns and make a fast buck, they underestimated the special agents of IRS Criminal Investigation,” said IRS-Criminal Investigation Special Agent in Charge Christopher J. Altemus, Jr., Dallas Field Office. “Let these guilty verdicts be a reminder to others seeking to enrich themselves illegally – IRS CI special agents will find you; they will uncover your fraudulent schemes and hold you accountable.”
At trial, prosecutors introduced evidence that the elder Mr. Granados and his co-conspirators falsified their clients’ individual income tax returns (Forms 1040) in order to inflate the clients’ tax refunds.
They routinely fabricated clients’ Schedule A, itemized deductions, and Schedule C, sole proprietorship profit and loss statements, claiming the taxpayer owned a business when no such business existed, claiming unreimbursed employee expenses such as travel and per diem, and claiming business expenses related to maintenance, utilities, supplies, insurance, and professional services that were never incurred or grossly inflated.
Testimony adduced at trial showed that Columbia Tax Service claimed more than $900,000 in income in 2015 and more than $1.3 million in income in 2016.
Mr. Garcia-Soto testified, saying that in 2016, Columbia Tax employees met with Hugo C. Granados because taxpayers were not receiving their refunds from the IRS. When questioned, the elder Mr. Granados asked the employees if they thought the company was doing something illegal. Mr. Garcia-Soto said that he, Blanca Granados, and Hugo A. Granados all replied that they thought Columbia Tax was doing something illegal. In response, Hugo C. Granados just smiled and turned back to his computer.
In a Skype chat introduced at trial, Blanca Granados wrote to a co-worker: “Fraud is ridiculous here yo . . . I swear.”
Ten taxpayer clients also testified. Two women admitted that they did not operate daycare centers as stated in their returns, but rather cared for family members for free, while a man admitted that his wife did not operate a retail business that generated $19,00 in expenses as stated on the couple’s return.
Prosecutors also introduced into evidence the company’s “tax preparation manual,” a handbook that outlined exactly how to commit fraud.
In discussing preparation of Schedule C of the tax return, the manual stated: “This is where your training and knowledge of income and deductions will make a big difference in the amount of refund the taxpayer will be obtaining. A determination has to be made if the return needs additional income to generate the maximum earned income and other credits or if the return has a substantial amount of income (Adjusted Gross Income) and needs to come down to maximize the earned income and other credits.” In other words, the manual advised tax preparers to manipulate income to maximize refunds rather than referring to the law to determine whether an activity was a business for income tax purposes and whether expenses properly qualified as a business deduction.
Jurors ultimately concluded that the conspirators submitted numerous fraudulent tax returns. Analysts put the estimated tax loss at roughly $18 million for tax years 2013-2017.
Hugo Cesar Granados now faces up to 14 years in federal prison; Blanca Granados faces up to 14 years; Hugo Alberto Granados faces up to 17 years. Their sentencing date has not yet been set.
Saul Garcia-Soto faces up to three years and is slated to be sentenced in October.
The Internal Revenue Service - Criminal Investigations conducted the investigation. The San Angelo Division of the Northern District of Texas, including Assistant U.S. Attorneys Jeffrey Haag, Ann Haag, Amy Burch, and Paulina Jacobo, prosecuted the case.
Rosalia Man Sentenced to Ten Years in Federal Prison and Lifetime Supervised Release for Coercion and Enticement of a MinorRead the Press Release
Spokane – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Philip Marion Harthill, age 74, of Rosalia, Washington, was sentenced in federal court in Spokane for Coercion and Enticement of a Minor. United States Senior District Judge Rosanna Malouf Peterson sentenced Harthill to 120 months to be followed by a life term of supervised release. In announcing the sentence, Judge Peterson emphasized that “the damage to children” caused by Harthill’s crimes is very “real.” Judge Peterson continued, “This is damage they will carry with them for their whole lives – damage to both the children and the families, who are impacted.” Judge Peterson further expressed that a 10-year sentence was necessary notwithstanding Harthill’s age. Harthill had entered a guilty plea on April 19, 2022.
