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Thursday 30 June 2022
Michigan Man Charged with Attempting to Entice a Minor to Engage in Sexual ActivityRead the Press Release
ALBANY, NEW YORK – Daniel Higgs, age 39, of Kalamazoo, Michigan, was arrested yesterday and charged with attempting to entice a minor to engage in unlawful sexual activity. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The complaint alleges that between January 2022 and June 29, 2022, Higgs exchanged messages with two individuals, one posing as a parent of a 10-year-old daughter and the other as the guardian of a 12-year-old girl. Higgs discussed plans to travel from Michigan in order to engage in sexual acts with the minors. On June 29, 2022, Higgs flew from Kalamazoo to Albany where he was encountered by the FBI and arrested. The allegations in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charge filed against Higgs carries a term of imprisonment of at least 10 years and potentially up to life, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant United States Attorney Dustin C. Segovia.
This case is prosecuted as part of 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 https://www.justice.gov/psc/.
Miami Residents Sentenced for Their Roles in a Money Laundering Conspiracy Connected to a Nationwide Gas Station Skimming SchemeRead the Press Release
ALBANY, NEW YORK – Yanio Montes de Oca, age 35, of Miami, Florida, was sentenced on Tuesday to 27 months in prison, and Atnetys Ferreira Milian, age 42, of Miami, was sentenced today to 1 year of probation, for their respective roles in a conspiracy to commit money laundering. The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Ketty Larco-Ward, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service (USPIS).
As part of his guilty plea on March 10, 2021, De Oca admitted to being a part of a conspiracy that, between December 2015 and July 2019, laundered thousands of gift cards that were obtained using fraudulent debit and credit cards encoded with information stolen using gas station skimming devices. After obtaining the gift cards from co-conspirators, De Oca sold them on a gift card exchange website using a “bulk seller” account he established in the name of a Florida company he created in 2015 for that purpose. After selling the fraudulently obtained gift cards, De Oca transferred the resulting amounts to bank accounts he controlled. De Oca then distributed some of the money he obtained through gift card sales to other conspirators, retaining the rest of the funds for himself. As part of his plea agreement, De Oca agreed to be subject to a forfeiture money judgment in the amount of $1,020,193.10.
As part of her guilty plea on December 6, 2019, Ferreira Milian admitted to being a part of the same conspiracy and using multiple bank accounts that she controlled to launder money orders that had been purchased with fraudulent debit cards. The debit cards used stolen account numbers that had been skimmed at gas station pumps across the country. During the period of the conspiracy, Ferreira Milian deposited over 1,100 money orders, totaling over $691,000, into her accounts, and then withdrew most of the laundered funds in cash. As part of her plea agreement, Ferreira Milian agreed to be subject to a forfeiture money judgment in the amount of $49,162.00.
Senior United States District Judge Gary L. Sharpe also imposed on Montes de Oca a 3-year term of supervised to follow the term of incarceration.
These cases were investigated by the FBI Albany Field Office and USPIS Boston Division, with assistance from the FBI Field Offices in Miami and Pittsburgh, the USPIS Miami Division, and the United States Secret Service Miami Field Office. The case was prosecuted by Assistant U.S. Attorney Rick Belliss.
Methamphetamine Distributor Sentenced to 188 Months in Prison for Drug Conspiracy Involving Postal CarriersRead the Press Release
A drug dealer who worked with postal carriers to conduct a methamphetamine drug conspiracy was sentenced Thursday in federal court, announced U.S. Attorney Clint Johnson.
Chief U.S. District Judge John F. Heil III sentenced Kamau Jahi Williams, 43, of Tulsa, to 188 months in federal prison followed by 10 years of supervised release.
Starting as early as December 2019 and continuing to October 2021, the defendant conspired with others to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. Williams admitted in his plea agreement to purchasing methamphetamine from a source of supply in California and redistributing the drug to third parties in Tulsa. His source of supply normally fronted the methamphetamine for Williams. After Williams received payment from customers, he would pay the source of supply.
According to court documents, Williams ran the operation in the Northern District of Oklahoma with the support of several postal workers. As part of the conspiracy, Williams’ source in California mailed shipments of methamphetamine to an abandoned Tulsa address through the U.S. Postal Service. Several postal carriers allegedly intercepted those packages. As part of the conspiracy, they marked the packages as delivered and then would meet Williams at various locations in Tulsa to deliver the methamphetamine packages.
In September 2021, a federal jury convicted Williams in a separate drug conspiracy. In that case, Williams was sentenced to 77 months in federal prison for Distribution of Methamphetamine, Drug Conspiracy, and Distribution of Heroin. The two federal sentences will run concurrently.
The Drug Enforcement Administration, U.S. Postal Service Office of Inspector General, U.S. Postal Inspection Service, and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Joel-lyn McCormick prosecuted the case.
Memphis Man Pleads Guilty to Trafficking 14-Year-Old to New Orleans for Commercial SexRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that JEREMY TALBERT, age 26, from Memphis, Tennessee pleaded guilty on June 29, 2022 to Sex Trafficking of a Minor, in violation of Title 18, United States Code, Sections 1591(a)(1), 1591(b)(2), 1594(a), and 2.
According to court documents, TALBERT brought a fourteen-year-old female (“Minor Victim”) from Memphis to New Orleans for the purpose of her engaging in commercial sex acts between October 2020 and December 17, 2020. During this time, TALBERT was aware of Minor Victim’s age from conversations with her mother. TALBERT advertised Minor Victim on websites commonly used to advertise sexual services in exchange for money. TALBERT required Minor Victim to earn approximately $1,000 per day from commercial sex acts and TALBERT kept all or most of the money she earned.
In pleading guilty, TALBERT faces a minimum sentence of ten (10) years imprisonment up to life imprisonment. The defendant also faces supervised release for a term of five years to up to life, up to a $250,000 fine, a requirement that the defendant participate in the sex offender registration and notification program, and a mandatory $100.00 special assessment fee, as to each count. The Honorable Lance Africk set sentencing in this matter for October 5, 2022 at 2 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, the New Orleans Police Department, and the Memphis Police Department in investigating this matter. Assistant United States Attorneys Maria Carboni and Jordan Ginsberg are in charge of the prosecution.
McKees Rocks Woman Pleads Guilty to Trafficking Large Amounts of Mexican-Sourced Cocaine in Western PARead the Press Release
PITTSBURGH, PA – A former McKees Rocks, PA resident pleaded guilty in federal court to a violation of the federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Rachel Novalesi, 39, formerly of McKees Rocks, PA, pleaded guilty to an Indictment charging her, and 26 other codefendants, with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine before United States District Judge W. Scott Hardy.
In connection with the guilty plea, the Government advised the Court that the prosecution of Novalesi arose out of a two-year investigation into a drug trafficking organization whose members distributed kilograms of cocaine, sourced from Mexico, throughout the United States (in California, Arizona, Pennsylvania, and elsewhere). The Court was advised that co-conspirators obtained kilograms of cocaine in Los Angeles, California, and sent them to the Western District of Pennsylvania (and elsewhere) through the United States Postal Service. In connection with her guilty plea, Novalesi admitted that she received cocaine-laden parcels that were sent by co-conspirators from Los Angeles, California, to the Western District of Pennsylvania, and that she redistributed the kilograms of cocaine to others. As part her plea, Novalesi admitted that she possessed roughly five ounces of cocaine that was seized in May 2019 during a traffic stop by the Bridgewater Police Department in Beaver County, PA. Novalesi admitted as part of the plea that the cocaine was sourced from a codefendant, and that she intended to redistribute it. Novalesi admitted that the total quantity of cocaine attributable to her, through her conduct and the foreseeable conduct of co-conspirators, was at least 15 kilograms but less than 50 kilograms. The Court was advised that agents seized in excess of 100 kilograms of cocaine during its two-year investigation into the drug trafficking organization, of which Novalesi admitted to being a member.
Judge Hardy scheduled sentencing for November 4, 2022. The law provides for a total sentence of not less than 10 years and not more than life imprisonment, a fine of up to $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Drug Enforcement Administration (in Pittsburgh, PA) and the United States Postal Service – Office of Inspector General led the multi-agency investigation that included members of the Drug Enforcement Administration (in Los Angeles, CA; in Tucson, AZ; in New York, NY; in Nashville, TN; at the Special Operations Division; and in Mexico); the Pennsylvania Office of Attorney General; the Los Angeles Police Department; the Pittsburgh Bureau of Police; the Allegheny County Police Department; the New Castle Police Department; the Monessen Police Department; and the Pennsylvania State Police.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Massachusetts Woman Sentenced for Role in Sex Trafficking ConspiracyRead the Press Release
BOSTON – A Massachusetts woman was sentenced today in federal court in Boston for her involvement in a sex trafficking conspiracy.
Muriel Close, 42, was sentenced by U.S. District Court Judge Patti B. Saris to 12 months of home detention. In April 2021, Close pleaded guilty to two counts of conspiracy to commit sex trafficking.
Close was charged in July 2020 with co-defendant and serial sex trafficker Bruce Brown. On Feb. 10, 2022, Brown was sentenced to 138 months in prison on charges arising from his exploitation of multiple victims in operating a sex trafficking enterprise for more than 15 years.
“As a prosecutor, some of the most difficult cases are those in which harmed and victimized individuals inflict trauma and harm on others,” said United States Attorney Rachael S. Rollins. “Ms. Close was herself a victim of brutal physical and psychological abuse at the hands of her co-defendant, Bruce Brown. However, her recruitment and involvement with other victims in Mr. Brown’s enterprise caused others to experience the same force, fraud and coercion she did. Ultimately, it was Mr. Brown who ran his enterprise that inflicted inexplicable pain and trauma on numerous victims for his own financial benefit. For that, he is exactly where he deserves to be - behind bars for at least the next decade. But Ms. Close, although a victim herself, engaged in egregious conduct which requires consequences. Ultimately, people who prey on the vulnerable and engage in sex trafficking will be held accountable. We remain steadfast and dedicated in our fight on behalf of trafficking victims and survivors.”
“While Muriel Close conspired with Bruce Brown to commit sex trafficking, it’s important to remember that she too is a victim who suffered physical and psychological abuse at his hands. Today’s sentence reflects that, and while nothing can wipe away the trauma inflicted upon the victims in this case, we hope it helps them heal,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “With a victim-centered approach, FBI Boston’s Child Exploitation – Human Trafficking Task Force will continue to investigate and bring to justice those who commit these reprehensible crimes.”
Close aided Brown’s sex trafficking operation through recruitment efforts and by monitoring victims on behalf of Brown.
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement today. The Newton Police Department provided valuable assistance in the investigation. Assistant U.S. Attorneys Mackenzie A. Queenin and Mackenzie J. Duane of Rollins’ Civil Rights Enforcement Team prosecuted the case.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888 or text 233733.
Maryland Man Charged with Defrauding Medicaid in Scheme Involving Personal Care ServicesRead the Press Release
WASHINGTON – Joseph Tamjong, 50, of Lanham, Maryland, was arrested today after being charged in federal court with defrauding the D.C. Medicaid program out of hundreds of thousands of dollars.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services’ Office of Inspector General for the region that includes Washington, D.C., and Daniel W. Lucas, Inspector General for the District of Columbia.
Tamjong was charged in a criminal complaint with health care fraud and health care false statements. He is to make his initial appearance later today in the U.S. District Court for the District of Columbia.
According to charging documents, between approximately December 2014 and the present, Tamjong has been employed as personal care aide and/or a participant-directed worker to provide personal care aide services to District of Columbia residents who need assistance performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. Tamjong is alleged to have submitted false timesheets claiming that he provided such services when in fact he did not, including when he was traveling outside the United States on eight different trips. Charging documents allege that between December 2014 and February 2022, Medicaid issued payments totaling approximately $733,405 for personal care aide services that Tamjong purportedly provided as a personal care aide or participant-directed worker.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Today’s arrest marks a continued effort by the FBI, the Department of Health and Human Services’ Office of Inspector General, the District of Columbia’s Office of the Inspector General’s Medicaid Fraud Control Unit, and the U.S. Attorney’s Office to investigate and prosecute individuals who defraud the D.C. Medicaid program. Since August 2018, 11 former personal care aides have pleaded guilty to defrauding Medicaid in the United States District Court for the District of Columbia. Six of those aides were sentenced to 13 months in prison; a seventh was sentenced to serve 15 months. An eleventh, Susan Tingwei—a licensed attorney—is scheduled to be sentenced on July 11, 2022.
The government urges the public to provide tips and assistance to stop health care fraud. If you have information about individuals committing health care fraud, please call the Department of Health and Human Services’ Office of Inspector General hotline at (800) HHS‑TIPS [(800) 447-8477] or the D.C. Office of the Inspector General at (800) 724-TIPS [(800) 274-8477].
This case is being prosecuted by Assistant U.S. Attorney Kondi Kleinman, with assistance from Paralegal Specialist Michon Tart.
Marion County man admits to his role in a drug conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Justin Paul Thompson, of Fairmont, West Virginia, has admitted to his role in a drug trafficking conspiracy, United States Attorney William Ihlenfeld announced.
Thompson, 20, pleaded guilty today to one count of “Distribution of Methamphetamine in Proximity to a Protected Location.” Thompson admitted to selling methamphetamine near a public housing facility in June 2019 in Marion County.
Thompson faces at least one and up 40 years of incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Three Rivers Drug Task Force and the Fairmont Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/west-virginia-and-detroit-residents-indicted-drug-trafficking-operation
Marion County Felon Convicted of Drug Conspiracy and Illegal Firearm PossessionRead the Press Release
Ocala, FL – United States Attorney Roger B. Handberg announces that a federal jury has found Nishera Remon Johnson (41, Silver Springs Shores) guilty of one count of conspiracy to distribute a controlled substance (methamphetamine, cocaine, cocaine base, and marijuana) and one count of possession of a firearm by a convicted felon. Johnson faces a minimum mandatory sentence of 15 years, and up to life in federal prison, for the firearm offense and a minimum mandatory 10 years, and up to life imprisonment, for the drug offense. Her sentencing hearing is scheduled for September 22, 2022. A grand jury had indicted Johnson on September 2, 2020.
