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Newest first across public DOJ and U.S. Attorney press releases.
16 September 2022
Man Federally Indicted for Murder on ReservationRead the Press Release
TOPEKA, KAN. – A federal grand jury in Topeka returned an indictment charging a man with one count of murder in the second degree.
According to court documents, Stryder Dane Keo, 34, is accused of shooting and killing a member of the Kickapoo tribe on the Kickapoo Reservation in July 2022. The federal government has jurisdiction over the offense because the offense occurred within Indian country.
The FBI is investigating the case.
Assistant U.S. Attorney Jared S. Maag is prosecuting the case.
OTHER INDICTMENTS
Briar Clayton Eugene Adams, 30, of Leavenworth Penitentiary was indicted on one count of possessing contraband in prison. The U.S. Marshal Service is investigating. Assistant U.S. Attorney Greg Hough is prosecuting.
Chance James John Hannon, 41, of Las Vegas, Nevada, was indicted on one count of possession with intent to distribute a controlled substance. Homeland Security Investigations is investigating the case. Special Assistant U.S. Attorney Lindsey Debenham is prosecuting the case.
Todd James Lewis, 54, of Carbondale was indicted on seven counts of wire fraud, one count of aggravated identity theft, and one count of theft of government funds. The FBI and the U.S. Department of Labor are investigating the case. Assistant U.S. Attorney Christine Kenney is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Leader of large drug distribution organization sentenced to ten years in prison for bringing fentanyl, heroin, meth, and cocaine to Western WashingtonRead the Press Release
Seattle – The drug supplier to multiple members of a drug trafficking group distributing fentanyl, heroin, methamphetamine, and cocaine throughout the Puget Sound region was sentenced today in U.S. District Court in Seattle to ten years in prison, announced U.S. Attorney Nick Brown. Rodrigo Alvarez-Quinonez, 31, of Selma, California, was convicted following a jury trial in June 2022. Alvarez-Quinonez, was one of twelve people arrested in August 2020 following a year-long wiretap investigation. At the sentencing hearing U.S. District Judge Ricardo S. Martinez said: “The defendant was at the top of a large-scale conspiracy to distribute illegal, dangerous, and deadly drugs in the Western District of Washington. One would have to be living under a rock to not know the impact that fentanyl is having on our society, given that deaths from fentanyl have skyrocketed.”
“Mr. Alvarez-Quinonez was ordering up large drug shipments for distribution in our community,” said U.S. Attorney Nick Brown. “His control of large amounts of fentanyl and methamphetamine make his activities dangerous for those sickened with addiction and for their loved ones. This case should serve as an example that under federal law, those working with drug cartels will face significant prison sentences.”
The members of the conspiracies engaged in trafficking activities from Mexico, through California, Arizona, Nevada, and Oregon, and into the North Puget Sound region. Alvarez-Quinonez was heard on wiretaps directing others to pick-up and deliver drugs. In January 2020 Alverez-Quinonez was arrested when he was stopped in Lewis County a car with nearly 2 kilos of fentanyl hidden in a secret compartment.
In recommending a lengthy prison sentence, prosecutors wrote to the court, “Alvarez-Quinonez was working as a narcotics source-of-supply, he directed others to pick up and deliver shipments of narcotics, he purchased narcotics in bulk and transported narcotics to this State. Alvarez-Quinonez then fulfilled orders for others who wanted narcotics and at times directed others to deliver narcotics on his behalf.”
In addition to the fentanyl pills, during the investigation law enforcement seized more than six pounds of heroin and nearly nine pounds of methamphetamine.
On the day of the takedown in August 2020, law enforcement seized: nearly 6 pounds of methamphetamine, 8 pounds of heroin, 7,500 pills likely tainted with fentanyl, over $100,000 in cash, 4 firearms, and vehicles outfitted with “traps”—hiding places for smuggling drugs and money.
“This investigation emphasizes the mission of the DEA: to ensure the safety and health of American communities by combatting criminal drug networks like the one Mr. Alvarez-Quinonez controlled,“ said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division. “We will relentlessly pursue individuals and organizations like this with our local, state, and federal partners.”
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The investigation was conducted by the U.S. Drug Enforcement Administration in partnership with Homeland Security Investigations, Shoreline Police Department, King County Sheriff’s Office (KCSO), Seattle Police Department and the Snohomish Regional Drug Task Force (SRDTF). The investigation was supported by the Northwest High Intensity Drug Trafficking Area (HIDTA).
The case is being prosecuted by Assistant United States Attorney Stephen Hobbs.
Lawrence Man Sentenced in Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man was sentenced on Sept. 9, 2022 in federal court in Boston to fentanyl trafficking.
Saury Rodriguez-Ruiz, 28, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 57 months in prison and three years of supervised release. On May 26, 2022, Rodriguez-Ruiz pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one count of distribution and possession with intent to distribute 400 grams or more of fentanyl.
Rodriguez-Ruiz was indicted along with his co-conspirator, Danybelkis Vasquez-Rodrigue, in January 2021. On Aug. 30, 2022, Vasquez-Rodrigue was convicted by a federal jury of one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl. She is scheduled to be sentenced on Dec. 13, 2022.
In November 2020, law enforcement began an investigation into Rodriguez-Ruiz, who had been identified as a Lawrence-based drug supplier. On Nov. 24, 2020, Rodriguez-Ruiz distributed nearly one kilogram of fentanyl to a cooperating witness. In exchange for the fentanyl, the cooperating witness made two payments to Rodriguez-Ruiz’s associates in December 2020. The first payment of $10,000 was to an associate of Rodriguez-Ruiz and the second payment of $32,000 was to Rodriguez-Ruiz’s co-conspirator, Vasquez-Rodrigue.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement. The case was investigated by the FBI’s Strike Force including the Norfolk County Sherriff’s Office. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Lauderdale County Man Sentenced to 70 Years in Prison for Sexual Exploitation of ChildrenRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced a Lauderdale County man for sexually exploiting a young child, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Madeline H. Haikala sentenced Michael Tays, 36, of Florence, to 840 months in prison followed by lifetime of supervised release for producing and possessing child pornography. On March 21, 2022, Tays pleaded guilty to 20 counts of production of child pornography and one count of possession of child pornography.
According to statements made in open court, Tays sexually abused an eight-year-old child repeatedly, and he recorded the brutality through photographs and videos. This conviction will require Tays to register as a sex offender in accordance with the Sex Offender Registration and Notification Act (SORNA).
“There is no place in our communities for those who prey on vulnerable children,” U.S. Attorney Escalona said. “This sentence effectively ensures that Tays will spend the rest of his life in prison. Through collaborative law enforcement efforts, we continue to investigate and prosecute those responsible for these horrific crimes.”
“Children are among the most vulnerable victims, and individuals, like Tays, who exploit them must be held accountable for their reprehensible actions,” SAC Sharp said. “Thanks to the efforts of the FBI’s Child Exploitation Human Trafficking Task Force and our partners, this predator will be held accountable for his actions and be identified as a sex offender.”
FBI Birmingham’s Child Exploitation Human Trafficking Task Force investigated the case, along with the St. Florian Police Department and Lauderdale County Sheriff’s office. Assistant U.S. 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.
Lafourche Parish Man Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – DILLON TOUPS, age 32, a resident of Larose, Louisiana, was charged on September 15, 2022 in a one-count indictment with possession with intent to distribute fifty (50) grams or more of methamphetamine and a quantity of fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 841(b)(1)(C), announced U.S. Attorney Duane A. Evans.
According to court documents, on or about December 18, 2021, in the Eastern District of Louisiana, the defendant, TOUPS, did knowingly and intentionally possess with intent to distribute fifty (50) grams or more of methamphetamine, its salts, isomers, and salts of its isomers, a Schedule II drug controlled substance, and a quantity of a mixture and substance containing a detectable amount of N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] propanamide, that is, fentanyl, a Schedule II drug controlled substance; all in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 841(b)(1)(C).
TOUPS faces a mandatory minimum term of imprisonment of ten (10) years, a maximum term of imprisonment of life, a fine of up to $10,000,000.00, at least five (5) years of supervised release following any term of imprisonment, and a mandatory $100.00 special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones.
La Crosse Man Sentenced to 25 Years for Child Exploitation CrimesRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Harry L. Euler, 46, of La Crosse, Wisconsin was sentenced yesterday by U.S. District Judge William M. Conley to 25 years in federal prison, to be followed by 20 years of supervised release, for using minors to produce child pornography. Euler pleaded guilty to this charge on June 2, 2022.
Euler caused numerous minors in the Philippines to be sexually assaulted. An exact number cannot be determined because much of his conduct is unknown and victims are difficult to identify in the Philippines. He communicated directly with at least two minors and paid them to engage in sexually explicit conduct with other minors. He also paid adults to create sexually explicit images and videos of minors to send to him, including some of whom he paid for images of their own children. He also sent images of the minors to other people.
In finding a 25-year sentence warranted, Judge Conley noted the defendant engaged in egregious behavior that was destructive toward children.
The charge against Euler was the result of an investigation conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Wisconsin Department of Justice Division of Criminal Investigation, and the La Crosse Police Department. Assistant U.S. Attorney Elizabeth Altman prosecuted this case.
Kern County Man Sentenced to Prison for Unlawfully Possessing AmmunitionRead the Press Release
FRESNO, Calif. — Jessie Gonzalez, 26, of Wasco, was sentenced today to three years and 10 months in prison for being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 22, 2021, law enforcement officers arrested Gonzalez for an active parole violation warrant and found a Polymer 80 handgun in Gonzalez’s waistband, which was loaded with a high-capacity magazine and 16 rounds of 9 mm ammunition. At the time of the offense, Gonzalez, who uses the moniker “Creeper,” was a member of the Varrio Wasco Rifas, a southern criminal street gang in Wasco. Gonzalez may not lawfully possess firearms or ammunition because of criminal convictions he has sustained in Bakersfield, including assault with a firearm on a person and being a prisoner in possession of a weapon.
This case was the product of an investigation by the Federal Bureau of Investigation, the Kern County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Christopher D. Baker prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Justice Department Announces Report on Digital Assets and Launches Nationwide NetworkRead the Press Release
The Department of Justice today announced significant actions regarding digital assets, including the public release of its report, pursuant to the President’s March 9 Executive Order on Ensuring Responsible Development of Digital Assets, on The Role of Law Enforcement in Detecting, Investigating, and Prosecuting Criminal Activity Related to Digital Assets;[1] and the establishment of the nationwide Digital Asset Coordinator (DAC) Network, in furtherance of the department’s efforts to combat the growing threat posed by the illicit use of digital assets to the American public.
“As digital assets play a growing role in our global financial system, we must work in tandem with departments and agencies across government to prevent and disrupt the exploitation of these technologies to facilitate crime and undermine our national security,” said Attorney General Merrick B. Garland. “The efforts announced today reflect the commitment of the Justice Department and our law enforcement and regulatory partners to advancing the responsible development of digital assets, protecting the public from criminal actors in this ecosystem, and meeting the unique challenges these technologies pose.”
As noted in the White House Fact Sheet, these efforts are part of a larger, collaborative effort across government agencies “to develop frameworks and policy recommendations that advance six key priorities identified in the EO: consumer and investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation.”
“Developments in digital assets have created a new landscape for criminals to exploit innovation to further significant criminal and national security threats domestically and abroad,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Through the creation of the DAC Network, the Criminal Division and the National Cryptocurrency Enforcement Team will continue to ensure that the Department and its prosecutors are best positioned to combat the ever-evolving criminal uses of digital asset technology.”
First, in response to the March 9 Executive Order, the department’s report discusses the manner in which illicit actors are exploiting digital asset technologies; the challenges that digital assets pose to criminal investigations; initiatives that the department and law enforcement agencies have established as part of whole-of-government efforts to more effectively detect, investigate, prosecute, and otherwise disrupt these crimes; and recommended regulatory and legislative actions to further enhance law enforcement’s ability to address digital asset crimes.
Second, the department’s Criminal Division has launched the DAC. Led by the department’s National Cryptocurrency Enforcement Team (NCET), the DAC Network comprises over 150 designated federal prosecutors from U.S. Attorneys’ Offices and across the department’s litigating components, and will serve as the department’s primary forum for prosecutors to obtain and disseminate specialized training, technical expertise, and guidance about the investigation and prosecution of digital asset crimes. The Director of the NCET, Eun Young Choi, chaired the DAC Network’s first meeting on September 8.
Reports on Ensuring Responsible Development of Digital Assets
The department’s report on the Role of Law Enforcement in Detecting, Investigating, and Prosecuting Criminal Activity Related to Digital Assets begins by detailing the many ways in which illicit actors have exploited digital assets. It delineates three principal categories of illicit uses: 1) cryptocurrency as a means of payment for or manner of facilitating criminal activity; 2) the use of digital assets as a means of concealing illicit financial activity; and 3) crimes involving or undermining the digital asset ecosystem. The report also discusses how novel technology, particularly in the area of decentralized finance, or DeFi, has created new challenges for law enforcement; includes examples of successful law enforcement efforts to investigate, prosecute, and otherwise disrupt digital asset crimes in spite of the investigative challenges; and describes initiatives that the department and other law enforcement agencies have established—including the department’s launch of the DAC Network—to more effectively detect, investigate, prosecute, and otherwise disrupt crimes relating to digital assets, and to seize and forfeit those assets that constitute ill-gotten gains.