According to court documents, Homeland Security Investigations (HSI) discovered in early 2019 that Harthill was transmitting child pornography online through Skype. Later that year, Harthill began an online chat via social media sites regarding Harthill’s sexual interest in minor children, particularly girls, who were ten-years old and older. During these communications, Harthill used the Kik Messenger to send at least two images containing child pornography. Harthill also used Kik to solicit additional child pornography.
Based on Harthill’s transmittal and solicitation of child pornography, Federal agents executed a search warrant at Harthill’s residence and seized several electronic devices, including Harthill’s laptop computer. On the laptop, investigators discovered 1,455 videos and 531 images of child pornography, including a split-screen video of Harthill sexually interacting with a young child, who stated she was nine years old and lives in another country.
During the investigation, Harthill agreed to speak with law enforcement and admitted to downloading, trading, and viewing child pornography for about five years. Harthill further admitted to sexually communicating online with underage girls, who were between 12 to 15 years old. In his statement, Harthill also admitted he would sometimes falsely portray himself as being 19 years old to his victims.
“This case is a stark reminder that sexual predators do not always fit a specific profile and, in some cases, may be the person you least suspect,” United States Attorney Waldref said. “Mr. Harthill used everyday internet applications like Skype and Kik to exploit the most vulnerable among us.” U.S. Attorney Waldref continued, “Today’s sentence is necessary to prevent Mr. Harthill from harming other children, and it should serve as a warning to those who victimize children: Our office is committed to prioritizing and aggressively pursuing cases involving online predators and holding them accountable for victimizing the most innocent members of our community.”
“Harthill exploited children by sharing their images with other child pornographers around the world,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “The resolve of HSI agents working both in the U.S. and overseas has resulted in a sentence that will hopefully provide some ease to those affected by his horrendous actions and keep Harthill behind bars, not behind a computer.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the Spokane Resident Office of the United States Department of Homeland Security and the Washington State Police. This case was prosecuted by Ann T. Wick, Assistant United States Attorneys for the Eastern District of Washington.
Riverside County Man Pleads Guilty to Federal Criminal Charges for Fraudulently Obtaining $6.6 Million in COVID-Relief Business LoansRead the Press Release
LOS ANGELES – A Corona man pleaded guilty today to federal criminal charges in connection with a scheme to submit false loan applications that brought him more than $6.6 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds.
Muhammad Noor Ul Ain Atta, 39, pleaded guilty to a two-count information charging him with wire fraud and laundering of monetary instruments.
According to his plea agreement, Atta submitted 11 fraudulent PPP loan applications for seven of his shell companies. The fraudulent PPP loan applications misrepresented the number of employees and the average monthly payroll expenses of Atta’s companies, and falsely certified he would use the loan proceeds for permissible business purposes. Atta also submitted false tax and payroll documentation in support of his loan applications. In total, Atta received $6,643,540 in loan proceeds even though none of his companies were legitimate recipients of relief funds at that time. Atta then laundered loan proceeds to bank accounts in the United States and Pakistan.
The plea agreement details one PPP loan in which Atta sought $1,267,714 for a company called Envisioning Future Inc. The loan application falsely represented that Envisioning Future had 73 employees and falsely certified Envisioning Future would use the loan proceeds for permissible business purposes, including the payment of payroll and other business-related expenses. The fraudulent application filed on April 10, 2020 was supported by falsified federal tax returns and false payroll data.
About one month later, Envisioning Future received $1,267,140 in loan proceeds, and the following day Atta wired most of the money to his mother’s bank account. Then in June 2020, Atta wired $1.3 million – the majority of which came from the Envisioning Future PPP loan – to a financial institution in Islamabad, Pakistan. According to the plea agreement, the wire transfer details included a note that the wire was “family support.”
United States District Judge Percy Anderson scheduled an October 17 sentencing hearing, at which time Atta will face a statutory maximum penalty of 20 years in prison for each count.
Acting United States Attorney Stephanie S. Christensen, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Acting Special Agent in Charge Cory Nootnagel of the Office of the Inspector General for the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection, Special Agent in Charge Ryan Korner of IRS Criminal Investigation, Special Agent in Charge Weston King of the Small Business Administration – Office of Inspector General, and Special Agent in Charge Rod Ammari of the Treasury Inspector General for Tax Administration made the announcement.