According to testimony and evidence presented at trial, on November 26, 2019, investigators searched a vehicle belonging to Johnson and found nearly two pounds of methamphetamine. They also found evidence of a marijuana grow operation at Johnson’s residence. When that home was searched pursuant to a warrant in December 2020, agents located numerous firearms and ammunition along with nearly half a kilogram of powder cocaine. In a shed behind the home, agents discovered the hidden marijuana grow operation. Johnson had been living at the home with her minor child and a co-defendant. Johnson, a convicted felon, is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the City of Ocala Police Department, and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Man Who Sold Pistol Used in Synagogue Hostage Crisis Pleads Guilty to Gun CrimeRead the Press Release
The man who sold Malik Faisal Akram the gun he used to kidnap hostages in a Texas synagogue pleaded guilty today to a federal firearm crime, announced United States Attorney for the Northern District of Texas Chad E. Meacham.
Henry “Michael” Dwight Williams, 32, was charged via criminal complaint in January 2022. He pleaded guilty to being a felon in possession of a firearm before U.S. Magistrate Judge Irma Carrillo Ramirez on Thursday.
“This defendant, a convicted felon, had no business carrying – much less buying and selling – firearms. Whether he suspected his buyer would use the gun to menace a community of faith is legally irrelevant: In the U.S., convicted felons cannot possess firearms,” said U.S. Attorney Chad Meacham. “The Justice Department is committed to prosecuting those who violate our nation’s federal firearm laws, which are designed to keep guns from falling into the hands of dangerous offenders. We are grateful to the FBI, which sprang into action as soon as the synagogue hostage crisis began, and to the agents who worked tirelessly to track the weapon from Mr. Akram to the defendant.”
“Tireless days of nonstop investigation revealed the connection of Mr. Akram to Mr. Williams, we are grateful to the many law enforcement agencies and personnel that traced the weapon’s nefarious source,” said Dallas FBI Special Agent in Charge Matthew DeSarno. “We are fortunate to be able to celebrate the brave actions of the hostages and will continue to support Congregation Beth Israel and the Jewish community in their process of healing.”
According to the complaint, Mr. Williams – a felon previously convicted of aggravated assault with a deadly weapon and attempted possession of a controlled substance – sold Mr. Akram a semiautomatic Taurus G2C pistol on Jan. 13. In plea papers, Mr. Williams admitted to possession of that firearm despite his prior conviction.
According to the complaint, on Jan. 15, agents recovered the pistol from Colleyville’s Congregation Beth Israel synagogue, where Mr. Akram had held four individuals hostage for several hours before he was fatally shot by federal law enforcement.
As part of its intensive investigation into the hostage taking, the FBI tied Mr. Williams to Mr. Akram through an analysis of Mr. Akram’s cellphone records, which showed the pair exchanged a series of calls from Jan. 11 through Jan. 13.
When agents first interviewed Mr. Williams on Jan. 16, Mr. Williams stated that he recalled meeting a man with a British accent, but that he could not recall the man’s name. (Mr. Akram was a British citizen.) Agents interviewed the defendant again on Jan. 24, after he was arrested on an outstanding state warrant. After viewing a photo of Mr. Akram, Mr. Williams confirmed he sold Mr. Akram the handgun at an intersection in South Dallas. Analysis of both men’s cellphone records showed that the two phones were in close proximity on Jan. 13. Mr. Williams now faces up to 10 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of the Dallas Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, Homeland Security Investigations’ Dallas Field Division, and the Colleyville Police Department. Assistant U.S. Attorney Joe Magliolo is prosecuting the case with the support of Assistant U.S. Attorneys Errin Martin, Jay Weimer, Alex Lewis, Nicole Dana, P.J. Meitl, and Assistant U.S. Attorney Lindsey Beran (fmr), along with Trial Attorneys David Smith and Michael Dittoe of the Justice Department’s National Security Division.
Man Sentenced to Statutory Maximum of 20 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
FORT WORTH, TX – Angel Aguilar Montalvo was sentenced June 28, 2022, by U.S. District Judge Means to the statutory maximum sentence of 20 years in federal prison following his guilty plea to an indictment charging one count of receipt of child pornography, announced U.S. Attorney Chad E. Meacham of the Northern District of Texas.
In April 2019, Homeland Security Investigations initiated an investigation into a dark web website offering child pornography material for purchase. During the investigation, it was discovered that Angel Aguilar Montalvo purchased child pornography from this website using crypto currency on more than one occasion. On February 23, 2021, HSI Agents executed a search warrant on Aguilar’s residence. Aguilar was interviewed by Agents. Aguilar described some of the child pornography videos he had as “pretty hardcore.” He stated, “I know it’s illegal,” but he did not “see any harm done.” He stated that we are all sexual beings.
A forensic analysis of three electronic devices revealed thousands of images and videos of child pornography. These images included children under five years of age. An arrest warrant was issued for Aguilar in August 2021. He was subsequently arrested attempting to reenter the United States from Mexico. At that time, Aguilar possessed a new computer which contained evidence that Aguilar downloaded and deleted child pornography videos onto it as well. Aguilar was indicted for receipt of child pornography on January 12, 2022. He subsequently pled guilty to that charge in February 2022.
Aguilar had previously been charged at the state level with Aggravated Sexual Assault of a Child in 1990, which was later dismissed. Additionally, in 2006 he was charged with Aggravated Sexual Assault of a Child involving two children. The trial on that case ended in a mistrial due to a hung jury and was subsequently dismissed.
At Aguilar’s sentencing on June 28, 2022, the victim from Aguilar’s 1990 case and a victim from Aguilar’s 2006 case testified of the sexual abuse they endured at the hands of Aguilar.
HSI New York and HSI Dallas participated in the investigation of this case.
Lubbock Man Charged with Possession of Child PornographyRead the Press Release
LUBBOCK, TX – Tyler Patrick Brown a 24-year-old Lubbock, native appeared in federal court yesterday, charged with possession of child pornography, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
According to the complaint, unsealed following the defendant’s arrest on Tuesday, multiple law enforcement agencies were investigating Brown after parents reported to law enforcement that Brown was having inappropriate contact and sexual relationships with high school students. Brown was interviewed by law enforcement and admitted to engaging in fourteen sexual relationships with minor females while he was an adult. Brown further admitted, he would typically tell the females that he was also a minor high school student to gain their confidence. A subsequent search of Brown’s cell phone revealed he possessed a video of a 15-year-old minor engaging in sexual acts, which constitutes child pornography as defined by federal law. Even after the interview with law enforcement, Brown was seen by a parent of one of his victims at a Lubbock area high school basketball game wearing a “Press” lanyard. He was confronted by one of the investigators and left the game.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Brown is presumed innocent until proven guilty in a court of law.
This investigation is on-going. If you have any relevant information pertaining to this investigation, please contact the FBI – Lubbock, Texas field office at 806-765-8571.
Leader of Violent Fentanyl Pill Trafficking Organization and His Mother Sentenced to Years in JailRead the Press Release
BOSTON – The leader of a North Shore-based drug trafficking organization (DTO) and his mother have been sentenced for their roles in a conspiracy that manufactured and flooded the streets of Massachusetts with hundreds of thousands of counterfeit prescription pills containing fentanyl made on high-volume pill press machines.
Vincent Caruso, 27, a/k/a “Fatz,” of Lynn, was sentenced by U.S. District Court Judge Denise J. Casper to 250 months (more than 20 years) in prison and five years of supervised release. On March 15, 2022, Vincent Caruso pleaded guilty to one count of conspiracy to manufacture, distribute and possess with intent to distribute 400 grams or more of fentanyl, cocaine, marijuana and other controlled substances; one count of conspiracy to possess firearms in furtherance of a drug trafficking crime; possession of firearms in furtherance of a drug trafficking crime; conspiracy to interfere with commerce by robbery (Hobbs Act robbery); and one count of conspiracy to commit money laundering.
Yesterday, Vincent Caruso’s mother, Laurie Caruso, 52, also of Lynn, was sentenced by U.S. District Court Judge Nathaniel Gorton to nine years in prison and four years of supervised release. On Feb. 28, 2022, Laurie Caruso pleaded guilty to one count of conspiracy to manufacture, distribute and possess with intent to distribute fentanyl and other controlled substances.
“This family business has been shut down for good. Vincent Caruso was a prolific and violent drug trafficker who flooded North Shore communities with hundreds of thousands of deadly counterfeit prescription pills containing fentanyl. Caruso and his associates orchestrated numerous shootings and armed robberies using an arsenal of firearms – including machine guns – and then took to social media to brag about their incredibly destructive criminal conduct. That this all took place while he was on pretrial release is even more appalling. Caruso, along with his mother and co-conspirator Laurie Caruso, pumped poison and violence into our communities and you won’t be hearing from them on Instagram for a long long time,” said First Assistant United States Attorney Joshua S. Levy. “Thanks to the exceptional, coordinated efforts of our law enforcement partners, this career criminal will now spend over 20 years behind bars – out of our communities and off of social media. This office will continue its relentless pursuit of individuals who threaten public safety for the sake of profit.”
“Vincent Caruso, a self-admitted Crip gang member, and his mother, Laurie Caruso ran a major drug trafficking organization that, for years, brought nothing but poison, mayhem, and violence to the North Shore of Massachusetts, and beyond. They peddled hundreds of thousands of counterfeit pills containing fentanyl, capitalizing on those struggling with addiction, while raking in an obscene amount of money,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The severity of these sentences reflects the seriousness of their criminal conduct, and the tireless efforts of our North Shore Gang Task Force to make our communities safer for everyone.”
“ATF will continue to work in conjunction with our local, state and federal law enforcement partners to identify organized violent criminals in our joint effort to protect the public,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division. “The sentencing of a self-admitted gang member of the Crips in federal court for possession of a machine gun and dangerous drugs should send a loud and clear message to anyone who chooses to engage in this type of criminal activity; it cannot and will not be tolerated and you will be held accountable.”
The Carusos were arrested and charged by complaint on June 30, 2021 along with co-conspirators Ernest Johnson and Nicole Benton as part of an investigation that began in 2020 in response to an increased number of shootings in communities north of Boston by street gangs whose violence was fueled by drug distribution. Vincent Caruso was later indicted by a federal grand jury on Jan. 19, 2022. Benton has pleaded guilty to her role in the DTO and is scheduled to be sentenced on Sept. 8, 2022. Ernest Johnson has also pleaded guilty and is scheduled to be sentenced on Sept. 13, 2022.
Vincent Caruso, a self-admitted Crip gang member, operated a large and sophisticated DTO with multiple subordinates that sold counterfeit prescription pills containing fentanyl to street gangs for further distribution on the North Shore. Laurie Caruso served as her son’s right-hand in the operations and was the primary distributor for his well-armed DTO.
The investigation identified Vincent Caruso’s DTO as a common supply source of counterfeit pressed fentanyl pills and other controlled substances for several street gangs responsible for the uptick in violence. Vincent Caruso’s DTO distributed approximately 36 kilograms of fentanyl, largely in the form of pressed fentanyl pills – equating to a total of over 360,000 fentanyl pills – of which, a significant portion was manufactured directly by Vincent Caruso’s DTO itself using multiple pill presses capable of generating thousands of pills per hour. In order to move these quantities, Laurie Caruso personally distributed fentanyl pills for the DTO at all hours of the day and retrieved cash owed by drug customers. A single counterfeit fentanyl pill retails at between $10-$20, thereby generating millions of dollars in proceeds for the DTO. In an effort to conceal the DTO’s operations, Vincent and Laurie Caruso conspired to launder their illegal proceeds by conducting cash transactions through sports bets at a New Hampshire casino.
In furtherance of his drug trafficking activities, Vincent Caruso possessed and used firearms and orchestrated multiple violent offenses, including two armed robberies and a shooting involving a machinegun.
The first armed robbery took place on March 5, 2020, while Vincent Caruso on pretrial release for state fentanyl and firearm charges. He orchestrated an armed robbery and home invasion in which two individuals armed with a firearm and zip ties robbed the occupants of an apartment of approximately $18,000 and jewelry. Vincent Caruso dropped off the robbers, waited at a nearby coffee shop and returned to pick them up after the robbery.
In May 2021 a second armed robbery took place also while Vincent Caruso on pretrial release for state fentanyl and firearm charges. For this incident, Vincent Caruso enlisted associates to rob an individual. Surveillance video shows assailants run up to the victim, including one assailant who was armed with an AR-15 style rifle. The victim escaped and ran off. Police responded and chased the assailant, who threw the AR-15 style rifle in a dumpster. The assailant ran into the highway and escaped police.
A third violent incident took place shortly after midnight on June 29, 2021, in Lynn. For this incident, Vincent Caruso provided a fully automatic handgun to an associate. The associate then used a fully automatic handgun to fire dozens of rounds at a number of victims who were gathered on a porch. Bullets hit residences, vehicles and three individuals who were hit by the gunfire and survived. This incident was captured on surveillance video.
In addition, while on state pretrial release Vincent Caruso sent dozens of photos and videos via social media that depicted him in possession of firearms and machine guns, large quantities of fentanyl that would be distributed by his organization, large amounts of cash and high-end jewelry.
Over 1.5 kilograms of pressed fentanyl pills, over 12 firearms, multiple luxury brand watches, chains, four medallions, two custom ATVs, a dirt bike and over $177,000 in cash were recovered through various search warrants executed in this and related investigations.
First Assistant U.S. Attorney Levy, FBI SAC Bonavolonta, ATF SAC Ferguson and Colonel Christopher Mason, Superintendent of the Massachusetts States Police made the announcement today. Assistance was provided by the Essex, Middlesex and Suffolk County District Attorneys’ Offices; Essex, Middlesex, Suffolk and Hancock (Maine) County Sheriffs’ Departments; U.S. Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; and the Boston, Cambridge, Chelsea, Danvers, Everett, Lynn, Malden, Salem, Saugus, Somerville, Revere, Bolton (Maine), Bangor (Maine), Portland (Maine) and Westbrook (Maine) Police Departments. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the cases.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Lansing Man Sentenced to 10 Years for Drugs and Firearm After Fleeing in High-Speed Car ChaseRead the Press Release
GRAND RAPIDS, MICHIGAN —U.S. Attorney Mark Totten announced today that Eugene Jonas Hicks, age 38, of Lansing, was sentenced to 10 years imprisonment after previously pleading guilty to possessing with the intent to distribute controlled substances and possessing a firearm in furtherance of drug trafficking. In addition to the prison term, U.S. District Court Judge Janet T. Neff imposed a 4-year term of supervised release, which will begin when Hicks is released from prison. Hicks was previously convicted of multiple prior felonies, including home invasion and aggravated stalking.