The report also addresses the Executive Order’s request for recommendations on appropriate regulatory and legislative actions. It proposes actions designed to enhance law enforcement’s ability to gather evidence and initiate prosecutions; strengthen certain laws and penalty provisions that play an important role in digital asset prosecutions; support regulations that would enhance customer-identification efforts and other anti-money-laundering requirements under the Bank Secrecy Act; and ensure that law enforcement and regulatory agencies have adequate resources to conduct the technologically sophisticated investigations inherent in the digital assets space. The report identifies three proposals as priorities: 1) expanding to virtual asset service providers the laws preventing employees of financial institutions from tipping off suspects to ongoing investigations; 2) strengthening the law criminalizing the operation of unlicensed money transmitting businesses; and 3) extending the statute of limitations of certain statutes to account for the complexities of digital assets investigations.
This report complements the June 2022 report issued by the department on How to Strengthen International Law Enforcement Cooperation for Detecting, Investigating, and Prosecuting Criminal Activity Related to Digital Assets, which details the unique challenges posed by cross-border digital asset investigations, and includes recommendations on how to bolster enforcement and improve international cooperation in the area. In line with the whole-of-government approach called for in the Executive Order, both reports are the culmination of collaborative efforts between the department, led by the NCET, and multiple federal agencies, including the Department of the Treasury, the Department of Homeland Security, and the Department of State.
The Digital Asset Coordinators Network
To ensure that the department continues to meet the challenge posed by the illicit use of digital assets, the department’s Criminal Division recently launched the nationwide DAC Network. Led by the NCET, in close coordination with the Criminal Division’s Computer Crime and Intellectual Property Section and the Money Laundering and Asset Recovery Section’s Digital Currency Initiative, the DAC Network is composed of designated federal prosecutors from U.S. Attorneys’ Offices nationwide and the department’s litigating components. Each DAC will act as their office’s subject-matter expert on digital assets, serving as a first-line source of information and guidance about legal and technical matters related to these technologies.
As members of the DAC Network, prosecutors will learn about the application of existing authorities and laws to digital assets and best practices for investigating digital assets-related crimes, including for drafting search and seizure warrants, restraining orders, criminal and civil forfeiture actions, indictments, and other pleadings. The DAC Network will also serve as a source of information and discussion addressing new digital asset issues, such as DeFi, smart contracts, and token-based platforms, and their use in criminal activity. The DAC Network will likewise raise awareness of the unique international considerations of the crypto ecosystem, including the benefits of leveraging foreign relationships and the challenges of cross-border digital asset investigations.
[1] In addition to the report, and in further response to the Executive Order, the Attorney General separately transmitted to the Assistant to the President for National Security Affairs and the Assistant to the President for Economic Policy, via the White House Counsel’s Office, an assessment from the Department of whether legislative changes would be necessary to issue a CBDC, should it be deemed appropriate and in the national interest.
Justice Department Announces Enforcement Action Involving over $100 Million in Losses to Department of Veterans AffairsRead the Press Release
The Department of Justice announced guilty pleas by seven defendants in three separate cases in schemes to defraud the Department of Veterans Affairs (VA) Post-9/11 GI Bill education benefits program, including the largest known Post-9/11 GI Bill fraud case ever brought by the department.
“The Post-9/11 GI Bill was enacted to aid our military veterans and their families on behalf of a nation grateful for their service,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Criminal Division. “These frauds drain funds from a vital veterans’ program and undermine public faith in the administration of government. These cases demonstrate the Criminal Division’s clear commitment to protecting the integrity of federal programs and to holding offenders who would abuse and exploit these programs accountable.”
The Post-9/11 GI Bill is a VA benefit program that pays tuition, housing, and other costs for eligible veterans seeking post-secondary education and training. Employees of VA-approved education institutions, known as School Certifying Officials (SCOs), are responsible for ensuring the participating educational institution maintains and supplies the VA with true and accurate enrollment, attendance, and course completion records for enrolled veterans; promptly notifies the VA of changes to veteran enrollment status; and maintains compliance with the “85-15 rule,” which stipulates educational institutions (1) charge the same tuition rate to veteran and non-veteran students, and (2) ensure that no more than 85% of the students enrolled in an approved course are funded by the VA. The VA relies on representations made by SCOs in authorizing tuition payments to VA-approved schools and housing and other payments to eligible veterans.
Today’s enforcement action involves SCOs for three VA-approved education institutions who submitted fraudulent claims to the VA in order to obtain millions of dollars in payments in Post-9/11 GI Bill benefits.
“The scope of the fraud uncovered in these investigations is stunning, particularly when you consider the schemes siphoned funds intended for providing legitimate education assistance to former service members,” said U.S. Attorney David H. Estes for the Southern District of Georgia. “We applaud the work of the VA Office of Inspector General in identifying and halting this fraud.”
“Safeguarding Post-9/11 GI Bill education benefit funds reserved for deserving veterans remains a priority,” said Inspector General Michael J. Missal of the Department of Veterans Affairs. “These guilty pleas are a testament of our commitment to working with our law enforcement partners to hold accountable those who would defraud VA’s benefits programs.”
The following charges were announced today as part of this national enforcement action:
United States v. Michael Bostock and Eric Bostock (District of Columbia)
Michael Bostock, 54, of Nampa, Idaho, and Eric Bostock, 47, of Riverside, California, each pleaded guilty to one count of conspiracy to commit wire fraud in the U.S. District Court for the District of Columbia. According to court documents, Michael Bostock was the founder and CEO of California Technical Academy (CTA), a VA-approved, for-profit school that offered technical training programs at three locations in Los Angeles and San Diego. Eric Bostock was CTA’s Director of Student Services. Both were SCOs.
According to court documents, from January 2012 to June 2022, the Bostocks and their co-conspirators made false representations to the VA regarding veterans’ enrollment in CTA’s approved courses of study, class attendance, and grades, and CTA’s compliance with the 85-15 rule. They also falsified course completion records to make it appear as if enrolled veterans completed their programs, when in fact they had not. In order to conceal their scheme, the Bostocks and their co-conspirators falsified veterans’ contact information to ensure that regulators could not contact the veterans by substituting phone numbers they and their co-conspirators controlled. When regulators called the falsified phone numbers to obtain information about CTA, the Bostocks and their co-conspirators would impersonate students.
Between January 2012 and June 2022, when CTA’s VA approval was withdrawn, CTA received more than $32 million in tuition payments for approximately 1,793 enrolled veterans. During the same period, veterans enrolled in CTA’s VA-approved courses received over $72 million in housing and other education-related benefits. In total, Michael and Eric Bostock’s scheme to defraud the VA resulted in a total loss of approximately $104,682,860. This is the largest known incident of Post-9/11 GI Bill benefits fraud prosecuted by the department to date.
Michael and Eric Bostock will be sentenced at a later date and each faces a maximum penalty of five years in prison.
Trial Attorneys Michael P. McCarthy and Lauren Archer of the Justice Department’s Fraud Section are prosecuting the case.
United States v. Robert Lanoue, Judith Lanoue, Kenneth Meers, and David Anderegg (Southern District of Georgia)
Robert Lanoue, 63, and Judith Lanoue, 59, both of Savannah, Georgia, each pleaded guilty to one count of submitting false claims to the VA. According to court documents, the Lanoues were the owners of Scooba Shack, a VA-approved scuba academy located in Bryan County, Georgia, that offered eight courses to eligible veterans. As SCOs, the Lanoues made false representations to the VA regarding Scooba Shack’s compliance with the 85-15 rule, the true hours of instruction for each VA-approved course, attendance and course completion dates, and payments received from non-VA students. To evade compliance with the 85-15 rule, the Lanoues took part in setting up a fake scholarship fund, ostensibly to pay for non-VA funded students who enrolled in Scooba Shack’s VA-approved courses. In fact, the scholarship did not pay out any funds, and instead non-VA funded students were allowed to attend classes for free or at discounted rates in violation of the 85-15 rule. Scooba Shack obtained over $3.2 million as a result of materially false claims submitted to the VA.
David Anderegg, 42, of Richmond Hill, Georgia, also pleaded guilty to submitting false claims to the VA for his role as a Scooba Shack SCO.
Kenneth Meers, 54, of Altamonte, Georgia, pleaded guilty to conspiracy to commit wire fraud for his role in orchestrating the scheme to defraud the VA at Scooba Shack and Diver’s Den, another VA-approved scuba school in Camden County, Georgia, which is described in further detail below.
United States v. Theresa Whitlock and Kenneth Meers (Southern District of Georgia)
Theresa Whitlock, 55, of St. Mary’s, Georgia, pleaded guilty to making false statements to the VA. According to court documents, Whitlock was an owner of Diver’s Den, a VA-approved scuba academy located in Camden County, Georgia. As an SCO, Whitlock made false statements to the VA regarding Diver’s Den’s compliance with the 85-15 rule, true hours of instruction, dates of attendance and completion for certain students, and payments received from non-VA students. Diver’s Den obtained more than $1.1 million as a result of materially false claims submitted by Whitlock and Meers.
Judith Lanoue was sentenced to six months in prison on Sept. 15.
Robert Lanoue is scheduled to be sentenced on Oct. 18 and faces a maximum of five years in prison.
The remaining defendants will be sentenced at a later date. David Anderegg, and Theresa Whitlock each faces a maximum penalty of five years in prison. Kenneth Meers faces a maximum penalty of 20 years in prison.
Trial Attorney Michael P. McCarthy of the Justice Department’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Georgia are prosecuting the Scooba Shack and Diver’s Den cases.
For those awaiting sentencing, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. All cases were investigated by the VA-OIG with assistance from the Veterans Benefits Administration-Education Service.
Jury Finds Trucking Company Defrauded U.S. Postal Service, Verdict Will Result in Judgment of over $5 Million for U.S.Read the Press Release
RALEIGH, N.C. – Yesterday, a jury in the Eastern District of North Carolina found defendants Chad Cline and BJ Trucking Company, Inc. liable for $1,679,086 worth of unauthorized fuel purchases under United States Postal Service contracts, in violation of the False Claims Act. The jury also found that while BJ Trucking was insolvent and owed a substantial debt to the United States, it transferred $439,015 to company insiders—including to Defendant Doug Cline—in violation of the Federal Debt Collection Procedures Act. This jury verdict will allow the recovery of more than $5 million to the government in addition to civil penalties to be determined by the judge.
“This civil fraud trial demonstrates our firm commitment to protect taxpayer money and to guard the integrity of federal programs,” said U.S. Attorney Michael Easley. “Our office will zealously pursue those who misuse or abuse government funds.”
“We are gratified to have contributed to this investigation and applaud the exceptional work by the United States Attorney’s Office for protecting both U.S. Postal Service funds and the integrity of our fuel card program,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service, Office of Inspector General.
BJ Trucking was a Greensboro, N.C.-based trucking company that hauled mail for the Postal Service. Doug Cline owned the company, and his son, Chad Cline, managed its day-to-day operations. The Postal Service issued fuel cards that BJ Trucking was permitted to use to purchase fuel on authorized Postal Service routes, up to a designated amount. The Postal Service, in turn, would pay for the fuel purchased with the fuel cards. Although the company’s contracts with the Postal Service expressly prohibited excessive purchases on the fuel card, and expressly warned that unauthorized fuel card use could lead to False Claims Act liability, BJ Trucking routinely used its cards between 2014 and 2015 to purchase hundreds of thousands of gallons of fuel above the authorized limits, spending millions of Government dollars that the company was not entitled to. The Government recovered a large portion of that money by withholding payments to BJ Trucking, and pursued the remainder through this litigation.
In addition, while the company was insolvent, struggling to make its payroll and pay other bills, and indebted to the United States, it transferred hundreds of thousands of dollars to its corporate insiders, including Doug Cline, his sister, and another company that he ran. The United States pursued those fraudulent transfers in this litigation.
The jury found that BJ Trucking and Chad Cline submitted or caused the submission of 29 false claims, costing the United States $1,679,086 in damages. The jury also found that BJ Trucking unlawfully transferred $439,015 to company insiders. The False Claims Act allows the United States to recover triple the money falsely obtained, plus civil penalties for each false claim submitted. Among other things, the Federal Debt Collection Procedures Act allows the United States to void and recover preferential transfers to insiders.
The verdict obtained in this matter was the culmination of a coordinated effort between the United States Attorney’s Office and the United States Postal Service, Office of Inspector General. Assistant United States Attorneys Neal Fowler and Michael Anderson represented the United States in this case. This matter was investigated by the United States Postal Service, Office of Inspector General.
Related court documents and information from the civil lawsuit are on PACER by searching for Case No.5:19-CV-94-D.
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Johnston County Resident Pleads Guilty to Abusive Sexual Contact with A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Dustin Kane Adams, age 42, of Troy, Oklahoma entered a guilty plea to Abusive Sexual Contact in Indian Country, in violation of Title 18, United States Code, Sections 2244(a)(5), 2246(3), 1151 & 1152, punishable by up to twenty-two years of imprisonment.
The Indictment alleged that beginning in March of 2015 and continuing until January of 2018, Dustin Adams, did knowingly engage in and cause sexual contact with a child who had not obtained the age of 12 years.