Assistant U.S. Attorney Adam P. Schleifer of the Major Frauds Section and Trial Attorneys Jennifer L. Bilinkas and Matthew F. Sullivan of the Justice Department’s Fraud Section are prosecuting the case.
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 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.
Recidivist Drug Dealer Sentenced to 188 Months in Prison for Trafficking Drugs while Serving Community Corrections SentenceRead the Press Release
INDIANAPOLIS – Anthony Sterling, 42, of Indianapolis, was sentenced to 188 months in federal prison after pleading guilty to possession with intent to distribute heroin.
According to court documents, on August 19, 2020, law enforcement officers conducted a compliance check of Sterling at his reported residence in Indianapolis. At the time, Sterling was serving a criminal sentence on community corrections following a conviction in Marion County for dealing in methamphetamine. During a lawful search of the property, law enforcement discovered baggies containing over 200 grams of heroin, an additional bag containing 212 grams lactose used as a cutting agent, a digital scale, and a credit card with residue. Sterling admitted the heroin was his and that he sold it. Sterling has been convicted of at least ten prior felony offenses, including five prior drug trafficking felonies.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Michael Gannon, Assistant Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Indianapolis Field Office, and Chief Randal Taylor of the Indianapolis Metropolitan Police Department (IMPD) made the announcement.
DEA and IMPD investigated the case. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Sterling be supervised by the U.S. Probation Office for four years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Pamela S. Domash who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Ramsey Felon Indicted for Violent Carjacking, Firearms ViolationsRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a Ramsey man for an armed carjacking and possession of a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 4, 2022, Joshua Gunnar Olson, 31, armed with a Glock 19 9mm handgun, used force, violence, and intimidation to steal a black 2011 Dodge Grand Caravan from the vehicle’s owner. Olson has multiple prior felony convictions in Cass, Crow Wing, and Aitkin Counties and is therefore prohibited from possessing firearms or ammunition at any time.
Olson is charged with one count of carjacking, one count of possessing a firearm as a felon, and one count of brandishing a firearm during and in relation to a crime of violence. He made his initial appearance in U.S. District Court on August 1, 2022, before Magistrate Judge John Docherty.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minnesota State Patrol, the Anoka Police Department, the Ramsey Police Department, the Elk River Police Department, the Champlin Police Department, the Ramsey County Sheriff’s Office, and the Anoka County Sheriff’s Office.
Assistant U.S. Attorney Emily A. Polachek is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Philadelphia Man Sentenced to Eleven Years for 2018 South Philadelphia Home Invasion Robbery and Assault of Owners’ Teenage DaughterRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Shaquan Johnson, 23, of Philadelphia, PA, was sentenced to 11 years in prison, five years of supervised release, and ordered to pay $1,000,000 in restitution by United States District Court Judge R. Barclay Surrick for his participation in a home invasion robbery during which the defendant and his accomplices victimized the homeowners’ teenage daughter and stole approximately $1 million in currency and jewelry, and for smuggling contraband into federal prison while he was detained for the robbery.
In March 2022, the defendant pleaded guilty to charges of conspiracy to commit Hobbs Act robbery, Hobbs Act Robbery and brandishing a firearm during the commission of a violent crime in connection with the robbery incident in August 2018. According to court documents, Johnson and three co-defendants victimized the 17-year-old girl in her home while stealing the cash and valuables owned by her parents. Specifically, while she lay sleeping around midnight, the men entered her bedroom, pulled her from her bed, and struck her several times. They then held her at gunpoint and robbed her family of their life savings—the proceeds of their restaurant business a block-and-a-half away on Washington Avenue in South Philadelphia.
Further, while detained for the robbery charge in the Federal Detention Center in Philadelphia, the defendant was charged with using an infant to illegally bring narcotics and a cell phone into the prison. In March 2022, the defendant pleaded guilty to two counts of obtaining contraband in prison.
“Mr. Johnson and his accomplices not only victimized a family by violating the sanctity of their home and stealing the life savings for which they worked very hard, they also physically assaulted their daughter while they thought she was safely at home in her bed,” said U.S. Attorney Romero. “I imagine it will take many years for this family to feel whole and secure again. Spending more than a decade in prison will give the defendant some time to reflect on the damage his crimes caused, and serve as a warning to others who might be considering engaging in similar behavior.”