On May 12, 2021, law enforcement officers in Lansing attempted a traffic stop of a vehicle driven by Hicks in Lansing. A high-speed vehicle pursuit followed. During the pursuit, Hicks threw a loaded Taurus .357 revolver from the vehicle. Hicks also threw plastic bags containing cocaine, cocaine base, and methamphetamine from the sunroof. These items could have been accessible to the public had they not been recovered by law enforcement. Hicks disregarded stop signs and red lights, driving into oncoming traffic. The pursuit ultimately ended when Hicks crashed his vehicle in traffic, resulting in injuries to a passenger. Hicks then attempted to flee on foot but was apprehended by authorities.
U.S. Attorney Totten said, “Drugs and guns are a toxic mix, which is only made worse when they are possessed by convicted felons and thrown out of vehicles onto our streets. Our office will continue to work together with all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.”
This case resulted from a coordinated investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lansing Police Department, Lansing’s Violent Crime Initiative Unit, and the Michigan State Police. This case was prosecuted by Assistant U.S. Attorney Lauren F. Biksacky.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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La Crosse Man Sentenced to More Than 12 Years for Possessing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jeremy Hogenkamp, 45, of La Crosse, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 12 ½ years in prison for possessing child pornography. This term of imprisonment will be followed by 25 years of supervised release. Hogenkamp pleaded guilty to this charge on March 8, 2022.
In September 2021, the La Crosse Police Department received a Cybertip regarding images uploaded into a Google Cloud account. Based on the information provided in the Cybertip, a search warrant was obtained for Hogenkamp’s home.
Agents executed the search warrant on October 6, 2021, and found two flip phones in the house. A short time later, the police dispatch center received an anonymous call that Hogenkamp had a laptop at his place of employment. After an initial search at the workplace was unsuccessful, officers received another anonymous call saying they did not look in the right spot. Officers went back to Hogenkamp’s workplace and found a black tote near his work area containing a laptop and a cell phone. Hogenkamp admitted there would be “bad stuff with kids” on the laptop.
A search of the laptop revealed thousands of images of minors engaged in sexually explicit conduct. This is Hogenkamp’s second federal conviction for possessing child pornography. He was on supervision for an offense he committed in 2011 at the time of this offense.
At sentencing, Judge Conley observed that Hogenkamp obviously has an attraction to children that will be a life-long struggle unless he gains some self-awareness. The judge concluded that until that happens, Hogenkamp remains a danger to children.
The charge against Hogenkamp was the result of an investigation conducted by the La Crosse, Onalaska, Holmen, and Town of Campbell Police Departments and the Federal Bureau of Investigation. Assistant U.S. Attorney Elizabeth Altman prosecuted this case.
Kyle Man Sentenced to Ten Years in Federal PrisonRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Kyle, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on June 23, 2022, by Judge Karen E. Schreier, U.S. District Court.
Chester Benjamin Apple, a/k/a Chester Janis, age 39, was sentenced to 10 years in federal prison, followed by five years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Apple was indicted for the charge by a federal grand jury in March 2021 and pleaded guilty in December 2021. The conviction stems from Apple obtaining methamphetamine and distributing it in South Dakota from approximately January 2015 through March 2021.
The case was investigated by the Badlands Safe Trails Task Force, which includes the FBI, Bureau of Indian Affairs, Oglala Sioux Tribe Department of Public Safety, South Dakota Department of Criminal Investigation, and the Martin, South Dakota, Police Department. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Apple was immediately turned over to the custody of the U.S. Marshals Service.
Kanawha County Woman Pleads Guilty to Social Security FraudRead the Press Release
CHARLESTON, W.Va. – Melissa Waller, 45, of St. Albans, pleaded guilty today to theft of Social Security benefits.
According to court documents and statements made in court, Waller received Social Security Administration (SSA) benefits on behalf of a deceased relative. Waller admitted that she knew that she was not entitled to receive these SSA benefits once her relative passed away in April 2012. Between June 2012 and April 2020, Waller received $84,509 in federal benefits that she was not entitled to receive and converted those SSA benefits to her own use.
Waller is scheduled to be sentenced on October 13, 2022, and faces a maximum penalty of 10 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Social Security Administration and the Social Security Administration-Office of Inspector General (SSA-OIG).
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Erik S. Goes is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-89.
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Justice Department Opens Application Period for Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
The Department of Justice is pleased to announce the opening of the application period for federally recognized Tribes and intertribal consortia to participate in the Tribal Access Program (TAP) for National Crime Information, which provides federally recognized Tribes the ability to access and exchange data with national crime information databases for authorized criminal justice and non-criminal justice purposes.
“The Tribal Access Program (TAP) is a proven and powerful tool for Tribal police officers, government and court officials to investigate crimes, keep children safe and hold domestic violence offenders accountable, among other important uses,” said Deputy Attorney General Lisa Monaco. “As TAP continues to expand, more Tribes will be able to protect their communities by participating in this successful program.”
The program provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots and submit information to FBI Criminal Justice Information Services (CJIS) systems. There are currently 108 federally recognized Tribes participating in TAP. The department will accept TAP applications from July 1 – Aug. 31. Tribes selected to participate will be notified in September.
“The Tribal Access Program has allowed our Tribe to more effectively serve and protect its citizens by being able to prevent individuals from illegally purchasing firearms, and ensuring its personal protection orders are entered into federal databases, making their existence known, not only in Indian country, but across the nation,” said Court Administrator/Magistrate Traci L. Swan of the Sault Ste. Marie Tribe of Chippewa Indians. “Obtaining fingerprint-based checks… has allowed our Tribe to expedite placement of our children in safe foster care homes.”
For Tribes that are considering applying, TAP staff will be conducting informational webinars describing the program and its capabilities. Webinars will be offered throughout the month of July and August. For more information about TAP, including our webinar dates, times and access information, visit www.justice.gov/tribal/tribal-access-program-tap.
Using TAP, Tribes have shared information about missing persons; entered domestic violence orders of protection for nationwide enforcement; registered convicted sex offenders; run criminal histories; arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
“Prior to receiving the system our community had no direct access to the services the TAP program provides,” said Chief of Police Bruce R. Janes for The Metlakatla Indian Community. “Being the only reservation in Alaska and a remote community on an island the TAP program has provided independence for our community and Police Department giving us the ability [to] be self-sufficient with the vast programs available with TAP.”
The department offers TAP services through one of the following two methods:
- TAP-LIGHT: Provides software that enables full access (both query and entry capabilities) to national crime information databases including the National Crime Information Center (NCIC), the Interstate Identification Index (III), and the International Justice and Public Safety Network (Nlets) for criminal justice purposes.
- TAP-FULL: In addition to the basic access capabilities of TAP-LIGHT, provides a kiosk workstation that enables the ability to submit and query fingerprint-based transactions via FBI’s Next Generation Identification (NGI) system for both criminal justice and non-criminal justice purposes.
Because of the program’s funding sources, eligible Tribes must have — and agree to use TAP for — at least one of the following:
- A Tribal sex offender registry authorized by the Adam Walsh Child Protection and Safety Act;
- A Tribal law enforcement agency that has arrest powers;
- A Tribal court that issues orders of protection; or
- A Tribal government agency that screens individuals for foster care placement or that investigates allegations of child abuse/neglect.
TAP is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART); the Office of Community Oriented Policing Services (COPS); the Office for Victims of Crime (OVC); and the Office on Violence Against Women (OVW). TAP is co-managed by the department’s Office of the Chief Information Officer (OCIO) and Office of Tribal Justice (OTJ).
Justice Department Announces Six New Firearms Technical Assistance Project Sites and Awards $750,000 to National Resource Center on Domestic Violence and FirearmsRead the Press Release
The Department of Justice announced today six new sites selected to participate in the Firearms Technical Assistance Project (FTAP) expansion as part of the Department’s ongoing effort to reduce violent crime and help communities across the country reduce domestic violence homicides and injuries committed with firearms. The six new FTAP sites are: the City of Tucson, Arizona; the Georgia Department of Community Supervision; the City of Detroit, Michigan; the Young Women’s Christian Association (YWCA) of Knoxville and the Tennessee Valley in Tennessee; the City of Austin, Texas; and the City of Yakima, Washington. The six sites announced today join six existing FTAP sites, which include: Birmingham, Alabama; Muscogee (Creek) Nation; Columbus, Ohio; Brooklyn, New York; the State of Vermont; and Spokane, Washington.
In addition, the Office on Violence Against Women (OVW) will award $750,000 to fund the National Resource Center on Domestic Violence and Firearms, which supports all levels of government in comprehensive implementation and enforcement of domestic violence firearm prohibitions. OVW has awarded a total of $5.99 million to the 12 FTAP sites, which help communities nationwide reduce domestic violence homicides and injuries committed with firearms.
“At the Justice Department, our anti-violent crime strategy is centered on our partnerships with communities across the country and the law enforcement agencies that protect those communities every day,” said Attorney General Merrick B. Garland. “Our Firearms Technical Assistance Project focuses on the intersection of gun violence and domestic violence at the community level through specialized training for our law enforcement partners and enhanced support services for the survivors of domestic violence.”
“We cannot end domestic violence homicides without crafting strategies that meet the unique needs on the ground in communities, including centering those who have been historically marginalized,” said OVW Acting Director Allison Randall. “This is why it is critical that FTAP sites work with underserved communities to implement firearm prohibition strategies that reflect their needs. OVW’s Firearms Technical Assistance Project keeps survivors and communities safe by using a holistic, culturally specific approach to firearm relinquishment – addressing the critical and often lethal nexus of firearms and domestic violence.”
FTAP supports the Justice Department’s comprehensive strategy for reducing violent crime and was included in the White House’s Fact Sheet on Highlights from the Biden Administration’s Historic Efforts to Reduce Gun Violence. Under federal law, individuals with domestic violence misdemeanor and felony convictions, as well as individuals subject to domestic violence protective orders, are prohibited from possessing firearms. The data shows that offenders with domestic violence in their past pose a high risk of homicide. In fact, domestic violence abusers with a gun in the home are five times more likely to kill their partners, and in addition to their lethality, firearms are used by abusers to inflict fear, intimidation, and coercive control.
The new FTAP sites will receive direct financial support, ranging from $499,212 to $500,000, as well as technical assistance designed to help each site implement best practices for preventing the use of firearms in domestic violence and incorporate community partners, particularly partner organizations that center underserved populations, into their efforts to implement effective responses to firearms and domestic violence. In 2019, OVW and the National Council of Juvenile and Family Court Judges launched FTAP to help communities implement policies, protocols, and promising practices to prevent abusers from having access to firearms in domestic violence cases. The National Resource Center on Domestic Violence and Firearms is operated by the Battered Women’s Justice Project through OVW funding, and includes a model firearms relinquishment protocol, strategies for communities and spotlights on successful approaches, among other resources.
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Justice Department Announces Investigation of New York City Police Department's Special Victims DivisionRead the Press Release
Kristen Clarke, Assistant Attorney General for the Justice Department’s Civil Rights Division, Damian Williams, the United States Attorney for the Southern District of New York, and Breon Peace, the United States Attorney for the Eastern District of New York, announced today a civil pattern or practice investigation into the Special Victims Division (SVD) of the New York City Police Department (NYPD). The investigation will assess whether the SVD engages in a pattern or practice of gender-biased policing. The investigation will include a comprehensive review of the policies, procedures, and training for SVD investigations of sexual assault crimes, including how SVD interacts with survivors and witnesses, collects evidence, and completes investigations; any steps NYPD has taken to address deficiencies in its handling of sexual assault crimes; how SVD allocates staffing and other resources; and the services and support offered to survivors of sexual assault. As part of this investigation, the Justice Department officials will reach out to community groups and members of the public to learn about their experiences with SVD.
Prior to the announcement, Justice Department (Department) officials notified Mayor Eric Adams, NYPD Commissioner Keechant L. Sewell, and NYC Corporation Counsel Sylvia O. Hinds-Radix, who have pledged to cooperate with the investigation.
Assistant Attorney General Kristen Clarke said: “Survivors of sexual assault should expect effective, trauma-informed and victim-centered investigations by police departments. Based on information provided to the Justice Department, we find significant justification to investigate whether the NYPD’s Special Victims Division engages in a pattern or practice of gender-biased policing. Investigations into sexual assault that comply with the Constitution promote accountability, enhance public safety and foster community trust.”
EDNY U.S. Attorney Breon Peace said: “Respectful, thorough, and complete investigations of sexual assaults are fundamental to a well-functioning justice system. Over the last several months, we have learned concerning information from a variety of sources of historical issues about the way the Special Victims Division has conducted its investigations for many years. Our review is intended to ensure that, going forward, survivors of sexual assault in New York City receive fair and just treatment in the criminal justice system, and as a result, those who engage in sexual violence are held accountable. We appreciate that the NYPD has already taken steps to address these concerns.”
SDNY U.S. Attorney Damian Williams said: “Victims of sex crimes deserve the same rigorous and unbiased investigations of their cases that the NYPD affords to other categories of crime. Likewise, relentless and effective pursuit of perpetrators of sexual violence, unburdened by gender stereotypes or differential treatment, is essential to public safety. We look forward to working with our partners in EDNY and the Civil Rights Division to assess the NYPD’s practices in this area.”
The Department received information alleging deficiencies at SVD that have persisted for more than a decade, depriving survivors and the public of the prompt, thorough, and effective investigations needed to protect public safety. These deficiencies allegedly include failing to conduct basic investigative steps and instead shaming and abusing survivors and re-traumatizing them during investigations.