The charges arose from an investigation by the Johnston County Sheriff’s Department and the Federal Bureau of Investigation.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the victim is a member of a federally recognized Indian tribe and the crimes occurred in Johnston County, within the boundaries of the Chickasaw Nation Reservation, and within the Eastern District of Oklahoma.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorneys Alan Metzger and Debra Barnett represented the United States.
Jeannette Man Pleads Guilty in IRS Impersonation Fraud SchemeRead the Press Release
PITTSBURGH, PA – A resident of Westmoreland County, Pennsylvania, pleaded guilty to one count of conspiracy to commit wire fraud, U.S. Attorney Cindy K. Chung announced today.
Ronnell Taylor, Jr., 40, of Jeannette, Pennsylvania, pleaded guilty before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, the court was advised that from in or around March 2016 to in or around August 2017, Ronnell Taylor, Jr. participated in an IRS impersonation fraud conspiracy. The IRS impersonation fraud scheme involved call centers located in India that would use phone numbers to make their calls appear to originate in the United States. The calls would provide recorded information to individuals in the United States and fraudulently claim that the call was from the IRS concerning the individual’s failure to pay taxes. The call would provide a U.S.-based telephone number for the individual to call in order to resolve the matter. Calls to these U.S.-based telephone numbers would be automatically forwarded to call centers in India, and those who answered would tell callers that they owed money to the IRS and demand immediate payment via gift card or other means.
The court was advised that, to assist in this fraud scheme, Taylor would activate cell phones in the United States. To do so, he would insert SIM cards into cell phones, activate the cell phone number with the SIM card, and program the cell phone to automatically forward calls to the call centers. Taylor hired associates to help him program hundreds of cell phones and cell phone numbers. At all times, Taylor and his co-conspirators activated these cell phones in the Western District of Pennsylvania.
The court was further advised that Taylor had a working relationship with those involved with the fraudulent call centers, including Sagar Thakar, also known as “Shaggy,” and that after Taylor learned that co-conspirators in India had been charged with conduct related to the IRS impersonation scheme, Taylor destroyed evidence related to the scheme, including prepaid credit cards, cell phones, and documents.
Judge Haines scheduled sentencing for Jan. 17, 2023, at 10:30 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 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 matter was investigated by United States Treasury Inspector General for Tax Administration, Homeland Security Investigations, and the United States Postal Inspection Service.
Anyone with information about allegations of elder fraud can report it by calling the National Elder Fraud Hotline at 1-833-FRAUD-11 or 833–372–8311. More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative at https://www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at reportfraud.ftc.gov/ or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Sept. 13 was:
Robert John Terry, 37, of Great Falls, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Terry faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Terry was detained pending further proceedings. The FBI, Drug Enforcement Administration, Great Falls Police Department and Cascade County Sheriff’s Office investigated the case. PACER case reference. 22-71.
Joseph Drayton Cook, 32, of Great Falls, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, possession of firearm in furtherance of a drug trafficking offense and prohibited person in possession of a firearm. If convicted of the most serious crime, Cook faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release on the conspiracy charge and a mandatory minimum of five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on possessing a firearm in furtherance of a drug trafficking crime. The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and Great Falls Police Department investigated the case. PACER case reference. 22-66.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Sept. 15 was:
Jordan Cody Washee, 30, of Ashland, on charges of aggravated sexual abuse and abusive sexual contact. If convicted of the most serious crime, Washee faces a maximum of life in prison, a $250,000 fine and a mandatory minimum five years to life of supervised release. Washee was released pending further proceedings. The FBI investigated the case. PACER case reference. 22-94.
Jonathan Cleve Brien, 42, of Billings, on charges of conspiracy to commit wire fraud and wire fraud. If convicted of the most serious crime, Brien faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release. Brien was released pending further proceedings. The Department of Interior Office of Inspector General investigated the case. PACER case reference. 22-85.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indictment Charges Hamden Man with Drug and Gun OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned a three-count indictment charging LATRELL ROUNTREE, 27, of Hamden, with drug and firearm offenses.
The indictment was returned on September 14, 2022, and Rountree was arrested yesterday. He appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven, entered a plea of not guilty to the charges, and was ordered detained.
As alleged in the indictment and statements made in court, on May 24, 2022, law enforcement executed a search warrant at Rountree’s residence and seized quantities of crack cocaine and fentanyl, three semi-automatic pistols, and ammunition. As police arrived, Rountree attempted to flee by jumping over the railing of the apartment’s balcony. He was arrested and charged with related state offenses.
It is further alleged that Rountree’s criminal history includes felony convictions for firearm offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Rountree with possession with intent to distribute fentanyl and cocaine base (“crack”), which carries a maximum term of imprisonment of 20 years; possession of firearms in furtherance of a drug trafficking crime, which carries a mandatory consecutive term of imprisonment of at least five years; and unlawful possession of firearms by a felon, which carries a maximum term of imprisonment of 10 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the New Haven and Hamden Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Kenneth Gresham through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: Fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Indianapolis Man Sentenced to over 24 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
INDIANAPOLIS – LeMarkus Hamilton, 32, of Indianapolis, was sentenced to 292 months in federal prison after pleading guilty to possession with intent to distribute 500 grams or more of methamphetamine.
According to court documents, on August 25, 2021, law enforcement officers were conducting a narcotics investigation involving Hamilton, and were aware there were several active warrants for his arrest. Officers saw Hamilton leave his Indianapolis home and travel to a fast-food restaurant near east 21st Street in Indianapolis. Hamilton parked his vehicle and entered the restaurant. Uniformed police officers entered the restaurant and placed Hamilton under arrest for his active warrants and removed him to the parking lot near his vehicle. Following a court-authorized search of the vehicle, officers seized a loaded .40 caliber handgun along with a loaded fifty-round drum magazine.
Officers continued their investigation at Hamilton’s residence and interviewed Hamilton’s sister as she was leaving the residence in a vehicle. Hamilton’s sister admitted that she and the child’s mother removed drugs and guns from the residence, placed them in the vehicle and left. Hamilton’s child’s mother was also interviewed and admitted that Hamilton’s sister placed several guns wrapped in a blanket and a backpack in her vehicle, which she admitted belonged to Hamilton. Officers located four rifles and two handguns and backpack in the vehicle. The backpack contained 2.9 kilograms of methamphetamine, 767 grams of ecstasy pills, marijuana, scales, packaging, and a large sum of U.S. currency. Hamilton was interviewed by officers and admitted that he possessed the firearms and drugs seized from his vehicle and person and his child’s mother’s vehicle.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division, made the announcement.
ATF investigated the case in conjunction with the Indianapolis Metropolitan Police Department. Sentence was imposed by U.S. District Judge James R. Sweeney II. As part of the sentence, Judge Sweeney ordered that Hamilton be supervised by the U.S. Probation Office for five years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lawrence D. Hilton who prosecuted this case.
Hialeah Armed Hostage-Taking Ring Busted for Ransoming Cuban Migrants and Human Smuggling OffensesRead the Press Release
MIAMI – On September 15, 2022, Didier Perez Perez, Lester Leyniel Soca Diaz, and Yoandy Alonso were indicted by a Miami Southern District of Florida Grand Jury for transporting Cuban nationals into the U.S. via Monroe County, Fla., to a migrant stash house in Hialeah, Fla., where they were held for a requested ransom of $15,000.
Migrants were threatened—to include being told they would be left in the middle of the ocean if their smuggling debts were not paid. Law enforcement rescued the captured migrants and busted the alien transport ring by accompanying a victim’s friend to the hostage exchange point.
The three men were charged with: Conspiracy to Transport and Harbor Aliens for Profit; Transporting Aliens for Profit; Conspiracy to Commit Hostage Taking; and Hostage Taking. All three defendants have been detained pending trial.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation. The principal mission of the OCDETF is to identify and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten U.S. citizens. The task force uses a prosecutor-led, intelligence-driven, multiagency approach to combat transnational organized crime. The OCDETF handles complex operations by focusing its partner agencies on priority targets.
These arrests are the result of ongoing efforts of the Operation Sisyphus Task Force, a multiagency partnership established by the OCDEFT’s Priority Transnational Organized Crime Program. The Operation Sisyphus Task Force was formed to combat Caribbean-based organized crime and includes the U.S. Attorney’s Office for the Southern District of Florida, FBI Miami, and HSI Miami. In recent years, the Operation Sisyphus Task Force has targeted organizations utilizing coercion and extortion to compel migrants and their families to make payments for the release of loved ones.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, Robert M. DeWitt, Acting Special Agent in Charge of the FBI’s Miami Field Office, Anthony Salisbury, Special Agent in Charge of Homeland Security Investigations (HSI), Miami Field Office, and George Fuente, Chief of Police, Hialeah Police Department, made the announcement.
This case was investigated by FBI Miami, HSI Miami, and the Hialeah Police Department. This case is being prosecuted by Assistant United States Attorney Elena Smukler. Assistant United States Attorney Annika Miranda is handling the case’s asset forfeiture.
An indictment contains mere allegations and defendants are innocent unless and until found guilty in a court of law.
If you believe you are a victim of migrant coercion or extortion or know someone who is, you are encouraged to call 1-800-CALLFBI (225-5324). The toll-free phone number is available 24 hours a day all year. Help is available in English, Spanish, and other languages.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-mj-03513.
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Hardin County Man Guilty of Bank RobberyRead the Press Release
BEAUMONT, Texas– A Kountze man has pleaded guilty to robbing a bank in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Timothy Shane Mitchell, 38, pleaded guilty to bank robbery before District Judge Marcia Crone on Sep. 16, 2022.
According to information presented in court, on June 6, 2022, Mitchell robbed the Lumberton branch of the Community Bank of Texas. Mitchell approached a teller’s station at the bank and gave the teller a note demanding money. Mitchell told the teller he had a gun, which he threatened to use if she alerted authorities. The teller gave Mitchell a stack of currency and he left the bank. The teller immediately activated the panic button alerting police to the robbery. Witnesses were able to describe Mitchell’s vehicle, which was apprehended shortly after the robbery. Mitchell was arrested and the $5,860 in currency was recovered at that time.
Mitchell was indicted by a federal grand jury on June 8, 2022. Mitchell faces up to 20 years in federal prison upon sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
This case is being investigated by the Lumberton Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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Georgia Man Convicted of Child Enticement Sentenced to Serve 120 Months in Prison Resulting from Op End Game InvestigationRead the Press Release
MACON, Ga. – A Winterville, Georgia, resident convicted by a federal jury earlier this year of attempted online child enticement was sentenced to serve ten years in prison for his crime.
Noe A. Villafuerte, 48, of Winterville, Georgia, was sentenced to serve 120 months in prison to be followed by ten years of supervised release by U.S. District Judge C. Ashley Royal on Sept. 15 after he was convicted by a federal jury on March 30 of attempted online enticement of a minor. In addition, Villafuerte will have to register as a sex offender for life upon release from prison. There is no parole in the federal system.
“Child predators will go to great lengths to victimize a child, as seen in this case and in nearly all of the online exploitation cases we encounter. I hope this case serves as a reminder to parents and responsible adults to be aware of your young person’s online activity and who they are communicating with,” said U.S. Attorney Peter D. Leary. “Law enforcement at every level is collaborating through Georgia’s Internet Crimes Against Children Task Force program to protect children from online exploitation.”
“The GBI will continue to work tirelessly to protect innocent victims of online exploitation. We are grateful for the partnerships we maintain with our local and federal agencies to bring these predators to justice,” said GBI Director Michael Register.
“Predators like Villafuerte are just another example of why parents need to be vigilant and aware of their children’s online activity,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Fortunately, he connected with an undercover detective and not a child. The FBI remains committed to protecting our young citizens and is thankful for the law enforcement partnerships that make it possible to bring child predators to justice.”
According to court documents and testimony presented at trial, Villafuerte was arrested as a result of “Operation End Game,” a three-day proactive effort from July 25-27, 2019, centered in Athens, Georgia, to arrest adults communicating with children on-line and traveling to meet them for the purpose of having sex. During the online operation, an undercover detective posing as a 14-year-old girl placed an ad on an “escort” website known to be used by human traffickers. Villafuerte responded to the ad and began communicating with the undercover agent on July 25. Villafuerte offered to pay the child $60 for sex in his vehicle and they agreed to meet at a Kroger in Athens on July 26. Villafuerte was arrested shortly before 5:00 p.m. in the parking lot after searching the store and lot for the child.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Georgia Internet Crimes Against Children (ICAC) Task Force, the GBI’s Child Exploitation and Computer Crimes Unit (CEACC), the Athens-Clarke County Police Department (ACCPD), the FBI and the Athens-Clarke County District Attorney’s Office.
Assistant U.S. Attorney Robert McCullers prosecuted the case with Assistant U.S. Attorney Lyndie Freeman.
Four Men Sentenced for Gang-Related Murder and Multistate Drug Trafficking RingRead the Press Release
ALEXANDRIA, Va. – Four individuals were sentenced Monday and yesterday to multiple life terms and 26 years in prison for numerous charges relating to a murder, a violent gang enterprise, and a drug trafficking conspiracy operating in Virginia, California, and several other states.
According to court documents, Peter Le, 25, of Dunn Loring, Young Yoo, 26, of Centreville, Joseph Lamborn, 28, of California, and Tony Le, 28, also of California, were members of a violent Northern Virginia Street gang called the Reccless Tigers, which was affiliated with a California gang called the West Side Asian Boyz. The gang, which originated in Centreville in 2011, distributed thousands of pounds of marijuana as well as other THC products, cocaine, ecstasy, and prescription drugs. Many of the gang’s customers were middle and high school students in Northern Virginia and college students at a number of Virginia universities.