“Thanks to the diligent work of the investigators and prosecutors assigned to this case, the victims finally have justice for this horrific crime,” said Matthew Varisco, Special Agent in Charge of ATF’s Philadelphia Field Division. “ATF works tirelessly with the Philadelphia Police Department and United States Attorney’s Office to keep the public safe from this type of violence. Today, the community is safer knowing this violent individual will be behind bars for a long time.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Anthony Carissimi and Sarah Damiani.
Pharmacy owner and accountant indicted again in $150M scamRead the Press Release
HOUSTON – Two Houston area men face new charges in nationwide pharmacy health care fraud scheme that that targeted elderly citizens, announced U.S. Attorney Jennifer B. Lowery.
Mohamed Mokbel, 57, and Fathy Elsafty, 63, both of Houston, are expected to make their initial appearances before U.S. Magistrate Judge Yvonne Ho today at 2 p.m.
The 18-count superseding indictment, returned July 20, alleges that from 2013 to January 2022, Mokbel and ElSafty conspired to commit a $150 million mail fraud and health care fraud scheme and engaged in money laundering with the fraud proceeds. Mokbel is also alleged to have continued the fraud scheme at MK Pharmacy, a Houston area pharmacy, from April 2021 through January 2022. During this time, he had been permitted release on bond after the return of the original indictment in March 2021.
Mokbel was the CEO of 4M Pharmaceuticals Inc., according to the charges. With ElSafty’s assistance, he allegedly acquired and controlled over a dozen pharmacies that operated in Houston and elsewhere. The indictment alleges Elsafty served as 4M’s accountant and tax preparer and had ownership interests in several pharmacies located in California, Texas and Florida. ElSafty allegedly aided Mokbel by falsifying corporate filings and concealing Mokbel’s involvement in the pharmacies.
The fraud was pervasive and carried out using a sophisticated mass marketing scheme targeting individuals over the age of 55 using telemarketing and mail, according to the charges. Mokbel is alleged to have purchased patient data and directed 4M Pharmaceuticals’ employees to submit test claims to patient insurance plans to determine insurance coverage.
4M then allegedly sent prescription fax requests to doctors’ offices on behalf of the patients without their knowledge or consent. In some cases, 4M requested prescriptions for patients who had been dead for months, if not years, according to the allegations.
Company employees then allegedly called patients to report their doctor had approved prescriptions for them and that they would receive the medications at no cost. However, Medicare and other insurance plans often required a copay which 4M did not collect, according to the charges. When audited, 4M allegedly falsified proof of the copay collection.
Mokbel and ElSafty are charged with one count of a conspiracy to commit mail and health care fraud, two counts of health care fraud and 15 counts of money laundering.
If convicted of the conspiracy, they face up to 20 years in prison, while the health care violations carry a 10-year-term. Money laundering also carries a potential 10-year sentence. The use of telemarketing to target people over 55 as a means to commit mail fraud and health care fraud carries an additional penalty of 10 years. Fines could also be assessed in the amounts of $250,000 or not more than twice the amount of the criminally derived property involved in the transaction.
Department of Health and Human Services - Office of Inspector General, Food and Drug Administration - Office of Criminal Investigations, Homeland Security Investigations, FBI, Texas Attorney General’s Medicaid Fraud Control Unit, IRS - Criminal Investigation, Ohio Medicaid Fraud Control Unit, Texas State Board of Pharmacy, United States Postal Inspection Service and California Department of Health Care Services, conducted the joint investigation.
Special Assistant U.S. Attorney Abdul Farukhi and Assistant U.S. Attorney Zahra Fenelon are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson is assisting with asset forfeiture.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Peculiar Business Owner Pleads Guilty to Tax EvasionRead the Press Release
KANSAS CITY, Mo. – The owner of a Peculiar, Mo., business pleaded guilty in federal court today to tax evasion.
Jason Rigoli, 42, waived his right to a grand jury and pleaded guilty before U.S. District Judge Stephen R. Bough to a federal information that charges him with one count of tax evasion.
Rigoli, who has owned and operated Granite Construction Services, LLC, since 2006, admitted that he has not filed a federal personal, business, or employment tax return since at least 2013. Rigoli also failed to pay state income taxes, state employment taxes, workers’ compensation taxes and unemployment taxes.
