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15 September 2022
Wilmington Investment Advisor Pleads Guilty to Charges Related to $7 Million Scheme to Defraud ClientsRead the Press Release
RALEIGH, N.C. – Shawn Edward Good of Wilmington, pleaded guilty today for his role in a $7 million dollar investment fraud scheme. Good pleaded guilty to wire fraud and money laundering and faces up to 360 months in prison.
“We are cracking down on fraudsters who scam unwitting investors,” said U.S. Attorney Michael Easley. “This investment advisor breached the trust of at least a dozen clients, taking over $7 million – money he promised would go to low-risk investments – and used it to line his pockets, buying real estate, luxury cars, and vacations. This decade-long scam has finally come to an end.”
"High yield investment fraud schemes are designed to appeal to people's hope that 'you can get something for nothing,' often resulting in the total loss of the investment," said Donald “Trey” Eakins, IRS Criminal Investigation Special Agent in Charge of the Charlotte field office. “Be assured that IRS Criminal Investigation, together with our partners at North Carolina State Bureau of Investigation (SBI) and the U.S. Attorney's Office, will hold those who engage in similar behavior fully accountable."
According to court documents and information presented in court, Good was employed as a registered representative and investment advisor for Morgan Stanley Smith Barney, LLC in Wilmington. From 2012 to February 2022, Good executed a scheme to obtain money through investment fraud, commonly known as a Ponzi scheme. Specifically, Good solicited investments from business clients and others for purported real estate projects and tax-free municipal bonds, touting these opportunities as low-risk investments that would pay returns of between 6% and 10% over three- or six-month terms.
To effectuate these investments, Good caused some clients to obtain a liquid asset line of credit (LAL) secured by their Morgan Stanley investment or retirement accounts. Good directed clients to transfer the LAL funds to their personal bank accounts and then wire the funds directly to Good’s personal bank account. Other victims paid Good by paper check and wire transfers using funds derived from sources other than Morgan Stanley accounts.
At least 12 victims invested approximately $7,246,300 based on false statements and misrepresentations made by Good. Instead of investing in land development or bonds, Good used the money for personal expenditures including his Wilmington residence; a condominium in Florida; luxury vehicles including a Mercedes Benz, a Porsche Boxster, a Tesla Model 3, an Alpha Romeo Stelvio, and a Lexus RX350; fine dining; and vacations to Paris, France; Cinca Terra, Italy; Jackson, Wyoming; Las Vegas, Nevada; and other destinations. To lend credibility to the Ponzi scheme and to elude detection, Good also used a portion of investor funds to make payments to earlier investors.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States Magistrate Judge Robert T. Numbers, Jr. accepted the plea. The Internal Revenue Service Criminal Investigations Unit and the N.C. State Bureau of Investigation Financial Crimes Unit are investigating the case and Assistant U.S. Attorney Toby Lathan is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-00096-D.
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Westfield Woman Charged with Hoax Bomb Threat Against Boston Children's HospitalRead the Press Release
BOSTON – A Westfield woman was arrested and charged today in connection with a hoax bomb threat made against Boston Children’s Hospital.
Catherine Leavy, 37, was charged with one count of explosive materials - willfully making a false bomb threat. She was arrested this morning at her home in Westfield and, following an initial appearance this afternoon before U.S. District Court Magistrate Judge Judith G. Dein, was detained pending a detention hearing scheduled for Sept. 16, 2022 at 12:00 p.m.
According to the charging documents, in August 2022, federal agents began monitoring threats made against Boston Children’s Hospital and its employees. Among the wide range of healthcare services it provides, Boston Children’s Hospital is home to the Gender Multispecialty Service (GeMS) program – the first major healthcare program in the United States to focus on gender-diverse and transgender adolescents.
On Aug. 30, 2022, Boston Children’s Hospital received a telephonic bomb threat, in which the caller allegedly said, “There is a bomb on the way to the hospital, you better evacuate everybody you sickos.” As a result of the call, the hospital and surrounding area was placed on lockdown status and a bomb squad was dispatched. An investigation determined no explosive devices were located at Boston Children’s Hospital. Law enforcement obtained subscriber and call detail records and location information for the phone number that called-in the bomb threat. Records obtained allegedly indicated the phone number was subscribed in Leavy’s name and that it pinged off a cell tower nearby Leavy’s residence at the time the bomb threat was made.
During a search of Leavy’s residence this morning pursuant to a federal search warrant, the phone used to make the threat from Leavy’s residence was recovered.
The charge of making threatening communications in interstate commerce provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. 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; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Westfield Police Department. Assistant U.S. Attorneys Nadine Pellegrini and Jared C. Dolan, Chief and Deputy Chief of Rollins’ National Security Unit, respectively, are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Washington Men Indicted for Possession of Firearms and Ammunition in Fresno CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against residents of Everett, Washington, Brian Ulises Rangel, 21, and Martin Velazquez, 29, charging Rangel with being a felon in possession of a firearm and Velazquez with being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 15. 2022, law enforcement officers in Fresno County conducted a traffic stop on a car occupied by Rangel and Velazquez. Because neither individual had a valid driver’s license, the car was towed. During a search of the car, two firearms (one stolen and the other with an obliterated serial number) and ammunition were found.
Both defendants are prohibited from possessing firearms or ammunition because of previous convictions in the state of Washington. Rangel was convicted for possession with intent to manufacture or deliver methamphetamine and Velazquez was convicted for unlawful firearm possession.
This case is the product of an investigation by the Fresno County Sheriff’s Office, the Drug Enforcement Administration, the Fresno Police Department, and Homeland Security Investigations. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, the defendants face a minimum of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Victoria resident that fled police with handgun and kilo of meth sent to prisonRead the Press Release
VICTORIA, Texas – A 32-year-old Victoria man has been ordered to federal prison following his conviction of possession with intent to distribute approximately one kilogram of meth, announced U.S. Attorney Jennifer B. Lowery.
Daniel Berry pleaded guilty April 7.
Today, U.S. District Judge Drew B. Tipton ordered Berry to serve 144 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence of Berry’s extended criminal history and prior use of a firearm during the commission of crimes. Additionally, Berry has a history of discarding evidence during the commission of crimes. Berry also has multiple probation revocations and other pending state drug and firearm offenses.
On Jan. 30, law enforcement observed Berry commit traffic violations while driving on Highway 59. They soon learned his vehicle was registered to a subject with an outstanding federal warrant and attempted to conduct a traffic stop. However, Berry failed to yield.
The vehicle eventually came to a stop, at which time Berry attempted to flee on foot while attempting to discard a backpack. Authorities were able to apprehend him, took him into custody and secured the bag. They noticed it had an odor of marijuana and ultimately found approximately 1001.8 grams of suspected meth, nearly one ounce of marijuana, 17.4 grams of suspected meth pills, a small amount of cocaine and a Ruger handgun with 25 rounds of ammunition.
Laboratory analysis later confirmed the substances were in fact 983 grams of 97% pure meth. Berry admitted to having knowledge of the drugs and gun and took ownership of the backpack.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the Victoria County Sheriff’s Office Special Operations Division and the U.S. Marshals Service. Assistant U.S. Attorney J. Parker Gochenour prosecuted the case.
Venezuelan National Charged with the July 2022 Hostage Taking of a U.S. National in the Dominican RepublicRead the Press Release
WASHINGTON – An indictment returned in the District of Columbia was unsealed today, charging Deivy Jose Rodriguez Delgado, a Venezuelan national, also known as “Sebastian,” for his role in the armed hostage taking of a U.S. citizen in the Dominican Republic in July 2022.
Rodriguez Delgado, 28, was arrested on Sept. 10, 2022, in the Dominican Republic by local authorities, and subsequently transferred into U.S. custody, pursuant to an arrest warrant issued in this matter, and he has since been detained. He made his initial appearance this afternoon in the U.S. District Court for the Southern District of Florida and was ordered removed to the District of Columbia, where he will face prosecution on the filed indictment.
Matthew M. Graves, U.S. Attorney for the District of Columbia, and Robert M. DeWitt, Acting Special Agent in Charge of the FBI Miami Field Office, made the announcement today.
The indictment is related to the July 30, 2022, hostage taking and robbery of a U.S. citizen, who was on a temporary work assignment in the Dominican Republic. In mid-July 2022, Rodriguez Delgado made contact with the victim using a dating App and later scheduled a dinner meeting on the pretense of a date. On July 30, 2022, Rodriguez Delgado met the victim outside his hotel and picked him up in a vehicle. While on the roadway, Rodriguez Delgado made an abrupt turn to a secluded area, where a second suspect quickly entered the rear of the vehicle and placed the victim in a head lock. Rodriguez Delgado and the second suspect, both armed with knives, threatened the victim and demanded that he request a payment from friends and family to secure his safe release. The victim, in fear for his life, complied with the demand, and ultimately obtained a payment from a family member. Rodriguez Delgado and the suspect also stole personal items from victim, including his cell phone and ATM card. The victim was released approximately two and half hours after being detained and after a ransom payment was made.
Charges in a complaint or indictment are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being investigated by the FBI’s Miami Field Office with the assistance of the FBI Legal Attaché Office in the Dominican Republic, and with special thanks to the authorities in the Dominican Republic, including the Procuraduría General de la República Dominicana and the Special Division for the Investigation of International Organized Crime (DEICROI) of the National Police.
The case is being prosecuted by Assistant U.S. Attorney Jack F. Korba of the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by the U.S. Attorney’s Office for the Southern District of Florida.
United States Attorney’s Office Issues Statement on the Passing of Former United States Attorney William D. HyslopRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, joined the Spokane legal community, area law enforcement, and the Hyslop family in mourning the death of former U.S. Attorney William D. Hyslop, who passed away on September 11, 2022. Mr. Hyslop is the only person to serve two separate terms as the United States Attorney for the Eastern District of Washington. In 1991, he was appointed by President George H.W. Bush. Twenty-eight years later, Mr. Hyslop again was appointed to lead the United States Attorney’s Office, serving in that position until early 2021.
Mr. Hyslop grew up in Spokane and devoted significant time to the Spokane community. He attended Shadle Park High School, graduated from Washington State University, and attended the Gonzaga School of Law. His voluntary activities included, among other things, serving as the co-chair of the effort to remodel Lewis and Clark High School and as the vice chair of the Use of Force Commission, which was formed to implement changes to police training and procedure.
For more than 40 years, Mr. Hyslop practiced law in Washington State, serving as the President of the Washington State Bar Association and working as a principle at the Spokane law firm of Lukins & Annis. While Mr. Hyslop greatly enjoyed his career in private practice, he remarked that “serving our great Country as the United Sates Attorney has been the highest honor and most fulfilling duty of my professional career.”
U.S. Attorney Waldref, who succeeded Mr. Hyslop as the Chief Federal Law Enforcement Officer in Eastern Washington, stated, “We were saddened to learn of Bill’s passing, and our hearts go out to his wife, two children, and grandchildren. Bill was a lifelong friend to the U.S. Attorney’s Office and a dedicated public servant. I was honored to serve with Bill, and I was impressed with his passion for serving the Spokane community. We will miss him greatly.”
Timothy J. Ohms, an Assistant United States Attorney who served under Mr. Hyslop, expressed his gratitude for Mr. Hyslop’s leadership: “Bill absolutely loved being a lawyer. He was passionate about the law and government service. I had the privilege of serving with Bill when he was a new U.S. Attorney in the early 1990s and again when Bill was reappointed in 2019. Bill was a thoughtful leader, who sought to achieve a just result in each and every case.”
Earl A. Hicks, who has served as an Assistant United States Attorney in Spokane for more than forty years, stated, “It was an honor to work with Bill during both of his appointments as the Chief Law Enforcement Officer in the Eastern District. He was a strong leader, who devoted his career to serving others. Bill was particularly good at working with law enforcement – bringing together federal, state, tribal, and local leaders to address difficult issues and serving side by side with law enforcement to keep Eastern Washington safe. Our community will surely mourn his loss.”
At the time of Mr. Hyslop’s resignation as the United State Attorney in 2021, Spokane Police Chief Craig Meidl stated, “U.S. Attorney Hyslop has been a constant partner with SPD in our efforts to keep Spokane the safe community that we all long to live in and raise our families. His engagement with local law enforcement, and commitment to safety first through prevention, education and enforcement, is second to none. We honor his commitment to justice through compassion and accountability, with the needs of the community being his priority.” Upon learning of Mr. Hyslop’s passing, Chief Meidl added, “Bill was thoughtful and reflective in how he approached community safety, an issue that was close to his heart. He closely partnered with the Spokane Police Department on many different programs, including fentanyl awareness and community engagement. He was a mentor and friend, and his passing will leave a gap that cannot be filled. I will miss him greatly.”
In February 2021, as he completed his service as the United States Attorney, Mr. Hyslop stated, “I intend to work to the last day on behalf of the people of Eastern Washington.” He then added, “I want to continue to do all I can to advocate for law enforcement and the hard work they do for us every day to keep us safe.” Mr. Hyslop was true to his word. Following his service as the United State Attorney, Mr. Hyslop became a founding board member of the Spokane Alliance for Fentanyl Education (“SAFE”). In his role at SAFE, Mr. Hyslop continued to work closely with state and federal law enforcement to help the community to better understand the significance and danger of fentanyl in Eastern Washington.
Mr. Hyslop will be sorely missed by the law enforcement community, especially those in the U.S. Attorney’s Office, who served alongside Mr. Hyslop at various points over the past three decades.
Umatilla County Man Charged with Attempted Murder After Armed Robbery at Wildhorse Resort and CasinoRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland has returned an indictment charging a Umatilla County, Oregon, man with attempted murder, assault with a deadly weapon and several other charges after he robbed the Wildhorse Resort and Casino on the Umatilla Indian Reservation at gunpoint and fired at least one round at a tribal police officer.
Javier Francisco Vigil, 51, has been charged with attempted murder, assault with intent to commit murder, assault with a deadly weapon, interfering with commerce by robbery, using and carrying a firearm during and in relation to a crime of violence, and illegally possessing a firearm as a convicted felon.
According to court documents, in the early afternoon on August 17, 2022, Vigil is alleged to have entered the Wildhorse Casino, walked straight to the cashier cage in the gaming area, and handed the cashier a note demanding $1 million. Vigil then drew a holstered pistol, pointed it at the cashier, and threatened to “bathe everyone in blood.” After being given nearly $70,000 in cash, Vigil exited the casino, pointed his firearm at a responding tribal police officer, and discharged at least one round. Vigil sustained injuries in an ensuing exchange of gunfire and was transported by officers to a local hospital.
Vigil appeared in federal court today before U.S. Magistrate Judge Jolie A. Russo. He was arraigned, pleaded not guilty, and detained pending a 4-day jury trial scheduled to begin on November 1, 2022.
If convicted, Vigil faces a maximum sentence of 30 years in federal prison, 3 years’ supervised release, and a fine of $250,000.
This case is being investigated by the FBI with assistance from the Umatilla Tribal Police Department and the Hermiston Police Department. It is being prosecuted by Ashley R. Cadotte and Cassady Adams, Assistant U.S. Attorneys for the U.S Attorney’s Office in the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
USP Canaan Inmates Charged with Assault with A Dangerous WeaponRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Victor Blanco, age 39, and Isaac Carreno, age 25, inmates at United States Penitentiary Canaan (USP Canaan), Waymart, Pennsylvania, were indicted on September 13, 2022, by a federal grand jury for assault and unlawfully possessing a prohibited object.
According to United States Attorney Gerard M. Karam, the indictment alleges that on August 24, 2022, Blanco and Carreno assaulted another inmate using a sharpened piece of metal with a bed sheet handle. The indictment further alleges that Carreno was in possession of the weapon.
The matter is being investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation (FBI). Assistant United States Attorney James Buchanan is prosecuting the case.
The maximum penalty under federal law for these offenses is ten years’ imprisonment. 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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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U.S. Attorney Vanessa Waldref to lead Attorney General’s Advisory Subcommittee on Environmental JusticeRead the Press Release
Spokane – U.S. Attorney Vanessa Waldref for the Eastern District of Washington has been selected to lead the Environmental Justice & Environmental Issues Subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the Environmental Justice Subcommittee, U.S. Attorney Waldref will play a key role in advising the AGAC on environmental matters of importance to the Department of Justice and U.S. Attorney’s Offices across the country.
“I am gratified that my colleagues and Attorney General Garland selected me for this important role,” said U.S. Attorney Waldref. “The Department of Justice makes critical contributions to protecting the environment and public health. We all benefit from robust enforcement of laws that ensure a healthy environment for all families to live, learn, play, and work.”
As Subcommittee Chair, U.S. Attorney Waldref also serves as a leader to implement the Department of Justice’s Comprehensive Environmental Justice Strategy. U.S. Attorney Waldref is training Assistant United States Attorneys throughout all of the 94 U.S. Attorney’s Offices to develop an environmental justice practice and engage in community outreach on the critical environmental issues impacting each District. U.S. Attorney Waldref stated, “I am thrilled to build an infrastructure within the United States Attorney’s Offices around the country to tackle environmental protection cases that defend critical resources and ensure safe living and working conditions for all the residents of our communities. No group of people should bear a disproportionate share of the negative environmental consequences resulting from industrial, governmental, and commercial operations or policies.”