According to court records, gang members over a number of years engaged in a persistent pattern of intimidation and retaliation against individuals who did not pay their drug debts and anyone who were believed to have cooperated with law enforcement. Gang members attacked homes – with Molotov cocktails and even engaged in a drive-by shooting – in early morning hours when adults and children were sleeping in their homes in Fairfax, Stafford, and Prince William counties. Further, Peter Le and other gang members vandalized numerous homes and engaged in physical assaults against those who owed drug debts or were suspected of cooperating with law enforcement.
Reccless Tigers members are also responsible for two homicides. The first homicide occurred at one of the gang’s house parties in April 2016. During the party, one of the guests (the “victim”) began arguing with a gang member. The argument turned into a brawl, during which numerous gang members attacked the victim. The victim was stabbed in the chest during the fight, and he then left the party with friends unaware that he had life-threatening injuries. He died later that night at his home.
The second homicide occurred on Feb. 1, 2019. The victim, Brandon White, owed Yoo several thousand dollars for marijuana he had obtained when he was a juvenile in and around 2013-14. David Nguyen, a Reccless Tigers gang member, assaulted White over this drug debt on Aug. 8, 2018, which resulted in White sustaining serious injuries that required hospitalization. The Fairfax County Police Department subsequently arrested Nguyen and charged him with robbery and malicious wounding. As Nguyen’s criminal case progressed, gang members became aware that White had been subpoenaed to testify against Nguyen at a preliminary hearing. In response, gang members attempted to pay White in return for him refusing to cooperate in Nguyen’s prosecution. Gang members also threatened to kill White if he testified. White refused the gang’s offer, and he testified against Nguyen on Nov. 19, 2018. Less than two and a half months later, Peter Le, Yoo, and Lamborn carried out gang members’ threats by murdering White.
On Jan. 31, 2019, and continuing into the early morning hours of Feb. 1, 2019, Peter Le, Yoo, Lamborn, and others kidnapped White at a shopping mall in Fairfax County. The conspirators then held White against his will in a vehicle and drove him to a wooded area of Richmond, where Peter Le, Yoo, and Lamborn then repeatedly stabbed White in his face and other areas, and ultimately shot White three times in the back. White was left in the woods and died from his injuries.
Twenty-one defendants have pleaded guilty to federal charges and have been sentenced. Three defendants are fugitives. The table below shows the key sentences.
Name
Conviction(s)
Result
Peter Le*
Conspiracy to participate in the affairs of an enterprise engaged in a pattern of racketeering activity; Violent crimes in aid of racketeering murder; Conspiracy to engage in kidnapping; Kidnapping resulting in death; Conspiracy to distribute controlled substances; Killing while engaged in drug trafficking; Maintaining a drug-involved premises; Distribution of marijuana and cocaine; Use, carry, and possession of a firearm during a drug trafficking crime; and Money laundering.
Sentenced to five terms of life imprisonment; 30 years for conspiring to distribute controlled substances, six terms of 240 months; and 60 months to be served consecutive for using, carrying, and possessing a firearm during a drug trafficking crime
Young Yoo*
Conspiracy to participate in the affairs of an enterprise engaged in a pattern of racketeering activity; Violent crimes in aid of racketeering murder; Conspiracy to engage in kidnapping; Kidnapping resulting in death; Conspiracy to distribute controlled substances, Killing while engaged in drug trafficking.
Sentenced to five terms of life imprisonment and 20 years for conspiring to distribute controlled substances.
Joseph Duk-Hyun Lamborn*
Conspiracy to participate in the affairs of an enterprise engaged in a pattern of racketeering activity; Violent crimes in aid of racketeering murder; Conspiracy to engage in kidnapping; Kidnapping resulting in death; Conspiracy to distribute controlled substances; Killing while engaged in drug trafficking; Firearms murder.
Sentenced to six terms of life imprisonment, with one term to be served consecutive, and 15 years for conspiring to distribute controlled substances.
Tony Minh Le*
Conspiracy to participate in the affairs of an enterprise engaged in a pattern of racketeering activity; Conspiracy to distribute controlled substances.
Sentenced to 312 months
Kevin Aagesen
Conspiracy to distribute controlled substances; Conspiracy to commit kidnapping in aid of racketeering activity.
Sentenced to 188 months
Sascha Amadeus Carlisle
Conspiracy to participate in the affairs of an enterprise engaged in a pattern of racketeering activity; Conspiracy to engage in kidnapping; Conspiracy to distribute controlled substances.
Sentenced to 196 months
Abdullah Abdow Sayf
Conspiracy to commit kidnapping in aid of racketeering activity; Use and carry of a firearm during and in relation to a drug trafficking crime.
Sentenced to 180 months
Fahad Abdulkadir
Conspiracy to commit kidnapping in aid of racketeering activity; Possession with the intent to distribute 50 kilograms or less of marijuana; Use and carry of a firearm during and in relation to a drug trafficking crime.
Sentenced to 192 months
David Thai Hoang Nguyen
Conspiracy to distribute controlled substances
Sentenced to 171 months
Kyu Wa Hong
Conspiracy to distribute controlled substances
Sentenced to 216 months
Sang Thanh Huynh
Conspiracy to participate in the affairs of an enterprise engaged in a pattern of racketeering activity; Conspiracy to distribute controlled substances; Money laundering; Felon in possession of a firearm.
Scheduled to 192 months
Soung Park
Conspiracy to distribute controlled substances
Sentenced to 132 months
Tasneef Amhed Chowdhury
Conspiracy to distribute controlled substances
Sentenced to 121 months
Joshua Andrew Miliaresis
Conspiracy to distribute controlled substances
Sentenced to 18 months
Tyler Thang Le
Conspiracy to distribute controlled substances
Sentenced to 135 months
Dane Nicholas Hughes
Conspiracy to distribute controlled substances
Sentenced to 12 months and one day
Richard Pak
Conspiracy to distribute controlled substances; Distribution of cocaine; Use and carry of a firearm during and in relation to a drug trafficking crime.
Sentenced to 178 months
Spencer Pak
Conspiracy to distribute controlled substances; Distribution of cocaine; Use and carry of a firearm during and in relation to a drug trafficking crime.
Sentenced to 120 months
Tyler Pranompi Sonesamay
Conspiracy to distribute controlled substances
Sentenced to 120 months
Khalil Yasin
Conspiracy to distribute controlled substances
Sentenced to 97 months
Anthony Nguyen Thanh Le
Conspiracy to distribute controlled substances and distribution of cocaine
Sentenced to 92 months
Angel Hoang Le
Maintaining a drug-involved premises
Sentenced to 42 months
Zu Hun Chang
Possession with the intent to distribute cocaine
Sentenced to 42 months
Brandon Sobotta
Distribution of cocaine
Sentenced to time served (about 7 months)
This was a multi-jurisdictional OCDETF case involving the FBI Washington Field Office, ATF, HSI, IRS, U.S. Postal Service, U.S. Marshals Service, Fairfax County Police Department, Prince William County Police Department, City of Richmond Police, Montgomery County (MD) Police, Loudoun County Sheriff’s Office, Falls Church Police, City of Alexandria Sheriff’s Office, Richmond County Sheriff’s Office, Fairfax County Sheriff’s Office, Fairfax County Fire Marshal, Prince William County Fire Marshal, Stafford County Fire Marshal, City of Monterey Park (CA) Police, Garden Grove (CA) Police, Anaheim (CA) Police; Trinity County (CA) Sheriff’s Office, California Highway Patrol, DEA San Francisco Division – Reading Office, California Department of Forestry and Fire Protection, California Department of Food & Agriculture, California Department of Consumer Affairs Bureau of Cannabis Control, U.S. Attorney’s Office Eastern District of California – Sacramento Office, U.S. Attorney’s Office Central District of California – Santa Ana and Riverside Offices, and the FBI’s Field Offices in Richmond, Los Angeles, and Sacramento.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Washington Field Office; and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.
Assistant U.S. Attorneys Jim Trump, Carina A. Cuellar, and Ryan Bredemeier prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-57.
Former Washington State Employment Security Department worker sentenced to five years in prison for wire fraud, bribery, and aggravated identity theftRead the Press Release
Tacoma – A former employee of Washington State’s Employment Security Department (ESD) was sentenced today in U.S. District Court in Tacoma to five years in prison for three federal felonies for his scheme to exploit his employment for personal enrichment and to fraudulently distribute at least $360,000 in pandemic-related unemployment benefits, announced U.S. Attorney Nick Brown. Reyes De La Cruz, III, 48, of Moses Lake, Washington, personally enriched himself by at least $130,000 with his scheme. At the sentencing hearing U.S. District Judge Robert J. Bryan said, “This was a serious offense…damaging to our system of government and to individuals.”
“Mr. De La Cruz’s betrayal of public trust is particularly egregious, since he was hired to help people survive during a time of national crisis,” said U.S. Attorney Nick Brown. “Instead, through multiple acts of demanding bribes, falsifying records, stealing identities – he stole from the public to line his own pockets. The Department of Justice is working relentlessly to combat pandemic fraud, and to hold people who defrauded the government accountable.”
"Public servants must be held to higher standard.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Mr. De La Cruz took advantage of a program meant to assist struggling families during the pandemic. He exploited his position to benefit himself, which makes his actions that much more appalling. This case demonstrates the commitment by the FBI and U.S. Attorney’s Office to reinforce trust and hold accountable those who manipulate for personal gain.”
According to records filed in the case, De La Cruz was hired as an intake agent in April 2020 to help the Employment Security Department (ESD) deal with the crush of filings for pandemic unemployment benefits. De La Cruz had previously worked for ESD, from 1996 to 2003.
Between July 3, 2020, and March 15, 2021, De La Cruz used his access to the ESD claims database to defraud the benefits system in multiple ways. In at least ten instances, De La Cruz accepted bribes in exchange for engineering benefit payments for his friends, family, or acquaintances by making false entries in the claims database. In many cases, the person did not qualify for benefits, but De La Cruz manipulated the claims database so that the claimants received lumpsum retroactive payments that sometimes amounted to tens of thousands of dollars. The claimants would then pay De La Cruz a portion of the lumpsum. The bribes ranged from $500-$6,500. In total, De La Cruz enriched himself nearly $21,000 through kickback payments.
In some instances, when claimants refused or resisted paying De La Cruz, he threatened to terminate the claim if they did not pay him.
De La Cruz filed at least four claims using other people’s personal information without authorization and then had the benefits paid to debit cards that were mailed to Moses Lake, Washington, addresses where De La Cruz could retrieve them. Even after his employment with ESD terminated on October 1, 2020, De La Cruz attempted to restart claims payments to these debit cards to take advantage of additional federal pandemic benefits. De La Cruz went so far as to impersonate a claimant in recorded phone calls with ESD and a bank. He impersonated another claimant in handwritten correspondence that he then faxed to ESD. In this way he defrauded ESD of more than $113,000.
The Employment Security Department uncovered evidence of fraud, terminated De La Cruz, and referred the case to the Department of Labor Office of Inspector General. The FBI joined the investigation.
“Reyes De La Cruz was a state employee who was trusted to handle sensitive employment information. He abused that trust for personal gain. This sentencing sends a strong message to those who defrauded our nation’s unemployment system during a time when unemployment benefits were needed most. Protecting the integrity of the unemployment insurance program remains one of our highest priorities. We will continue to work with our law enforcement partners to safeguard unemployment benefits for those who need them and to bring to justice those who commit unemployment insurance fraud”, said Quentin Heiden, Special Agent-in-Charge of the U.S. Department of Labor, Office of Inspector General, Los Angeles Region.
This case is being prosecuted by Assistant United States Attorneys Cindy Chang and Seth Wilkinson.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Marine Sentenced to 5 Years in Prison for Cyberstalking Young Women in ‘Sextortion’ Campaign While on Active DutyRead the Press Release
LOS ANGELES – A South Bay man has been sentenced to 60 months in prison for cyberstalking multiple young women in a “sextortion” campaign he waged while he was an active-duty member of the United States Marine Corps, the Justice Department announced today.
Johao Miguel Chavarri, 26, a.k.a. “Michael Frito,” of Torrance, was sentenced late Thursday afternoon by United States District Judge Maame Ewusi-Mensah Frimpong, who also ordered him to pay a $15,000 fine.
Chavarri pleaded guilty on May 27 to three counts of cyberstalking.
From May 2019 to February 2021, Chavarri stalked and sent anonymous threatening communications to numerous victims, including the three victims discussed in court documents.
Chavarri, often using the name “Frito,” contacted victims on social media platforms, including Instagram, Snapchat, and Twitter, complimented their appearance and/or their publicly posted photos, and suggested a relationship in which he would pay the victim to send him photos or videos. Some of the victims initially agreed to Chavarri’s requests and sent him nude, sexually explicit, or compromising photos. When victims either refused Chavarri’s initial request for photos, refused to send him additional photos or videos, or otherwise refused to continue to communicate with him online, Chavarri began to harass, threaten, and extort the victims using numerous online accounts.
In most cases, he threatened to publish sexual photos and videos of the victims online or on well-known pornography websites and to distribute the sexual photos or videos to the victims’ boyfriends, friends, families, or employers — people he often specifically identified by name. Chavarri threatened his victims and their friends and family that he would ruin their lives. He knew many of his victims personally.