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The Act allows the Justice Department to remedy such misconduct through civil litigation. The Department will be assessing law enforcement practices under the Fourteenth Amendment to the United States Constitution, as well as the Safe Streets Act of 1968.
The Civil Rights Unit in the Civil Division of the U.S. Attorney’s Office for the Southern District of New York, the Civil Rights Team in the Civil Division of the U.S. Attorney’s Office for the Eastern District of New York, and the Special Litigation Section of the Justice Department’s Civil Rights Division will jointly conduct this investigation. Individuals with relevant information are encouraged to contact the Department via email at [email protected] or by calling 212-637-2746. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at www.civilrights.justice.gov, to the Eastern District of New York at https://www.justice.gov/usao-edny/civil-rights, or to the Southern District of New York at https://www.justice.gov/usao-sdny/civil-rights.
Information specific to the Justice Department’s Civil Rights Division’s Police Reform Work can be found here: https://www.justice.gov/crt/file/922421/download. The Department’s updated guidance on improving law enforcement response to sexual assault and domestic violence can be found here: Improving Law Enforcement Response to Sexual Assault and Domestic Violence by Identifying and Preventing Gender Bias (justice.gov).
Additional information about the U.S. Attorney’s Office for the Eastern District of New York is available on its website at https://www.justice.gov/usao-edny. Additional information about the U.S. Attorney’s Office for the Southern District of New York is available on its website at https://www.justice.gov/usao-sdny. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department Announces Investigation of New York City Police Department’s Special Victims DivisionRead the Press Release
The Justice Department announced today that it has opened a civil pattern or practice investigation into the Special Victims Division (SVD) of the New York City Police Department (NYPD). The investigation will assess whether the SVD engages in a pattern or practice of gender-biased policing. The investigation will include a comprehensive review of the policies, procedures and training for SVD investigations of sexual assault crimes, including how SVD interacts with survivors and witnesses, collects evidence and completes investigations; any steps NYPD has taken to address deficiencies in its handling of sexual assault crimes; how SVD allocates staffing and other resources; and the services and support offered to survivors of sexual assault. As part of this investigation, the Justice Department officials will reach out to community groups and members of the public to learn about their experiences with SVD.
Prior to the announcement, Justice Department officials notified Mayor Eric Adams, NYPD Commissioner Keechant L. Sewell, and NYC Corporation Counsel Sylvia O. Hinds-Radix, who have pledged to cooperate with the investigation.
“Survivors of sexual assault should expect effective, trauma-informed and victim-centered investigations by police departments,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Based on information provided to the Justice Department, we find significant justification to investigate whether the NYPD’s Special Victims Division engages in a pattern or practice of gender-biased policing. Investigations into sexual assault that comply with the Constitution promote accountability, enhance public safety and foster community trust.”
“Respectful, thorough and complete investigations of sexual assaults are fundamental to a well-functioning justice system,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Over the last several months, we have learned concerning information from a variety of sources of historical issues about the way the Special Victims Division has conducted its investigations for many years. Our review is intended to ensure that, going forward, survivors of sexual assault in New York City receive fair and just treatment in the criminal justice system, and as a result, those who engage in sexual violence are held accountable. We appreciate that the NYPD has already taken steps to address these concerns.”
“Victims of sex crimes deserve the same rigorous and unbiased investigations of their cases that the NYPD affords to other categories of crime,” said U.S. Attorney Damian Williams for the Southern District of New York. “Likewise, relentless and effective pursuit of perpetrators of sexual violence, unburdened by gender stereotypes or differential treatment, is essential to public safety. We look forward to working with our partners in EDNY and the Civil Rights Division to assess the NYPD’s practices in this area.”
The department received information alleging deficiencies at SVD that have persisted for more than a decade, depriving survivors and the public of the prompt, thorough and effective investigations needed to protect public safety. These deficiencies allegedly include failing to conduct basic investigative steps and instead shaming and abusing survivors and re-traumatizing them during investigations.
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The act allows the Justice Department to remedy such misconduct through civil litigation. The department will be assessing law enforcement practices under the Fourteenth Amendment to the U.S. Constitution, as well as the Safe Streets Act of 1968.
The Special Litigation Section of the Justice Department’s Civil Rights Division, the Civil Rights Unit in the Civil Division of the U.S. Attorney’s Office for the Southern District of New York, and the Civil Rights Team in the Civil Division of the U.S. Attorney’s Office for the Eastern District of New York will jointly conduct this investigation. Individuals with relevant information are encouraged to contact the department via email at [email protected] or by calling 212-637-2746. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at www.civilrights.justice.gov, to the Eastern District of New York at https://www.justice.gov/usao-edny/civil-rights or to the Southern District of New York at https://www.justice.gov/usao-sdny/civil-rights.
Information specific to the Justice Department’s Civil Rights Division’s police reform work can be found here: https://www.justice.gov/crt/file/922421/download. The department’s updated guidance on improving law enforcement response to sexual assault and domestic violence can be found here: Improving Law Enforcement Response to Sexual Assault and Domestic Violence by Identifying and Preventing Gender Bias (justice.gov).
Additional information about the U.S. Attorney’s Office for the Eastern District of New York is available on its website at https://www.justice.gov/usao-edny. Additional information about the U.S. Attorney’s Office for the Southern District of New York is available on its website at https://www.justice.gov/usao-sdny. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department Announces Investigation of New York City Police Department’s Special Victims DivisionRead the Press Release
Kristen Clarke, Assistant Attorney General for the Justice Department’s Civil Rights Division, Damian Williams, the United States Attorney for the Southern District of New York, and Breon Peace, the United States Attorney for the Eastern District of New York, announced today a civil pattern or practice investigation into the Special Victims Division (SVD) of the New York City Police Department (NYPD). The investigation will assess whether the SVD engages in a pattern or practice of gender-biased policing. The investigation will include a comprehensive review of the policies, procedures, and training for SVD investigations of sexual assault crimes, including how SVD interacts with survivors and witnesses, collects evidence, and completes investigations; any steps NYPD has taken to address deficiencies in its handling of sexual assault crimes; how SVD allocates staffing and other resources; and the services and support offered to survivors of sexual assault. As part of this investigation, the Justice Department officials will reach out to community groups and members of the public to learn about their experiences with SVD.
Prior to the announcement, Justice Department (Department) officials notified Mayor Eric Adams, NYPD Commissioner Keechant L. Sewell, and NYC Corporation Counsel Sylvia O. Hinds-Radix, who have pledged to cooperate with the investigation.
Assistant Attorney General Kristen Clarke said: “Survivors of sexual assault should expect effective, trauma-informed and victim-centered investigations by police departments. Based on information provided to the Justice Department, we find significant justification to investigate whether the NYPD’s Special Victims Division engages in a pattern or practice of gender-biased policing. Investigations into sexual assault that comply with the Constitution promote accountability, enhance public safety and foster community trust.”
SDNY U.S. Attorney Damian Williams said: “Victims of sex crimes deserve the same rigorous and unbiased investigations of their cases that the NYPD affords to other categories of crime. Likewise, relentless and effective pursuit of perpetrators of sexual violence, unburdened by gender stereotypes or differential treatment, is essential to public safety. We look forward to working with our partners in EDNY and the Civil Rights Division to assess the NYPD’s practices in this area.”
EDNY U.S. Attorney Breon Peace said: “Respectful, thorough, and complete investigations of sexual assaults are fundamental to a well-functioning justice system. Over the last several months, we have learned concerning information from a variety of sources of historical issues about the way the Special Victims Division has conducted its investigations for many years. Our review is intended to ensure that, going forward, survivors of sexual assault in New York City receive fair and just treatment in the criminal justice system, and as a result, those who engage in sexual violence are held accountable. We appreciate that the NYPD has already taken steps to address these concerns.”
The Department received information alleging deficiencies at SVD that have persisted for more than a decade, depriving survivors and the public of the prompt, thorough, and effective investigations needed to protect public safety. These deficiencies allegedly include failing to conduct basic investigative steps and instead shaming and abusing survivors and re-traumatizing them during investigations.
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The Act allows the Justice Department to remedy such misconduct through civil litigation. The Department will be assessing law enforcement practices under the Fourteenth Amendment to the United States Constitution, as well as the Safe Streets Act of 1968.
The Civil Rights Unit in the Civil Division of the U.S. Attorney’s Office for the Southern District of New York, and the Civil Rights Team in the Civil Division of the U.S. Attorney’s Office for the Eastern District of New York, and the Special Litigation Section of the Justice Department’s Civil Rights Division will jointly conduct this investigation. Individuals with relevant information are encouraged to contact the Department via email at [email protected] or by calling 212-637-2746. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at www.civilrights.justice.gov, to the Eastern District of New York at https://www.justice.gov/usao-edny/civil-rights, or to the Southern District of New York at https://www.justice.gov/usao-sdny/civil-rights.
Information specific to the Justice Department’s Civil Rights Division’s Police Reform Work can be found here: https://www.justice.gov/crt/file/922421/download. The Department’s updated guidance on improving law enforcement response to sexual assault and domestic violence can be found here: Improving Law Enforcement Response to Sexual Assault and Domestic Violence by Identifying and Preventing Gender Bias (justice.gov).
Additional information about the U.S. Attorney’s Office for the Eastern District of New York is available on its website at https://www.justice.gov/usao-edny. Additional information about the U.S. Attorney’s Office for the Southern District of New York is available on its website at https://www.justice.gov/usao-sdny. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department Announces Enforcement Action Charging Six Individuals with Cryptocurrency Fraud Offenses in Cases Involving over $100 Million in Intended LossesRead the Press Release
The Department of Justice, together with federal law enforcement partners, today announced criminal charges against six defendants in four separate cases for their alleged involvement in cryptocurrency-related fraud, including the largest known Non-Fungible Token (NFT) scheme charged to date, a fraudulent investment fund that purportedly traded on cryptocurrency exchanges, a global Ponzi scheme involving the sale of unregistered crypto securities, and a fraudulent initial coin offering.
“The Department of Justice and our partners are dedicated to using every available tool to protect consumers and investors from fraud and manipulation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These indictments reflect our deep commitment to prosecuting individuals involved in cryptocurrency fraud and market manipulation.”
“Our office is committed to protecting investors from sophisticated scammers seeking to capitalize on the relative novelty of digital currency,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “As with any emerging technology, those who invest in cryptocurrency must beware of profit-making opportunities that appear too good to be true.”
“These cases serve as a crucial reminder that some con artists hide behind trendy buzzwords, but at the end of the day they are simply seeking to separate people from their money,” said U.S. Attorney Tracy L. Wilkison for the Central District of California. “We will continue to work with our law enforcement partners to educate and protect potential investors about both traditional and trendy investments.”
“As cryptocurrency marketplaces advance and offer new opportunities for consumers, criminals also seek ways to exploit them,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI, alongside our law enforcement partners, will continue to investigate and bring those criminals to justice, and to protect the American people.”
“This investigation and prosecution exemplifies the importance of public-private partnerships,” said Executive Associate Director Steve K. Francis of Homeland Security Investigations (HSI). “As a result of our strong relationships with industry partners, HSI received information leading to this investigation and ultimate indictment. HSI will continue to investigate criminal organizations operating in emerging technologies and are proud to have worked with the Department of Justice Fraud Section to put an end to this criminal activity.”
The following charges are announced today as a part of this national enforcement action.
Crypto NFT Scheme:
United States v. Le Ahn Tuan:
Le Anh Tuan, 26, a Vietnamese national, was charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in the Central District of California in connection with a scheme involving the “Baller Ape” NFT. As alleged in the indictment, Tuan was involved in the Baller Ape Club, an NFT investment project that purportedly sold NFTs in the form of various cartoon figures, often including the figure of an ape. According to the indictment, shortly after the first day Baller Ape Club NFTs were publicly sold, Tuan and his co-conspirators engaged in what is known as a “rug pull,” ending the purported investment project, deleting its website, and stealing the investors’ money. Based on blockchain analytics, shortly after the rug pull, Tuan and his co-conspirators laundered investors’ funds through “chain-hopping,” a form of money laundering in which one type of coin is converted to another type and funds are moved across multiple cryptocurrency blockchains, and used decentralized cryptocurrency swap services to obscure the trail of Baller Ape investors’ stolen funds. In total, Tuan and his co-conspirators obtained approximately $2.6 million from investors. If convicted of all counts, Tuan faces up to 40 years in prison. HSI is investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Tian Huang are prosecuting the case.
Crypto Ponzi and Unregistered Securities Scheme:
United States v. Emerson Pires, Flavio Goncalves, and Joshua David Nicholas:
Emerson Pires, 33, and Flavio Goncalves, 33, both of Brazil, and Joshua David Nicholas, 28, of Stuart, Florida, were each charged in the Southern District of Florida with one count of conspiracy to commit wire fraud and one count of conspiracy to commit securities fraud in connection with a global cryptocurrency-based Ponzi scheme that generated approximately $100 million from investors. Pires and Goncalves also were charged with conspiracy to commit international money laundering. The indictment alleges that Pires and Goncalves, both founders of EmpiresX, along with Nicholas, the so-called “Head Trader” for EmpiresX, fraudulently promoted EmpiresX, a cryptocurrency investment platform and unregistered securities offering, by making numerous misrepresentations regarding, among other things, a purported proprietary trading bot and fraudulently guaranteeing returns to investors and prospective investors in EmpiresX. As alleged in the indictment, blockchain analytics shows that Pires and Goncalves then laundered investors’ funds through a foreign-based cryptocurrency exchange and operated a Ponzi scheme by paying earlier investors with money obtained from later EmpiresX investors. If convicted of all counts, Pires and Goncalves face up to 45 years in prison and Nicholas faces up to 25 years in prison. FBI and HSI are investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Sara Hallmark and Assistant U.S. Attorney Yisel Valdes of the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the case.