Prior to her appointment, U.S. Attorney Waldref worked in the Department of Justice’s Environment and National Resources Division advocating for the enforcement of pollution control statutes. While she was an Assistant United States Attorney, she also taught several courses at Gonzaga Law School, including Environmental Law, where her teaching focused on the concrete ways that environmental and workplace safety regulations protect our homes, neighborhoods, and workplaces.
U.S. Attorney Waldref is committed to enhancing the environmental protection practice in her home district: “In Eastern Washington, we have great pride in the beauty of our mountains, trees, lakes, and rivers and the sustenance that our natural resources provide. Indigenous people first lived on these lands, cultivating these resources for future generations. Protecting our resources for fishing, hunting, agriculture and a healthy, high quality of life makes our region safer and stronger.”
The Attorney General’s Advisory Committee was established nearly 50 years ago by Attorney General Elliott Richardson. The Committee's purpose is to give United States Attorneys a voice in Department policies and to advise the Attorney General of the United States.
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. 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.
U.S. Attorney Announces New Public Reporting Procedure for Environmental Justice and Environmental CrimesRead the Press Release
INDIANAPOLIS – Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, announces that the U.S. Attorney’s Office is implementing new public reporting procedures for environmental crimes and issues relating to environmental justice.
Members of the public who have concerns about environmental matters in the Southern District of Indiana can now report them to the Department of Justice via email to
[email protected].The Office is implementing this public reporting procedure under the Department of Justice’s Comprehensive Environmental Justice Enforcement Strategy. This Strategy seeks to provide “timely and effective remedies for systemic environmental violations and contaminations and for injury to natural resources in underserved communities that have been historically marginalized and overburdened, including low-income communities, communities of color, and Tribal and Indigenous communities.”
“Advancing environmental justice and public health through civil and criminal environmental enforcement are priorities of the Department of Justice,” said U.S. Attorney Myers. “We hope that concerned individuals and organizations in our community will partner with us and bring more of these matters to our attention. Together, we will work to reduce public health and environmental harms caused by violations of our laws and regulations—especially in underserved communities.”
The Office’s public reporting procedures complement the other avenues for reporting environmental concerns to the federal government, such as the online portal maintained by the Environmental Protection Agency (EPA), https://echo.epa.gov/report-environmental-violations.
U.S. Attorney Myers thanks Assistant U.S. Attorneys Taylor Kirklin, the Office’s Environmental Justice Coordinator, and Adam Eakman, the Environmental Crimes Coordinator, for their efforts in protecting the environment throughout the Southern District of Indiana and furthering the Department of Justice’s environmental enforcement goals.
Two Men Found Guilty by a Jury of Six Carjackings, Two Kidnappings, and MurderRead the Press Release
SAN JUAN, Puerto Rico – After a seven-day jury trial, yesterday, a federal jury convicted Jairo Huertas-Mercado and Erik Pizarro-Mercado for six carjackings, one kidnapping, one kidnapping murder, and related firearms offenses.
According to court documents and the evidence presented at trial, the defendants committed the following offenses:
- May 20, 2018-the armed carjacking of a 2016 Toyota Tacoma
The victim was driving his Tacoma toward Naguabo, PR, in the Rio Blanco sector, when the defendants and two others used another vehicle to block the driver of the Tacoma. The defendants and another participant showed their firearms at the victim and forced him out of the Tacoma. The participants then took the victim’s Tacoma and other-personal property. The Tacoma was subsequently used in furtherance of another carjacking.
- May 27, 2018-the armed carjacking of a 2004 Infiniti
The defendants used the Tacoma that they carjacked on May 20, 2018 to carjack an Infiniti. Specifically, the defendants and two-other participants drove the Tacoma up to a family who were enjoying their day in the area of El Yunque. There, they showed firearms at the members of the family and took the Infiniti and the family’s personal property, including cameras which the participants used in another carjacking. Eventually, the participants burned the Infiniti in an area where they killed Luis Saenz-Matias.
- May 31, 2018-the kidnapping murder of Luis Saenz-Matías
The defendants and another kidnapped Luis Saenz-Matias because they believed him to be a member of a rival group. The defendants were members of a drug trafficking group that was at odds with a group which the defendants believed Sanz-Matias was a member. The defendants and the other participant took Luis Saenz-Matias to the area where they had burned the Infiniti in La Central, Canovanas, PR and shot and killed him.
- June 3, 2018-the armed carjacking of a 2009 Nissan Altima on June 3, 2018
Jairo Huertas-Mercado and another participated in this carjacking which occurred at the beach in Piñones, PR. At first, Jairo Huertas-Mercado and the other participant used cameras taken from the victims of the Inifiniti carjacking to pretend to be doing a photo shoot so as to not raise the victim’s suspicions. They then pointed firearms at the victims—a male and his two female friends. The other participant in the offense hit one of the females. Then, Jairo Huertas-Mercado and the other participant took the Altima.
- June 4, 2018- the armed carjacking of a red-burgundy Toyota Camry
The defendants and another carjacked the Camry from an elderly couple who were fishing for crabs near Tropical beach in Naguabo. The participants first blocked the Camry and then pointed firearms at the couple. They then took the Camry from the couple. The Camry was immediately used in furtherance of another carjacking that day.
- June 4, 2018- the armed carjacking of a 2016 Kia Sportage
Soon after the carjacking of the Camry, the defendants took a Sportage from a female victim that had just come from her church in Canovanas, PR. The defendants used the Camry to block the front of the victim’s vehicle. The other participant of the carjacking of the Camry was behind the Sportage. A firearm was displayed at the victim, and the defendants took the Sportage from the female victim. Then, the female victim asked for help from the driver of the vehicle behind her who unbeknownst to her was the other participant of the carjacking of the Camry and was with the ones who had just carjacked her. The other participant did not help the female victim and drove after the defendants, who had just taken the Sportage. The Sportage was used by the defendants and two others to carjack and kidnap Bryan Rohena-Perez, who is better known by his stage name Bryant Myers. After the kidnapping and carjacking of Bryant Myers, the Sportage was burned.
- June 5, 2018- carjacking and kidnapping of Bryan Rohena-Pérez, also known as Bryant Myers and his mother
Jairo Huertas-Mercado had a grudge with Bryant Myers because of the death of Jairo Huertas-Mercado’s cousin—Corroro, who Bryant Myers mentioned in a song. In retaliation, defendants and two others set out in the Sportage to kidnap Bryant Myers who they knew was in the basketball court in Loma Alta, Carolina, PR. Once the participants arrived at Loma Alta, they went towards Bryant Myers and pointed firearms at him. They then forced Bryant Myers into the Sportage. Bryant Myers struggled and one of the participants used a gun to hit Bryant Myers in the head. While this is happening, Bryant Myers’ mom went to the scene and pled with the armed participants, asking them not to harm her son. Meanwhile, other persons approached the participants, and one of the participants shot in the air to disperse the crowd. Jairo Huertas-Mercado then took Bryant Myers’ mom in Bryant Myers’ BMW X6 SUV and Erick Pizarro-Mercado and the other two participants took Bryant Myers in the Sportage. They drove to a land fill in Carolina. There, police arrived at the scene, and Bryant Myers was able to jump out of the Sportage. Bryant Myers’ mom also got out of the BMW. She was unharmed. On that date, the defendants and the other-two participants escaped from the police.
Because of their conviction for the kidnapping murder, both defendants face mandatory-life sentences, in addition to any sentence imposed for the remaining convictions.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico; and Special Agent in Charge of the FBI Joseph González made the announcement.
The FBI and the Puerto Rico Police Bureau were in charge of investigating these cases.
Assistant U.S. Attorney Victor O. Acevedo-Hernández prosecuted the case.
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Two Charged in Human Smuggling Event that Ended with High-Speed ChaseRead the Press Release
Assistant U. S. Attorneys Daniel D. Shin (619) 546-7609
NEWS RELEASE SUMMARY—September 15, 2022
SAN DIEGO—Sergio Cervantes-Lopez of San Diego and Remigio Sosa-Laez, a Mexican national, were charged yesterday in connection with a human smuggling event that ended with a high-speed chase.
According to documents filed in U.S. District Court, U.S. Border Patrol Agents observed Cervantes-Lopez as he drove a large sport utility vehicle to an area near Donovan State Prison and the George Bailey Detention Center shortly after 4:00 p.m. on September 13, 2022. The agents conducting surveillance on Cerventes-Lopez’s vehicle reported that a large group of eight to ten individuals entered his car before he drove away. When other agents responded to the area and attempted to conduct a traffic stop, Cervantes-Lopez fled at speeds as high as ninety miles per hour.
According to the complaint, during the ensuing chase, Cervantes-Lopez rammed a U.S. Border Patrol vehicle and backed into a civilian’s pick-up truck before running through a red light and colliding with another civilian’s sport utility vehicle. Cervantes-Lopez’s vehicle tipped over in the collision. After the collision, Cervantes-Lopez attempted to flee the area on foot but was quickly apprehended.
Cervantes-Lopez had eight other people in his sport utility vehicle at the time of the crash. A follow up investigation revealed that one of the individuals in the vehicle, Remigio Sosa-Laez, had allegedly guided the group across the border on foot. Two of the passengers stated that they feared for their lives during the chase.
Cervantes-Lopez and Sosa-Laez were both arrested shortly after the collision and are awaiting their initial appearance before a United States Magistrate Judge.
“You gamble with your life when you trust a smuggler,” said U.S. Attorney Randy Grossman. “Smugglers don’t care about the health and safety of their cargo.” Grossman thanked the prosecution team and the U.S. Border Patrol for their excellent work on this case.
“Smugglers threaten the health and safety of our citizens and those migrants in their care, when they engage in these dangerous-senseless tactics,” said U.S. Border Patrol San Diego Sector Chief Patrol Agent Aaron M. Heitke.
DEFENDANT Case Number 22mj3368-AHG
Sergio Cervantes-Lopez, 30 years old
Remigio Sosa-Laez, 19 years old
SUMMARY OF CHARGES
Transportation of Illegal Aliens—Title 8, U.S.C., Section 1324
Maximum penalty: Five years in prison
Bringing in Aliens Without Presentation— Title 8, U.S.C., Section 1324
Maximum penalty: Ten years in prison
AGENCY
United States Border Patrol
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Three-Time Convicted Sex Offender and Roommates Charged with Child Exploitation OffensesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Joshua Tripp (42, Clearwater) with three counts of distributing and one count of possessing child sex abuse material. If convicted, Tripp faces a minimum mandatory penalty of 15 years, up to 40 years, in federal prison for each distribution count and a maximum penalty of 10 years’ imprisonment for the possession count. Tripp is a registered sex offender and has prior felony convictions for aggravated sexual exploitation of a minor, aggravated statutory rape, and lewd and lascivious molestation. The grand jury also returned indictments charging Tripp’s roommates, Craigan Joyner (20, Clearwater) and Donald Shadowens (30, Clearwater), with one count of receiving and one count of possessing child sexual abuse materials. If convicted, each faces a minimum mandatory penalty of 5 years, up to 20 years, for the receipt count and up to 10 years’ imprisonment for the possession count.
On August 19, 2022, Tripp, Joyner, and Shadowens made their initial appearances before the Honorable Christopher P. Tuite. Tripp and Joyner were detained pending trial. Shadowens was released on a bond with conditions.
According to the court documents, Tripp, Joyner, and Shadowens all lived together at the same residence in Clearwater. On August 18, 2022, investigators executed a search warrant at the home and discovered more than 1,000 images and videos of child sexual abuse material on the defendants’ devices. This material included the sexual abuse of children under the age of 12 and sado-masochistic images of children.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations, with substantial assistance from the Dickson County (Tennessee) Sheriff’s Office, the Clearwater Police Department, and the Pinellas County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Erin Claire Favorit.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Three Charged in Alleged Conspiracies to Defraud Land Rover DealershipsRead the Press Release
PROVIDENCE – Three Rhode Island men are charged in federal court in Providence with conspiracy to commit wire fraud and aggravated identity theft for their alleged participation in schemes to defraud Land Rover dealerships in Rhode Island and New Hampshire, announced United States Attorney Zachary A. Cunha.
According to the charging documents, dealerships in Warwick, RI, and Bedford, NH, each delivered a vehicle to a buyer who claimed to have secured more than $100,000 in online dealer financing. In each instance, an investigation determined that online credit applications were submitted using a stolen identity. The “buyer” of each vehicle took delivery after presenting a driver’s license that depicted their own photograph and the stolen identity used to secure financing.
It is alleged that on April 25, 2022, Dennis Odoom, 24, of Pawtucket, took custody of a Land Rover from a Rhode Island dealer, financed for more than $120,559 with the use of a stolen identity; and on May 10, 2022, Roy Sweets, 25, of Providence, took custody of a Land Rover from a New Hampshire dealership, financed for $111,183 with the use of a stolen identity. It is further alleged that two days after the delivery in New Hampshire, a person, posing as the “brother” of the New Hampshire buyer, attempted to take possession of a vehicle after a dealer financing application had been submitted online and approved. The delivery was halted when a dealership employee determined that the driver’s license presented by the buyer may have been altered. Adalberto Mauricio Romero, 25, of Providence, was arrested by Bedford, NH, Police when he appeared at the dealership to take possession of the vehicle.
Federal arrest warrants were later issued for the three men. Roy Sweets and Dennis Odoom were arrested on Monday by agents from Homeland Security Investigations and the Department of Labor, Office of Inspector General; Adalberto Mauricio Romero turned himself in on Tuesday to the United States Marshals Service. The three men were released on unsecured bond after appearing in U.S. District Court in Rhode Island.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant United States Attorney Paul F. Daly, Jr., and William J. Ferland.
The matter was investigated by Warwick, RI, and Bedford, NH, Police Departments, Homeland Security Investigations, and Department of Labor, Office of Inspector General.
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Texas Anesthesiologist Arrested on Criminal Charges Related to Alleged Tampering with IV Bags Implicated in Death, Surgical EmergenciesRead the Press Release
Raynaldo Rivera Ortiz Jr., a Texas anesthesiologist, was arrested in Plano, Texas, on criminal charges related to allegedly injecting nerve blocking and bronchodilation drugs into patient IV bags at a local surgical center, resulting in at least one death and multiple cardiac emergencies.
According to court documents, on or around June 21, a 55-year-old female coworker of Ortiz, identified in court documents as M.K., experienced a medical emergency and died immediately after treating herself for dehydration using an IV bag of saline taken from the surgical center. An autopsy report revealed that she died from a lethal dose of bupivacaine, a nerve blocking agent that is rarely abused but is often used during the administration of anesthesia.
Two months later, on or around Aug. 24, an 18-year-old male patient, identified in court documents as J.A., experienced a cardiac emergency during a scheduled surgery. The teen was intubated and transferred to a local ICU. Chemical analysis of the fluid from a saline bag used during his surgery revealed the presence of epinephrine (a stimulant that could have caused the patient’s symptoms), bupicavaine, and lidocaine.
According to the complaint, surgical center personnel concluded that the incidents involving M.K. and J.A. suggested a pattern of intentional adulteration of IV bags used at the surgical center. They identified about 10 additional unexpected cardiac emergencies that occurred during otherwise unremarkable surgeries between May and August 2022 – which the complaint alleges to be an exceptionally high rate of complications over such a short period of time. In each of those cases – which investigators believe occurred on or around May 26 and 27; June 27; July 7, 15 and 18; and Aug. 1, 4, 9 and 19 – medical personnel were able to stabilize the patient only through use of emergency measures. Most of the incidents occurred during longer surgeries that used more than one IV bag, including one or more bags retrieved mid-surgery from a stainless steel bag warmer.
The complaint alleges that none of the cardiac incidents occurred during Dr. Ortiz’s surgeries, and that they began just two days after Dr. Oritz was notified of a disciplinary inquiry stemming from an incident during which he allegedly “deviated from the standard of care” during an anesthesia procedure when a patient experienced a medical emergency. The complaint alleges that all of the incidents occurred around the time Dr. Ortiz performed services at the facility, and no incidents occurred while Dr. Ortiz was on vacation.
The complaint further alleges that Dr. Ortiz had a history of disciplinary actions against him, expressed concern to other physicians over disciplinary action at the facility, and complained the center was trying to “crucify” him.
According to court documents, a nurse who worked on one of Dr. Ortiz’s surgeries told law enforcement that Dr. Ortiz refused to use an IV bag she retrieved from the warmer, physically waving the bag off. The complaint alleges that surveillance video from the center’s operating room hallway showed Dr. Ortiz placing IV bags into the stainless-steel bag warmer shortly before other doctors’ patients experienced cardiac emergencies.