“Perhaps most troubling is the emotional distress that [Chavarri] intentionally inflicted on his victims,” prosecutors argued in a sentencing memorandum. “He terrified and terrorized them. The young women feared not only for their privacy and their relationships with their friends, family, employers, and community, but also for their physical safety. They suffered, and continue to suffer, significant emotional harm.”
The FBI investigated with this case with assistance from the Naval Criminal Investigative Service.
Assistant United States Attorney Lauren Restrepo of the Cyber and Intellectual Property Crimes Section and Senior Trial Attorney Mona Sedky of the Justice Department’s Computer Crime and Intellectual Property Section prosecuted the case.
Former Marine Sentenced for Cyberstalking Young Women in Sextortion CampaignRead the Press Release
A California man was sentenced yesterday to five years in prison for cyberstalking multiple young women in California in a “sextortion” campaign he waged while he was an active-duty member of the U.S. Marine Corps.
According to court documents, from May 2019 to February 2021, Johao Miguel Chavarri, aka Michael Frito, 26, of Torrance, stalked and sent anonymous threatening communications to numerous victims.
Chavarri, often using the name “Frito,” contacted victims on social media platforms, including Instagram, Snapchat, and Twitter, complimented their appearance and/or their publicly posted photos, and suggested a relationship in which he would pay the victim to send him photos or videos. Some of the victims initially agreed to Chavarri’s requests and sent him nude, sexually explicit, or compromising photos. When victims refused Chavarri’s initial request for photos, refused to send him additional photos or videos, or otherwise refused to continue to communicate with him online, Chavarri began to harass, threaten, and extort the victims using numerous online accounts. In most cases, he threatened to publish sexual photos and videos of the victims online or on well-known pornography websites and/or to distribute the sexual photos or videos to the victims’ boyfriends, friends, families, or employers, who he would often specifically identify by name.
Chavarri was ordered to pay a $15,000 fine and serve three years of supervised release.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Stephanie S. Christensen for the Central District of California; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Supervisory Special Agent Adam Smith of the FBI Los Angeles Field Office made the announcement.
The FBI Los Angeles Field Office, Long Beach Resident Agency, investigated the case, with assistance from the Naval Criminal Investigative Service.
Assistant U.S. Attorney Lauren Restrepo for the Central District of California and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Former District of Columbia Fire/EMS Employee Sentenced to Prison for Bribery in Scheme Involving Undelivered GoodsRead the Press Release
WASHINGTON—Louis “Joey” Mitchell III, a former employee of the District of Columbia Fire and Emergency Medical Services Department (FEMS), was sentenced today to 34 months in prison for accepting more than $60,000 in payments from a District of Columbia contractor in exchange for directing purchase agreements and orders to the contractor and then falsely certifying that goods that FEMS had paid for had been delivered.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, and Daniel W. Lucas, Inspector General for the District of Columbia.
Mitchell, 50, of Capitol Heights, Maryland, pleaded guilty to bribery in May 2022, in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amit P. Mehta. Following his prison term, Mitchell will be placed on three years of supervised release. He also must pay a $61,250 forfeiture money judgment and $257,680 in restitution.
Mitchell was a warehouse supply technician at FEMS. In that role, he was responsible for verifying deliveries of goods to the warehouse before the agency would issue payments to the relevant vendors. According to the plea documents, beginning in at least 2016 and continuing through in or about 2020, Mitchell and a FEMS contract administrator engaged in a bribery scheme with a contractor whose company was an approved vendor for supplies.
According to the documents, Mitchell and the contract administrator solicited and received bribes from the contractor on at least seven occasions in exchange for directing purchase orders to the contractor’s company and confirming delivery of and payment for goods that the company did not deliver. In addition, Mitchell, the contractor, and the contract administrator made fraudulent charges on FEMS credit cards, payable to the contractor’s company, and then split the proceeds.
As a result of the bribery scheme, FEMS paid the company approximately $250,000 for goods that never were delivered. Mitchell personally received at least $61,250 in bribes from the contractor.
The FEMS contract administrator, Charity Keys, pleaded guilty in July 2022 to bribery and is to be sentenced on Dec. 2, 2022. In her guilty plea, Keys, 44, of Bowie, Maryland, admitted to a federal bribery charge receiving at least $42,500 in bribes.
Law enforcement opened an investigation into the conduct after FEMS officials discovered procurement anomalies and referred the matter to the District of Columbia Office of the Inspector General and the FBI for investigation. Mitchell and Keys were arrested on Feb. 10, 2022.
This case is being investigated by FBI’s Washington Field Office and D.C. Office of Inspector General. The case is being prosecuted by the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
Former Director of Finance Sentenced to 44 Months in Prison for Defrauding Credit Union of More Than $600,000Read the Press Release
WASHINGTON – Salusthian Lutamila, the former Director of Finance of the Inter-American Development Bank – IIC Federal Credit Union, was sentenced today to 44 months in prison for an embezzlement scheme in which he stole $610,000 from the credit union.
The announcement was made by U.S. Attorney Matthew M. Graves and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division.
Lutamila, 53, of Hyattsville, Maryland, was found guilty by a jury in May 2022, in the U.S. District Court for the District of Columbia, of 21 counts of bank fraud, theft by a credit union employee, wire fraud, and money laundering. He was sentenced by the Honorable James E. Boasberg. Following his prison term, Lutamila will be placed on three years of supervised release. During that time, he is barred from working in finance or accounting. He also must pay $76,069 in restitution and an equal amount in a forfeiture money judgment.
According to the government’s evidence at trial, from November 2016 through April 2019, Lutamila worked at the credit union, first as the Controller and then as the Acting Chief Financial Officer. Shortly after finding out that he was not being promoted to the role of Chief Financial Officer, Lutamila began embezzling money from the credit union. Specifically, beginning in November 2018 through January 2019, Lutamila stole $610,000.
Throughout the scheme, Lutamila abused and misused his position and employment at the credit union in order to illegally transfer money from internal operating accounts to a previously dormant checking account. Lutamila then abused the authority granted to him as Acting CFO to secretly move that money to an E-Trade account he had opened at the beginning of the scheme.
Lutamila then used the stolen money to pay off his car, increase the balance on his retirement account, and buy stocks. Lutamila’s scheme was discovered only a few weeks before he was set to resign from the credit union when the newly hired CFO identified the fraudulent transfers. Due to the quick actions by the newly hired CFO, the credit union was able to flag the fraud and get back most of the embezzled money.
In announcing the sentence, U.S. Attorney Graves and Special Agent in Charge Jacobs commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the assistance provided by the Metropolitan Police Department (MPD). They commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Mariela Andrade and Michon Tart, and Supervisory Litigation Technology Specialist Leif Hickling.
Finally, they commended the work of Assistant U.S. Attorney Janani Iyengar, who investigated the case, and Assistant U.S. Attorney Melissa Jackson and former U.S. Attorney Peter Lallas, who prosecuted the case.
Former Customs and Border Protection officer sentenced for role in sham marriage immigration schemeRead the Press Release
Seattle – A former U.S. Customs and Border Protection (CBP) Officer was sentenced today in U.S. District Court in Seattle for immigration fraud, announced U.S. attorney Nick Brown. Burien resident Katherine De Leon Evaristo, 39, agreed to a sham marriage with a childhood acquaintance from the Philippines. She was to be paid $20,000 for the sham marriage so that the acquaintance could immigrate to the United States and obtain U.S. Citizenship. Evaristo later obtained a job at the Office of Field Operations for CBP and used her position there to make an inquiry into her husband’s immigration status. At the sentencing hearing U.S. District Judge Richard A. Jones imposed a sentence of two years of probation saying Evaristo abused her position of trust to obtain benefits for her sham spouse and herself. Judge Jones noted that she had lost her career in public service and was unlikely to reoffend.”
According to records filed in the case, in late 2012, Evaristo was approached by a cousin about a sham marriage after she attended her brother’s funeral in the Philippines. She agreed to the sham marriage in exchange for $20,000 with half paid at the start of the scheme and the other half when the fake spouse obtained citizenship. Evaristo applied for a fiancé visa for the fake spouse, he traveled to the U.S. in 2015, and the couple was “married” in San Diego. In 2017, the couple applied for citizenship for the “spouse,” and in 2019, again lied in their interview about the sham marriage to try to obtain citizenship.
The investigation began when Evaristo improperly used her access to a federal law enforcement database to check on the immigration status of her sham husband. CBP officers looking into the improper access knew Evaristo was dating another person and so began to unravel the sham marriage scheme. When Evaristo was interviewed in 2021, she admitted the scheme.
Evaristo was indicted in September 2021. She pleaded guilty in May 2022.
In recommending a probationary sentence, prosecutors noted that Evaristo is the single parent of infant twins. “Evaristo has experienced significant consequences of her crime that go beyond a custodial sentence: She lost her job at CBP—a job she spent years securing and that afforded her a comfortable income—and now works a lower-wage warehouse job. These consequences along with the restricted liberty of probation reflect the seriousness of the crime and are likely to deter any future criminal conduct,” prosecutors wrote in their sentencing memo.
“As evidenced by the outcome of this investigation, CBP OPR and our partners are committed to identifying and mitigating threats,” said Office of Professional Responsibility Special Agent in Charge (SAC) Paul Crawford, Seattle, Washington.
The case was investigated by U.S. Customs and Border Protection Office of Professional Responsibility (CBP-OPR), U.S. Citizenship and Immigration Services Fraud Detection National Security Unit, and Homeland Security Investigations (HSI).
The case was prosecuted by Assistant United States Attorneys Sok Jiang and Lauren Watts Staniar.
Florida Man Pleads Guilty to Money LaunderingRead the Press Release
BOSTON – A Florida man pleaded guilty yesterday in federal court in Boston in connection with operating an unlicensed money transmitting business to launder the proceeds of online investment fraud schemes.
Tochukwu Abel Edeh, 32, a Nigerian national previously residing in Jacksonville, Fla., pleaded guilty before U.S. District Court Judge Richard G. Stearns to one count of money laundering conspiracy and one count of conspiracy to conduct an unlicensed money transmitting business. A sentencing hearing has not yet been scheduled by the Court. Edeh was charged by criminal complaint and subsequently indicted by a federal grand jury in September 2021.
Edeh managed used car dealerships and currency transfer services in Texas, Florida and Nigeria. This included a trading company as well as a cryptocurrency firm, both of which were based in Nigeria, through which Edeh exchanged Bitcoin and other cryptocurrencies for profit.
In or around 2015, Edeh conspired with others to launder and transmit proceeds of Ponzi-style investment fraud schemes based in Nigeria. Specifically, the schemes purported to offer trading and Bitcoin investing services when, in fact, investor funds were stolen and later victims’ investments were used to pay purported returns to earlier investors. Edeh laundered the fraud proceeds using a network of co-conspirators in the United States and using his personal and business accounts in the United States and Nigeria. Edeh, along with his co-conspirators, did not hold money transmitting licenses in their respective states of residence, nor were they registered as money transmitters as required by federal law.
The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the laundered funds, whichever is greater. The charge of conspiracy to conduct an unlicensed money transmitting business provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Jennifer De La O, Director of Field Operations of U.S. Customs and Border Protection, Boston Field Office made the announcement today. Valuable assistance was provided by the Division of Enforcement at the Commodity Futures Trading Commission. Assistant U.S. Attorney Kriss Basil of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Fentanyl Trafficker Sentenced for Distribution of 30,000 ‘Pressed’ PillsRead the Press Release
ABINGDON, Va. – A Smyth County, Virginia man, who ordered approximately 30,000 fentanyl pills from California and sold them in Southwest Virginia, was sentenced today to 42 months in federal prison. He will also pay the United States a $50,000 monetary judgement.
Zachary Ryan Hutton, 21, of Marion, Virginia, pleaded guilty in March 2022 to knowingly possessing with the intent to distribute, as well as distributing, 400 grams or more of a mixture or substance containing fentanyl.
According to court documents, law enforcement began investigating a flood of illegal pills in Smyth County, Virginia that resembled pharmaceutical-grade oxycodone pills that were inconsistent in size, shape, and color, indicating they were counterfeit pills. The investigation revealed that the active ingredient in these “pressed” pills was fentanyl. Pills of this type are sometimes referred to as “Roxicodone,” “pressed,” or “M30” pills and often have an imprint of an “M” on one side and a “30” on the other side.
In June 2021, the U.S. Postal Service–Office of Inspector General intercepted a package addressed to “Ryan Hutton” at the residence of Hutton’s grandmother in Marion. The package contained approximately 561 grams of pressed fentanyl pills.
Law enforcement conducted a controlled delivery of the package, at which time Hutton was arrested and found to be in possession of an additional 798 pressed pills. During the subsequent investigation, law enforcement learned that Hutton had ordered fentanyl pills by mail for at least four months, received approximately 30,000 pills during that time frame, and paid a source in California $20,000 for the most recent package.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia, Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, Damon E. Wood, Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division, and Jarod Forget, Special Agent in Charge of the DEA’s Washington Division made the announcement.
The Smyth County Sheriff’s Office, the U.S. Postal Inspection Service, the U.S. Postal Service–Office of the Inspector General, the Drug Enforcement Administration, and the Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Whit D. Pierce prosecuted the case.