As part of his scheme, Rigoli used his business bank accounts for all his personal expenses. Rigoli used proceeds of his tax fraud to pay for travel, restaurant meals, and liquor.
Rigoli falsely told IRS agents that he always paid his employees by check. Rigoli also falsely told IRS agents that he paid his employees “by 1099,” when in fact, Rigoli often paid employees with cash and filed no Forms W-2 or Forms 1099 for his employees.
Under the terms of today’s plea agreement, Rigoli must pay restitution to the IRS in the amount to be determined by the court at sentencing. Rigoli must pay $10,188 in restitution for unpaid employment taxes. The government may argue at the time of sentencing that the attempted loss from Rigoli’s criminal scheme totaled $250,000 to $550,000.
Under federal statutes, Rigoli is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation.
Pearl Woman Sentenced to 37 months in Prison and over $590,000 in Restitution for Manslaughter on the Natchez TraceRead the Press Release
Jackson, Miss. – A Pearl woman was sentenced to 37 months in prison and ordered to pay over $590,000 in restitution for involuntary manslaughter on the Natchez Trace Parkway, announced U.S. Attorney Darren J. LaMarca.
According to court documents, Jill L. Godbold, 43, was driving while intoxicated on the Natchez Trace Parkway in August of 2019 when she crossed the center line and struck another vehicle head on. The driver of that vehicle was killed because of injuries sustained in the crash. The victim was a nurse and mother of two children.
Godbold pled guilty on September 14, 2021, to involuntary manslaughter.
The case was investigated by the National Park Service.
Assistant U.S. Attorney Clay B. Baldwin prosecuted the case.
Owner of Three Casa Don Juan Restaurants Pleads Guilty to Tax EvasionRead the Press Release
A Nevada restaurant owner pleaded guilty today to tax evasion.
According to court documents and statements made in court, Raul Gil, 63, owned and operated three Casa Don Juan restaurants in Las Vegas. From 2014 through 2018, Gil directed his bookkeeper to prepare false books and records for Gil’s restaurants that underreported cash sales at the restaurants by approximately $5.1 million. Gil then provided the false records to his tax return preparer, who annually prepared the Casa Don Juan corporate tax returns and Gil’s individual tax returns. As a result, the Casa Don Juan corporate tax returns were false for each of these years. Because the restaurant profits flowed through to Gil personally, his individual income tax returns for these years were false as well. Finally, because Gil directed the three restaurants to underreport their total sales, the Nevada sales tax returns for the restaurants also were false during these years.
In July 2018, the IRS initiated an audit of Gil. During the audit, Gil instructed his accountant to provide to the IRS false profit and loss statements that matched the figures reported on the tax returns. Gil also directed his bookkeeper to provide to the IRS false daily cash and sales reports purportedly printed from the restaurants’ point-of-sale systems. During interviews with the IRS, Gil falsely stated to the revenue agent conducting the audit, and later to IRS-Criminal Investigation special agents, that the falsified daily cash reports and point-of-sale records were accurate.
In total, Gil caused a tax loss to the IRS of approximately $1.6 million.
“Owners of restaurants that conduct a large number of cash transactions have to report all of their income, just like everyone else,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “We will investigate and prosecute those who shortchange their honest competitors and fellow citizens by willfully evading these laws.”
“In today’s challenging economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe,” said IRS-Criminal Investigation Special Agent in Charge Albert Childress. “Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don’t.”
Gil is scheduled to be sentenced on November 10 and faces a maximum sentence of five years in prison for tax evasion. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Thomas Flynn and Jacob Green of the Tax Division and Assistant U.S. Attorney Eric Schmale of the U.S. Attorney’s Office for the District of Nevada are prosecuting the case. Former Trial Attorneys Michael Landman and Stephen Moulton of the Tax Division also provided valuable assistance.
Owner and Salesman at RC Auto Sales in Connellsville Indicted in Scheme to Defraud Pandemic Loan and Benefits ProgramsRead the Press Release
PITTSBURGH, PA - Two residents of Connellsville, Pennsylvania have been indicted by a federal grand jury in Pittsburgh on charges of mail fraud and conspiracy to commit mail and bank fraud, United States Attorney Cindy K. Chung announced today.