The complaint alleges that in one instance captured in the surveillance video, Dr. Ortiz was observed walking quickly from an operating room to the bag warmer, placing a single IV bag inside, visually scanning the empty hallway, and quickly walking away. Just over an hour later, according to the complaint, a 56-year-old woman suffered a cardiac emergency during a scheduled cosmetic surgery after a bag from the warmer was used during her procedure. The complaint alleges that in another instance, agents observed Dr. Ortiz exit his operating room carrying an IV bag concealed in what appeared to be a paper folder, swap the bag with another bag from the warmer, and walk away. Roughly half an hour later, a 54-year-old woman suffered a cardiac emergency during a scheduled cosmetic surgery after a bag from the warmer was used during her procedure.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Dr. Ortiz is presumed innocent unless and until proven guilty in a court of law.
“The safety of the nation’s pharmaceutical supply is critically important,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department will vigorously prosecute this case consistent with the evidence gathered by our law enforcement partners.”
“Our complaint alleges this defendant surreptitiously injected heart-stopping drugs into patient IV bags, decimating the Hippocratic oath,” said U.S. Attorney Chad E. Meacham for the Northern District of Texas. “A single incident of seemingly intentional patient harm would be disconcerting; multiple incidents are truly disturbing. At this point, however, we believe that the problem is limited to one individual, who is currently behind bars. We will work tirelessly to hold him accountable. In the meantime, it is safe to undergo anesthesia in Dallas.”
Ortiz is charged with tampering with a consumer product and with intentionally adulterating drugs. If convicted, he faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Ortiz will make his initial appearance before U.S. Magistrate Judge Renee Toliver in Dallas on Sept. 16.
The U.S. Food & Drug Administration’s Office of Criminal Investigations and the Dallas Police Department conducted the investigation with the assistance of scientists from the University of North Texas. Senior Litigation Counsel Patrick Runkle and Senior Trial Counsel Yolanda McCray Jones of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorneys John de la Garza and Errin Martin for the Northern District of Texas are prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Texas Anesthesiologist Arrested on Criminal Charges Related to Alleged Tampering with IV Bags Implicated in Death, Surgical EmergenciesRead the Press Release
A Dallas anesthesiologist who allegedly injected nerve blocking agents and other drugs into patient IV bags at a local surgery center – resulting in at least one death and multiple cardiac emergencies – was arrested Wednesday on federal criminal charges, Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, and U.S. Attorney for the Northern District of Texas Chad E. Meacham announced today.
Raynaldo Rivera Ortiz Jr., 59, was charged via criminal complaint with tampering with a consumer product causing death and intentional drug adulteration. He was arrested in Plano on Wednesday and will make his initial appearance before U.S. Magistrate Judge Renee Toliver in Dallas on Friday at 10 a.m.
According the criminal complaint, on June 21, a 55-year-old female coworker of Dr. Ortiz, identified in court documents as M.K., experienced a medical emergency and died immediately after treating herself for dehydration using an IV bag of saline taken from the surgical center. An autopsy report revealed that she died from a lethal dose of bupivacaine, a nerve blocking agent that is rarely abused but is often used during the administration of anesthesia.
Two months later, on Aug. 24, an 18-year-old male patient, identified in court documents as J.A., experienced a cardiac emergency during a routine sinus surgery. The teen was intubated and transferred to a local ICU. Chemical analysis of the fluid from a saline bag used during his surgery revealed the presence of bupivacaine, epinephrine (a stimulant), and lidocaine, drugs that could have caused the patient’s sudden symptoms.
According to the complaint, surgical center personnel concluded that the incidents involving M.K. and J.A. suggested a pattern of intentional adulteration of IV bags used at the surgical center. They identified 10 additional unexpected cardiac emergencies that occurred during otherwise unremarkable surgeries between May and August 2022, which the complaint alleges is an exceptionally high rate of complications over such a short period of time.
In each of those cases – which investigators believe occurred on or around May 26 and 27; June 27; July 7, 15 and 18; and Aug. 1, 4, 9 and 19 – medical personnel were able to stabilize the patient only through use of emergency measures. Most of the incidents occurred during longer surgeries that used more than one IV bag, including one or more bags retrieved mid-surgery from a stainless steel bag warmer.
The complaint alleges that none of the cardiac incidents occurred during Dr. Ortiz’s surgeries, and that they began just two days after Dr. Oritz was notified of a disciplinary inquiry stemming from an incident during which he allegedly “deviated from the standard of care” during an anesthesia procedure when a patient experienced a medical emergency. The complaint alleges that all of the incidents occurred around the time Dr. Ortiz performed services at the facility, and no incidents occurred while Dr. Ortiz was on vacation.
The complaint further alleges that Dr. Ortiz, who had a history of disciplinary actions against him, expressed concern to other physicians over the disciplinary action at the facility and complained the center was trying to “crucify” him. A nurse who worked on one of Dr. Ortiz’s surgeries allegedly told law enforcement that Dr. Ortiz refused to use an IV bag she retrieved from the warmer, physically waving the bag off.
Surveillance video from the center’s operating room hallway allegedly showed Dr. Ortiz placing IV bags into the stainless-steel bag warmer shortly before other doctors’ patients experienced cardiac emergencies.
The complaint alleges that in one instance captured in the surveillance video, agents observed Dr. Ortiz walk quickly from an operating room to the bag warmer, place a single IV bag inside, visually scan the empty hallway, and quickly walk away. Just over an hour later, according to the complaint, a 56-year-old woman suffered a cardiac emergency during a scheduled cosmetic surgery after a bag from the warmer was used during her procedure.
The complaint alleges that in another instance, agents observed Dr. Ortiz exit his operating room carrying an IV bag concealed in what appeared to be a paper folder, swap the bag with another bag from the warmer, and walk away. Roughly half an hour later, a 54-year-old woman suffered a cardiac emergency during a scheduled cosmetic surgery after a bag from the warmer was used during her procedure.
“The safety of the nation’s pharmaceutical supply is critically important,” said Principal Deputy Assistant Attorney General Brian M. Boynton. “The Department will vigorously prosecute this case consistent with the evidence gathered by our law enforcement partners.”
“Our complaint alleges this defendant surreptitiously injected heart-stopping drugs into patient IV bags, decimating the Hippocratic oath,” said U.S. Attorney Chad E. Meacham. “A single incident of seemingly intentional patient harm would be disconcerting; multiple incidents are truly disturbing. At this point, however, we believe that the problem is limited to one individual, who is currently behind bars. The Department of Justice and our indefatigable partners at the FDA’s Office of Criminal Investigations and the Dallas Police Department will work tirelessly to hold him accountable. In the meantime, it is safe to undergo anesthesia in Dallas.”
“Patients expect that their doctors will use only safe and effective medical products during their surgeries. When illicit tampering occurs, serious harm and even death can result,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations. “Working with our law enforcement partners, we will continue to monitor, investigate and bring to justice those who would risk patients’ health and safety.”
A criminal complaint is merely an allegation of criminal conduct, not evidence. Dr. Ortiz is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, he faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Food & Drug Administration’s Office of Criminal Investigations and the Dallas Police Department conducted the investigation with the assistance of scientists from the University of North Texas. Senior Litigation Counsel Patrick Runkle and Senior Trial Counsel Yolanda McCray Jones of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorneys John de la Garza and Errin Martin of the Northern District of Texas are prosecuting the case.
South Florida U.S. Attorney’s Office to Lead COVID-19 Fraud Strike Force Team Against Pandemic Relief FraudRead the Press Release
MIAMI – Recognized as a leader in pandemic relief fraud prosecutions, the Southern District of Florida’s U.S. Attorney’s Office has been selected to head one of three COVID-19 Fraud Strike Force Teams nationally. In recent weeks alone, the district has charged 23 COVID-19 relief fraud cases, with scheme amounts totaling over $150 million.
The Department of Justice established the Strike Force to enhance the department’s existing efforts to combat and prevent COVID-19 related fraud.
“Over the years, the South Florida U.S. Attorney’s Office and its law enforcement partners have developed robust domestic and international anti-fraud and money laundering practices,” said Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida. “Our experience with these data-driven financial prosecutions allowed us to launch an early and aggressive attack on COVID-19 relief fraud by holding accountable those who tried to capitalize on an unprecedented crisis. We are proud to have been selected to lead one of three COVID-19 Fraud Strike Force Teams and look forward to continuing to advance this important Department of Justice effort.”
In total, the South Florida U.S. Attorney’s Office has charged over 80 cases since the CARES Act was passed. It has seized over $23.5 million in stolen relief funds. The Strike Force Team will build on this momentum.
“These Strike Force Teams will build on the Department’s historic enforcement efforts to deter, detect, and disrupt pandemic fraud wherever it occurs,” said Attorney General Merrick B. Garland. “Since the start of this pandemic, the Justice Department has seized over $1.2 billion in relief funds that criminals were attempting to steal and charged over 1,500 defendants with crimes in federal districts across the country, but our work is far from over. The Department will continue to work relentlessly to combat pandemic fraud and hold accountable those who perpetrate it.”
Anticipating the need to protect the integrity of these taxpayer funds and to otherwise protect South Floridians from financial fraud related to the COVID-19 pandemic, the Southern District of Florida established multiple efforts to identify, investigate, and prosecute such fraud. This multifaceted approach has proven invaluable in going after those who have cheated the system.
“The Strike Force Teams are the latest example of the Justice Department’s commitment to fight pandemic fraud,” said Associate Deputy Attorney General Kevin Chambers, who serves as the department’s director for COVID-19 Fraud Enforcement. “The work being done by our prosecutors, trial attorneys, agents and partners on our COVID-19 Fraud Enforcement Task Force has been extraordinary. We’re going a step further with the announcement of strike force teams to support, enhance, and continue the great work being done across the department.”
“Our investigations of schemes to defraud federal pandemic relief programs have continued and will continue even as the pandemic itself evolves,” said Federal Deposit Insurance Corporation Office of Inspector General Special Agent in Charge Kyle A. Myles. “The cases described in this announcement reflect collaboration with our law enforcement partners and specific progress made in the fight to identify, investigate, and prosecute financial crime affecting FDIC-insured institutions.”
The Southern District of Florida’s Strike Force Team will be comprised of dedicated prosecutors, working together with agents from Department of Labor Office of Inspector General, Small Business Administration Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, Department of Homeland Security Office of Inspector General, FBI, U.S. Secret Service, Homeland Security Investigations, Internal Revenue Service Criminal Investigations, U.S. Postal Inspection Service, Federal Reserve System Office of Inspector General, Treasury Inspector General for Tax Administration, and U.S. Coast Guard Investigative Service. The Pandemic Response Accountability Committee and Special Inspector General for Pandemic Recovery will assist the Strike Force.
“OIG stands firm in the fight to hold persons that commit fraud responsible in collaboration with our law enforcement partners,” said SBA OIG’s Inspector General Hannibal M. Ware. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs every day. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
A group effort is needed to address this problem and that is exactly what these agencies and departments have committed to doing.
“This announcement is the culmination of hard work by numerous agencies,” said Wayne Rosen, Assistant Special Agent in Charge, Miami Regional Office, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection. “It sends a clear message that federal law enforcement is watching and will relentlessly pursue fraudsters and bring them to justice. We are proud to work with our law enforcement partners in this endeavor.”
Although these COVID-19 loan programs have ended, guilty parties should not get a false sense of security. Their capture certainly remains a priority.
“The CARES Act provided vital funds to thousands of small businesses impacted by the COVID-19 pandemic economic downturn,” said Jason J. Carley, Assistant Special Agent in Charge, FBI Miami. “While those loan programs have ended, the FBI’s commitment to seeking out those who defrauded the government continues. Millions of taxpayer dollars earmarked for CARES Act programs were diverted away from the intended recipients by illegal activity. If you defrauded these programs, know that our investigators will continue to follow the money right to your doorstep.”
The actions of fraudsters have basically taken money from struggling people doing their best to endure the pandemic.
“These defendants are alleged to have defrauded a program intended to assist hardworking Americans who have been unfairly impacted as a result of this unprecedented and challenging health crisis,” said Special Agent in Charge (SAC) Anthony Salisbury, HSI Miami. “HSI remains committed to working with our law enforcement partners to bring every asset to bear against anyone who seeks to take advantage of the pandemic to deliberately harm and deceive others for their own profit.”
That fraudsters have taken advantage of a critical health situation only seems to bolster the efforts to take them down.
“It is very unfortunate that criminals have seized on the COVID-19 pandemic as a money-making opportunity and created fraudulent schemes to steal from federal programs designed to assist law-abiding Americans,” said Matthew D. Line, Special Agent in Charge, IRS-Criminal Investigation (IRS-CI), Miami Field Office. “We continue relentlessly committed to working with our law enforcement partners to aggressively pursue criminal investigations and hold crooks accountable for fraudulently profiting from CARES Act programs.”
“The allegations in these matters are very disturbing,” said J. Russell George, Treasury Inspector General for Tax Administration. “Exploiting some of the most vulnerable people in our society will not be tolerated. The Treasury Inspector General for Tax Administration aggressively investigates abuse of the Federal tax system. We are committed to working with our law enforcement partners to ensure that those who endeavor to corrupt federal tax administration are prosecuted to the fullest extent of the law.”
As much success as the agencies pursuing this type of criminal activity have had, there still remains work to be done.
“An important mission of the U.S. Department of Labor, Office of Inspector General is to investigate allegations of fraud related to the unemployment insurance program,” said Mathew Broadhurst, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor, Office of Inspector General. “The DOL-OIG fully supports the Department of Justice’s COVID-19 Strike Force Team program. Through collaboration and leveraging of resources, the federal law enforcement community has made great strides in holding COVID-19 fraudsters accountable but there is more work to be done. We will continue to work closely with the U.S. Attorney’s Office and our strike team partners to safeguard unemployment compensation benefit programs for those who most need them.”
It is a team effort that everyone should take pride in.
“The DHS Office of Inspector General thanks the U.S. Department of Justice and our law enforcement partners for significant collaboration within the COVID-19 Fraud Strike Force,” said Dr. Joseph V. Cuffari, Inspector General of the Department of Homeland Security. DHS OIG will continue to investigate these crimes and to help ensure the integrity of DHS programs.”
Criminal enforcement in the Southern District of Florida to combat COVID-19/CARES Act-related financial fraud schemes have proceeded on numerous fronts, including:
- Paycheck Protection Program (PPP) fraud: Prominent among the District’s efforts have been cases involving attempts to obtain PPP loans through fraud. These loans were intended to help small businesses financially survive the COVID-19 pandemic. The cases charged in the district involve a range of conduct, from individual business owners who have inflated their payroll expenses to obtain larger loans than they otherwise would have qualified for to serial fraudsters who revived dormant corporations and purchased shell companies with no actual operations to apply for multiple loans. They then falsely stated they had significant payroll to organized criminal networks submitting identical loan applications and supporting documents under the names of different companies.
- Economic Injury Disaster Loans (EIDL) fraud: Another type of fraud charged in the district has been fraud against the EIDL program, which was designed to provide loans to small businesses, agricultural, and non-profit entities. Fraudsters have targeted the program by applying for EIDL advances and loans on behalf of ineligible, newly-created shell or non-existent businesses and diverting the funds for illegal purposes.
- Unemployment Insurance (UI) fraud: Due to the COVID-19 pandemic, more than $860 billion in federal funds has been appropriated for UI benefits through September 2021. People looking to exploit UI benefits during the pandemic use stolen identities to fraudulently file for UI benefits.
RECENT PROSECUTIONS
In recent weeks, the district has charged 23 COVID-19 relief fraud cases, with scheme amounts totaling over $150 million. It is alleged that the defendants in these cases received over $35 million.
United States v. Hernandez, Case No. 22-mj-03333
The Southern District of Florida recently charged Daniel Hernandez, 50, a Market Manager for a top national bank, with orchestrating a $30 million COVID-19 relief fraud scheme. According to the criminal complaint affidavit, Hernandez – who oversaw 80 bank employees and more than 20 branches throughout South Florida – recruited bank customers and at least one former bank employee to submit over 90 fraudulent PPP loan applications. It is alleged that Hernandez advised the recruits on how to file the applications and what to include in them, then used his position at the bank to ensure the fraudulent loans were reviewed and, when possible, approved. The applications sought over $30 million in fraud proceeds. The investigation to date has identified over $15 million in fraudulent loans issued.
In addition to Hernandez, the Southern District has charged others with participating in the fraud. Willian Alexander Posada Sandrea pled guilty and is scheduled to be sentenced on October 24, 2022 (22-cr-20194).
Armando De Leon, who worked at the bank with Hernandez, was charged with conspiracy to commit wire fraud (22-20420-CR-KMM). Javier Alfonso Barata (22-mj-3095), and Alvaro Enrique Castillo along with Douglas David Melean Socorro (22-mj-2928) have also been charged.
FDIC-OIG, FBI Miami, SBA-OIG, and the Florida Department of Revenue investigated this matter.
Assistant U.S. Attorney Eli S. Rubin of the Southern District of Florida is prosecuting the case, which charges Hernandez with conspiracy to commit bank fraud.
Assistant U.S. Attorney Joshua Paster is handling forfeiture.
United States v. Emile, Case No. 22-cr-60176
The Southern District recently charged Herbert Emile, 41, with participating in a $100 million COVID-19 relief fraud scheme. In 2019, the FDIC-OIG began investigating a group of individuals who were using shell companies, stolen personal identification information – including stolen social security numbers-- and synthetic identities to commit fraud against several federally-insured banks in the United States.