Everett, Washington, man pleads guilty to possession of stolen firearmRead the Press Release
Seattle – A 26-year-old Everett resident pleaded guilty today in U.S. District Court in Seattle to possession of a stolen firearm in connection with the theft of a high-powered rifle taken during a downtown Seattle altercation on May 30, 2020, announced U.S. Attorney Nick Brown. Jacob D. Little was captured by both Seattle Police surveillance photos and images posted online with the large bag used to store the Colt M4 rifle with a suppressor. U.S. District Judge Richard A. Jones will sentence Little on January 6, 2023.
Using not only the images captured of the scene of the civil unrest, but tips from the public, Seattle Police investigators linked Little to the stolen firearm. Images showed Little removing a heavy bag – subsequently identified as a bag containing a department-issued rifle – from a Seattle Police vehicle parked outside the downtown Nordstrom store. The vehicles were heavily damaged and ultimately burned. In the course of the investigation, law enforcement obtained electronic messages sent by Little after the theft in which he appeared to be negotiating the sale of the firearm. Little stated in the messages that he had removed the sling and suppressor and the “red dot” (a type of optical sight) from the rifle. All those accessories were present on the rifle when stolen from the Seattle Police vehicle.
Under the terms of the plea agreement, both prosecutors and defense will recommend a sentence of 16 months in prison.
Little is facing charges in King County Superior Court connected to an unrelated shooting incident on August 30, 2020. In that case, it is alleged that Little fired multiple shots when fights broke out at a gathering of over 200 car enthusiasts in the parking lot of the Uwajimaya grocery store in Renton. Little was observed firing a gun into the air and into a crowd of people. In January 2021, Little was charged with second degree murder and assault.
The stolen firearm in this case was not the gun used in the Renton shooting. The stolen firearm in this case was ultimately recovered after a third party surrendered it to law enforcement.
The case was investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Snohomish County Violent Offender Task Force, ,the United States Marshals Service, and the Marysville Police Department. The case is being prosecuted by Assistant United States Attorney Kate Crisham.
Dr. Charles J. Southall, III Charged with Money LaunderingRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on September 15, 2022 , DR. CHARLES J. SOUTHALL, III, age 64, was charged in a one-count bill of information with money laundering, in violation of Title 18, United States Code, Sections 1957 and 2.
According to court documents, the charge relates to the electronic transfer of approximately $100,000 from a bank account to an individual investment account in SOUTHALL’S name. The funds were the derived from the specified unlawful activity of wire fraud.
SOUTHALL faces a maximum term of imprisonment of ten (10) years in prison, up to three years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee.
U. S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Jordan Ginsberg, Chief of the Public Corruption Unit, Myles Ranier, and Asset Forfeiture Coordinator Alexandra Giavotella are in charge of the prosecution.
District Man Pleads Guilty to Fentanyl Distribution, Which Resulted in Death of Consumer from VirginiaRead the Press Release
WASHINGTON – Andrew Cooper, 47, of Washington, D.C., pleaded guilty today to a federal charge of distribution of Fentanyl, admitting that he distributed the drug to customers from his residence in Northeast Washington. In the statement of facts in support of the plea agreement, Cooper admitted that he distributed Fentanyl to a female and her male friend, and that the male friend subsequently died from consuming the Fentanyl that Cooper provided.
Cooper also admitted that he distributed approximately 30 grams of a mixture or substance containing a detectable amount of Fentanyl to an undercover law enforcement officer over five separate transactions.
The guilty plea was announced by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, Jarod Forget, Special Agent in Charge of the Washington Division Office of the U.S. Drug Enforcement Administration (DEA), Robert J. Contee III, Chief of the Metropolitan Police Department (MPD), and Kevin Davis, Chief of the Fairfax County, Va. Police Department.
Cooper pleaded guilty in the U.S. District Court for the District of Columbia. He is to be sentenced on Jan. 27, 2023, by the Honorable Amit P. Mehta. Under federal sentencing guidelines, he faces a likely range of 235-240 months in prison.
As part of his plea agreement, Cooper acknowledged distributing Fentanyl from his residence in the 1900 block of Capitol Avenue NE, in the Ivy City neighborhood, from February to November of 2021. On multiple occasions, from Feb. 11 to Feb. 16, 2021, he distributed Fentanyl to the female and her male friend, who then traveled to Virginia to consume the drug. On Feb. 16, 2021, the woman came to Cooper’s residence alone. Upon her return to Virginia, she discovered her male friend dead from an apparent overdose. He was in a bathroom, with a syringe containing Fentanyl nearby.
Cooper was initially indicted in November 2021, after law enforcement completed five separate undercover purchases from August to October 2021. When Cooper was arrested on Nov. 10, 2021, law enforcement also executed a search warrant on his residence and recovered $74,430, which were proceeds from Cooper’s narcotics sales, a firearm, and additional narcotics, including Fentanyl. After gathering additional evidence, law enforcement was able to determine that Cooper’s Fentanyl distribution dated back until at least February 2021 and that his distribution resulted in the death of a male victim on Feb. 16, 2021.
As part of its investigation, law enforcement also determined that Cooper maintained a bank account where he kept additional proceeds from his drug trafficking activities and obtained a seizure warrant, resulting in the seizure of an additional $32,650. As part of his plea agreement, Cooper acknowledged that the $74,430 seized from his home and the $32,650 seized from his bank account were drug proceeds and agreed to forfeit the money to the government.
This case was part of an 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 www.justice.gov/OCDETF.
The case was investigated by the FBI’s Washington Field Office, the DEA Washington Division, the Metropolitan Police Department, and the Fairfax County, Va. Police Department. It is being prosecuted by Assistant U.S. Attorneys David T. Henek and Solomon Eppel, of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia.
Defendant Who Assaulted and Robbed a Man Sentenced to 90 Months in PrisonRead the Press Release
A 43-year-old Tulsa man was sentenced Friday in federal court for assaulting and threatening to kill a victim, robbing him of hundreds of dollars, and stealing his vehicle.
“Merle Lancaster Sr. violently assaulted the victim with a baseball bat during a robbery and has been sentenced to more than seven years in prison,” said U.S. Attorney Clint Johnson. “The U.S. Attorney’s Office will continue to work closely with our law enforcement partners to fight violent crime across the Northern District of Oklahoma and deliver justice on behalf of victims.”
U.S. District Judge Gregory K. Frizzell sentenced Merle Jason Lancaster Sr., to 90 months in federal prison followed by three years of supervised release.
Lancaster pleaded guilty in November 2021 to robbery in Indian Country. He admitted that on Feb. 3, 2021, he threatened to kill the victim and his family if he did not hand over money or drugs. Lancaster further assaulted the victim with a baseball bat to force the victim to comply with his demands. The man was then forced into his own vehicle, and Lancaster and an accomplice drove the man to a convenience store so he could withdraw several hundred dollars from an ATM. Video surveillance showed the victim and Lancaster entering the convenience store, and the victim withdrawing cash and handing it over to Lancaster as Lancaster stood over him.
The three then left the convenience store, and Lancaster and his accomplice eventually forced the man out of the car and drove away.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorney Justin G. Bish prosecuted the case.
Coon Rapids Man Indicted for Threatening a U.S. SenatorRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a Coon Rapids man for making interstate threats against a U.S. Senator, announced U.S. Attorney Andrew M. Luger.
According to court documents on June 11, 2022, Brendon Michael Daugherty, 35, left two voicemail messages on the field office telephone of a U.S. Senator located outside the state of Minnesota. Both messages contained threats of violence directed at the U.S. Senator. In his first message, Daugherty stated, “You and the Republican Party should be proud that you’re pushing me to become a domestic terrorist. Have a nice [expletive] day; can’t wait to kill ya.” In his second message, Daugherty stated, “I also just wanted to note, thank god the Republican Party is against gun control laws because it would keep guns out of the hands of a person that was disabled and volatile like I am, but you guys are totally against that. So I may actually get to carry out my nefarious goals.”
Field office staff retrieved and recorded the messages and reported them to U.S. Capitol Police. On September 2, 2022, special agents with the FBI spoke to Daugherty at his Coon Rapids residence. Daugherty told the agents he made the calls to the U.S. Senator because the U.S. Senator was “doing a bunch of stupid [expletive] with gun control,” and that he wants politicians to “feel a little bit pressured.”
Daugherty is charged with one count of threatening to murder a United States official and one count of interstate transmission of a threat. He made his initial appearance today in U.S. District Court before Magistrate Judge Tony N. Leung.
This case is the result of an investigation conducted by the FBI and the U.S. Capitol Police.
Assistant U.S. Attorney Kimberly A. Svendsen 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.
Convicted Felon Pleads Guilty to Illegal Firearm PossessionRead the Press Release
BIRMINGHAM, Ala. – A convicted felon pleaded guilty yesterday to illegally possessing firearms, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Mickey French.
Audrey Jerome Pruitt, 39, of Birmingham, pleaded guilty before U.S. District Court Judge Madeline H. Haikala to two counts of being a felon in possession of a firearm.
According to court documents, in October and November 2020, Pruitt illegally possessed an American Tactical, Omni Hybrid, .223/.556 caliber pistol, and a Springfield .40 caliber pistol. Pruitt is prohibited from possessing a firearm because of prior felony convictions. In April 2008, Pruitt was convicted in the Circuit Court of Jefferson County for Robbery, First Degree and Receiving Stolen Property, and in March 2019, he was convicted of Domestic Violence, Second Degree.
The maximum penalty for being a felon in possession of a firearm is 10 years in prison.
ATF investigated the case, along with the Birmingham Police Department. Assistant U.S. Attorney Darius C. Greene is prosecuting the case.
Connecticut Man Sentenced to 11+ Years for Traveling to Maine to Engage in Illicit Sexual Conduct with 13-Year-OldRead the Press Release
PORTLAND, Maine: A Connecticut man was sentenced in U.S. District Court in Portland for traveling to Maine to have sex with a minor, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Devin Melycher, 30, to 135 months in prison and 10 years of supervised release. Melycher pleaded guilty on June 1, 2022.
According to court records, in August 2020, Melycher drove from his residence in Connecticut to Gorham, Maine to engage in sexual conduct with the minor victim. The trip followed weeks of contact between Melycher and the victim over Snapchat and other chat platforms during which time Melycher, who initially told the victim he was 19, pressured the victim to send sexually explicit images despite knowing the victim was only 13.
Homeland Security Investigations and the Gorham Police Department investigated the case.
“The evidence in this case showed that Devin Melycher is a sexual predator who indiscriminately distributed pornographic images of his body across chat platforms without regard to who received them or whether or not they were of legal age in an attempt to interact with them,” McElwee said. “He preyed upon minors, groomed them, and in the case of this victim, traveled to engage in illegal sexual acts despite knowing the victim was only 13.”
McElwee furthered warned parents of the growing role the internet and chat platforms play in exposing children to predators like Melycher.
“The internet opens up the world to our children, but it also exposes them to the world at a time when they may not be mature enough to understand or handle to consequences,” McElwee said. “Predators are increasingly using social media, apps and gaming platforms to find and access victims, and the consequences can be life-changing and tragic. Parents should remain vigilant and talk to their kids – often and repeatedly – about online safety, including why they should never engage online in any way with someone that they haven’t met in real life. It is so important that they know that images they share never really go away online and that they can and should confide in an adult they trust if anyone online ever says or does anything that makes them uncomfortable.”
If you suspect that a child is being sexually exploited online: The National Center for Missing & Exploited Children’s CyberTipline is the nation’s centralized reporting system for the online exploitation of children. The public and electronic service providers can make reports of suspected online enticement of children for sexual acts, child sexual molestation, child sexual abuse material, child sex tourism, child sex trafficking, unsolicited obscene materials sent to a child, misleading domain names, and misleading words or digital images on the internet. If you suspect that a child is being sexually exploited online, visit report.cybertip.org. or call 1-800-843-5678. To learn more about how to talk to your kids about online safety, visit missingkids.org/netsmartz.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Columbus Resident Indicted for Allegedly Helping FBI Shooting Suspect Evade PoliceRead the Press Release
MACON, Ga. – A federal grand jury in Macon returned a four-count indictment charging a Columbus woman with helping a wanted person evade law enforcement and making false statements to authorities following the shooting at an FBI agent last month.
A federal indictment was returned on Sept. 14 charging Derijuana Porter, 20, of Columbus, with one count of possession of a stolen firearm for which she faces a maximum sentence of ten years in prison and a $250,000 fine; one count of misprision of a felony for which she faces a maximum sentence of three years in prison and a $250,000 fine; and, two counts of false statement to a federal agency for which she faces a maximum sentence of five years in prison and a $250,000 fine on each count.
This case is being investigated by FBI and Muscogee County Sheriff’s Office.
Assistant U.S. Attorney Chris Williams is prosecuting the case.
Colorado Springs Man Sentenced to Federal Prison for Drug Trafficking and Weapons ChargeRead the Press Release
DENVER- The United States Attorney’s Office for the District of Colorado announces Zachary Lawhead, age 35, of Colorado Springs, was sentenced to 92 months in federal prison for possession of a firearm and ammunition by a felon and possession with intent to distribute more than five grams of methamphetamine.