The five-count Indictment named Joshua Dewitt, 36, and Terrence Newmeyer Jr., 45, both of Connellsville, PA, as defendants.
According to the Indictment, DeWitt was the owner of RC Auto Sales in Connellsville, Fayette County, where he employed Newmeyer. Together, DeWitt and Newmeyer filed a series of fraudulent applications for Pandemic Unemployment Assistance benefits and Paycheck Protection Program loans, including on behalf of customers of RC Auto Sales. DeWitt and Newmeyer used the fraudulently obtained pandemic benefits to benefit themselves and RC Auto Sales, by—among other things—accepting them as payment for vehicles and services sold by RC Auto Sales.
“The Pandemic Unemployment Assistance Program and the Payroll Protection Program were created to provide emergency financial assistance to eligible individuals and companies that were suffering from the negative economic effects of the COVID-19 pandemic,” said U.S. Attorney Chung. “We will continue to work with our law enforcement partners to disrupt these fraud schemes and prosecute people who exploit these programs for personal enrichment.”
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance programs. We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to investigate these types of allegations,” stated Syreeta Scott, Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General.
“The Pennsylvania State Police is committed to thoroughly investigating any type of insurance and other government funding fraud. The Pandemic Unemployment Assistance benefits and Paycheck Protection Program loans were intended for individuals at a time of need, and the residents of Pennsylvania should be angry with the criminal activity uncovered during this extensive investigation,” said Captain James Cuttitta, Special Investigations Division, Pennsylvania State Police, Bureau of Criminal Investigation. “This indictment is a culmination of extremely hard work by our Troopers in our continuing partnership with the Pennsylvania Department of Labor and Industry, the United States Department of Labor Office of the Inspector General, the Fayette County District Attorney’s Office and the United States Attorney’s Office.”
Fayette County District Attorney Richard Bower added, “This matter was a two-year investigation in conjunction with the Pennsylvania State Police and the U.S. Dept. of Labor. The prosecution team of myself, Assistant District Attorney Sean Lementowski and Assistant District Attorney William Martin, developed a thorough and detailed case against Joshua Dewitt, Terrence Newmeyer, and RC Auto Sales of Connellsville, PA., for Corrupt Organization, Dealing in Illegal Proceeds, and Theft. As a result of the investigation, I contacted the United States Attorney, Cindy K. Chung, for her office to review the investigation. Thereafter, the United States Attorney agreed to prosecute the matters.”
The law provides for a maximum total sentence of 30 years in prison, a fine of $1 million or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The United States Department of Labor Office of the Inspector General, Pennsylvania State Police, Special Investigations Division, Bureau of Criminal Investigation, and the Fayette County District Attorney’s Office conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Norwich Man Sentenced to 5 Years for Distributing Drugs and Possessing Gun on Supervised ReleaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ANTOINE WALKER, 42, of Norwich, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by four years of supervised release, for drug and firearm offenses, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, in 2020, Norwich Police conducting a drug trafficking investigation made two controlled purchases of crack from Walker. On June 10, 2020, investigators conducted a court-authorized search of Walker’s home and, in the garage, found approximately 114 grams of heroin, nearly two pounds of marijuana, items used to process and package drugs for street sale, and a loaded .38 Special Smith and Wesson revolver. A search of the residence revealed approximately 15 grams of crack cocaine together with a digital scale. Walker was arrested on state charges at that time. He was arrested on federal charges on June 12, 2020.
Walker was on federal supervised release at the time of the offense. In 2013, Walker was sentenced in the Southern District of New York to 80 months of imprisonment and three years of supervised release for armed robbery and bank robbery offenses.
Walker has been detained since June 12, 2020. On May 9, 2022, he pleaded guilty to one count of possession with intent to distribute heroin, cocaine base (“crack”) and marijuana, and one count of unlawful possession of a firearm by a felon.
This investigation was conducted by the Federal Bureau of Investigation and the Norwich Police Department. The case was prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
New York man whose behavior caused flight to be diverted to St. Louis sentenced to 40 days in jail, $8,000 in restitutionRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Tuesday sentenced a New York man to 40 days in jail for causing a Las Vegas-bound American Airlines flight to be diverted to St. Louis in 2020 and ordered him to pay $8,000 to the airline.