When the CARES Act was enacted in 2020, members of the conspiracy used their pre-established shell companies to steal millions of dollars from the Act’s programs. In total, members of this conspiracy and their associates are responsible for stealing over $100 million from U.S. banks and PPP/CARES Act programs.
In addition to Emile, others were also charged in this district with participating in the fraud scheme. These defendants have pled guilty: Hasan Hakim Brown, 46; Jean Renald Fleuridor, 42; Raul Mauricio Gonzalez, 48; and Lorin George Saunders, 40.
FDIC-OIG and the United States Secret Service investigated the case. SBA-OIG and FBI Miami assisted.
Assistant U.S. Attorney Brooke Watson is prosecuting the case.
United States v. Philossaint Case No. 22-cr-08336
United States v. Tollinchi, 22-cr-08337
United States v. Shazier, et al., 22-cr-08357
In cases alleging PPP fraud, EIDL fraud, and loan forgiveness application fraud, a South Florida federal grand jury recently charged Joff Stenn Wroy Philossaint, 32, of Miramar, Florida; Mariel Tollinchi, 35, of Miramar, Florida; Maurice Shazier, 50, of Fort Pierce, Florida; David Andre Johnson, 52, of Lauderhill, Florida; Regine Marie Rene, 32, of Boynton Beach, Florida; and Brianna Monique Gayle, 23, of Riviera Beach, Florida, with conspiring to commit wire fraud and money laundering, as well as with aggravated identity theft. Philossaint also was charged with obtaining U.S. citizenship through fraud.
It is alleged that Philossaint and Gayle, working through one of Philossaint’s businesses, worked with others to prepare PPP and EIDL loan applications, as well as loan forgiveness applications, on behalf of dozens of companies that falsely certified their number of employees, their revenue, and their business expenses. As alleged, to support the EIDL and PPP loan applications, and the PPP loan forgiveness applications, the defendants prepared and submitted fake IRS documents and created payroll accounts with a national payroll processing company using stolen identities to make it appear that the companies had paid wages, which they never did.
According to the allegations, Philossaint charged a kickback of 10 percent of the funded loans and required others to disguise the kickback payments by splitting them into smaller amounts and writing “advertising” on the memo lines of the checks.
It is alleged that Philossaint and his fiancée, Tollinchi, directly received PPP and EIDL loans of nearly $500,000, in addition to kickback payments; Shazier received PPP and EIDL loans totaling $873,328; Johnson received PPP and EIDL loans totaling $443,792; and Rene received PPP and EIDL loans totaling $183,906. It is also alleged that the 26 companies for which Philossaint and Gayle set up payroll processing received at least 33 PPP and EIDL loans totaling more than $4.8 million.
SBA-OIG, U.S. Secret Service, FBI Miami, IRS-CI Miami (West Palm Beach), and HSI Miami are investigating the case. The West Palm Beach U.S. Attorney’s Office is prosecuting it.
United States v. Almaguer, et al., Case No. 22-cr-80118
According to the indictment, Defendants Leiner Pena Infante, Yandre Garcia Hernandez, Eduardo Ramos Leyva and others gave Yunior Barrera Almaguer information about companies they controlled so that Barrera could use the information to fraudulently apply for PPP loans. The conspirators received approximately $8 million in PPP funds and spent much of the loan proceeds for their personal use and benefit. After receiving the loans, the defendants named above laundered the funds along with co-defendants Jorge S. Alvarez, Dariel Garcia Carmona, and Jose Raul Amaro – who had separately obtained their own fraudulent PPP loans, according to the charges. FBI Miami investigated the case. Assistant U.S. Attorney Susan Osborne is prosecuting the case.
United States v. Diaz, et al., Case No. 22-cr-20354
Aisladys Diaz, 45, of Miami, Florida, her daughter Ailensy Buron Diaz, 29, of Miami, Florida, Berto Omar Rodriguez Fonseca, 33, of Cutler Bay, Florida, and husband and wife Yandys Diaz, 29, and Yainelis Perez Diaz, 33, of Hialeah, Florida, were charged in an indictment with conspiracy to commit access device fraud, use of an unauthorized access device, aggravated identity theft, conspiracy to commit wire fraud and wire fraud. According to allegations in the indictment, in May 2020, Aisladys Diaz, a former aide employed at a nursing home in Homestead, Florida, stole the personal identifying information (“PII”) of two elderly residents in her care. The conspirators used the PII of these elderly victims in several schemes including one where a fraudulent Economic Disaster Injury Disaster Loan, an SBA loan under the CARES Act was applied for. FBI Miami and TIGTA investigated the case. Assistant United States Attorney Lois Foster-Steers is prosecuting it.
United States v. Ferguson, Case No. 22-cr-60164
Ego Ferguson, 53, of Pompano Beach, Florida, was charged by indictment with wire fraud and engaging in financial transactions in criminally derived property. The indictment alleges that Ferguson caused the preparation of false/fraudulent PPP loan applications on behalf of various companies that falsely certified number of employees and employee payroll. As alleged, Ferguson caused the submission of these fraudulent PPP loan applications to a loan processor and Ferguson also provided fraudulent IRS forms that falsely indicated that these companies had paid employee wages and taxes that the companies had not actually paid. The indictment alleges that that Ego Ferguson charged a fee of twenty percent for these loans and that Ferguson maintained a spreadsheet showing the submission of apparent PPP loans totaling over $6 million. IRS-CI Miami, FDIC-OIG, FRB and the U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Michael Berger is prosecuting the case.
United States v. Carrillo et al., Case No. 22-cr-20368
Kenia Carrillo, 45, Roberto Lopez, 50, Lester Hedman Safont, 51, Oreste Ruiz Linares, 51, Honolio Navarro Caballero, 39, Barbara Alvarez, 44, Javier Pico, 56, Alfredo Contrera, 50, and Erisbel Gonzalez Gomez, 43, have been charged by indictment with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. The indictment charges that the group, and others, participated in a conspiracy to submit fraudulent PPP applications and obtained over $2.6 million in fraudulent loan proceeds. Once they obtained the money, instead of spending it on payroll and other permissible business expenses, the group laundered the funds by issuing checks to each other to conceal the fraud. The U.S. Secret Service and SBA-OIG, with the assistance of the Miami-Dade Police Department, investigated the case. Assistant U.S. Attorney Thomas Haggerty is prosecuting it. Assistant U.S. Attorney Peter Laserna is handling asset forfeiture.
United States v. Hermoso, Case No. 22-cr-20360
Maritza Morales Hermoso, 57, Miami, Florida, was charged by Indictment with conspiracy to commit wire fraud, wire fraud, and money laundering. The Indictment charges that Hermoso and others participated in a conspiracy to submit fraudulent PPP and EIDL applications and obtained approximately $1.5 million in fraudulent loan proceeds. Specifically, the Indictment charges that Hermoso submitted six PPP loan applications and two EIDL applications for eight different businesses. The Indictment also alleges that once Hermoso obtained the loan proceeds, instead of spending it on payroll and other permissible business expenses, she used it for cosmetic surgery, gambling, and to buy a Cadillac. She often disguised her misuse of funds by laundering the proceeds through multiple unrelated business accounts or withdrawing the money in cash, it is alleged. U.S. Secret Service and the SBA-OIG investigated the case. Assistant U.S. Attorney Joseph Egozi is prosecuting it.
United States v. Joseph, Case No. 22-cr-60162
Sherry Joseph, 33, of New York, was charged by indictment with wire fraud conspiracy and wire fraud. The indictment alleges that Joseph, while on federal pretrial release in a separate case in the District of New Jersey, participated in a conspiracy to submit millions of dollars of fraudulent PPP loan applications. Specifically, the indictment alleges that Joseph used aliases to hide her identity while coordinating between the scheme ringleader and several individuals she recruited to seek fraudulent PPP loans through the scheme. Joseph also demanded and received kickbacks from recruits who received fraudulent PPP loans through the scheme, it is alleged. IRS-CI Miami investigated the case. Assistant U.S. Attorney Kiran N. Bhat and Department of Justice (DOJ) Trial Attorney Philip B. Trout are prosecuting it.
United States v. Sheppard, Case No. 22-cr-20290
Eric Dean Sheppard, 53, of Bal Harbour, Florida, was charged by indictment with six counts of wire fraud. The indictment alleges that Sheppard, through three different entities that he controlled, applied for and obtained EIDL and PPP loan proceeds in excess of $900,000. He falsified tax forms and misrepresented the borrowing entities’ revenues, monthly payroll, and numbers of employees. FBI Miami investigated the case. Assistant U.S. Attorney Marty Fulgueira Elfenbein is prosecuting it.
United States v. Jacquez, Case No. 22-cr-60171
Florencio Jacquez, 41, of Cape Coral, Florida, was charged by information with conspiracy to commit wire fraud. The information against Jacquez alleges that Jacquez participated in a conspiracy to submit millions of dollars in fraudulent PPP loan applications. Specifically, the information alleges that Jacquez received a fraudulent PPP loan of $801,250 for his own company, Next Auto Body, LLC. The U.S. Secret Service, IRS-CI Miami, and SBA-OIG investigated the case. Assistant U.S. Attorney Amanda Perwin is prosecuting it.
United States v. Harricharan, Case No. 22-cr-60173
Keegan Harricharan, 39, of Coral Springs, Florida, was charged by information with conspiracy to commit wire fraud. The information against Harricharan alleges that Harricharan participated in a conspiracy to submit millions of dollars in fraudulent PPP loan applications. Specifically, the information alleges that Harricharan received a fraudulent PPP loan of $840,827 for his own company, World Scientific Industrial and Medical, Inc. The U.S. Secret Service, IRS-CI Miami, FBI Miami, and SBA-OIG investigated the case. Assistant U.S. Attorney Amanda Perwin is prosecuting it.
United States v. Sales, Case No. 22-cr-60172
Abdolrahman Sales, 26, of Lake Elsinore, California, was charged by information and pled guilty to conspiracy to commit an offense against the United States. He is scheduled to be sentenced on November 7, 2022, before Judge William P. Dimitrouleas of the United States District Court for the Southern District of Florida. In pleading guilty, Sales admitted that he participated in a conspiracy to obtain a fraudulent PPP loan. Specifically, Sales admitted that he received a fraudulent PPP loan of $407,727 for his company, Kyng Simba, Inc. His loan application included falsified bank statements and payroll tax forms that overrepresented the company’s number of employees and monthly payroll. Sales also admitted that he paid kickbacks to co-conspirators for their roles in helping him obtain this fraudulent PPP loan. IRS-CI Miami investigated the case. Assistant U.S. Attorney Kiran N. Bhat and DOJ Trial Attorney Philip B. Trout are prosecuting it.
United States v. Kelly, Case No. 22-cr-20168
Randy Kelly, 35, of Miami, was charged by information and pled guilty to conspiracy to commit an offense against the United States. He was sentenced August 19, 2022, before Judge Robert N. Scola of the United States District Court for the Southern District of Florida. In pleading guilty, Kelly admitted that he participated in a conspiracy to obtain a fraudulent PPP loan. Specifically, Kelly admitted that he received a fraudulent PPP loan of $495,822 for his company, Connected Forever LLC, after submitting a loan application that included falsified bank statements and payroll tax forms that overrepresented the company’s number of employees and monthly payroll. Kelly also admitted that he paid kickbacks to a co-conspirator who helped obtain this fraudulent PPP loan. IRS-CI Miami and FBI Miami investigated the case. Assistant U.S. Attorney Kiran N. Bhat and DOJ Trial Attorney Philip B. Trout prosecuted it.
United States v. Rojas, Case No. 22-cr-20364
Yadira Escobar Rojas, 34, of Homestead, Florida, was charged by information with wire fraud. The information alleges that Escobar Rojas submitted two false and fraudulent EIDL applications and one false and fraudulent PPP loan application on behalf of two different entities she controlled, Los Molinos Trucking, Inc. and Molino Fish Inc. She received over $495,000 in fraud proceeds. FBI Miami investigated the case. Assistant U.S. Attorney Eli S. Rubin is prosecuting it.
United States v. Floradin, Case No. 22-cr-20361
Elie Floradin, 59, of Miami, Florida, was charged by indictment with wire fraud and money laundering in connection with the alleged repeated submission of fraudulent Paycheck Protection Program (“PPP”) applications on behalf of his purported hiring agency business, You’re Hired Employment Agency, LLC (“You’re Hired”). The indictment alleges that, in July 2020, Floradin caused the submission of a false and fraudulent PPP application on behalf of You’re Hired, which resulted in the disbursement of approximately $199,999 in federal COVID-19 assistance funds directly into Floradin’s personal bank account. Shortly thereafter, the government alleges that Floradin transferred approximately $177,000 of those funds into a different account that he controlled, knowing that the PPP funds were derived from unlawful activity. The indictment further alleges that Floradin then filed multiple (unsuccessful) “second draw” applications, attempting to once again fraudulently obtain COVID-19 assistance funds in the year 2021, including through the use of falsified federal tax forms, all in an effort to continue to enrich himself and others. TIGTA and the Florida Office of Financial Regulations investigated the case. Assistant United States Attorney Eduardo Gardea, Jr., is prosecuting it.
United States v. Izzo, Case No. 22-cr-60155
Jennifer Pamela Izzo, 34, of Coral Springs, Florida, was charged by indictment with wire fraud and aggravated identity theft for her alleged months-long embezzlement scheme against her former employer’s company, through which she misappropriated company funds and attempted to personally enrich herself from a COVID-relief loan submitted on behalf of the Broward-based company. The indictment charges that from October 2019 to April 2020, Izzo abused her position as the company’s bookkeeper and accounts payable clerk by creating fictitious accounts in the names of the company’s real vendors, to carry out fraudulent charges using the company’s credit cards, ultimately funneling the funds into her own personal bank account. The indictment further charges that Izzo abused her position by filing an Economic Injury Disaster Loan, which she had been asked to file on behalf of the company to apply for federal COVID-assistance funds, but which she submitted with her own personal bank account information to personally enrich herself. The U.S. Secret Service and the Fort Lauderdale Police Department investigated the case. Assistant United States Attorney Eduardo Gardea, Jr. is prosecuting it.
United States v. Hyppolite, Case No. 22-cr-20394
Mackinson Hyppolite, 33, of Miami, was charged by indictment with using someone else’s identity to fraudulently apply to the U.S. Small Business Administration (“SBA”) for a COVID-19 relief advance grant and low-interest Economic Injury Disaster Loan (“EIDL”) loan for a company to which Hyppolite had no connection. According to the indictment, the loan application falsely certified, among other things, that an individual named “D.A.” owned the company and had suffered economic injury due to the COVID-19 pandemic. In reality, Hyppolite, not D.A., filed the application and neither Hyppolite nor D.A. had any relationship to the company. The indictment alleges that Hyppolite possessed and used D.A.’s personal identifying information without her knowledge or authorization, including her social security number. As a result of the fraudulent application, the SBA preapproved Hyppolite for a $26,600 federal loan.
The Indictment charges Hyppolite with one count of wire fraud, one count of access device fraud, and three counts of aggravated identity theft. The Office of Treasury Inspector General for Tax Administration (TIGTA) and FBI Miami investigated the case. Assistant U.S. Attorney Will J. Rosenzweig is prosecuting the case. Assistant U.S. Attorney Peter Laserna is handling asset forfeiture.
United States v. Potokri, Case No. 22-cr-60147
Obukowho Potokri, 36, of Fort Lauderdale, Florida, was charged by indictment with theft of government funds. Potokri is alleged to have fraudulently received unemployment insurance benefits that were issued to an individual named “D.M.” The Department of Labor Office of Inspector General investigated the case. Assistant U.S. Attorney Karla Albite of the Southern District of Florida is prosecuting the case. Assistant U.S. Attorney Joshua Paster is handling forfeiture.
United States v. Hilaire, Case No. 22-cr-60175
Chirac Hilaire, 41, of Broward County, Florida, was charged by indictment with wire fraud and money laundering. The indictment against Hilaire alleges that Hilaire participated in the submission of several fraudulent EIDL and PPP loan applications. Specifically, the indictment alleges that Hilaire received fraudulent PPP loan proceeds amounting to approximately $150,000 for his own company, Hilaire LLC. FBI Miami investigated the case. Assistant U.S. Attorney Lauren A. Astigarraga is prosecuting it.
United States v. Sarmiento Carrion, Case No. 22-mj-03412
Yoliesse Sarmiento, 39, of Miami, Florida, has been charged by criminal complaint with bank fraud. Sarmiento conspired with others to file a fraudulent PPP loan application. In May of 2020, he re-instated a company that had been dissolved in 2019 and listed himself as the sole officer of the company. Two weeks later, a co-conspirator submitted a fraudulent PPP loan application for the company and included a forged bank statement with the application. Sarmiento received $255,000 in PPP funds and, over two weeks, depleted the entirety of the funds. The U.S. Secret Service and SBA-OIG, with the assistance of the Miami-Dade Police Department, investigated the case. Assistant U.S. Attorney Thomas Haggerty is prosecuting it. Assistant U.S. Attorney Peter Laserna is handling asset forfeiture.