Crypto Initial Coin Offering Scheme:
United States v. Michael Alan Stollery:
Michael Alan Stollery, 54, of Reseda, California, was the CEO and founder of Titanium Blockchain Infrastructure Services (TBIS), a purported cryptocurrency investment platform. Stollery was charged in an information filed in the Central District of California with one count of securities fraud for his role in a cryptocurrency fraud scheme involving TBIS’s initial coin offering, which raised approximately $21 million from investors in the United States and overseas. As alleged, in order to lure investors, Stollery falsified TBIS white papers (a document for prospective investors that typically explains how the technology underlying the cryptocurrency works and the purpose of the cryptocurrency project), planted fake testimonials on TBIS’s website, and fabricated purported business relationships with the U.S. Federal Reserve Board and dozens of prominent companies, including Apple Inc., Pfizer Inc., and The Walt Disney Company, to create the appearance of legitimacy. If convicted of all counts, Stollery faces up to 20 years in prison. The FBI and the Federal Reserve Board’s Western Region San Francisco Office are investigating the case. Fraud Section Trial Attorneys Kevin Lowell, Tian Huang, and Andrew Tyler are prosecuting the case.
“Those who fraudulently misrepresent their relationship with the Federal Reserve to deceive the public in cryptocurrency or other fraud schemes will be held accountable and brought to justice,” said Acting Special Agent in Charge Cory Nootnagel of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Western Region. “I commend our agents, their federal law enforcement partners, and the Justice Department’s Criminal Division’s Fraud Section for their hard work and persistence.”
Crypto Commodities Scheme:
United States v. David Saffron:
David Saffron, 49, of Las Vegas, Nevada, was the owner of Circle Society, a cryptocurrency investment platform. Saffron used Circle Society to solicit investors to participate in an unregistered commodity pool, which is a fund that combines investors’ contributions to trade on the futures and commodity markets. Saffron was charged in the Central District of California with one count of conspiracy to commit wire fraud, four counts of wire fraud, one count of conspiracy to commit commodities fraud, and one count of obstruction of justice. As alleged in the indictment, Saffron falsely represented to investors that he traded investors’ funds to earn profits using a trading bot that could execute over 17,000 transactions per hour on various cryptocurrency exchanges. Saffron falsely represented that his trading bot would generate between 500% to 600% returns on the amount invested. To entice investors to invest, Saffron allegedly led investor meetings at luxury homes in the Hollywood Hills and elsewhere, and traveled with a team of armed security guards in order to create the false appearance of wealth and success. In total, Saffron fraudulently raised approximately $12 million from investors. If convicted of all counts, Saffron faces up to 115 years in prison. IRS Criminal Investigation (IRS-CI) is investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Theodore Kneller, and Assistant U.S. Attorney James Hughes of the U.S. Attorney’s Office for the Central District of California are prosecuting the case.
“Mr. Saffron preyed on investor interest in cryptocurrency by enticing victims with fake technology and false promises of guaranteed returns,” said Special Agent in Charge Ryan L. Korner of the IRS-CI’s Los Angeles Field Office. “In reality, Mr. Saffron was operating an illegal Ponzi scheme to defraud victim investors and used the funds for his own personal benefit. IRS-CI will pursue and root out these schemes to protect investors, preserve our commodity markets, and bring financial fraudsters to justice.”
Crypto Fraud Victims:
All investor victims of the Baller Ape Club, EmpiresX, TBIS, and Circle Society schemes are encouraged to visit the webpage https://www.justice.gov/criminal-vns/crypto-enforcement to identify themselves as potential victims and obtain more information on their rights as victims, including the ability to submit a victim impact statement.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Announces Enforcement Action Charging Six Individuals with Cryptocurrency Fraud Offenses in Cases Involving over $100 Million in Intended LossesRead the Press Release
LOS ANGELES – The Department of Justice, together with federal law enforcement partners, today announced criminal charges against six defendants in four separate cases for their alleged involvement in cryptocurrency-related fraud, including the largest known Non-Fungible Token (NFT) scheme charged to date, a fraudulent investment fund that purportedly traded on cryptocurrency exchanges, a global Ponzi scheme involving the sale of unregistered crypto securities, and a fraudulent initial coin offering.
“These cases serve as a crucial reminder that some con artists hide behind trendy buzzwords, but at the end of the day they are simply seeking to separate people from their money,” said U.S. Attorney Tracy L. Wilkison for the Central District of California. “We will continue to work with our law enforcement partners to educate and protect potential investors about both traditional and trendy investments.”
“The Department of Justice and our partners are dedicated to using every available tool to protect consumers and investors from fraud and manipulation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These indictments reflect our deep commitment to prosecuting individuals involved in cryptocurrency fraud and market manipulation.”
“Our office is committed to protecting investors from sophisticated scammers seeking to capitalize on the relative novelty of digital currency,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “As with any emerging technology, those who invest in cryptocurrency must beware of profit-making opportunities that appear too good to be true.”
“As cryptocurrency marketplaces advance and offer new opportunities for consumers, criminals also seek ways to exploit them,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI, alongside our law enforcement partners, will continue to investigate and bring those criminals to justice, and to protect the American people.”
“This investigation and prosecution exemplifies the importance of public-private partnerships,” said Executive Associate Director Steve K. Francis of Homeland Security Investigations (HSI). “As a result of our strong relationships with industry partners, HSI received information leading to this investigation and ultimate indictment. HSI will continue to investigate criminal organizations operating in emerging technologies and are proud to have worked with the Department of Justice Fraud Section to put an end to this criminal activity.”
The following charges are announced today as a part of this national enforcement action.
Crypto NFT Scheme:
United States v. Le Ahn Tuan:
Le Anh Tuan, 26, a Vietnamese national, was charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in the Central District of California in connection with a scheme involving the “Baller Ape” NFT. As alleged in the indictment, Tuan was involved in the Baller Ape Club, an NFT investment project that purportedly sold NFTs in the form of various cartoon figures, often including the figure of an ape. According to the indictment, shortly after the first day Baller Ape Club NFTs were publicly sold, Tuan and his co-conspirators engaged in what is known as a “rug pull,” ending the purported investment project, deleting its website, and stealing the investors’ money. Based on blockchain analytics, shortly after the rug pull, Tuan and his co-conspirators laundered investors’ funds through “chain-hopping,” a form of money laundering in which one type of coin is converted to another type and funds are moved across multiple cryptocurrency blockchains, and used decentralized cryptocurrency swap services to obscure the trail of Baller Ape investors’ stolen funds. In total, Tuan and his co-conspirators obtained approximately $2.6 million from investors. If convicted of all counts, Tuan faces up to 40 years in prison. HSI is investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Tian Huang are prosecuting the case.
“HSI is always looking at new trends transnational criminal organizations are exploiting to further their illegal operations” said Acting Special Agent in Charge Selwyn Smith of HSI Baltimore. “In the Baller Ape Club case, cyber criminals used the emerging market of Non-Fungible Tokens (NFT) to prey on investors seeking to diversify their portfolios and stole $2.6 million in cryptocurrency. HSI Baltimore will continue to investigate criminal organizations operating in emerging technologies. HSI Baltimore is proud to have partnered with the Department of Justice Fraud Section.”
Crypto Ponzi and Unregistered Securities Scheme:
United States v. Emerson Pires, Flavio Goncalves, and Joshua David Nicholas:
Emerson Pires, 33, and Flavio Goncalves, 33, both of Brazil, and Joshua David Nicholas, 28, of Stuart, Florida, were each charged in the Southern District of Florida with one count of conspiracy to commit wire fraud and one count of conspiracy to commit securities fraud in connection with a global cryptocurrency-based Ponzi scheme that generated approximately $100 million from investors. Pires and Goncalves also were charged with conspiracy to commit international money laundering. The indictment alleges that Pires and Goncalves, both founders of EmpiresX, along with Nicholas, the so-called “Head Trader” for EmpiresX, fraudulently promoted EmpiresX, a cryptocurrency investment platform and unregistered securities offering, by making numerous misrepresentations regarding, among other things, a purported proprietary trading bot and fraudulently guaranteeing returns to investors and prospective investors in EmpiresX. As alleged in the indictment, blockchain analytics shows that Pires and Goncalves then laundered investors’ funds through a foreign-based cryptocurrency exchange and operated a Ponzi scheme by paying earlier investors with money obtained from later EmpiresX investors. If convicted of all counts, Pires and Goncalves face up to 45 years in prison and Nicholas faces up to 25 years in prison. FBI and HSI are investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Sara Hallmark and Assistant U.S. Attorney Yisel Valdes of the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the case.
Crypto Initial Coin Offering Scheme:
United States v. Michael Alan Stollery:
Michael Alan Stollery, 54, of Reseda, California, was the CEO and founder of Titanium Blockchain Infrastructure Services (TBIS), a purported cryptocurrency investment platform. Stollery was charged in an information filed in the Central District of California with one count of securities fraud for his role in a cryptocurrency fraud scheme involving TBIS’s initial coin offering, which raised approximately $21 million from investors in the United States and overseas. As alleged, in order to lure investors, Stollery falsified TBIS white papers (a document for prospective investors that typically explains how the technology underlying the cryptocurrency works and the purpose of the cryptocurrency project), planted fake testimonials on TBIS’s website, and fabricated purported business relationships with the U.S. Federal Reserve Board and dozens of prominent companies, including Apple Inc., Pfizer Inc., and The Walt Disney Company, to create the appearance of legitimacy. If convicted of all counts, Stollery faces up to 20 years in prison. The FBI and the Federal Reserve Board’s Western Region San Francisco Office are investigating the case. Fraud Section Trial Attorneys Kevin Lowell, Tian Huang, and Andrew Tyler are prosecuting the case.
“Mr. Stollery convinced victims to invest by deceiving them with calculated lies about the profit potential and by artfully creating an illusion that he was well-connected and a proven success,” said Assistant Director in Charge Kristi Johnson of the FBI’s Los Angeles Field Office. “While cryptocurrency investments can be alluring to those seeking the latest opportunity, caution is warranted as the fraud associated with decentralized money investments is pervasive.”
“Those who fraudulently misrepresent their relationship with the Federal Reserve to deceive the public in cryptocurrency or other fraud schemes will be held accountable and brought to justice,” said Acting Special Agent in Charge Cory Nootnagel of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Western Region. “I commend our agents, their federal law enforcement partners, and the Justice Department’s Criminal Division’s Fraud Section for their hard work and persistence.”
Crypto Commodities Scheme:
United States v. David Saffron:
David Saffron, 49, of Las Vegas, Nevada, was the owner of Circle Society, a cryptocurrency investment platform. Saffron used Circle Society to solicit investors to participate in an unregistered commodity pool, which is a fund that combines investors’ contributions to trade on the futures and commodity markets. Saffron was charged in the Central District of California with one count of conspiracy to commit wire fraud, four counts of wire fraud, one count of conspiracy to commit commodities fraud, and one count of obstruction of justice. As alleged in the indictment, Saffron falsely represented to investors that he traded investors’ funds to earn profits using a trading bot that could execute over 17,000 transactions per hour on various cryptocurrency exchanges. Saffron falsely represented that his trading bot would generate between 500% to 600% returns on the amount invested. To entice investors to invest, Saffron allegedly led investor meetings at luxury homes in the Hollywood Hills and elsewhere, and traveled with a team of armed security guards in order to create the false appearance of wealth and success. In total, Saffron fraudulently raised approximately $12 million from investors. If convicted of all counts, Saffron faces up to 115 years in prison. IRS Criminal Investigation (IRS-CI) is investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Theodore Kneller, and Assistant U.S. Attorney James Hughes of the U.S. Attorney’s Office for the Central District of California are prosecuting the case.
“Mr. Saffron preyed on investor interest in cryptocurrency by enticing victims with fake technology and false promises of guaranteed returns,” said Special Agent in Charge Ryan L. Korner of the IRS-CI’s Los Angeles Field Office. “In reality, Mr. Saffron was operating an illegal Ponzi scheme to defraud victim investors and used the funds for his own personal benefit. IRS-CI will pursue and root out these schemes to protect investors, preserve our commodity markets, and bring financial fraudsters to justice.”
Crypto Fraud Victims:
All investor victims of the Baller Ape Club, EmpiresX, TBIS, and Circle Society schemes are encouraged to visit the webpage https://www.justice.gov/criminal-vns/crypto-enforcement to identify themselves as potential victims and obtain more information on their rights as victims, including the ability to submit a victim impact statement.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Announces Additional Distribution of Approximately $92 Million to Victims in FIFA Corruption CaseRead the Press Release
The Department of Justice announced today a further distribution of approximately $92 million in compensation for losses suffered by FIFA, the world organizing body of soccer; CONCACAF, the confederation responsible for soccer governance in North and Central America, among other jurisdictions; CONMEBOL, the confederation responsible for soccer governance in South America; and various constituent national soccer federations (collectively, the “Victims”).
The funds, which were remitted following the Justice Department’s recognition of losses and grant of remission up to a total of $201 million in August 2021, were forfeited to the United States in the Eastern District of New York as part of the government’s long-running investigation and prosecution of corruption in international soccer. To date, the prosecutions have resulted in charges against more than 50 individual and corporate defendants from more than 20 countries, primarily in connection with the offer and receipt of bribes and kickbacks paid by sports marketing companies to soccer officials in exchange for the media and marketing rights to various soccer tournaments and events and the laundering of those payments.
“From the beginning of the FIFA investigation and prosecutions, one of the department’s primary goals has been to make the victims whole,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The department has used every tool at its disposal to make this a reality, while depriving the perpetrators of the proceeds of their crimes. This distribution of approximately $92 million as compensation for losses suffered highlights the importance of asset forfeiture as a critical tool in this endeavor.”
“Today’s distribution of more than $80 million underscores our commitment to returning money obtained through the corruption and fraud prosecuted in this case to the victims of that corruption, where it will be used to benefit the sport,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Over much of the past decade, this investigation and prosecution has concentrated on bringing wrongdoers to justice and recovering ill-gotten gains. Our office, working in collaboration with our law enforcement partners and colleagues in the Department of Justice, will continue our work to compensate victims of crime.”
“There was an extraordinary amount of money flowing between corrupt officials and businesses in this massive scheme,” said Assistant Director in Charge Michael J. Driscoll of the FBI’s New York Field Office. “It is gratifying to know assets seized from the criminals involved will be distributed to groups in need of the money, one specifically focused on educating and safeguarding football for women and girls. The silver lining is that some good will come from the rampant greed uncovered in this investigation.”