According to the plea agreement, prior to November 1, 2021, the defendant was a fugitive who was the subject of three outstanding Colorado state arrest warrants. On November 2, 2021, officers with the Colorado Springs Police Department were able to locate him at an apartment complex. Detectives approached the defendant and took him into custody on the outstanding warrants. When they searched him, detectives found several baggies containing methamphetamine and heroin which he intended to distribute. Officers also recovered a loaded semi-automatic pistol in his back pocket, which he was prohibited from possessing as a convicted felon.
Chief Judge Philip A. Brimmer sentenced the defendant on September 16, 2022. He also sentenced him to 4 years of supervised release.
“Reducing gun violence and drug trafficking are our top priorities at the U.S. Attorney’s Office,” said U.S. Attorney Cole Finegan. “Felons should take note: with the help of our partners at the ATF, we will enforce the federal law that prohibits them from possessing a firearm or ammunition.”
“Guns and drugs in the hands of prolific offenders greatly contribute to violent crime,” said Special Agent in Charge David S. Booth. “Together, through strong partnerships with the U.S. Attorney’s Office and our local law enforcement partners, we not only combat violent crime, but stop violent offenders.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Prosecution was handled by the Violent Crime and Immigration Section of the U.S. Attorney’s Office for the District of Colorado.
Case Number: 21-cr-00404
Cleveland Heights Man Sentenced to Prison and Ordered to Pay $177k in Restitution for Credit Card Fraud SchemeRead the Press Release
CLEVELAND - Carlos Dashawn Brown, 28, of Bowling Green and Cleveland Heights, Ohio, was sentenced on Wednesday, September 14, 2022, to 38 months in prison and ordered to pay $177,716.07 in restitution by U.S. District Judge Solomon Oliver Jr. after Brown pleaded guilty to the unauthorized use of an access device, bank fraud and aggravated identity theft.
“This defendant preyed upon disadvantaged individuals and depleted the savings of an elderly victim, all in an effort to make a quick buck for himself,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Law enforcement in this region will not stand for the targeting of vulnerable populations in our community.”
“Committing credit card fraud, bank fraud and identity theft against vulnerable populations is nothing short of a heartless crime,” said FBI Cleveland Special Agent in Charge Gregory Nelsen. “Mr. Brown’s actions are appalling. This sentence underscores the commitment of the FBI to find and investigate predatory behavior by nefarious individuals. The FBI is committed to protecting every American from fraudsters, whether one person or a network of criminals, through our work with federal, state and local partners.“
“This case is an example of the well-coordinated efforts of law enforcement and the U.S. Attorney’s Office to protect vulnerable and older Americans from financial exploitation,” said Inspector In Charge Lesley Allison for the U.S. Postal Inspection Service. “The Inspection Service appreciates the steadfast dedication from our law enforcement partners and the U.S. Attorney’s Office in bringing those who perpetrate these scams to justice.”
“This sentence demonstrates our commitment to hold accountable those who intentionally misuse the Social Security numbers of others for their own personal gain,” said Gail S. Ennis, Inspector General for the Social Security Administration. “Mr. Brown’s criminal actions brought financial harm upon vulnerable individuals. I want to thank our law enforcement partners for their investigative efforts and the U.S. Attorney’s Office for prosecuting this case.”
According to court documents, from April 2014 to January 2019, Brown perpetrated a credit card fraud scheme using the personal identifying information of multiple victims. These victims were vulnerable due to their age and/or mental condition.
As part of his scheme, Brown, without authorization, used the personal identifying information of these victims to open credit card accounts and make purchases, including travel, expensive goods and a vehicle. Brown also stole more than $60,000 from one elder victim’s pension account and fraudulently caused multiple banks and creditors to issue Brown over $117,000 in refund checks to which he was not entitled.
In total, Brown caused an approximate loss of $177,716.07 to all victims in the scheme.
This case was investigated by the Cleveland FBI, United States Postal Service Inspection Service (USPIS), Social Security Administration Office of the Inspector General (SSA OIG) and the Cleveland Heights Police Department. This case was prosecuted by Assistant U.S. Attorney Justin Seabury Gould.
California Man Sentenced to 135 Months’ Imprisonment for His Supervisory Role in A Nationwide Drug Trafficking OrganizationRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge Malachy E. Mannion sentenced Miguel Renteria-Gomez, age 38, of Perris, California, to 135 months’ imprisonment and a 5-year term of supervised release for his supervisory role in a drug trafficking organization that moved large quantities of Heroin, Fentanyl, Cocaine and Methamphetamine from California to various major Midwest and East Coast cities, including through locations in Northeastern Pennsylvania.
According to United States Attorney Gerard M. Karam, Renteria-Gomez owned a ranch in Perris that was a primary distribution hub for this nationwide drug trafficking organization. Renteria-Gomez managed a group of couriers and other co-conspirators who packaged the drugs in suitcases and then transported the drugs via commercial flights to cities like New York and Boston, where the drugs were then distributed locally. On July 16, 2019, after a lengthy investigation, Renteria-Gomez was arrested in California. Six kilograms of Fentanyl were seized from his vehicle. Another six kilograms were seized from his ranch and other locations in the area.
The case was investigated by the Drug Enforcement Administration (DEA) and was prosecuted by Assistant U.S. Attorney Jeffery St John.
The case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Broward County Felon Sentenced to 10 Years for Federal Gun and Identity Theft CrimesRead the Press Release
MIAMI – Deshawn Lemonte Wheeler, a 38-year-old felon from Lauderhill, Florida, was sentenced to 120 months in prison for possessing a cache of firearms and ammunition, as well as sensitive identity and financial information belonging to others.
According to court documents, a narcotics investigation led law enforcement officers to Wheeler. On March 3, officers executed a search warrant at Wheeler’s home, where they recovered 10 firearms (including pistols, revolvers, and a rifle), multiple high-capacity-drums and other magazines, and a vast amount of multiple caliber ammunition. They also recovered numerous credit and debit card account numbers, bank account numbers, driver’s license identification numbers, and a Department of Defense identification number, all belonging to other people, say the court filings.
On March 3, Wheeler was a felon, having been previously convicted in federal court of conspiring to commit a Hobbs Act robbery.
(Court docket entry #8, exhibit #1)
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Robert M. DeWitt, Acting Special Agent in Charge, FBI Miami, made the announcement.
FBI Miami investigated the case, with assistance from Broward County Sheriff’s Office, Lauderhill Police Department, and Fort Lauderdale Police Department. Assistant U.S. Attorney Joseph A. Cooley prosecuted the case.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-60063.
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Bradenton Felon Sentenced to Federal Prison for Unlawfully Possessing A Firearm and AmmunitionRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas Barber today sentenced Robert Reese Lyons (24, Bradenton) to 3 years and 10 months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Lyons to forfeit the firearm and ammunition used in the offense. Lyons had pleaded guilty on June 8, 2022.
According to court documents, at approximately 2:15 a.m. on January 16, 2021, near the Miromar Outlets in Estero, deputies from the Lee County Sheriff’s Office stopped a vehicle in which Lyons was the front-seat passenger. During a search of the vehicle, the deputies recovered a loaded Smith and Wesson handgun, with an obliterated serial number, directly underneath Lyons’s seat. At the time, Lyons was a convicted felon and a state probationer who had an active warrant for his arrest. As a convicted felon, Lyons is prohibited from possessing a firearm or ammunition under federal law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Lee County Sheriff’s Office, the Manatee County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Simon R. Eth.
Box Elder woman admits shooting woman in the face over drug dealRead the Press Release
GREAT FALLS — A Box Elder woman suspected of shooting a woman in the face over a drug deal on the Rocky Boy’s Indian Reservation admitted to an assault charge on Sept. 15, U.S. Attorney Jesse Laslovich said today.
Tricia Friede Gardipee, 50, pleaded guilty to assault resulting in serious bodily injury. Gardipee faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other sentencing factors. Sentencing was set for Feb. 2, 2023. Gardipee was released pending further proceedings.
The government alleged in court document that on Aug. 13, 2021, Gardipee shot the victim, identified as Jane Doe, in the face with a .22-caliber firearm over a drug deal on the Rocky Boy’s Indian Reservation. Gardipee confronted Doe and some of her friends earlier that day in Havre. Doe picked up a brick and said she didn’t want any problems. The confrontation was because another woman ripped off Gardipee by selling her anxiety medication instead of fentanyl and Gardipee was trying to get her money back. The government further alleged that Doe later drove with friends to a Box Elder residence. As Doe pulled into the driveway, Gardipee, along with others, pulled in behind them, blocking the car. Gardipee and her son, both armed, walked up to Doe’s car. Gardipee then shot Doe in the face. Doe was treated for injuries.
The U.S. Attorney’s Office is prosecuting the case, which was investigated by the FBI and Rocky Boy’s Police Department.
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Bolton Man Sentenced to 45 Months in Federal Prison for Fraud and Tax OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that MARK PAGANI, 61, of Bolton, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 45 months of imprisonment, followed by three years of supervised release, for fraud and tax evasion offenses.
According to court documents and statements made in court, from 2013 to at least August 2015, Pagani conspired with another person (“K.S.”), who is now deceased, to defraud a victim investor of more than $1 million. K.S. arranged investment deals with the victim, including the purported acquisition of mortgages on properties. Pagani drafted documents to memorialize certain investment deals, accepted funds from the victim and held the funds in accounts he controlled, and he transferred funds to entities controlled by K.S. and others. By the time the victim investor made a third investment, which was to acquire mortgages on properties in Springfield, Massachusetts, and Middletown, Connecticut, Pagani knew that the first two investments had not occurred, and that the third investment was not legitimate. In association with the third investment, the victim wired more than $1.3 million to an account Pagani controlled. These funds were comingled with other funds, which Pagani sent a portion of to an entity for the benefit of K.S. In order to conceal the fraud and to create the appearance that it was a legitimate investment, Pagani wired false interest payments to the victim.
In addition, for the 2014 through 2017 tax years, Pagani paid for personal and other expenses using his law firm account and underreported his income on his federal tax returns, resulting in a tax loss of $181,702. Pagani was previously a practicing attorney with a law office in Wethersfield.
Judge Bryant will issue a restitution order at a later date.
On August 20, 2021, Pagani pleaded guilty to one count of conspiracy to commit wire fraud, and one count of tax evasion.
This is Pagani’s third federal conviction.
Pagani, who is released on bond, was ordered to report to prison on January 13, 2023.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. This case was prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and Michael S. McGarry.
Baltimore Man Sentenced to over Four Years in Federal Prison for Submitting over $660,000 in Fraudulent Cares Act Loan Applications, a Wire Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Robert Hopkins IV, age 37, of Baltimore, Maryland to 51 months in federal prison, followed by 3 years of supervised release, for wire fraud conspiracy and aggravated identity theft charges relating to multiple identity theft and fraud schemes, including the submission of fraudulent CARES Act loan applications. Judge Chasanow also ordered Hopkins to pay $456,784.54 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron Special Agent in Charge Bo Keane of the United States Secret Service - Baltimore Field Office and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his guilty plea, from May 2018 to June 2020, Hopkins and co-conspirator Keon Ball, age 46, of Baltimore, Maryland incurred charges of over $1,000,000 on fraudulently established credit lines, using the identities of multiple victims in connection with the schemes. For example, on August 25, 2018, Ball submitted a false and fraudulent application for a credit line account from a financial institution using the name, birth date, and social security number of Victim 1. After the credit application was approved, Hopkins and Ball incurred $105,442.59 in purchases from Company 1 (a home improvement store) under the identity of Victim 1. The defendants then repeated the scheme multiple times, incurring charges of over $150,000 in connection with lines of credit opened using various other victims’ names. The charges were never repaid. The defendants also repeatedly passed fraudulent checks to Company 1 purporting to pay the balances they incurred. Further, as part of their scheme to defraud, the defendants obtained two vehicles valued at over $60,000 and multiple pieces of heavy construction equipment valued at over $300,000 using the identity information of Victim 2.
Additionally, from June 2020 to August 2020, Hopkins applied for $664,450 in fraudulent CARES Act Paycheck Protection Program loan applications for four shell companies he created that did not exist in any legitimate capacity. In connection to these applications, Hopkins submitted fraudulent tax documents which falsely indicated that the shell companies had paid wages to numerous W-2 employees and withheld hundreds of thousands of dollars in federal income tax. In fact, the purported businesses had no employees. The loans were never distributed to Hopkins.
In total, Hopkins and Ball caused more than $449,000 in actual losses and used the personal identity information of at least six victims in connection with their scheme. Hopkins intended to cause a loss of more than $1,100,000 to victims.
Co-defendant Keon Ball was sentenced to 66 months in federal prison followed by 3 years of supervised release for wire fraud conspiracy and aggravated identity theft in relation to the multiple schemes in July 2022. The Court also ordered Ball to pay $715,504 in restitution.
The District of Maryland Strike Force is one of three strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
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.
United States Attorney Erek L. Barron commended the USSS and the BCPD for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Armed Robber Indicted for Three Robberies in the Same Night Along Route 1 Corridor in PhiladelphiaRead the Press Release
PHILADELPHIA –United States Attorney Jacqueline C. Romero announced that Saifuddin Hasan, 21, of Philadelphia, PA, was charged by Indictment with three counts of Hobbs Act Robbery in connection with three armed robberies which all occurred on the same night in December 2021, in Montgomery County and Philadelphia.