PLEASE NOTE: Criminal complaints, informations, and indictments contain mere allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Six Mexican Nationals Sentenced for International Sex Trafficking OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that EFRAIN GRANADOS-CORONA, a/k/a “Chavito,” a/k/a “Cepillo,” was sentenced today to 212 months in prison in connection with trafficking three victims. Five additional defendants in this case were previously sentenced to terms of imprisonment. JULIO SAINZ-FLORES, a/k/a “Rogelio,” was sentenced on January 10, 2020, to 135 months in prison; PEDRO ROJAS-ROMERO was sentenced on December 2, 2021, to 137 months in prison; ALAN ROMERO-GRANADOS, a/k/a “El Flaco,” was sentenced on February 24, 2022, to 84 months in prison; JUAN ROMERO-GRANADOS, a/k/a “Chegoya,” a/k/a “El Guero,” was sentenced on May 3, 2022, to 108 months in prison; and EMILIO ROJAS-ROMERO was sentenced on June 9, 2022, to 136 months in prison.
U.S. Attorney Damian Williams said: “These defendants used brute force, threats of violence, and false promises to lure dozens of minors and adult victims in Mexico and the United States, traffic them into commercial sex, and collect millions of dollars in illegal proceeds. The devastation inflicted on the defendants’ victims is beyond measure. These sentencings send a clear message: those who prey on women and children to sell them into sexual slavery will be prosecuted and punished to the full extent of the law.”
According to the allegations in the Indictment to which each defendant pleaded guilty, public court filings, and statements made in court:
EFRAIN GRANADOS-CORONA, JULIO SAINZ-FLORES, JUAN ROMERO-GRANADOS, ALAN ROMERO-GRANADOS, PEDRO ROJAS-ROMERO, and EMILIO ROJAS-ROMERO, the defendants, were members of an international sex trafficking organization (the “STO”). Many of the members of the STO are related by blood, marriage, and community.
Between at least in or about 2000 and 2016, members of the STO (the “Traffickers”) used false promises, physical and sexual violence, threats, lies, and coercion to force and coerce adult and minor women (the “Victims”) to work in prostitution in both Mexico and the United States.
In most cases, a Trafficker enticed a Victim – frequently a minor – in Mexico. The Trafficker then used multiple means to isolate the Victim from her family. In some cases, the Trafficker used romantic promises to induce the Victim to leave her family and live with the Trafficker. In other cases, the Trafficker raped the Victim, making it difficult for her to return to her family due to the associated stigma of the rape. Once a Victim was separated from her family, the Trafficker frequently monitored her communications, kept her locked in an apartment, left her without food, and engaged in physical or sexual violence against the Victim.
Traffickers often told Victims that the Traffickers owed a significant debt and that the Victim needed to work in commercial sex to assist in repaying the debt. Traffickers typically began forcing the Victims to work in commercial sex in Mexico. Victims were often required to see at least 20 to 40 customers per day. Traffickers monitored the number of clients each Victim saw by surveilling the Victims, communicating with brothel workers, and by counting the number of condoms provided to each Victim. Traffickers typically required the Victims to turn over all of the commercial sex proceeds to the Traffickers.
After a Victim worked in commercial sex in Mexico for some time, Traffickers typically arranged for the Victim to be smuggled into the United States. Members of the STO assisted one another in making smuggling arrangements. In many cases, multiple Traffickers and multiple Victims were smuggled into the United States together. In other cases, one Trafficker remained in Mexico while arranging for a Victim to be smuggled together with another Trafficker and other Victims.
Once in the United States, the members of the STO generally maintained their Victims at one of several shared apartments in New York City. Victims living in the same apartment were frequently forbidden from communicating with one another. Once in the United States, Traffickers continued to use physical and sexual violence, threats, lies, and coercion to force the Victims to work in commercial sex.
In most cases, the Trafficker or another member of the STO provided Victims with contact information with which to find work engaging in commercial sex acts. The Victims typically worked weeklong shifts either in a brothel or in a “delivery service.” In a delivery service, the Victims were delivered to customers’ homes by “drivers.” These brothels and delivery services were located both within New York and in surrounding states, including, but not limited to, Connecticut, Maryland, Virginia, New Jersey, and Delaware.
Generally, each customer paid $30 to $35 for 15 minutes of sex with a Victim. Of that, half of the money typically went to the driver (in the case of a delivery service) or to the brothel. The other half went to the Victim, who was then typically forced to give all of those proceeds to the Trafficker. When a Trafficker was unavailable, a Victim would be forced to give the proceeds to another member of the STO.
The Traffickers then frequently sent, or had their Victims send, some of the commercial proceeds to Traffickers’ family members and associates in Mexico by wire transfer. Such transfers provided financial assistance to the Traffickers’ families and provided financial support to the Traffickers themselves if they returned to Mexico.
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EFRAIN GRANADOS-CORONA, 45, of Mexico, pled guilty to sex trafficking by force, fraud, and coercion, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of life in prison. In addition to the prison terms, EFRAIN GRANADOS-CORONA was ordered to pay $2,004,450 in restitution.
JULIO SAINZ-FLORES, 37, of Mexico, pled guilty to sex trafficking of a minor, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
JUAN ROMERO-GRANADOS, 33, ALAN ROMERO-GRANADOS, 28, PEDRO ROJAS-ROMERO, 40, and EMILIO ROJAS-ROMERO, 37, all of Mexico, pled guilty to conspiracy to commit sex trafficking by force, fraud, and coercion, which carries a maximum sentence of life in prison. In addition to the prison terms, JUAN ROMERO-GRANADOS was ordered to pay $147,600 in restitution.
The maximum and minimum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The prosecution is being handled by the Violent and Organized Crime Unit of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Jacqueline C. Kelly and Elinor L. Tarlow are in charge of the prosecution.
San Mateo-Based Driving School Instructor Charged with Coercion and Enticement to Produce Child PornographyRead the Press Release
SAN FRANCISCO – San Mateo-based driving instructor Johnnatan Zelaya Izaguirre (Zelaya) appeared in federal court to face charges that he coerced and enticed minor teenaged girls to produce child pornography and related offenses, announced U.S. Attorney Stephanie M. Hinds and FBI Special Agent in Charge Sean Ragan. Chief U.S. Magistrate Judge Joseph C. Spero presided over yesterday’s proceedings at the conclusion of which the magistrate judge ordered Zelaya to be detained pending further proceedings.
A federal grand jury handed down an indictment on September 1, 2022, charging Zelaya, 39, of Redwood City with the crimes. According to the indictment, Zelaya used social media to entice and coerce minor teenaged girls to produce child pornography for his personal use and for sale. The indictment alleges Zelaya offered to manage the minor victims’ sale of their sexually explicit content, offered monetary rewards for selling the victim’ content, and bought the victims sex toys to use in videos they were encouraged to create.
Additional details of the alleged scheme are set out in documents filed by the government in the federal court proceedings. According to government’s filings, Zelaya is both a graduate of a local police academy and the owner and operator of a driving school in San Mateo County. The government alleged that Zelaya used his “position of authority and the powers of social media” to prey on teenage girls. Specifically, Zelaya allegedly used social media to identify underage girls, ranging from ages 14 to 17—three of which are identified by their initials in the indictment—to entice and coerce them to produce child pornography. Further, the government alleges Zelaya persuaded his teenage victims, some of whom were his students, to create child pornography in part by falsely claiming he was in law enforcement; the government alleges that although Zelaya graduated from a police academy, he never joined a police department. In addition, the government’s papers describe how Zelaya groomed his victims at times by complimenting their appearance, developing sexualized friendships with them, offering to manage their explicit content online, and offering them financial rewards for the creation of explicit content. Zelaya allegedly provided a victim a list of the amounts of money she could earn by producing videos depending upon whether the content included nude vs. non-nude videos, videos of masturbation, or videos of “toy play.” On one occasion, Zelaya allegedly threatened to leak explicit content to everyone his victim knew if she stopped creating content for him.
Zelaya was arrested on January 4, 2022, after communicating with an undercover police officer he thought was 17 years old. The government’s court filings describe multiple communications between the undercover officer, who had posed as a driving student, and Zelaya that included highly sexualized conversations with instructions on how to masturbate, discussions of future interactions in which he would orally copulate and have sexual intercourse with her, and a request to have the officer perform a photo shoot with him. The conversations culminated with Zelaya’s arrest on January 4, 2022, during a planned meet-up with the undercover agent.
Zelaya is charged with two counts of coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b); one count of receipt of child pornography, in violation of 18 U.S.C. § 2252(a)(2); and one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B) and (b)(2).
Zelaya is next scheduled to appear on October 6, 2022, before United States District Court Judge William H. Orrick for an initial appearance before a district judge.
The charges contained in the criminal indictment are only allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being prosecuted by Assistant United States Attorney Lauren Harding with assistance from Patricia Mahoney and Amala James. The prosecution is the result of an investigation by the FBI, the Redwood City Police Department, the Atherton Police Department, the Burlingame Police Department, and the California Department of Motor Vehicles Investigations Division.
Anyone with information should contact the FBI at 415-553-7400.
San Antonio Man Sentenced to over 15 Years in Prison for Distribution of Child Sexual Abuse MaterialRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced last week to 190 months in prison for distribution of child sexual abuse material.
According to court documents, on July 30, 2020, a federal search warrant was executed on the residence of Juan Rafael Benavidez, 64. Benavidez’s cellphone was seized and after forensic analysis, approximately 37,657 images and four videos of child sexual abuse material were found.
On January 13, 2022, Benavidez pleaded guilty to one count of distribution of child pornography. Benavidez has remained in federal custody since his arrest on July 30, 2020.
“Predators do not care about the damage they do to the innocent victims of these reprehensible crimes,” said U.S. Attorney Ashley C. Hoff. “Holding these offenders accountable for the harm they cause and protecting our communities is a top priority for our office. I am proud of the work we do, and the work of our law enforcement partners to combat these crimes.”
“The FBI will continue to work tirelessly with all our law enforcement partners to protect vulnerable children from abuse and exploitation,” said Oliver E. Rich Jr., Special Agent in Charge, FBI San Antonio. “Juan Benavides will now be held accountable for his heinous crimes and will spend the next 15 years of his life in prison.”
The FBI investigated the case.
Assistant U.S. Attorney Tracy Thompson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Rupert Man Convicted of Unlawful Possession of a FirearmRead the Press Release
POCATELLO – Ryan Arthur Burton, 43, of Rupert was sentenced to 13 months in federal prison for unlawful possession of a firearm, U.S. Attorney Josh Hurwit announced today.
According to court records, Burton was arrested April 10, 2021, after deputies with the Cassia County Sheriff's Office responded to a report of a possible domestic violence incident in the City of Burley. Deputies contacted the Defendant and found that he was in possession of a loaded firearm. Defendant was prohibited from possessing firearms due to a prior felony conviction. Defendant was originally indicted by a federal grand jury in June of 2021. Defendant entered a guilty plea on May 5, 2022.
Burton was sentenced by the Honorable B. Lynn Winmill, District Court Judge, to federal prison on September 14, 2022 and was ordered to complete three years of supervised release after his prison sentence is finished.
U.S. Attorney Hurwit, of the District of Idaho made the announcement and commended the cooperative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Cassia County Sheriff's Office, which led to charges.
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 handled by the U.S. Attorney Office’s specially deputized Special Assistant U.S. Attorney (SAUSA), funded by the Eastern Idaho Partnership (EIP) and the State of Idaho. The EIP is a coalition of local city and county officials in eastern Idaho as well as the Idaho Department of Correction.
The EIP SAUSA program allows law enforcement to utilize the federal criminal justice system – through the EIP SAUSA – to prosecute, convict, and sentence violent, armed criminals and drug traffickers. These criminals often receive stiffer penalties than they might in state courts.
This program was created in January 2016. Since that time, approximately 199 defendants have been indicted by the EIP SAUSA. Of these defendants, 26 have been indicted for unlawful possession of a firearm. The defendants indicted under the program have been sentenced to 8,650 months (approximately 721 years) in federal prison, representing an average prison sentence of 53.7 months (4.47 years). Defendants indicted for unlawfully possessing a firearm serve, on average, approximately 40.7 months (3.4 years) in federal prison.
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Round Rock Man Arrested for Traveling to Republic of Colombia to Have Sex with MinorsRead the Press Release
AUSTIN – A Round Rock man was arrested today in Round Rock on criminal charges related to his alleged involvement in engaging in illicit sexual conduct in a foreign place.
According to court documents, Michael Roberts, 40, traveled from the United States to the Republic of Colombia to engage in illegal sexual conduct with minors.
Roberts is charged by a federal indictment with three counts of engaging in illicit sexual conduct in a foreign place. If convicted, Roberts faces up to 30 years in prison on each of the three counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and Homeland Security Investigations (HSI) Acting Special Agent in Charge Craig Larrabee, San Antonio Division, made the announcement.
HSI is investigating the case. HSI would like to acknowledge and thank the Government of Colombia and the Colombian National Police for their cooperation with HSI’s investigation. If you have any information on this case, you can contact the Department of Homeland Security (DHS) Tip Line at 866-347-2423.
Assistant U.S. Attorney Keith M. Henneke is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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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Ri komon rech Q’atb’altzij ke’opan pa jun chomanik ruk’ ri tijob’al rech Massachusetts are che qas junam kab’an chech kilik ri tijoxelab’, xuquje’ ri kech’aw pa ri k’iche’ tzijRead the Press Release
Play audio in K'iche' below:
Audio file Translation in K'iche'Ri komon rech Taqanem kamik xuya ub’ixik che kab’an jun tzijonem kuk’ taq ri tijob’al rech New Bedford, jawije’ kach’ob’ ri usolik uxe’ ub’anom ri Wokaj rech ri tijob’al jawije’ xb’an wi tzijonem kuk’ ri e tat nan xuquje’ chajinelab’ che man qas ta kekowinik ketzijon pa ri inglés, xuquje’ kuk’ taq ri winaq kech’aw pa ri k’iche’ tzij, che are’ jun ch’ab’al kech aj mayab’ winaq.
Chi’l nik’aj chik, ri Wokaj kukoj nik’aj taq taqanik qas utz chech rilik taq ri ch’ab’al kech’aw wi ri tijoxelab’, xuquje’ ri ch’ab’al kech’aw ri kitat kinan on chajinelab’, are che ri ajchakib’ rech ri tijob’al man xaq ta ke’kit’uyub’a apan ri tijoxelab’ ri kech’aw pa k’iche’ tzij xane rajawaxik ke’ilixik pacha’ ri nik’aj chi ajwaralik winaq, are tzij ri tinamit e petinaq wi. Xuquje’, ri Wokaj uya’om ub’ixik che kub’an ub’anik ri tijonem xuquje’ ri eta’manem kuk’ ri ajsaqwachom chech rilik taq ri kirajawaxik ri tijoxelab’ kech’aw pa k’iche’ tzij xuquje’ ktajin kketa’maj inglés are che kekowinik ke’ok pa taq ri pataninem rech tijonem pacha’ ya’om chi kech e nik’aj chi tijoxelab’ rech ri Wokaj.
«Tijoxelab’ xuquje’ achalaxik chi e petinaq pa taq komon kech aj waralik winaq sib’alaj k’o taq k’axk’olil kakiriqo are taq kkaj ke’ok pa nik’aj taq pataninem rech tijob’al. We k’amuq’ab’ pa junamam kuya’ q’alb’al k’u’xaj chech ri Wokaj karilo xuquje’ kareta’maj kirajawaxik ri tijoxelab’ kech’aw pa ri k’iche’ tzij xuquje’ chi kech ri e tat nan kek’oji’ pa ri tijonem kech ri kalk’u’al », xusuk’ub’a’ ub’ixik ri Kristen Clarke, ri Fiscal General Auxiliar rech ri wokaj rech taq Ya’talil kech Winaq rech ri Wokaj rech Q’atb’altzij. «Ri Wokaj rech Ya’talil kech Winaq qas kuchajij kiya’talil chi kijujunal ri ak’alab’ are che man ke’tzelax taj xuquje’ kek’oji’ pa ri tijob’al ».
Ri k’amuq’ab’ are’ uwachinem ri usolik uxe’ ub’anom ri Wokaj rech To’b’al tzij rech ri Taqanel tzij rech Uya’ik Junamalil Tijonem rech ri junab’ 1974 che xmajix pa ri junab’ 2020. Ri Wokaj xuya utob’anik pa ri usolik uxe’ b’anom xuquje’ xuya q’alb’al k’u’xaj che kub’an ub’anik taq ri tijonem kaya’ik ruk’ jun upajik rij taq ri b’anoj. Pa jun chik, Ri Wokaj rech Q’atb’altzij karilo we qas tzij kab’an ri chomatal pa ri riqoj ib’ rumal ri Wokaj ruk’ oxib’ junab’ chech rilik we qas tzij kub’ano ri uya’om ub’ixik.