“As the distributions to victims have demonstrated, IRS-CI and our law enforcement partners will leave no stones unturned when it comes to conducting investigations involving financial crimes,” said Special Agent in Charge Ryan L. Korner of IRS-Criminal Investigation (IRS-CI) Los Angeles. “Not only have dozens of individuals been brought to justice through the course of the investigation, but the additional $92 million will be returned in full to the victims to help compensate them for the injuries caused by this corruption.”
On May 27, 2015, an indictment was unsealed charging 14 FIFA officials and sports marketing executives with racketeering, honest services wire fraud and money laundering offenses, among others. On Dec. 3, 2015, a superseding indictment was unsealed charging an additional 16 FIFA officials with similar crimes. During the course of the prosecutions, 27 individual defendants have pleaded guilty to their roles in the charged crimes. In December 2017, two former FIFA officials, Juan Ángel Napout, of Paraguay, and José Maria Marin, of Brazil, were convicted after trial of racketeering conspiracy and related offenses. Four corporate entities have pleaded guilty and others, including banks, have acknowledged their roles in criminal conduct through deferred prosecution or non-prosecution agreements.
As part of these proceedings, many of the defendants were ordered to forfeit assets obtained through their criminal activity. Under federal law, the Department of Justice has the authority to distribute the proceeds of forfeited assets through the remission process to victims of crimes, including to the soccer organizations that employed and were defrauded by the corrupt soccer executives.
FIFA, CONCACAF, and CONMEBOL have committed to distributing funds received through the remission process, including $32.3 million previously remitted in August 2021, to and through a newly created World Football Remission Fund (the “Fund”) focused on women’s/girl’s football (soccer), education, safeguarding, youth programs, community outreach, and humanitarian needs. The Fund has been established under the FIFA Foundation, an independent foundation that uses soccer, and sport in general, as a tool for social development. The terms of the Fund provide for oversight and independent audit measures to ensure remitted funds are distributed appropriately.
Assistant U.S. Attorneys Samuel P. Nitze, M. Kristin Mace, Victor A. Zapana, Brian D. Morris, and Kaitlin T. Farrell are in charge of the prosecution, petition, solicitation, and providing recommendations on the victims’ petitions. Assistant U.S. Attorney Lauren H. Elbert and Trial Attorney Christian Nauvel and former Trial Attorney Michael Grady of the Money Laundering and Asset Recovery Section joined in the investigation and prosecution of the banks.
The Justice Department, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime. The victim compensation payments in the FIFA case would not have been possible without the extraordinary efforts of the Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section, which reviewed and approved the victims’ petition for remission; the FBI’s New York Field Office; and the IRS-CI.
Jury Convicts Father and Son of Multiple Conspiracies in Extensive Food Stamp Fraud SchemeRead the Press Release
OAKLAND – A federal jury yesterday convicted son Ali Mugalli Hassan and father Mugalli Ahmed Hassan of multiple counts involving government benefits fraud and conspiracies to commit such fraud, announced United States Attorney Stephanie M. Hinds and United States Department of Agriculture Office of Inspector General (USDA-OIG) Western Region Special Agent in Charge Dustin Cladis. The verdicts follow a one-week jury trial before United States Chief District Judge Phyllis J. Hamilton in Oakland.
Ali Mugalli Hassan, 32, of Alameda, and Mugalli Ahmed Hassan, 50, also of Alameda, were charged on March 14, 2019, in a multiple count superseding indictment along with another family member, co-defendant Ahmed Ahmed Hasan Dharahan, 41, of Oakland. The superseding indictment alleged the defendants defrauded the United States Department of Agriculture (USDA) by unlawfully trafficking federal food stamp benefits from 2014 through 2017.
Yesterday afternoon, a jury convicted son Ali and his father Mugalli of all four charges against them. Specifically, son and father were each convicted of conspiracy to defraud the United States; government benefits fraud greater than $5,000; conspiracy to commit wire fraud; and wire fraud.
According to evidence presented at trial, Ali Mugalli Hassan owned and operated a convenience store on International Boulevard in Oakland. Members of Ali’s family served as cashiers at the store, including his father Mugalli Ahmed Hassan and his uncle Ahmed Ahmed Hasan Dharahan. The convenience store was an authorized vendor for the USDA’s Supplemental Nutritional Assistance Program (SNAP), formerly known as the Food Stamp Program. SNAP helps economically disadvantaged persons pay for essential food items for themselves and their families. Program recipients receive their benefits via an electronic benefits transaction (EBT) card, which operates much like a debit card but limits purchases to program-eligible items. The store conducted a high-volume of SNAP transactions, including redeeming over $2.3 million in SNAP benefits between August 2014 and November 2017.
Trial evidence showed that the defendants conducted fraudulent SNAP transactions through the convenience store by charging purchases on the customers’ EBT cards, when in reality the customers received few or no SNAP-eligible products. The defendants kept approximately half the value of the fraudulent transactions and returned the remainder in cash to the customers. As part of the scheme, the defendants also kept customers’ EBT cards and used the federal benefits assigned to those cards at other stores to purchase items to sell at their own convenience store.
Evidence at trial described numerous instances of this fraud over multiple years. For example, evidence showed that the defendants engaged in 10 fraudulent transactions with undercover agents as well as over a hundred additional fraudulent transactions shown on surveillance video. The evidence further showed that the defendants’ store engaged in over $2.3 million in SNAP transactions over an approximately three-year period, in contrast to the average medium grocer in Alameda County that redeemed just $520,000.
The federal jury today convicted Ali Mugalli Hassan and Mugalli Ahmed Hassan of one count of conspiracy to commit benefits fraud and to defraud the United States in violation of 18 U.S.C. § 371, which carries a maximum penalty of five years imprisonment. Ali Mugalli Hassan and Mugalli Ahmed Hassan were each also convicted of one count of benefits fraud greater than $5,000 in violation of 7 U.S.C. § 2024(b), one count of conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349, and one count of wire fraud in violation of 18 U.S.C. § 1343. Before trial began Mugalli Ahmed Hassan also pleaded guilty to nine other charged counts of wire fraud in violation of 18 U.S.C. § 1343. Each conviction of a violation of 7 U.S.C. §2024(b) and of 18 U.S.C. §§ 1349 and 1343 carries a maximum sentence of 20 years imprisonment. All of the above counts of conviction carry a maximum fine of $250,000. However, any sentence for these convictions will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
United States Chief District Judge Phyllis J. Hamilton scheduled a sentencing hearing for both defendants on December 8, 2022. Both defendants remain out of custody pending sentencing.
Co-defendant Ahmed Ahmed Hasan Dharahan’s case is still pending. A trial date has not yet been set in his case.
Assistant U.S. Attorneys Abraham Fine and Molly Priedeman prosecuted the case at trial with the assistance of Patricia Mahoney, Kay Konopaske, and Leeya Kekona. The prosecution is the result of an investigation by the USDA-OIG with the assistance of the Oakland Police Department, the U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Indianapolis Man Sentenced to 18 Months in Federal Prison for Possessing a Firearm while Subject to a Domestic Violence Protective OrderRead the Press Release
INDIANAPOLIS – Jaylon Dorsey, 25, of Indianapolis was sentenced to 18 months in federal prison after pleading guilty to possessing a firearm while subject to a protective order.
According to court documents, on May 14, 2021, officers from the Indianapolis Metropolitan Police Department (IMPD) stopped a vehicle that Dorsey was driving. Officers recognized Dorsey from previous contacts and knew he had an outstanding arrest warrant from Marion County for violating a protective order and intimidation. During Dorsey’s arrest, officers located a loaded handgun under the driver’s seat of Dorsey’s vehicle. At that time, Dorsey was subject to a domestic violence protective order, which had been issued on behalf of Dorsey’s girlfriend. This court order prohibited Dorsey from possessing firearms under federal law.
Evidence presented at sentencing showed that Dorsey has a history of domestic violence and threatening behavior towards his girlfriend, women, law enforcement, and other members of the public.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Chief Randal Taylor, IMPD, and Daryl S. McCormick, Special Agent in Charge of the ATF’s Columbus Field Division made the announcement.
The Indianapolis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. The sentence was imposed by U.S. District Judge James Patrick Hanlon following Dorsey’s guilty plea. As part of the sentence, Judge Hanlon ordered that Dorsey be supervised by the U.S. Probation Office for 3 years following his release from prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kelsey Massa who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of IMPD Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the ATF, IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Hot Springs Man Sentenced to 18 Years in Federal Prison for Drug and Firearms PossessionRead the Press Release
HOT SPRINGS – A Hot Springs man was sentenced today to 216 months in prison followed by five years of supervised release on one count of Possession with Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Offense. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the U.S. District Court in Hot Springs.
According to court documents, on February 26, 2019, the Hot Springs Police Department (HSPD) received a complaint concerning a vehicle attempting to ram another vehicle. A HSPD Officer responded to the area and was able to observe the vehicle and the altercation. A traffic stop was initiated on the vehicle at that time.
The driver of the vehicle was identified as Ralph Andrew Stevens, age 37. Stevens was questioned and ultimately determined to be on parole through the state of Arkansas. Stevens was searched and officers located a clear drug pipe with white residue in his jacket pocket. Stevens was placed in custody at this time.
A search of Stevens vehicle resulted in officers locating two (2) loaded firearms, approximately 163 grams of suspected marijuana, approximately 101.8 grams of methamphetamine and drug paraphernalia. Officers also located and seized $3,916.00 in United States currency.
The suspected methamphetamine was tested by the Drug Enforcement Administration laboratory and confirmed to be not less than 93.56 grams of pure methamphetamine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Hot Springs Police Department investigated the case.
Assistant U.S. Attorney Bryan Achorn prosecuted the case.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This effort is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Honduran Man Charged with Illegal ReentryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Fausto Lorenzo-Gomez, age 31, was charged yesterday by a federal grand jury with illegal reentry into the United States by a previously deported alien.
According to United States Attorney Gerard M. Karam, Lorenzo-Gomez, a citizen of Honduras, had been deported in September 2019. He is alleged to have illegally reentered the United States sometime after that date. He was located in the United States in York County, Pennsylvania, during a traffic stop.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and is being prosecuted by Assistant United States Attorney Jaime M. Keating.
Lorenzo-Gomez faces a maximum penalty of 2 years of imprisonment, a term of supervised release following imprisonment, and a fine. 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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Hartselle Man Pleads Guilty to Attempted Kidnapping and Sexual AssaultRead the Press Release
BIRMINGHAM, Ala. – Yesterday, a Hartselle man pleaded guilty to using the internet to orchestrate an attempted kidnapping and sexual assault, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
Matthias Jacob Edward Mann, 22, of Hartselle, pleaded guilty before U.S. District Judge Abdul K. Kallon to attempted kidnapping and attempted inducement of an individual to travel in interstate commerce to commit an illegal sex act. As part of the plea agreement, the parties stipulated to a 180-month term of imprisonment for Mann’s crimes.
According to the plea agreement, on December 29, 2021, an undercover detective with the Owatonna, Minnesota Police Department was monitoring the public Kik group “Abduction and R@pe 3.” During that time, the Kik User “Dylan H.,” who was determined to be Mann, posted in the group, asking for someone to abduct and sexually assault a woman from Wisconsin. The undercover detective responded and told Dylan H. that he was in Minnesota and would be interested.
On December 30, 2021, the undercover detective recorded a telephone conversation with Mann. On the call, Mann confirmed that his request for the abduction and sexual assault of the victim was not a fantasy. Mann provided the undercover detective with photos and a physical address of the victim, who he stated was a former friend. Mann requested a video to confirm that the abduction and sexual assault was carried out as requested. During their subsequent conversations, Mann agreed to pay the undercover detective gas money to travel to Wisconsin from Minnesota and approximately $2,000.00 once the abduction and sexual assault had been completed. Mann paid the undercover detective $75 on January 5, 2022.
Federal agents arrested Mann on the morning of January 6, 2022, in Hartselle, Alabama.
“This case highlights the dangers of the internet and how an online relationship can quickly take a turn into dangerous territory. Law enforcement is to be commended for their quick response across four states and among several different local, state, and federal agencies. They coordinated their efforts to ensure that the victim was safe, and then worked expeditiously to identify the defendant and arrest him.” said U.S. Attorney Prim F. Escalona.
“The crimes that Mann has pled guilty to are deplorable. I’m proud of the work of my agents and our partners to bring him to the justice he deserves,” said Johnnie Sharp, Jr., Special Agent in Charge, Federal Bureau of Investigation.
The FBI-Birmingham Division investigated the case along with the Sun Prairie, Wisconsin Police Department; Owatonna, Minnesota Police Department; and FBI-Atlanta Division. Hartselle Police Department also provided assistance. Assistant U.S. Attorneys Laura D. Hodge and John M. Hundscheid are prosecuting the case.
Hartford Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ERIC WHITE, 31, of Hartford, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of unlawful possession of a firearm by a felon.
According to court documents and statements made in court, on February 17, 2021, Hartford Police arrested White after they found him in possession of a loaded .45 caliber Taurus handgun.
White’s criminal history includes state felony convictions for assault and narcotics offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
White has been detained since his arrest. Judge Dooley scheduled sentencing for September 30 at which time White faces a maximum term of imprisonment of 10 years.
This investigation has been conducted by the Federal Bureau of Investigation’s Connecticut Violent Crime Task Force and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Glenham Man Sentenced for Bank FraudRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Glenham, South Dakota, man convicted of Bank Fraud was sentenced on June 27, 2022, by U.S. District Judge Charles B. Kornmann.
Gabe Outtrim, age 43, was sentenced to 21 months in federal prison, followed by five years of supervised release, restitution in the amount of $144,050.94, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Outtrim was indicted by a federal grand jury on August 3, 2021. He pled guilty on December 7, 2021.
The conviction stemmed from incidents beginning on approximately September 17, 2018, and continuing through February 21, 2019, when Outtrim, who was the branch manager and vice-president of the CorTrust Bank branch in Leola, South Dakota, knowingly executed a scheme to defraud the bank.
In his capacity, Outtrim had lending authority to approve loans up to $200,000 without having to send the loan application and supporting documentation to the bank’s loan committee for review and approval.