The Indictment alleges that on the night of December 5, 2021, the defendant entered a 7-Eleven convenience store on City Avenue in Wynnewood, Pennsylvania, and brandished a firearm as he committed his first robbery. Then, according to the Indictment, Hasan drove east bound to a Lukoil gas station on City Avenue and committed his second armed robbery. The defendant capped off his night of violence by continuing in his vehicle eastbound on Route 1 into the Hunting Park section of North Philadelphia and allegedly committed an armed robbery of a 7-Eleven convenience store at Wyoming and Rising Sun Avenues. Philadelphia police officers pursued and arrested Hasan after this third armed robbery.
“As alleged, this defendant brandished a firearm in the faces of convenience store and gas station employees simply doing their jobs,” said U.S. Attorney Romero. “The charges in this Indictment demonstrate that our Office is committed to investigating and prosecuting violent crime.”
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.
The case was investigated and charged by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Michael R. Miller and Special Assistant United States Attorney Shannon Zabel.
Altoona Felon Sentenced to 6 Years in Prison for Illegally Possessing Drugs and GunsRead the Press Release
PITTSBURGH - A resident of Altoona, Pennsylvania, has been sentenced in federal court to six years of imprisonment on his convictions for federal narcotics and firearms offenses, United States Attorney Cindy K. Chung announced today.
United States District Judge William S. Stickman imposed the sentence on Royal Lee Griffin, age 33.
According to information presented to the court, Griffin was sentencing in connection with criminal offenses that occurred on two occasions.
In the first matter, the court was advised that on Aug. 24, 2018, Griffin possessed two firearms and ammunition as a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition, and Griffin has multiple felony convictions, including Aggravated Assault, Robbery, Carrying a Firearms Without a License, and Escape. Also on Aug. 24, 2018, Griffin possessed with intent to distribute fentanyl and heroin. Those offenses were uncovered after a search of his person and the vehicle he occupied by the White Oak Police Department.
In the second matter, the Court was advised that Allegheny County Police detectives working on a violence suppression detail observed Griffin in the Mon View Heights housing complex concealing a firearm. When the detectives approached Griffin, they found the firearm on Griffin’s person.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Chung commended the Allegheny County Police Department, the White Oak Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Griffin.
20-Year-Old Man Charged with Assaulting a Border Patrol AgentRead the Press Release
TUCSON, Ariz. – Eliazar Vazquez-Alvaro, 20, of Mexico, was arrested Sunday on one count of Assault on a Federal Officer with the Use of a Deadly or Dangerous Weapon. Vazquez-Alvaro was charged by criminal complaint and had his initial appearance Tuesday before United States Magistrate Judge Jacqueline M. Rateau.
On September 11, 2022, near Naco, Arizona, a U.S. Border Patrol agent attempted to conduct an immigration inspection of an individual later identified as Eliazar Vazquez-Alvaro. The agent instructed Vazquez-Alvaro to kneel and place his backpack on the front of his torso. When the agent reached for his handcuffs, Vazquez-Alvaro stood up and swung the approximately 10-pound backpack at the agent’s head. The backpack struck the agent in the face, causing bodily injury to the agent. Vazquez-Alvaro attempted to run but was later apprehended.
A conviction for assault on a federal officer with the use of a deadly or dangerous weapon carries a maximum penalty of 20 years in prison, a fine up to $250,000, or both.
A criminal complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Customs and Border Protection’s U.S. Border Patrol conducted the investigation in this case. Assistant U.S. Attorney Raquel Arellano, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: 22-08812MJ
RELEASE NUMBER: 2022-155_Vazquez-Alvaro# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
15 September 2022
퀸스 남성, 외화 사기 및 자금 세탁 혐의로 의 징역형 및 $842,000 반환, 명령받다Read the Press Release
오늘 아침 브루클린 연방 법원 판결에서 존 원(John Won)은 2021년 11월의 증권 사기, 텔레뱅킹 사기 및 자금 세탁 등의 공모뿐만 아니라 실질적인 증권 사기를 포함한 모든 범죄 행위에 대한 유죄 선고 판정을 받은 후, 지역 담당 판사인 레이먼드 J. 디어리에 의해 1년 1일 징역형을 받았다. 피고 원씨는 자기 범죄의 희생자에 대해서 $842,000 이상의 금액을 반환하라는 판결도 받았다. 피고 원씨의 공동 피고인인 태형(Tae Hung, 케빈) 강씨는 증권 사기에 공모한 죄를 인정하여, 2021년 12월에 2년의 징역형을 받았다.
뉴욕 동부 지역 담당 연방 변호사인 브리언 피스와 미국 연방 수사국(FBI) 뉴욕 지사 부국장인 마이클 J. 드리스콜이 판결문을 발표했다.
“존 원과 케빈 강은 파렴치하게도 우리 한인 사회 일원을 상대로 사기 행각을 해서 그들이 저축한 돈과 노후 자금을 갈취하였습니다.”라고 변호사 피어스는 말했다. “이 형벌은 사기꾼과 협잡꾼이 자기의 무고한 희생자들에게 사기를 치면 받게 될 대가를 보여주고 있습니다. 그들은 반드시 체포되어, 형을 받고, 자신이 획득한 부당한 이익을 반환하도록 명령받을 것입니다.”라고 언급했다.
Mr. 피스는 이 사건 해결을 위해 적극적으로 협조한 미국 상품 및 선물 거래 위원회(CFTC)와 미국 선물 협회(NFA)에 대해 감사의 표시를 하였다.
2010년 10월과 2013년 12월 사이에 피고 원씨는 자기의 공동 피고인 태형 강씨 등과 공모하여 희생자의 대부분인 뉴욕 한인사회 일원을 상대로 외환 거래 계정 및 자기들이 차린 회사인 ForexNPower에 투자하도록 사기 행각을 벌였다. 사기 활동이 진행되면서 이들 공모자는 한국어 신문과 라디오 방송에 ForexNPower에서 손실 위험이 전혀 없이 월 10%의 수익을 보장하는 외환 거래에 사용되는 비법 알고리즘을 개발하였다고 선전하였다. 하지만, 실제로는 ForexNPower는 성공적인 거래 방법이 있지 않았기 때문에 그들의 고객은 막대한 금전적 손실을 보게 되었다.
공모자들은 또한 투자금이 자신들의 회사가 뉴저지의 새로운 장소로 확장하거나 외환 거래에 투자 및 사용될 예정이라고 거짓으로 주장하면서 ForexNPower 주식을 구매하도록 유인하기도 하였다. 하지만, 실제는 피고와 그 공모자들이 자금 대부분을 전용하였으며, 일부 나머지 금액은 위에 언급된 한국어 사기 광고에 사용하였다.
2022년 7월, Mr. 피스는 법무부 장관 자문위원회(AGAC)의 화이트칼라 사기 범죄 담당 분과 위원회 의장으로 선출되었다. 분과 위원회 의장으로서 Mr. 피스는 우편 사기 및 금융 사기, 은행 사기, 의료보험 사기, 세금 사기, 증권 및 물품 사기, 그리고 신원 정보 도용, 등을 포함한 다양한 금전 갈취 목적의 비폭력적 범죄의 예방, 조사 및 기소 활동을 AGAC에 추천하는 데 있어 중추적인 역할을 할 것이다.
정부의 케이스는 비즈니스 및 증권 사기 부서에서 담당하고 있다. 법무부 사기 전담 부서의 연방 부 변호사인 사라 M. 에번스, 니콜라스 J. 모스코 및 부국장인 제럴드 M. 무디 Jr.가 기소 담당자들이다.
피고 명단:
존 원(JOHN WON)
나이: 53세
뉴욕 화이트스톤 거주태형 강(TAE HUNG KANG) (일명, 케빈 강)
나이: 57
뉴욕 베이사이드 거주E.D.N.Y. 적요서 번호 18-CR-184 (RJD)
York County Man Charged with Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Calvin Foust, age 40, of Dover Township, Pennsylvania, was charged yesterday with drug trafficking and firearms offenses.
According to U.S. Attorney Gerard M. Karam, the indictment alleges that Foust distributed methamphetamine and engaged in the business of manufacturing and dealing firearms without a license in Cumberland and Dauphin Counties between March 1, 2021 and April 26, 2022.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Christian T. Haugsby is prosecuting the case.
The maximum penalty under federal law for the offenses charged in the indictment is up to 105 years’ imprisonment, a $11,250,000 fine, and up to lifetime supervised release. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Indictments are only allegations. All persons charged by indictment are presumed to be innocent unless and until found guilty in court.
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Yakima Area Business Owner Indicted by Federal Grand Jury for Selling Rotten and Adulterated Fruit JuiceRead the Press Release
Indictment Alleges that Company Violated Food Safety Laws, Lied to Regulators, and Sold Rotten and and Dangerous Juice Products to Customers, Including for Use in School Lunches
Yakima, Washington – Today, Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a federal grand jury returned an Indictment charging Mary Ann Bliesner, age 80, of Sunnyside, Washington, with twelve felony counts of fraud, conspiracy, false statements, and violating food safety laws in connection with her company, Valley Processing Inc. (VPI), which was also charged in the Indictment.
The Indictment alleges that between October 2012 and June 2019, Bliesner and VPI conspired with others to introduce unsafe, adulterated, and misbranded fruit juice products, including apple juice and grape juice concentrate, into interstate commerce by selling them to customers worldwide. The Indictment alleges that these adulterated juice products contained harmful substances, that they were produced under unsanitary and filthy conditions, and that they were unsafe and unfit for human consumption. The Indictment further alleges that Bliesner and VPI lied to customers about the age and quality of their products, which, in some cases, included grape juice concentrate that had been stored in unsafe conditions outside the VPI facility for years and exposed to the elements before being sold and shipped to customers, including customers producing grape juice for the National School Lunch Program, which provides free or reduced-cost lunches to more than 20 million children each school day.
Additionally, the Indictment alleges that Bliesner and VPI failed to register two facilities that they used to store fruit juice products, and lied to inspectors with the U.S. Food and Drug Administration (FDA) about their existence and use. According to the Indictment, one of these facilities, located in Sunnyside, Washington, and known as the “Grape Road Facility” was used to store tens of thousands of gallons of grape juice concentrate for years in concrete vats that were not properly covered or cooled. According to the Indictment, when FDA investigators finally learned about the facility during a May 2018 inspection, the juice concentrate had a layer of mold and crust so thick and firm that a live rat was observed and photographed walking on top of it. The Indictment also alleges that testing of samples taken at the Grape Road Facility indicated that the product there was contaminated with bird and rodent feces, fur, insects, decaying remains of animals, mold, yeast, and other contaminants.
In November 2020, the United States filed a complaint in federal court seeking to enjoin Bliesner and VPI from producing, storing, or selling juice or juice products. In January 2021, Bliesner and VPI agreed to a consent injunction in which Bliesner and VPI promised that they were not processing, manufacturing, preparing, packing, holding, or distributing any type of food, and would not do so in the future without first notifying and receiving approval from the FDA.
The charges against Bliesner carry a maximum sentence of up to 20 years in federal prison, while the potential charges against VPI carry fines of $500,000 or more for each of the twelve counts charged.
Reporting public health and safety concerns supports a safe community for all. EPA’s online reporting form directs concerns to the appropriate regulatory authority: https://echo.epa.gov/report-environmental-violations. Concerns regarding the safety of FDA-regulated products such as food, beverages and medicines, can be reported at 1-888-463-6332. When reporting environmental, health and safety concerns, U.S. Attorney Waldref encourages Eastern Washington residents to also contact the U.S. Attorney’s Office dedicated Civil Rights and Environmental Protection phone line at (509) 835-6306 or email at [email protected]. Notifying the U.S. Attorney’s Office helps us protect the community from harmful violations of federal environmental, health & safety laws.
This case was investigated by the FDA’s Office of Criminal Investigations, and is being prosecuted by Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene and Trial Attorney James J. Hennelly of DOJ’s Consumer Protection Branch.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Woman Sentenced in Methamphetamine and Fentanyl Drug ConspiracyRead the Press Release
Acting United States Attorney Steven Russell announced that Mayra Rendon, 36, was sentenced today in federal court in Omaha, Nebraska, following her conviction for conspiracy to distribute and possession with intent to distribute methamphetamine and fentanyl. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Rendon to imprisonment for 210 months. There is no parole in the federal system. After her release from prison, she will begin a five-year term of supervised release.
From August 2021 to November 2021, Mayra Rendon, assisted by co-conspirators, was responsible for the distribution of methamphetamine and fentanyl in the Omaha and Council Bluffs, Iowa areas. In one instance, Rendon and co-conspirators sold an undercover agent posing as a drug buyer 3,000 fentanyl pills, weighing a total of 339.6 grams. Rendon also arranged packages containing methamphetamine and fentanyl to be shipped to the Omaha area. Agents confiscated packages containing 3,065 fentanyl pills and over 4.5 kg of methamphetamine. The overall investigation saw the recovery and confiscation of over 20 pounds of fentanyl and 25 pounds of methamphetamine.
Co-defendant Colleen Wiand will be sentenced on October 28, 2022.
Co-defendants Samantha Cawyer, Emidio Becerra, Oscar Quiroz Ayon, Darbelio Lorenzo-Genchi, Iris Gallardo-Salado, Giovana Cisneros, and Lorenzo Gonzalez-Perez are pending trial.
This case was investigated by the Drug Enforcement Administration, United States Postal Inspection Service with assistance provided from Omaha Police Department and Utah State Patrol.