Ri ukojik ri taqanik rech ri Uya’ik Junamalil Tijonem rech ri junab’ 1974 are wa’ jun chech ri kaya uq’ij pa ri Wokaj rech Ya’talil kech Winaq rech ri Wokaj rech Q’atb’altzij. Chech uriqik nik’aj usaqil tzij chi rij ri Wokaj rech Ya’talil kech Winaq, chawila’ ri wokk’olib’al web’ pa www.justice.gov/crt-espanol.
Rhode Island Man Pleads Guilty to Role in Violent KidnappingRead the Press Release
BOSTON – A Pawtucket, Rhode Island man pleaded guilty yesterday in federal court in Boston to charges related to a violent kidnapping tied to a Cape Cod heroin trafficking ring.
Albert Lee, also known as “Mook,” 32, pleaded guilty to one count of conspiracy to commit kidnapping. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Dec. 14, 2022. Lee was charged along with four co-conspirators in March 2020.
This case arose from an investigation into a wide-ranging heroin trafficking conspiracy in the Cape Cod area. According to court documents, in April 2019, Lee and his co-conspirators lured a known victim from Massachusetts to Rhode Island, where they kidnapped and held him, stripped him naked, assaulted and threatened to rape him, and then took his clothing and cellular telephone. The purpose of this kidnapping and assault was to retaliate against the victim because Lee and allegedly his co-conspirators erroneously believed the victim was cooperating with law enforcement. A video of the kidnapping and assault was filmed and maintained by Lee’s co-conspirators.
The charge of conspiracy to commit kidnapping provides for a sentence of up to life in prison, up to five years of supervised release and a fine of up to $250,000. 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.
On Aug. 11, 2022, one of Lee’s co-conspirators, Anthony Basilici, pleaded guilty to his role in the violent kidnapping as well as drug trafficking, witness retaliation and intimidation charges. Three remaining defendants – Cameron Cartier, Edwin Otero, Justin Joseph and Tony Johnson – have pleaded not guilty and are presumed innocent.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Barnstable Police Chief Matthew K. Sonnabend; and Barnstable County Sheriff James M. Cummings made the announcement. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Rollins’ Criminal Division are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Queens Man Sentenced to Prison and to Pay $842,000 Restitution for Foreign Exchange Fraud and Money LaunderingRead the Press Release
Earlier today, in federal court in Brooklyn, John Won was sentenced by United States District Judge Raymond J. Dearie to a year and a day in prison following his November 2021 conviction at trial on all counts, including securities fraud, wire fraud and money laundering conspiracy, as well as substantive securities fraud. Won was also ordered to pay $842,076.81 in restitution to the victims of his crimes. Won’s do-defendant Tae Hung (Kevin) Kang pleaded guilty to securities fraud conspiracy and was sentenced to two years’ imprisonment in December 2021.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“John Won and Kevin Kang shamelessly defrauded members of the Korean-American community in our district out of their nest eggs and life savings,” said United States Attorney Peace. “This sentence shows what fraudsters and con men should expect when they target innocent victims—they will be caught, punished and ordered to return their ill-gotten gains.”
Mr. Peace thanked the United States Commodities and Futures Trading Commission (CFTC) and National Futures Association (NFA) for their significant cooperation and assistance in this case.
Between October 2010 and December 2013, Won conspired with co-defendant Tae Hung Kang and others in a scheme to defraud victims, who were largely members of New York’s Korean-American community, into investing in foreign exchange trading accounts and in their company, called ForexNPower. In furtherance of this scheme, the conspirators issued advertisements in Korean-language newspapers and on Korean-language radio stations claiming that ForexNPower had a secret algorithmic trading method used to trade in the foreign exchange market that guaranteed investors 10% monthly returns at no risk of loss. In reality, ForexNPower had no successful trading method and their customer accounts suffered substantial losses.
The conspirators also induced investors to purchase stock issued by ForexNPower, by falsely claiming that the invested funds would be used to expand the business to a new location in New Jersey or pooled and used to trade foreign currencies. In truth, the defendant and his co-conspirators misappropriated a substantial portion of the funds, spending the remainder on, among other things, the fraudulent advertisements described above.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Sarah M. Evans, Nicholas J. Moscow and Assistant Chief Gerald M. Moody, Jr. of the Department of Justice’s Fraud Section are in charge of the prosecution.
The Defendants:
JOHN WON
Age: 53
Whitestone, New YorkTAE HUNG KANG (also known as Kevin Kang)
Age: 57
Bayside, New YorkE.D.N.Y. Docket No. 18-CR-184 (RJD)
Purvis Man Sentenced to over 12 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss. – A Purvis man was sentenced to 151 months in federal prison for possession with intent to distribute methamphetamine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
According to court documents, on or about January 10, 2020, Arsenio Tatum, 31, of Purvis, Mississippi, sold approximately a pound of methamphetamine at a residence located in Hattiesburg, Mississippi.
In addition to the prison sentence, Tatum was ordered to pay a $5,000 fine.
The case is the result of an extensive investigation, dubbed “Don’t Tell On Me Bro,” which began as an operation targeting illegal drug trafficking in the Hattiesburg, Mississippi area. “Don’t Tell On Me Bro” is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, Lamar County Sheriff’s Office, Forrest County Sheriff’s Office, Hattiesburg Police Department, Columbia Police Department and Marion County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Keesha Middleton.
President of Sham United Nations Affiliate Sentenced to 42 Months in Prison for Cryptocurrency SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ASA SAINT CLAIR, a/k/a “Asa Williams,” a/k/a “Asa Sinclair,” was sentenced today to 42 months in prison for devising a fraudulent investment scheme in which he tricked at least 60 victims into providing loans to his organization, the World Sports Alliance, tied to a purported digital coin offering called IGObit. SAINT CLAIR falsely represented to investors that the World Sports Alliance was a close affiliate of the United Nations and that they would receive guaranteed returns on their investment, but instead diverted the investors’ funds for his personal expenses and benefit. SAINT CLAIR was found guilty of wire fraud in March 2022, following a two-week jury trial before U.S. District Court Judge P. Kevin Castel, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Asa Saint Clair deceived everyday investors by taking advantage of their desire to invest in a better world while also getting a guaranteed financial return. Saint Clair promised his victims all this and more if they invested in IGObit, a digital currency he claimed the World Sports Alliance was developing in support of its work with the UN to promote sports and peace in developing countries. These promises were false, and Saint Clair’s victims lost the entirety of their hard-earned money. Today’s sentence holds Saint Clair accountable for brazenly lying to investors while lining his own pockets.”
According to the evidence presented at trial, SAINT CLAIR solicited investors for the launch of IGObit through promised investment returns, representations that the World Sports Alliance, a purported intergovernmental organization, was a close affiliate and partner with the United Nations, and representations about the World Sport Alliance’s development projects around the world. World Sports Alliance did not in fact have any relationship with the United Nations and did not, and had not, participated in any international development projects.
SAINT CLAIR also represented to investors that their money would be used for the development of IGObit, when he in fact diverted those funds to other entities controlled by him and members of his family, as well as to pay his personal expenses, including dinners at Manhattan restaurants, travel, and online shopping.
SAINT CLAIR defrauded more than 60 victims of more than $600,000 dollars.
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SAINT CLAIR, 50, of Washington, was convicted of one count of wire fraud. In addition to the prison term, SAINT CLAIR was sentenced to three years of supervised release and ordered to pay forfeiture of $618,417 and restitution of $613,417.
Mr. Williams praised the outstanding work of Homeland Security Investigations.
The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Emily Deininger, Tara LaMorte, and Kiersten Fletcher are in charge of the prosecution.
Placer County Couple Sentenced for Tax-Related OffensesRead the Press Release
SACRAMENTO, Calif. — A Foresthill couple was sentenced today for tax-related offenses, and have agreed to pay over $605,000 in restitution, U.S. Attorney Phillip A. Talbert announced.
Virendra (Vic) Maharaj, 55, was sentenced to 364 days in prison for willfully failing to file tax return information with the U.S. Treasury related to his receipt of cash while engaged in trade or business. Maharaj’s wife, Rosalin R. Prasad, was sentenced to 24 months’ probation for a conspiracy to defraud the United States with respect to the Internal Revenue Service’s assessment of income taxes. They pleaded guilty on Dec. 9, 2021.
According to court documents, Prasad conspired with Maharaj to defraud the IRS in the IRS’s attempts to assess the couple’s tax obligations for the years 2005, 2006, and 2007. Maharaj worked at car dealerships in Sacramento and Woodland in those years and earned substantial income. Several actions were taken to further the conspiracy to thwart the proper assessment of income taxes. Among other things, part of Maharaj’s wages were paid directly to Prasad; part of Maharaj’s compensation was paid directly to Prasad and Maharaj’s creditors through indirect payments; Maharaj took compensation in the form of currency; Prasad improperly deferred around $270,000 in capital gains related to her purchase of a $1.9 million residence; Prasad caused false tax returns to be filed in each of those years; and Prasad made false statements during an IRS audit. Prasad conspired to underreport over $819,000 in income and, in turn, underpay over $184,000 in federal income taxes. She received substantial tax refunds in 2005, 2006, and 2007.
According to court documents, Maharaj was an owner, general manager, and salesperson of Maharaja Motors LLC, which operated a used car lot in Woodland, from approximately 2007 through 2016. In 2015, Maharaj sold a vehicle to a customer and, in turn, received a cash payment of over $10,000. Maharaj willfully failed to file information with the U.S. Treasury, specifically an IRS Form 8300, which is required to be filed by a person engaged in certain trades or businesses, including an automobile sales business, who receives a cash payment exceeding $10,000.
These cases were the product of an investigation by IRS-Criminal Investigation. Assistant U.S. Attorneys Nirav Desai and Audrey Hemesath prosecuted the cases.
Philadelphia Pharmacy Pays $200,000 to Resolve Allegations of Failing to Maintain Proper Inventory and Documentation of Its Controlled SubstancesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Northeast Discount Pharmacy will pay $200,000 to resolve allegations that it failed to comply with various record-keeping requirements for controlled substances.
Northeast Discount Pharmacy, a Philadelphia pharmacy wholly owned by pharmacist Patrick Assifuah, is a registered retail pharmacy authorized to purchase and dispense Schedule II-V controlled substances. The settlement announced today resolves allegations that between April 2018 and January 2021, Northeast Discount Pharmacy failed to maintain complete and accurate electronic records of controlled substances, and to prepare appropriate Drug Enforcement Administration forms. For example, the settlement resolves allegations that Northeast Discount Pharmacy failed to maintain appropriate inventories of controlled substances including Endocet 10/235mg (Percocet 10/325mg and Oxycodone 10/325mg), Oxycodone 5mg, Oxycodone 15 mg, and Oxycodone 30mg.
In addition to the $200,000 penalty, Northeast Discount Pharmacy is also now subject to a number of monitoring requirements, including reporting of controlled substance purchasing, dispensing, and prescribing to the Drug Enforcement Administration, as well as sharing Standard Operating Procedures pertaining to all aspects of purchasing, storing, and distributing controlled substances.
“Controlled substances, especially opioids, pose extraordinary risks to our communities in this district,” said U.S. Attorney Romero. “When pharmacies are granted the privilege of purchasing controlled substances, they also accept the significant responsibility of ensuring that controlled substances are used for a legitimate medical purpose and generating the records necessary for accountability and transparency. When this does not happen, we will work with our law enforcement partners, use all available enforcement tools, and hold these pharmacies responsible.”
“Pharmacies are entrusted with the dispensing of powerful prescription painkillers such as oxycodone and Percocet. With that responsibility comes the obligation to properly safeguard and account for these same drugs,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Civil settlements and the monitoring requirements imposed against Northeast Discount Pharmacy help to ensure that these safeguards are met.”
This investigation was conducted by the Drug Enforcement Administration’s Philadelphia Field Division. For the United States Attorney’s Office, Assistant United States Attorney Deborah W. Frey and former Assistant United States Attorney P.J. Koob handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Pharmaceutical Company Akorn Agrees to Pay $7.9 Million for Allegedly Causing Medicare to Pay for Invalid Prescription DrugsRead the Press Release
Pharmaceutical company Akorn Operating Company LLC (Akorn) has agreed to pay $7.9 million to resolve allegations that it caused the submission of false claims to Medicare Part D, in violation of the False Claims Act, for three generic drugs that were no longer eligible for Medicare coverage.
FDA-approved “prescription only” (Rx-only) drugs may be dispensed only upon a prescription and are reimbursed by Medicare Part D, whereas “over the counter” (OTC) drugs may be purchased by retail customers without a prescription and are not reimbursed by Medicare Part D. Subject to FDA approval, companies may seek to fully convert a brand-name Rx-only drug to an OTC drug. After FDA’s approval of a drug’s full conversion to OTC status, the drug is no longer considered an Rx-only product and makers of generic equivalents are then required either to seek FDA approval for their own OTC switch or to seek withdrawal of their generic’s Rx-only approval and cease marketing it.
Akorn is a pharmaceutical manufacturer with a principal place of business in Illinois, which sold, among other products, the following generic drugs: (1) Diclofenac Sodium 1%, a generic nonsteroidal anti-inflammatory cream (Diclofenac), (2) Olopatadine Hydrocholoride 0.1% and 0.2%, a generic antihistamine eyedrop (Olopatadine), and (3) Azelastine Hydrochloride 0.15%, a generic antihistamine nasal spray (Azelastine) (collectively Akorn Generics) during the relevant time period. The FDA approved a full Rx-to-OTC conversion of the brand names of Diclofenac and Olopatadine in February 2020 and for Azelastine in June 2021.
The United States alleged that Akorn submitted or caused to be submitted false claims to Medicare Part D, in violation of the False Claims Act, by continuing to sell the Akorn Generics under obsolete Rx-only labeling after the brand-name drugs were converted to OTC products. As part of the settlement, Akorn admitted and accepted responsibility for the following facts:
Akorn delayed seeking the required OTC conversions for the Akorn Generics, even after learning that the brand-name drugs for each had converted to OTC status. In particular, Akorn delayed the Akorn Generics losing their Rx-only labeling because it believed that continuing to sell each as purportedly Rx-only would be more profitable for the company. Accordingly, Akorn continued to sell newly manufactured units of the Akorn Generics under their obsolete Rx-only labeling rather than beginning the process of converting these products to OTC or withdrawing their approval and ceasing their distribution. Akorn did not apply to FDA for an OTC conversion of Diclofenac until March 2021 or for Olopatadine until January 2021. Akorn eventually sought to withdraw its FDA approval for Azelastine, rather than convert it to OTC use, but did not do so until January 2022. FDA implemented this withdrawal in February 2022.
Akorn has been credited in this settlement under the Department of Justice’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases, Justice Manual §4-4.112.
The allegations resolved by the settlement agreement were, in part, originally brought in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The case is captioned U.S. ex rel. Albermarle, LLC v. Akorn Operating Company LLC. (D. Mass.). The False Claims Act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did partially in this case, The whistleblower will receive approximately $946,000 from the recovery.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter is being handled by Senior Trial Counsel Augustine Ripa and Assistant U.S. Attorney Abraham George, with investigative support from the FBI. The Department of Health and Human Services Office of Inspector General assisted with this matter.
The claims resolved by the United States are allegations only and there has been no determination of liability.
Odessa Man Sentenced to over Three Years in Federal Prison for Bomb HoaxRead the Press Release
MIDLAND – An Odessa man was sentenced Tuesday to 41 months in prison for his involvement in a bomb hoax at the Ector County Courthouse.
According to court documents, on April 7, 2022, David Paul Finnegan, 37, left a suspicious device at the front steps of the Ector County Courthouse. The device consisted of a large PVC pipe containing miscellaneous objects. It was held together with black tape and had a wristwatch taped to it. The Odessa Police Department Explosives Ordinance Disposal (EOD) team was called out to examine the device. After the EOD technicians rendered it safe, they determined the device did not contain explosives.
Further investigation revealed Finnegan was scheduled to have hearings on various matters at the courthouse the day he planted the device. As a result of its discovery, the courthouse was evacuated and shut down to the public for much of the day, causing various court proceedings to be postponed, including Finnegan’s.
On June 13, 2022, Finnegan pleaded guilty to one count of perpetrating a hoax. Finnegan has remained in federal custody since his arrest on April 14, 2022.
“Not only did this bomb hoax cause the Ector County courthouse and multiple local businesses to be shut down, but the event also required federal and local law enforcement agencies to expend significant time, resources, and taxpayer dollars to render the area safe and identify the perpetrator,” said U.S. Attorney Ashley C. Hoff. “Let this prosecution send a strong message that such behavior will not be tolerated in our communities.”
“Hoax threats are dangerous to first responders and to the victims because it is not always immediately clear whether it is a hoax and the motivation behind the threat,” said Jeffrey R. Downey, Special Agent in Charge of the FBI El Paso Field Office. “Public safety is paramount, and the FBI and our state and local law enforcement partners always respond to each threat. Anyone who issues a hoax threat will be held accountable. Due to the collaborative work with our local, state and federal partners, we were able to locate Mr. Finnegan and bring him to justice for the fear he instilled into the residents of Odessa .”
The FBI, with valuable assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Ector County Sheriff’s Office; Odessa Police Department; and the Texas Department of Public Safety, investigated the case.