James Patrick Maloney Jr., 37, of Honeoye, in upstate New York, pleaded guilty in April to one felony count of interference with crew members by assault.
The incident on the Sept. 12, 2020 flight from Charlotte to Las Vegas began when a flight attendant spotted Maloney with his mask off, drinking a beer he had not purchased on the plane. Maloney admitted in his plea that he responded to the attendant’s request to put on his mask with expletives and racial epithets. When the flight crew handed the defendant a final written warning, he told them that he would crumple up their warning and throw it their face.
After Maloney returned from a trip to the bathroom, he became very agitated when he did not see his girlfriend, got into an argument with a flight attendant and then lunged at and attempted to strike a flight attendant, his plea says. Maloney’s girlfriend grabbed him before he touched the flight attendant, however.
The plane was then diverted to St. Louis, where Maloney was arrested. Maloney yelled and cursed at airport police when they put him into their car in handcuffs to take him to the station, Maloney’s plea says.
In addition to the jail time, Judge Ross banned Maloney from using alcohol, ordered him to perform 100 hours of community service and ordered him to undergo substance abuse testing and treatment and mental health counseling.
The $8,000 in restitution represents some of the costs and fees the airline incurred due to the delay caused by Maloney’s behavior.
In court Tuesday, Judge Ross called Maloney’s behavior “outrageous” and said passengers could not have known whether his conduct would escalate to endanger their lives. “The terror that people had to feel – it’s inexcusable,” he said.
The case was investigated by the St. Louis Lambert Airport Police Department and the FBI. Assistant U.S. Attorney Colleen Lang prosecuted the case.
New York Man Sentenced to 47 Months in Prison for Role in Conspiracy to Distribute Heroin and Fentanyl from Drug Mill in the BronxRead the Press Release
NEWARK, N.J. – A Bronx, New York, man was sentenced today to 47 months in prison for participating in a conspiracy to distribute heroin and fentanyl from a drug mill in the Bronx to locations in New Jersey, U.S. Attorney Philip R. Sellinger announced.
Reimon Genao Rosario, 25, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging him with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Judge Salas imposed the sentence today in Newark federal court.
Dilson Vazquez Genao, 25, Eddie Urena Rodriguez, 37, Francisco Mercedes Gil, 33, Daury Contreras Ulerio, aka “Majimbou,” 37, and Jose Antonio Vazquez Pena, aka “Tono,” 49, all of the Bronx, all have previously pleaded guilty before Judge Salas to the same charges.
One other individual – Jhan Carlos Capellan Maldonado, 33 – was indicted on the same charge as Rosario in August 2019. His case is pending.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned that Maldonado used an apartment in the Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed five workers at a time – including Rodriguez, Ulerio, Rosario, Gil, and Genao – to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genao came out of the building and met with Maldonado, who got out of his vehicle and gave Genao the plastic shopping bags. Law enforcement officers later learned that the plastic shopping bags contained materials to package heroin and fentanyl.
Genao went back inside the building and was followed by law enforcement officers, who watched as Genao entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement officers searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, and all but one –Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement officers recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.
U.S. Attorney Sellinger credited the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jason S. Gould, Chief of the Health Care Fraud Unit in Newark.
The charge and allegations against Maldonado are merely accusations, and he is presumed innocent unless and until proven guilty.
Nevada Man Found Guilty of Threatening a WitnessRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Las Vegas, Nevada, man was convicted of Obstructing Justice by Retaliating Against a Witness following a federal court trial held in Rapid City, South Dakota.
Edward Martin, age 50, was charged in December of 2021. The conviction stems from Martin threatening an individual who had provided information to law enforcement about a drug conspiracy in which Martin was involved. Martin made threatening comments to the individual in an attempt to dissuade the individual from testifying against Martin’s co-conspirators in pending federal criminal proceedings.
The investigation was conducted by the South Dakota Division of Criminal Investigation and the Drug Enforcement Administration. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Martin faces a potential custody sentence of up to 20 years in federal prison. A sentencing date has not been scheduled.