Outtrim made a nominee loan in the name of an unknowing bank customer and used the loan proceeds for his own benefit.
This case was investigated by the FBI. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Outtrim was allowed to self-surrender by October 4, 2022.
Gangster Disciple Sentenced to Five Years in Prison for Fentanyl TraffickingRead the Press Release
BOSTON – A member of the Gangster Disciple street gang was sentenced yesterday in federal court in Boston on drug distribution charges involving fentanyl.
Manuel Roderick, 44, of Auburn, Maine, was sentenced by U.S. District Court Judge Leo T. Sorokin to five years in prison and four years of supervised release. Earlier in the hearing, Roderick pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl.
“In communities across our Commonwealth and the country, drug traffickers use local dealers to peddle their poison on the vulnerable,” said United States Attorney Rachael S. Rollins. “Addressing and ending the opioid crisis is a huge priority of my administration. And we are targeting fentanyl dealers. That particular opioid is up to 50 times stronger than heroin and up to 100 times stronger than morphine. Today’s sentence should make clear that we will seek significant sentences and subsequent oversight for these types of crimes.”
“Manuel Roderick will now spend the next five years behind bars after we caught him red-handed trafficking fentanyl, having traveled down from Maine to buy it at a reduced price. He and his fellow gang members have flooded our neighborhoods with deadly drugs, furthering the scourge of opioids in our communities,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Our North Shore Gang Task Force will continue to work with our law enforcement partners to get drug dealers like him, and the gangs they belong to, off our streets for good.”
This case stemmed from a larger investigation into members and drug suppliers of the Gangster Disciples street gang operating in the greater Lawrence area, allegedly led by Justin Suriel. In March 2021, Roderick was observed visiting Suriel’s residence for what appeared to be a drug transaction. During a subsequent traffic stop, law enforcement seized 107 grams of powdered fentanyl in a large plastic bag from Roderick’s vehicle. According to court documents, during the traffic stop, Roderick admitted to law enforcement that he bought narcotics from Suriel and was a Gangster Disciple gang member.
Suriel was arrested in November 2021. He has pleaded not guilty and is pending trial.
U.S. Attorney Rollins, FBI SAC Bonavolonta and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Philip C. Cheng of Rollins’ Organized Crime & Gang Unit prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fresno Man Charged with Passport Fraud for Using a Deceased Child’s Identity to Renew a PassportRead the Press Release
FRESNO, Calif. — On May 26, 2022, a federal grand jury indicted Kenneth Laitman, aka John Rodman, 78, of Fresno, for passport fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 1984, Laitman left his job as a stockbroker in New York and moved to California where he assumed the identity of John Rodman and worked at an endoscopy practice. The actual John Rodman died in 1950 at the age of four.
Laitman subsequently obtained various forms of identification, worked jobs, opened bank accounts, received government benefits, and took other actions while falsely using Rodman’s identity. This included a U.S. Passport that he obtained in 2004 and used to travel overseas on multiple occasions. He is charged with attempting to renew that passport in 2014.
This case is the product of an investigation by the Diplomatic Security Service, the Social Security Administration Office of Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If convicted, Laitman faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Below are pictures of Laitman through the years. Anyone with knowledge of his activities is encouraged to contact the FBI at 916-746-7000 or at tips.fbi.gov.
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Four Windsor Men Charged with Trafficking Counterfeit Oxycodone Pills Containing FentanylRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that the following four men were arrested yesterday on federal narcotics distribution charges primarily related to the large-scale trafficking of counterfeit pills containing fentanyl:
MICHAEL LEE, 24, of Windsor
ALEXANDER LEE, 21, of Windsor
DARYL BEAUFORT, 24, of Windsor
JUSTIN LITTLE, 24, of WindsorAs alleged in court documents and statements made in court, the DEA New Haven Tactical Diversion Squad has been investigating a drug trafficking organization led by Michael Lee and his brother Alexander Lee. The investigation, which has included court-authorized wiretaps, controlled purchases of narcotics and the seizure of drugs that had been shipped through the U.S. Mail, revealed that Michael Lee, Alexander Lee and others received thousands of counterfeit oxycodone pills containing fentanyl, and other controlled substances, from a source of supply on the west coast of the U.S., and then distributed the drugs to various street-level distributors in Connecticut, including Beaufort and Little, and numerous drug customers.
During the investigation and in association with yesterday’s arrests, investigators seized more than 15,000 counterfeit oxycodone tablets containing fentanyl, more than 1,800 alprazolam tablets (commonly referred to as “Xanax”), approximately 25 pounds of marijuana, seven firearms, and thousands of dollars in cash.
The defendants were arrested on criminal complaints charging each with conspiracy to possess with intent to distribute controlled substances, and possession with intent to distribute and distribution of controlled substances.
Each defendant appeared yesterday before U.S. District Judge Robert A. Richardson in Hartford. Michael and Alexander Lee are currently detained, and Beaufort and Little were released on bonds.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the DEA New Haven Tactical Diversion Squad, with the assistance of the U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; Connecticut State Police; East Central Narcotics Task Force; and the Windsor and Enfield Police Departments. The DEA Tactical Diversion Squad is composed of personnel from the DEA and the Watertown, East Windsor, Manchester, Glastonbury, New Britain, West Haven, Hamden and Newington Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Stephanie T. Levick through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Fort Wayne Man Sentenced to 195 Months in PrisonRead the Press Release
FORT WAYNE – Jamic C. Johnson, 47 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady on his plea of guilty to possessing with intent to distribute methamphetamine, possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Johnson was sentenced to 195 months in prison followed by 5 years of supervised release.
According to documents in the case, on October 28, 2020, a state search warrant was served on Johnson’s residence. During the search, officers seized a distribution amount of methamphetamine, cocaine, a loaded handgun, a drug ledger, a loaded shotgun, additional ammunition, magazines, pills, and a scale. Johnson’s criminal history revealed he was convicted of multiple felony offenses. One of the felonies was for carrying a handgun without a license and the other two were for dealing cocaine or a narcotic drug. Any of these felony convictions federally prohibit him from possessing a firearm or ammunition.
This case was investigated by the Drug Enforcement Administration with the assistance of the Allen County Drug Task Force and Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Head Coach of Women's Soccer at the University of Southern California Sentenced in College Admissions CaseRead the Press Release
BOSTON – The former head coach of women’s soccer at the University of Southern California (USC) was sentenced yesterday for his role in the college admissions bribery scheme.
Ali Khosroshahin, 52, of Fountain Valley, Calif., was sentenced by U.S. District Court Judge Indira Talwani to time served and one year of supervised release with the first six months to be served in home confinement. Khosroshahin was also ordered to pay forfeiture in the amount of $208,990. In June 2019, Khosroshahin pleaded guilty to conspiracy to commit racketeering. Khosroshahin cooperated with the government’s investigation.
While serving as the head women’s soccer coach at USC, Khosroshahin conspired with William “Rick” Singer and others to facilitate the admission of student applicants to USC as purported recruits for the women’s soccer team in exchange for bribes. Specifically, Khosroshahin and co-conspirator Laura Janke, an assistant coach for the women’s soccer team, together purported to recruit one or two of Singer’s students to the USC women’s soccer team each year. In reality, Khosroshahin knew the students were not legitimate Division I college-level soccer recruits, and he was not actually recruiting them to be members of his team. To deceive USC’s subcommittee on athletic admissions into believing the students were legitimate recruits, Khosroshahin and Janke submitted falsified athletic “profiles,” which they either received from Singer or created themselves and which made the students appear to be elite high school athletes. In exchange, Singer paid Khosroshahin and Janke bribes, funded by the money from his clients, in the form of checks from his fake charity, the Key Worldwide Foundation, made out to the USC soccer program or to their private soccer club. In addition, Khosroshahin continued his involvement in the scheme after his USC tenure by encouraging other coaches to work with Singer and receiving payments when he facilitated “side door” deals through those coaches.
On June 28, 2022, Janke was sentenced by Judge Talwani to time served and one year of supervised release, with 50 hours of community service.
Case information, including the status of each defendant, is available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Stephen E. Frank, Leslie A. Wright, Kristen A. Kearney and Ian Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Female MS-13 Gang Associate Pleads Guilty to 2019 Murder of 15-Year-Old in Central IslipRead the Press Release
Earlier today, in federal court in Central Islip, Lidia DelCarmen-Rodriguez, an associate of the Leeward Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to aiding and abetting the use of a firearm, which caused the death of 15-year-old Jasson Medrano-Molina, on August 7, 2019 in Central Islip. The proceeding was held before United States Circuit Judge Joseph F. Bianco.
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.
“The defendant today admitted that she helped carry out a despicable crime by luring a 15-year-old boy to his violent death as part of the MS-13 gang’s agenda to attack and kill their rivals,” stated United States Attorney Peace. “It is my sincere hope that the family of this young victim can find some solace in knowing that the individuals responsible for this crime have been brought to justice. This Office, in partnership with the Long Island Gang Task Force, will continue to work tirelessly to prevent these senseless killings and eliminate gang violence that endangers our communities.”
“The senseless violence that MS-13 carries out is incomprehensible and we will continue to dedicate resources to and work with our law enforcement partners to hold these gang members accountable,” stated SCPD Commissioner Harrison. “This attack had the potential to take even more lives and we must send a message to this criminal organization, that no matter your age, if you act like an adult, you will pay the price as one.”
Mr. Peace thanked the Suffolk County District Attorney’s Office for its assistance with the prosecution.
According to court filings and statements by the defendant at the guilty plea proceeding, in July and August 2019, the defendant and other MS-13 members and associates were seeking to identify, attack and kill individuals whom they believed were rival gang members in an effort to elevate their own positions in the gang. The defendant and her co-conspirators targeted several individuals, including Medrano-Molina, who were suspected of being members of the rival 18th Street gang. In the early morning hours of August 7, 2019, she lured Medrano-Molina and two other individuals to a secluded wooded area in Central Islip, where two of her co-conspirators, who were armed with a .40 caliber handgun and a baseball bat, were waiting. Upon realizing the ambush, Medrano-Molina and the other two individuals ran away. Medrano-Molina was pursued, and fatally shot multiple times at close range. The other two individuals were able to escape unharmed.
DelCarmen-Rodriguez is now 19 years old, and was 16 years old at the time of the Medrano-Molina murder. She was initially charged by complaint on August 21, 2019, and, thereafter, a juvenile information on September 20, 2019, both of which were both filed under seal in the Eastern District of New York. A juvenile transfer hearing was held on December 14, 2021, and she was ultimately transferred to adult status by order of the Court, dated January 26, 2022. In connection with her plea today, the defendant waived indictment and a Superseding Information, charging her as an adult, was filed publicly.
In October 2021, co-conspirator Jose Omar Sorto Portillo, also a member of the Leeward Locos Salvatruchas clique of MS-13, pleaded guilty to murder in aid of racketeering for his participation in the murder of Medrano-Molina. He is currently awaiting sentencing.
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 and associates 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 and associates with carrying out more than 60 murders in the district, and has convicted dozens of MS-13 leaders, members, and associates 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, New York State Police, Hempstead Police Department, Rockville Centre Police Department, and 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, Megan E. Farrell, and Special Assistant United States Attorney Kathleen Kearon are in charge of the prosecution.
The Defendant:
LIDIA DELCARMEN-RODRIGUEZ
Age: 19
Central Islip, New YorkE.D.N.Y. Docket No. 19-CR-431 (S-1)(JFB)
Federal Jury Convicts Vian Resident of Aggravated Sexual Abuse of A Child in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Joshua Thomas Smith, age 41, of Vian, Oklahoma, was found guilty by a Federal jury of Aggravated Sexual Abuse of a Child in Indian Country.
The jury trial began with testimony on Monday, June 27, 2022, and concluded on Wednesday, June 29, 2022, with the guilty verdict.
During the trial, the United States presented evidence that Joshua Thomas Smith sexually abused a child under the age of twelve from December of 2017 through March of 2018.
The guilty verdict was the result of an investigation by the Sequoyah County Sheriff’s Office and the Federal Bureau of Investigation.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant is a member of a federally recognized Indian tribe and the crime occurred in Sequoyah County, within the boundaries of the Cherokee Nation Reservation, and within the Eastern District of Oklahoma.
The Honorable Bernard M. Jones, II, U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting in Oklahoma City, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Smith was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorneys Edith Singer and Hannah Jones represented the United States.
Fayette County Man Sentenced to 10 Years in Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Fayette County man was sentenced today to 10 years in prison, to be followed by five years of supervised release, for possession with intent to distribute 50 grams or more of methamphetamine.
According to court documents and statements made in court, Joshua Lee Parsons, 42, of Powellton, admitted to ordering controlled substances on the dark web and having the controlled substances shipped to him at his residence. On February 24, 2021, the United States Customs and Border Protection at the John F. Kennedy International Mail Center in New York seized approximately 49 grams of heroin from an inbound international parcel addressed to Parsons and his residence. On March 1, 2021, the United States Customs and Border Protection at the John F. Kennedy International Mail Facility seized approximately 34 grams of MDMA, commonly known as Ecstasy, from another inbound international parcel addressed to Parsons and his residence. On March 8, 2021, several law enforcement agencies conducted a controlled delivery of the parcel and executed a search warrant at Parsons’ residence. During the search, officers recovered a loaded Hi-Point .380-caliber handgun and multiple controlled substances including approximately 66 grams of methamphetamine packaged in 103 separate bags, approximately 27 grams of heroin, and quantities of MDMA, ketamine, LSD, psilocin, and DMT.
Parsons admitted that he intended to sell the methamphetamine. Parsons told officers that he had another parcel that contained methamphetamine that he ordered and had shipped to him at his residence. On March 15, 2021, law enforcement intercepted that parcel, which contained approximately 223 grams of methamphetamine.
United States Attorney Will Thompson made the announcement and commended the work of the United States Department of Homeland Security, the United States Customs and Border Protection, the United States Postal Inspection Service, the West Virginia State Police, the Central West Virginia Drug Task Force, the Metro Drug Enforcement Network Team (MDENT), and the West Virginia National Guard Reconnaissance and Aerial Interdiction Detachment.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-93.