Assistant U.S. Attorney John Fedock prosecuted the case.
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Ocala Convicted Felon Sentenced to More Than 5 Years in Federal Prison for Possessing A Loaded FirearmRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Ronrico Lionel Farmer (33, Ocala) to five years and four months in federal prison for possessing a firearm as a convicted felon. Farmer had pleaded guilty on June 16, 2022.
According to court documents, on April 17, 2021, a City of Ocala police officer conducted a traffic stop of a vehicle driven by Farmer. Farmer gave the officer a false name to conceal his suspended license. A subsequent search of the vehicle revealed a powdery substance (fentanyl), which Farmer referred to as “his children’s candy,” on the driver’s door and floorboard. Also on the floorboard, the officer discovered a loaded 9mm handgun with an extended magazine. The FBI conducted a DNA analysis of the recovered firearm and determined, with a likelihood ratio of 190 sextillion, that Farmer’s DNA was on the weapon. As a multi-convicted felon, Farmer is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the City of Ocala Police Department. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
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.
Oahu Man Pleads Guilty Robbing Multiple Banks and Attempting to Rob a RestaurantRead the Press Release
HONOLULU – Micah Roman-Santos, 23, of Oahu, pleaded guilty today before U.S. Magistrate Judge Kenneth J. Mansfield to two counts of bank robbery, one count of armed bank robbery, and one count of attempted Hobbs Act robbery. Sentencing is set for January 25, 2023, before U.S. District Judge Leslie E. Kobayashi.
According to information presented in court, Roman-Santos committed a series of robberies in October 2021. On October 1, he robbed a bank in Aiea. In that robbery, he threatened to shoot the teller and stole $348. The next day, Roman-Santos attempted to rob a restaurant in Kapolei and threatened to kill the restaurant manager. When the manager refused to give him any money, Roman-Santos punched the manager and fled the restaurant. On October 4, Roman-Santos robbed a second bank in Waianae. In that robbery, Roman-Santos again threatened to shoot the teller, but also displayed what appeared to be a firearm tucked into his waistband. He stole $900 from the Waianae bank. On October 7, 2021, Roman-Santos robbed a third bank in Kapolei. During that robbery, Roman-Santos again claimed to have a gun and stole $1,100.
“Roman-Santos callously victimized multiple people and businesses, violently disrupting what should have been an ordinary workday,” said U.S. Attorney Clare E. Connors. “Protecting our community from such violence and threats of violence remains a high priority of the Department of Justice and this office.”
“The FBI is committed to protecting Hawaii from violent crimes such as this, and preventing putting innocent civilians at risk,” said FBI Special Agent in Charge Steven Merrill. “The FBI is committed to working with the Honolulu Police Department to bring this case to the federal level with stiffer penalties and no opportunity for parole.”
The charges of bank robbery and Hobbs Act robbery provide for a maximum sentence of 20 years, a fine of up to $250,000, and a term of supervised release of up to three years. The charge of armed bank robbery provides for a maximum sentence of 25 years, a fine of up to $250,000, and a term of supervised release of up to five years. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
This conviction is the result of a multi-agency investigation conducted by the Federal Bureau of Investigation and the Honolulu Police Department. Assistant U.S. Attorney Mohammad Khatib is prosecuting the case.
Nicholas County Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – David Keith Nutter, 55, of Summersville, was sentenced today to one year in prison, to be followed by three years of supervised release, for possession of firearms by a person previously convicted of misdemeanor crimes of domestic violence.
According to court documents and statements made in court, on July 6, 2019, a law enforcement officer executed a search warrant at Nutter’s residence and found four firearms: a Rexio, SRL, .22-caliber revolver; a Harrington and Richardson 20-gauge shotgun; a Marlin, Model 25MN, .22-caliber rifle; and an Ithaca 20-gauge shotgun. Assorted ammunition was also recovered. Nutter admitted to possessing the firearms.
Federal law prohibits a person with a prior conviction for a misdemeanor crime of domestic violence from possessing a firearm or ammunition. Nutter knew he was prohibited from possessing firearms because of prior convictions for domestic violence in Canton, Ohio, Municipal Court on July 14, 1998, and endangering children and domestic violence on a family or household member in the Stark County, Ohio, Court of Common Pleas on August 19, 2002.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Nicholas County Sheriff’s Department.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Andrew J. Tessman prosecuted the case with assistance from third-year law student intern Eric McLain.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-142.
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New Orleans Man Charged in Federal Court for Hobbs Act Robberies, Armed Bank Robbery, Brandishing a Firearm During Crimes of Violence and Possession with Intent to Distribute a Controlled Dangerous SubstanceRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DEVIN CHANEY, age 32, was charged in an eleven-count superseding indictment by a federal grand jury on Friday, September 9, 2022.
According to the superseding indictment, CHANEY is charged with four counts of Hobbs Act Robbery in violation of 18 U.S.C. § 1951(a). If convicted of the Hobbs Act Robbery violations, CHANEY faces a maximum term of imprisonment of 20 years, a fine of up to $250,000, a period of five years of supervised release and a mandatory special assessment fee of $100.00 for each count. CHANEY is also charged with five counts of Brandishing a Firearm During a Crime of Violence in violation of 18 U.S.C. § 924(c)(1)(a)(ii). If convicted of Brandishing a Firearm During a Crime of Violence, CHANEY faces a mandatory consecutive sentence of 7 years to life imprisonment, up to a $250,000 fine, up to 5 years supervised release and a $100 mandatory special assessment fee for each count.
CHANEY is also charged with armed bank robbery of the Capital One Bank located in New Orleans on December 24, 2021. If convicted of bank robbery, CHANEY faces a maximum term of imprisonment of 25 years, a fine of up to $250,000.00, up to three years supervised release after imprisonment, and a mandatory $100 special assessment fee. CHANEY is also charged with possession with intent to distribute cocaine hydrochloride, in violation of 21 U.S.C. §841(a)(1) and §841(b)(1)(C). If convicted, CHANEY faces a maximum term of imprisonment of 20 years, up to a $1,000,000 fine, at least three years of supervised release, and a mandatory special assessment fee of $100.00.
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.
U. S. Attorney Evans reiterated that the superseding indictment contains merely charges 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 Violent Crimes Task Force and New Orleans Police Department in investigating this matter. This case is being prosecuted by Assistant United States Attorneys Julia Evans, Brandon Long, and Charles Strauss.
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New Haven Man Admits Stealing More Than $160K from Retired Woman's Bank AccountRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that GREGORY IVY, 23, of New Haven, waived his right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of bank fraud.
According to court documents and statements made in court, in 2018, Ivy began working for a retired woman (“the victim”), doing odd jobs for her. In October 2018, Ivy began to steal checks from the victim’s checkbook while in her home. He then wrote checks payable to himself, forged the victim’s signature on the checks, and deposited the checks into his personal credit union account. Ivy also gave stolen blank checks on which he had forged the victim’s signature to another individual, who then cashed or deposited the checks. That individual then recruited other individuals, including Lamont Bethea, to cash or deposit stolen checks on which Ivy had forged the victim’s signature.
Bethea used the information on the stolen checks, including the bank routing number and the victim’s bank account number, to arrange electronic funds transfers (EFTs) from the victim’s bank account to make payments for himself, his family members, and other friends or acquaintances. Bethea used these EFTs to pay credit cards bills, rent, car insurance, student loans, cell phone bills, and other payments for himself and others. Bethea also provided the victim’s routing and bank account numbers to other individuals so they could arrange similar EFTs for themselves and others from the victim’s account.
Ivy, Bethea and other participants attempted to obtain a total of $624,818.28 from the victim’s bank account. Because the victim’s bank account became overdrawn, some attempted check deposits or EFTs were reversed, resulting in a loss to the victim of $479,569.08. Ivy personally stole $162,942 from the victim during his involvement in the scheme, which lasted until May 2021.
Judge Dooley scheduled sentencing for December 21, at which time Ivy faces a maximum term of imprisonment of 30 years.
Ivy was arrested on a federal criminal complaint on November 8, 2021. He is released on a $50,000 bond pending sentencing.
Bethea and his family members and friends stole more than $131,000 from the victim. On September 1, 2022, Bethea pleaded guilty to fraud offenses stemming from this scheme and a separate, unrelated scheme. He awaits sentencing.
This ongoing investigation is being conducted by the Federal Bureau of Investigation with the assistance of Bank of America. The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311). For more information, please visit. https://ovc.ojp.gov/program/stop-elder-fraud/providing-help-restoring-hope.
Modesto Man Sentenced to 45 Years in Prison for Production of Child PornographyRead the Press Release
FRESNO, Calif. — Anthony Rodriguez, aka Anthony Rito Lara, 34, of Modesto, was sentenced today to 45 years in prison for sexual exploitation of a minor, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in September and October 2020, Rodriguez used a cellphone to create approximately 49 videos and 51 images of a child under 12 years old engaged in sexually explicit conduct. Rodriguez distributed some of these videos over the internet, including one video in which he engages in a sex act with the child.
This case was the product of an investigation by the Federal Bureau of Investigation and the Modesto Police Department with assistance from the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Alexandre M. Dempsey prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Michigan City Man Sentenced to 210 Months in PrisonRead the Press Release
SOUTH BEND – Ashley D. Harper, 49 years old, of Michigan City, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio on his plea of guilty to production of child pornography, announced United States Attorney Clifford D. Johnson.
Harper was sentenced to 210 months in prison followed by 5 years of supervised release.
According to documents in the case, in July of 2021, Harper produced child pornography involving a minor under the age of 12.
This case was investigated by Homeland Security Investigations with the assistance of the Indiana State Police and Michigan City Police Department. This case was prosecuted by Assistant United States Attorney John M. Maciejczyk.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. 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 .
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Mexican National Sentenced to 25 Years in Prison for Distributing MethamphetamineRead the Press Release
SAN ANTONIO – A Mexican national was sentenced last week to 300 months in prison for his role in distributing methamphetamine in the San Antonio area.
According to court documents, on April 7, 2020, a search warrant was executed at the residence of Roberto Ignacio Sanchez Benitez, 51. During the search, commercial amounts of methamphetamine were located to include an ice chest with about 25 pounds of methamphetamine. Agents also recovered a firearm and over $30,000 in cash. Law enforcement officers learned that Benitez claimed to be a “witch doctor” and allegedly sacrificed goats for protection.
On January 19, 2022, Benitez pleaded guilty to one count of possession with intent to distribute 500 grams or more of methamphetamine. By pleading guilty, Benitez admitted he illegally distributed methamphetamine. Benitez has remained in federal custody since his arrest on April 7, 2020.
“Benitez peddled poison on a large scale in our San Antonio community,” said U.S. Attorney Ashley C. Hoff. “I am proud of the federal prosecution of this case and I want to thank our law enforcement partners for their hard work and dedication to public safety.”
“The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is steadfast in our commitment to take individuals who illegally possess firearms off our streets,” said ATF Special Agent in Charge Fred J. Milanowski, Houston Field Division. “We will continue to diligently work to hold those who violate federal firearms laws accountable.”
“The arrest, and subsequent conviction, of this offender is the culmination of months of hard work by the San Antonio Police Department (SAPD), South Texas High Intensity Drug Trafficking Area (HIDTA) and the ATF. Our commitment to keeping San Antonio safe is unwavering,” said SAPD Chief William McManus. “Every day, our officers remain dedicated to our community and its safety.”
The ATF, SAPD and HIDTA investigated the case. Assistant U.S. Attorney Sarah Ella Spears 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 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. Anonymous tips involving gang crime and wanted fugitives can be submitted at www.stopsanantoniogangs.org.
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Mexican Man Pleads Guilty to Unlawful Return to the United States After RemovalRead the Press Release
Gulfport, Miss. – A Mexican national pled guilty to the federal crime of unlawful return of an alien after removal, announced U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi, and Jason E. Schneider, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
According to court documents, Arce Manuel Gomez-Salazar, 30, of Mexico, was arrested on July 8, 2022, on U.S. Highway 90, in Harrison County. A State Trooper of the Mississippi Highway Safety Patrol was conducting a vehicle safety checkpoint when he encountered a vehicle driven by Gomez-Salazar. The Trooper asked Gomez-Salazar for his driver’s license, and neither Gomez-Salazar nor his three passengers had a valid driver’s license. None of the vehicle occupants were citizens of the U.S. and all were determined to be unlawfully present in the U.S.
Records revealed that Gomez-Salazar had been arrested by the Border Patrol in Texas, in 2018, and ordered removed to his home nation of Mexico by a U.S. Immigration Judge
Gomez-Salazar is scheduled to be sentenced on December 8, 2022 at 1:30 p.m., and faces a maximum penalty of two years in prison, a $250,000 fine and 1 year of Supervised Release. After completing any sentence of incarceration, he also is subject to Homeland Security proceedings to remove him again from the United States. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Gomez-Salazar’s passengers were administratively processed since none of the passengers had been previously removed from the U.S.
The case was investigated by the Mississippi Highway Patrol and the U.S. Border Patrol.
Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Mexican Man Pleads Guilty to Transporting an Illegal Alien within the U.S.Read the Press Release
Gulfport, Miss. – A Mexican national pled guilty to the federal felony offense of unlawful transportation of an illegal alien within the United States, announced U.S. Attorney Darren J. LaMarca, Chief Patrol Agent Jason E. Schneider of the U.S. Border Patrol’s New Orleans Sector, and Special Agent in Charge David L. Denton of Homeland Security Investigations in New Orleans.
According to court documents, Jesus Salgado-Perez, 31, was arrested on June 1, 2022, following a vehicle stop on Interstate 10 in Jackson County by a U.S. Border Patrol Agent assigned to the South Mississippi Metro Enforcement Team (MET). Salgado-Perez, the driver of the vehicle, did not have a driver’s license and was found, along with his passenger, to be illegally present in the U.S.
Salgado-Perez will be sentenced on December 14, 2022, and faces a maximum penalty of 5 years in prison, a $250,000 fine, and $5,100 in special assessments. After completing any prison sentence, he also is subject to Department of Homeland Security proceedings to remove him from the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the U.S. Border Patrol, Homeland Security Investigations, and the Jackson County Sheriff’s Department.
The prosecutor for the case is Assistant U.S. Attorney Stan Harris.
Member of Brockton Drug Crew Pleads Guilty to Fentanyl Distribution and Gun ChargesRead the Press Release
BOSTON – A member of a Brockton drug crew pleaded guilty yesterday to fentanyl distribution and firearm charges.
Jason Miranda, 27, of Brockton, pleaded guilty to one count of conspiracy to distribute fentanyl, three counts of distribution of fentanyl and one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Jan. 18, 2023. Jason Miranda was indicted along with three alleged co-conspirators in November 2019.
According to court documents, law enforcement began investigating a violent Brockton-area drug crew that distributed large quantities of fentanyl throughout southeastern Massachusetts. The drug crew ran a fentanyl delivery service that encompassed all of Brockton as well as neighboring cities. Specifically, it is alleged that drug users/customers placed orders for fentanyl by contacting a cellphone maintained and shared by crew members, which included Jason Miranda, his brother Natalio Miranda, Placido Pereira and Djoy Defrancesco, who worked together to deliver the fentanyl order. Beginning in September 2019, agents succeeded in using an undercover law enforcement officer to make six purchases of fentanyl from members of the crew.
On Oct. 16, 2019, a search was conducted at an address in Taunton where Jason Miranda had been staying. Agents seized a black Glock .40 caliber semiautomatic pistol with a defaced serial number; two different ammunition clips containing 9 millimeter ammunition; a money counter; a safe containing $28,000 in cash; and a painting of Miranda holding up a large stack of cash.
Because of Miranda’s criminal record, the charge of conspiracy to distribute fentanyl and distribution of fentanyl provides for up to 30 years in prison, at least six years of supervised release and a fine of up to $2 million. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. 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 Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Brenda Perez; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy J. Cruz made the announcement. Assistance was provided by the East Bridgewater, West Bridgewater, Whitman and Bridgewater State University Police Departments as well as the Plymouth County Sheriff’s Office. Assistant U.S. Attorney Christopher Pohl of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Massachusetts man sentenced to 40 years in prison on child pornography chargesRead the Press Release
CAMDEN, N.J. – A Massachusetts man was sentenced today to 480 months in prison for trafficking in thousands of images and videos of child sexual abuse while incarcerated at Federal Correctional Institution Fort Dix for a previous offense transporting and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.
William H. Noble, 57, of Lowell, Massachusetts, was convicted in November 2021 after a three-day jury trial before Senior U.S. District Judge Joseph H. Rodriguez of conspiring to receive and distribute child pornography, receiving child pornography, distributing child pornography, possessing child pornography, and accessing with intent to view child pornography on federal property. Judge Rodriguez imposed today’s sentence in Camden federal court. In addition to the prison term, Judge Rodriguez sentenced Noble to five years of supervised release. Noble was also ordered to pay $63,415 in restitution to the victims.
According to documents filed in this case and the evidence at trial:
From Nov. 1, 2016, to April 26, 2017, while an inmate at FCI-Fort Dix, Noble participated in a conspiracy with other inmates to receive and distribute images of child sexual abuse. Noble was serving an 81-month sentence following his guilty plea in the District of Massachusetts to transportation and possession of child pornography. He was scheduled to be released on March 8, 2018.
While in prison, Noble and his conspirators accessed images of child sexual abuse on the “dark web” using cell phones that had been smuggled into the prison. They then stored the images on micro SD cards, which they shared amongst the conspirators.
On April 19, 2017, Noble transferred a micro SD card containing over 2,400 images and nearly 100 videos of child sexual abuse to a government informant. Many of the images and videos depicted the sexual abuse of prepubescent children, including infants and toddlers. At the time of the transfer, Noble was recorded describing the child sexual abuse images and videos to the informant. Noble’s conspirators were also recorded describing Noble’s role and conduct in furtherance of the conspiracy. When Noble was arrested on Feb. 5, 2018, he confessed to the FBI.
The charges against Noble stem from a long-term investigation by the FBI, which led to similar charges against seven other FCI-Fort Dix inmates. All of the other defendants have already pleaded guilty for their roles in the scheme.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation. He also thanked officials of the Bureau of Prisons, FCI-Fort Dix, and the New Jersey Regional Computer Forensic Laboratory for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Andrew B. Johns and David E. Malagold of the Criminal Division.
Massachusetts Man Sentenced to 40 Years in Prison on Child Pornography ChargesRead the Press Release
CAMDEN, N.J. – A Massachusetts man was sentenced today to 480 months in prison for trafficking in thousands of images and videos of child sexual abuse while incarcerated at Federal Correctional Institution Fort Dix for a previous offense transporting and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.
William H. Noble, 57, of Lowell, Massachusetts, was convicted in November 2021 after a three-day jury trial before Senior U.S. District Judge Joseph H. Rodriguez of conspiring to receive and distribute child pornography, receiving child pornography, distributing child pornography, possessing child pornography, and accessing with intent to view child pornography on federal property. Judge Rodriguez imposed today’s sentence in Camden federal court. In addition to the prison term, Judge Rodriguez sentenced Noble to five years of supervised release. Noble was also ordered to pay $63,415 in restitution to the victims.
According to documents filed in this case and the evidence at trial:
From Nov. 1, 2016, to April 26, 2017, while an inmate at FCI-Fort Dix, Noble participated in a conspiracy with other inmates to receive and distribute images of child sexual abuse. Noble was serving an 81-month sentence following his guilty plea in the District of Massachusetts to transportation and possession of child pornography. He was scheduled to be released on March 8, 2018.
While in prison, Noble and his conspirators accessed images of child sexual abuse on the “dark web” using cell phones that had been smuggled into the prison. They then stored the images on micro SD cards, which they shared amongst the conspirators.
On April 19, 2017, Noble transferred a micro SD card containing over 2,400 images and nearly 100 videos of child sexual abuse to a government informant. Many of the images and videos depicted the sexual abuse of prepubescent children, including infants and toddlers. At the time of the transfer, Noble was recorded describing the child sexual abuse images and videos to the informant. Noble’s conspirators were also recorded describing Noble’s role and conduct in furtherance of the conspiracy. When Noble was arrested on Feb. 5, 2018, he confessed to the FBI.
The charges against Noble stem from a long-term investigation by the FBI, which led to similar charges against seven other FCI-Fort Dix inmates. All of the other defendants have already pleaded guilty for their roles in the scheme.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation. He also thanked officials of the Bureau of Prisons and FCI-Fort Dix for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Andrew B. Johns and David E. Malagold of the Criminal Division.
Marion Man Convicted after Trial on Federal Kidnapping, Carjacking, and Murder ChargesRead the Press Release
FLORENCE, SOUTH CAROLINA — Dominique Devonah Brand, 30, of Marion, was convicted following a multi-day bench trial on all three counts charged: Kidnapping Resulting in Death, Carjacking Resulting in Death, and Using or Carrying a Firearm During and in Relation to a Crime of Violence in a Manner Constituting Murder.
Evidence presented by the Government at trial established that on Sunday, March 28, 2021, Brand entered Mary Ann Elvington’s home in Nichols, South Carolina. While inside the house, he fired a 12-gauge shotgun into the hallway floor at close range. Mr. Brand’s DNA was later found on multiple items inside Ms. Elvington’s home, including the spent, 12-gauge shotgun shell he fired, a pizza slice he apparently ate from while there, a water bottle he drank from, and a jewelry box he touched. Across the street from Ms. Elvington’s home, investigators found Mr. Brand’s blood and touch DNA inside a stolen church van that was stuck in the mud.
At about 6:11 p.m. that Sunday, Brand forced Ms. Elvington to drive him from her house to Lake Waccamaw, North Carolina, and back into South Carolina. During this trip, Mr. Brand sat behind Ms. Elvington with the shotgun. Ms. Elvington’s cell site location information showed her car was initially headed back toward her home in Nichols. But in Lake View, South Carolina, surveillance video from the Lake View Police Department captured Brand directing Ms. Elvington into the back seat of her car, moving a gun to the front seat, getting in the driver’s seat, and making a U-turn, heading away from Ms. Elvington’s home. The surveillance video showed Brand was alone with Ms. Elvington—carrying a gun—shortly before she was murdered. After leaving Lake View, Brand drove Ms. Elvington to a remote crossroads in Marion County and walked her behind the abandoned Zion Grocery store. He held the shotgun to the back of her head and pulled the trigger, executing her.
Brand then drove Ms. Elvington’s car to Marion, where he hid it behind an abandoned club. Investigators found Brand’s blood on a wooden block sitting in the driver’s seat and on a fuse puller on the ground outside the car. Ms. Elvington’s body was located the following evening, March 29, 2021. After learning he was a suspect, Brand turned himself in to authorities on March 31, 2021.
United States District Judge Sherri A. Lydon presided over the trial and will sentence Brand after receiving and reviewing a pre-sentence report that will be prepared by the United States Probation Office. Brand faces a penalty of life imprisonment on each count
The case was investigated by the Federal Bureau of Investigation (FBI) with significant assistance from the South Carolina Law Enforcement Division (SLED), Horry County Police Department, Marion County Sheriff’s Office, Marion Police Department, Lake View Police Department, and Nichols Police Department. Assistant U.S. Attorneys Everett McMillian and Katie Stoughton prosecuted the case along with Special Assistant U.S. Attorney Scott Hixson, who also serves as the Deputy Solicitor for the 15th Judicial Circuit.
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Manchester Man Sentenced for Possession of Child Sex Abuse MaterialRead the Press Release
CONCORD, N.H. – Michael Dukette, 31, of Manchester, was sentenced to 78 months in federal prison for possession of child sex abuse material, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, in June 2018 an individual reported potential child exploitation images to the Hudson Police Department. The individual had lent an iPhone to another person and after it was returned, the individual found an email containing four videos that showed Dukette sexually exploiting a sleeping child. Dukette subsequently admitted to police during voluntary interviews that he made and kept the videos. Further investigation revealed the child in the videos was five years old at the time the videos were made.
Dukette, who pleaded guilty on April 5, 2022, will be on supervised release for 5 years after serving his prison sentence.
“The production of child sex abuse materials victimizes the most vulnerable members of our communities,” said U.S. Attorney Young. “Protecting children from harm is a paramount obligation of the law enforcement community, and the United States Attorney’s Office will aggressively investigate and prosecute these crimes. I am grateful for the hard work of our law enforcement partners who assisted us in holding this defendant accountable.”
“This case shows that when members of the public come forward when they see something wrong, it can help put offenders like Dukette behind bars. To possess child sexual abuse material is to possess the permanent documentation of the sexual exploitation of a child. HSI is committed to pursuing anyone who participates in these crimes and bringing them to justice,” said Special Agent in Charge Matthew Millhollin for Homeland Security Investigations in New England.
This matter was investigated by the Hudson Police Department, the Nashua Police Department, and Homeland Security Investigations.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Man Pleads Guilty to Distributing Heroin and Fentanyl Near a Local Park in DubuqueRead the Press Release
A man who distributed heroin and fentanyl in Dubuque, Iowa, plead guilty in federal court on September 14, 2022.
Deandre P. Davis, age 32, formerly of Dubuque, Iowa, was convicted of conspiracy to distribute heroin and fentanyl and distribution of heroin and fentanyl within 1,000 feet of Hilltop Park in Dubuque, Iowa.
At his plea hearing, Davis admitted to engaging in a drug-related conspiracy to distribute heroin and fentanyl. In the fall of 2020, Davis coordinated with another person and personally distributed heroin and fentanyl throughout the city of Dubuque, including near a park.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Davis remains in custody of the United States Marshal pending sentencing. Davis faces a possible maximum sentence of 60 years’ imprisonment, a fine of not more than $4 million, and up to six years of supervised release following any term of imprisonment.
This case was investigated by the Dubuque Drug Task Force and is being prosecuted by Assistant United States Attorney Jason D. Norwood.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 21-CR-1033-CJW.
Follow us on Twitter @USAO_NDIA.
MS-13 Gang Member Pleads Guilty to 2015 Murder in Babylon, Attempted Murder in Bay Shore, and Other CrimesRead the Press Release
Earlier today, in federal court in Central Islip, Reynaldo Lopez-Alvarado, also known as “Mente,” a member of the Brentwood Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to racketeering charges in connection with his participation in the November 19, 2015 murder of Cesar Rivera-Vasquez, an attempted murder that occurred on April 9, 2013 in Bay Shore, and conspiracy to commit obstruction of justice. The proceeding was held before United States Magistrate Judge Steven I. Locke. When sentenced, Lopez-Alvarado faces up to life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.
“In a twisted desire to enhance his status within the MS-13 gang and without any regard for human life, the defendant admittedly participated in extremely violent crimes, including murder and a shooting,” stated United States Attorney Peace. “Lopez-Alvarado faces very serious consequences for his senseless actions which I hope will be of some relief to the community, including the family and friends of his victims. This Office, together with the Long Island Gang Task Force, is working tirelessly to bring MS-13 gang members to justice for the havoc they have wrought on Long Island.”
“This case is a grim reminder of the inhumane acts individuals are willing to commit just to elevate their status within a gang,” stated SCPD Commissioner Harrison. “Let this guilty plea be a testament of our commitment to hold gang members accountable for their heinous crimes. We will continue to work with our law enforcement partners to ensure public safety on our streets.”
According to court filings and statements by the defendant at the guilty plea proceeding, Lopez-Alvarado participated in the April 9, 2013 attempted murder of a man on Benton Place in Bay Shore. Lopez-Alvarado, who was a new member of the MS-13 at the time, and another MS-13 member went out looking to kill a rival gang member in order for Lopez-Alvarado to gain full status in the gang. When they observed a group of men who they assumed were members of the rival Bloods street gang, Lopez-Alvarado and his co-conspirator retrieved a .25 caliber handgun and 20-gauge shotgun, drove back to Benton Place, approached the group of men and opened fire. One victim was struck and was subsequently transported to a local hospital, where he was treated and survived the shooting.
Approximately one month after that, Lopez-Alvarado conspired to obstruct justice by assisting fellow gang members after they had committed two murders. Specifically, on May 28, 2013, Lopez-Alvarado came to the aid of fellow gang members, who had just shot and killed Kennan Russell at a house party in Central Islip, when the minivan they had stolen and subsequently used in not only the Russell murder but also the May 26, 2013 murder of Derrick Mayes, ran out of gas and broke down. In addition to helping his fellow gang members get gas and hide the firearms used in the Russell murder, Lopez-Alvarado and other MS-13 members, who had learned that the minivan had been linked to the murders, agreed to destroy it. Lopez-Alvarado and his fellow MS-13 gang members then cleaned the minivan to remove any fingerprints, drove it to a wooded area in Ronkonkoma, doused it with gas, and set it on fire.
In addition, Lopez-Alvarado admitted during his guilty plea to participating in the murder of Rivera-Vasquez on November 19, 2015, in Babylon. Rivera-Vasquez was murdered by Lopez-Alvarado and other MS-13 members because the gang suspected him of belonging to a rival Mexican gang, Raza Loca. On the night of the murder, Lopez-Alvarado and his co-conspirators saw Rivera-Vasquez at a deli located near the Babylon Long Island Railroad train station. Lopez-Alvarado and the other MS-13 members convinced the victim to leave with them to smoke marijuana and brought him to an isolated area behind a nearby baseball field. The gang members, who were armed with knives and a baseball bat, told the victim to take off his shirt so they could observe a tattoo they believed signified the victim’s membership in the rival gang. After observing the tattoo, Lopez-Alvarado and the other MS-13 members attacked Rivera-Vasquez, beating him with the bat and stabbing him repeatedly with knives before one of the co-conspirators cut the victim’s throat. The MS-13 members buried Rivera-Vasquez’s body near a large mound of dirt. The body was discovered in April 2018.
Today’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution.
The Defendant:
REYNALDO LOPEZ-ALVARADO
Age: 30
Brentwood, New YorkE.D.N.Y. Docket No. 16-CR-403 (GRB)
Los Angeles Man Sentenced to More Than 24 Years in Federal Prison for Producing Sexually Explicit Images of a Teenage Girl He KidnappedRead the Press Release
LOS ANGELES – A man from the Westlake neighborhood of Los Angeles was sentenced today to 292 months in federal prison for producing child pornography of him raping a then 15-year-old girl he had kidnapped from her home in Oregon.
Travis Smith, 28, was sentenced by United States District Judge John A. Kronstadt, who said at today’s hearing that Smith’s “inexcusable” conduct was “beyond comprehension” that it had a “profound effect” on the victim. Smith pleaded guilty on January 20 to one count of production of child pornography.
In early 2020, Smith – then a 26-year-old married father of two living with his estranged wife – impersonated a 16-year-old boy to chat online with the victim about a popular online game. Their messages soon turned sexual and abusive, however, with Smith demanding the victim perform painful sex acts on herself as punishment for behavior such as speaking with boys or not answering him quickly enough.
The victim tried to end her communication with Smith, but he threatened to release to her family and friends the sexually explicit images he had enticed her to produce. In July 2020, several months after he initially contacted the victim, Smith drove from California to Oregon to the victim’s home.
Under threat of shooting the victim and her family, Smith kidnapped the victim. He attempted to hide the victim’s whereabouts by having her destroy her cellphone. On the drive and thereafter, Smith repeatedly raped the victim. Once in Los Angeles, he hid the victim in his Westlake apartment for several days. While there, he filmed himself raping her. After days of captivity, the FBI located and rescued the victim.
The FBI investigated this matter.
Assistant United States Attorney Catharine A. Richmond of the Violent and Organized Crime Section prosecuted this case.
Lawton Man Sentenced to 5 Years for Defrauding U.S. Department of Veteran AffairsRead the Press Release
GRAND RAPIDS, MICHIGAN — Joseph Scott Gray, 53, of Lawton, Michigan was sentenced to five years in federal prison for lying to the Department of Veterans Affairs to obtain over $250,000 in benefits to which he was not entitled. To obtain those benefits, Gray repeatedly told the VA he could not walk or stand, when in fact, he could.
On October 26, 2017, Gray went to the Battle Creek VA Medical Center for an exam, and he arrived in a wheelchair:
During the exam, Gray told VA employees he had not walked in 10 years and could not use his left hand. Minutes later, Gray went to a local restaurant, where he was observed freely walking in and out of the building and carrying his leftovers in his left hand:
Gray was convicted by a federal jury of four counts: engaging in a conspiracy to defraud the government; providing false statements to the VA; theft of government funds; and presenting a false, fictitious, or fraudulent claim for benefits. After trial, the Court found that Gray committed perjury by falsely testifying that his medication caused him lie to VA employees and that his medication caused him to go from being unable to walk one minute to able to walk the next. The Court also found that Gray falsely testified that it was his brother, not him, in videos from a local feed store in which Gray was seen walking freely and carrying a 40 - 50 lb. bag of cat food.
In sentencing Gray to five years in prison, U.S. District Court Judge Robert J. Jonker explained that a significant sentence of incarceration was necessary because Gray’s fraud spanned 15 years and involved blatant lies to both the VA and the jury. Judge Jonker also noted Gray obstructed justice in this case by committing perjury, and he obstructed justice in a previous federal case by threatening a witness. In 2011, Gray was sentenced to 27 months in prison after a jury convicted him of engaging in the unlicensed sale of firearms.
U.S. Attorney Mark Totten stated, “Our nation has an obligation to care for our veterans and we must ensure they receive the medical care and disability benefits they need and deserve. Those who lie and fraudulently obtain VA benefits they are not entitled to receive not only steal from American taxpayers but from the veterans who served in defense of our country. My office will fight to protect VA benefits for those in genuine need of treatment and support.”
“Misrepresenting symptoms to the VA to fraudulently obtain benefits takes resources from deserving veterans and will not be tolerated,” said Special Agent in Charge Gregory Billingsley with the Department of Veterans Affairs Office of Inspector General’s Central Field Office. “The VA OIG will continue to vigorously investigate those who would steal from VA benefits programs and taxpayers.”
Assistant U.S. Attorneys Davin Reust and Lauren Biksacky prosecuted the case.
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