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Essex County Man Sentenced to Five Years in Prison for Drug DistributionRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 60 months in prison for conspiring to distribute cocaine base and distributing fentanyl and cocaine base, U.S. Attorney Philip R. Sellinger announced.
Marvin Lagrier, aka “Black Jesus,” 40, of Newark, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to a superseding information charging him with one count of possession with intent to distribute 40 grams or more of fentanyl. Lagrier was a Newark Housing Authority employee at the time of his arrest. Judge Arleo imposed the sentence today by videoconference.
A codefendant, Tyrell Wilson, aka “Hell Rell,” 37, of Rahway, New Jersey, previously pleaded guilty to an information charging him with one count of conspiracy to distribute 280 grams or more of cocaine base and one count of possession with intent to distribute 280 grams or more of cocaine base. Judge Arleo sentenced Wilson on Feb. 14, 2022, to 10 years in prison.
According to documents filed in this case and statements made in court:
On Sept. 19, 2019, law enforcement officers approached an apartment in Essex County, New Jersey, to execute a court-authorized search warrant. Wilson and Lagrier exited the apartment and attempted to flee the area but were apprehended and placed under arrest. Upon searching the apartment, as well as Wilson’s vehicle and a backpack that Wilson discarded while fleeing, law enforcement officers recovered a large amount of cocaine base, heroin, and fentanyl as well as many items of drug paraphernalia for packaging narcotics. Law enforcement officers also recovered a firearm and several rounds of ammunition as well as several cellular phones. They also recovered several brown Newark Housing Authority uniforms bearing the name tag, “Marvin,” which matched the uniform that Lagrier wore at the time of his arrest.
In addition to the prison term, Judge Arleo sentenced Lagrier to four years of supervised release.
U.S. Attorney Sellinger credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, and members of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s sentencing.
This case is part of the Violent Crime Initiative (VCI), which was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, the Orange Police Department and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Tracey Agnew and Special Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office Organized Crime/Gang Unit in Newark.
Elk City Doctor Pays $95,000 to Settle Civil Penalty Claims Stemming from Allegations of Recordkeeping Violations Relating to the Purchase of FentanylRead the Press Release
OKLAHOMA CITY – Brian Blick, M.D. ("Dr. Blick"), has paid $95,000 to settle civil penalty claims stemming from allegations that he violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 and its regulations, announced United States Attorney Robert J. Troester.
The United States alleges that from March 18, 2020 to March 1, 2022, Dr. Blick ordered controlled substances that were delivered to the Western Oklahoma Pain Specialists clinic (the "Clinic") in Elk City, Oklahoma, but failed to maintain the proper records for some of the purchases. More specifically, Dr. Blick failed to maintain the DEA 222 order forms related to purchases of fentanyl, a Schedule II controlled substance, and failed to annotate on the DEA 222 order forms the quantities and dates fentanyl was delivered to the Clinic. To resolve these allegations, Dr. Blick agreed to pay $95,000 to the United States.
In reaching this settlement, Dr. Blick did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration, Office of Diversion Control. Assistant U.S. Attorneys Ronald R. Gallegos and Amanda R. Johnson prosecuted the case.
Eight Time Convicted Felon Sentenced to 6 Years in Federal Prison for Possessing A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell today sentenced Deuntay Robertson (30, Sarasota) to 6 years in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Robertson to forfeit a Bersa Thunder 380 CC, .380 caliber pistol and four rounds of ammunition. Robertson had pleaded guilty on March 11, 2022.
According to court documents, on February 9, 2021, law enforcement officers were working an undercover operation in Sarasota. Robertson approached the undercover law enforcement vehicle and offered to sell the undercover officers cocaine base. Robertson instructed the undercover officers to meet him around the corner.
Two uniformed law enforcement officers approached and detained Robertson as he went to meet the undercover officers. The officers conducted a pat-down search of Robertson and recovered a loaded firearm, a digital scale, cocaine base, and eutylone. Robertson later confessed to possessing the firearm. At the time of this offense, Robertson had multiple prior felony convictions and therefore is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Eagle Butte Man Sentenced for Prohibited Person in Possession of a FirearmRead the Press Release
United States Attorney Alison J. Ramsdell announced that an Eagle Butte, South Dakota, man convicted of Prohibited Person in Possession of a Firearm was sentenced on June 27, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Tahlon Ducheneaux, age 29, was sentenced to 62 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Ducheneaux was indicted by a federal grand jury on July 13, 2021. He pled guilty on March 28, 2022.
The conviction stems from an incident on March 23, 2021, in Eagle Butte during a traffic stop, in which Ducheneaux was the passenger in the vehicle. During a search of the vehicle, law enforcement located a red backpack that belonged to Ducheneaux and inside the bag found a pistol and drug paraphernalia. Ducheneaux is a felon and an unlawful user of a controlled substance, making him a prohibited person.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services, the Northern Plains Safe Trails Drug Enforcement Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan Dilges prosecuted the case.
Ducheneaux was immediately turned over to the custody of the U.S. Marshals Service.
Doc Antle, Owner of Myrtle Beach Safari, and Others Indicted for Federal Wildlife Trafficking and Money Laundering CrimesRead the Press Release
A federal grand jury in Florence, South Carolina returned a 10-count indictment alleging charges related to wildlife trafficking and money laundering against five individuals:
- Bhagavan Mahamayavi Antle, aka Kevin Antle, aka Doc Antle, 62, of Myrtle Beach;
- Andrew Jon Sawyer aka Omar Sawyer, 52, of Myrtle Beach;
- Meredith Bybee, aka Moksha Bybee, 51, of Myrtle Beach;
- Charles Sammut, 61, of Salinas, California; and
- Jason Clay, 42, of Franklin, Texas.
According to the indictment and other court records, Antle is the owner and operator of The Institute for Greatly Endangered and Rare Species (T.I.G.E.R.S.), also known as the Myrtle Beach Safari. The Myrtle Beach Safari is a 50-acre wildlife tropical preserve in Myrtle Beach. Sawyer and Bybee are Antle’s employees and business associates.
Sammut is the owner and operator of Vision Quest Ranch, a for-profit corporation that housed captive exotic species and sold tours and safari experiences to guests. Clay is the owner and operator of the Franklin Drive Thru Safari, a for-profit corporation that housed captive exotic species and sold tours and safari experiences to guests.
The indictment alleges that Antle, at various times along with Bybee, Sammut and Clay, illegally trafficked wildlife in violation of federal law, including the Lacey Act and the Endangered Species Act, and made false records regarding that wildlife. The animals involved included lemurs, cheetahs and a chimpanzee.
The indictment and a previously-filed federal complaint in the case also allege that over the last several months, Antle and Sawyer laundered more than $500,000 in cash they believed to be the proceeds of an operation to smuggle illegal immigrants across the Mexican border into the United States. The filings allege that Antle had used bulk cash receipts to purchase animals for which he could not use checks, and that Antle planned to conceal the cash he received by inflating tourist numbers at the Myrtle Beach Safari.
Antle and Sawyer each face a maximum of 20 years in federal prison for the charges related to money laundering, and up to five years in federal prison for the charges related to wildlife trafficking. Bybee, Sammut and Clay each face up to five years in federal prison for the charges related to the wildlife trafficking. Antle and Sawyer were previously granted a bond by a federal magistrate judge as a result of the charges in the federal complaint, and Bybee, Sammut and Clay are pending arraignment.
The case was investigated by the FBI and the U.S. Fish and Wildlife Service. The prosecutors on the case are Assistant U.S. Attorneys Derek A. Shoemake and Amy Bower for the District of South Carolina and Senior Trial Attorney Patrick M. Duggan of the Justice Department’s Environment and Natural Resources Division, Environmental Crimes Section.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty.
Doc Antle, Owner of Myrtle Beach Safari, and Others Indicted for Federal Wildlife Trafficking and Money Laundering CrimesRead the Press Release
FLORENCE, SOUTH CAROLINA — A federal grand jury in Florence returned a 10-count indictment alleging charges related to wildlife trafficking and money laundering against five individuals:
- Bhagavan Mahamayavi Antle, a/k/a Kevin Antle, a/k/a Doc Antle, 62, of Myrtle Beach;
- Andrew Jon Sawyer a/k/a Omar Sawyer, 52, of Myrtle Beach;
- Meredith Bybee, a/k/a Moksha Bybee, 51, of Myrtle Beach;
- Charles Sammut, 61, of Salinas, California; and
- Jason Clay, 42, of Franklin, Texas
According to the indictment and other court records, Antle is the owner and operator of The Institute for Greatly Endangered and Rare Species (T.I.G.E.R.S), also known as the Myrtle Beach Safari. The Myrtle Beach Safari is a 50-acre wildlife tropical preserve in Myrtle Beach. Sawyer and Bybee are Antle’s employees and business associates.
Sammut is the owner and operator of Vision Quest Ranch, a for-profit corporation that housed captive exotic species and sold tours and safari experiences to guests. Clay is the owner and operator of the Franklin Drive Thru Safari, a for-profit corporation that housed captive exotic species and sold tours and safari experiences to guests.
The indictment alleges that Antle, at various times along with Bybee, Sammut, and Clay, illegally trafficked wildlife in violation of federal law, including the Lacey Act and the Endangered Species Act, and made false records regarding that wildlife. The animals involved included lemurs, cheetahs, and a chimpanzee.
The indictment and a previously-filed federal complaint in the case also allege that over the last several months, Antle and Sawyer laundered more than $500,000 in cash they believed to be the proceeds of an operation to smuggle illegal immigrants across the Mexican border into the United States. The filings allege that Antle had used bulk cash receipts to purchase animals for which he could not use checks, and that Antle planned to conceal the cash he received by inflating tourist numbers at the Myrtle Beach Safari.
Antle and Sawyer each face a maximum of 20 years in federal prison for the charges related to money laundering, and up to five years in federal prison for the charges related to wildlife trafficking. Bybee, Sammut, and Clay each face up to five years in federal prison for the charges related to the wildlife trafficking. Antle and Sawyer were previously granted a bond by a federal magistrate judge as a result of the charges in the federal complaint, and Bybee, Sammut, and Clay are pending arraignment.
The case was investigated by the Federal Bureau of Investigation (FBI) and the U.S. Fish and Wildlife Service. The prosecutors on the case are Assistant U.S. Attorneys Derek A. Shoemake and Amy Bower, with the District of South Carolina, and DOJ Senior Trial Attorney Patrick M. Duggan with DOJ’s Environment and Natural Resources Division’s Environmental Crimes Section
U.S. Attorney Corey F. Ellis stated that all charges in the indictment are merely accusations and that the defendants are presumed innocent unless and until proven guilty.
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antle_indictment.pdfDiesel Trucking Companies Conspire to Violate Clean Air ActRead the Press Release
Denver – The United States Attorney’s Office for the District of Colorado announces that Pro Diesel Inc. and Endrizzi Diesel, LLC were sentenced this month for conspiring with a Colorado-based diesel shop to tamper with the computers that monitor emissions control systems on Class 8, commercial heavy-duty diesel trucks.
Both diesel shops previously pled guilty to conspiring with a Colorado diesel shop identified as “E.D.” to disable the vehicles’ on-board diagnostic systems (“OBDs”) software programming, in violation of Title 18, United States Code, Section 371. The diesel shops deleted emission controls on the vehicles and hired E.D. to disable the OBDs so they would no longer detect the malfunctions in the emissions control systems, allowing the vehicles to run seemingly normally. This tampering enabled the vehicle owners to avoid maintenance costs. However, as a result of removing the emission controls, the vehicles release tons of excess nitrogen oxides, carbon monoxide, non-methane hydrocarbons, and particulate matter. The excess pollutant load is particularly substantial because Class 8 vehicles are the heaviest class of vehicle and include the semi-tractor trailers that were tampered with in this case. These toxic pollutants contribute to high levels of ozone and smog and present a danger to public health.
Missouri-based Endrizzi Diesel, LLC admitted to paying E.D. more than $149,000 to disable the OBDs on approximately 60 Class 8 heavy-duty trucks, and Iowa-based Pro Diesel Inc. admitted to paying E.D. more than $76,000 to disable the OBDs on 34 Class 8 heavy-duty trucks. A third diesel shop, Wisconsin-based McDermid Sales & Service, Inc., pled guilty on May 26, 2022 to conspiring with E.D. to violate the Clean Air Act. McDermid admitted to paying E.D. more than $71,000 to disable the OBDs on approximately 32 Class 8 heavy-duty trucks.
Both Endrizzi Diesel and Pro Diesel were sentenced to three-year terms of probation that include stringent monitoring, compliance, and reporting requirements to ensure that neither shop engages in further emissions tampering. Both shops also agreed to pay fines, with a portion of the penalty directed towards community service projects designed to address the environmental harms that resulted from each defendant’s conduct. Endrizzi Diesel was ordered to pay $110,000 to the Walnut Grove, Missouri school district to help purchase cleaner school buses, as well as a fine of $55,000 to the general court fund. Pro Diesel was ordered to pay $77,500 to the Des Moines Area Community College to develop a curriculum to teach diesel mechanic students about emission controls on diesel engines, how to detect tampering, how to restore tampered vehicles, and the legal ramifications of tampering violations. Pro Diesel was also ordered to pay a fine of $38,750 to the general court fund.
“The primary purpose of the Clean Air Act is to protect the quality of the nation’s air resources. When companies or individuals conspire to violate this federal law, they must be held accountable,” said U.S. Attorney Cole Finegan.
“By deleting the emission controls from heavy duty Class 8 vehicles and overriding the on-board diagnostics system that monitors these controls, the defendants are responsible for the release of tons of excess pollutants,” said Lance Ehrig, Special Agent in Charge of the Environmental Protection Agency’s Criminal Enforcement Program, West-Central Region. “This illegal practice and the excess pollutants emitted have serious consequences for air quality and public health. These sentencings clearly demonstrate the EPA’s commitment to vigorously enforce laws designed to protect public health and the environment.”
Pro Diesel, Inc. was sentenced by Judge Daniel Domenico on June 14, 2022. Endrizzi Diesel was sentenced by Judge Regina Rodriguez on June 29, 2022. McDermid Sales & Service, Inc. will be sentenced by Judge Philip A. Brimmer on August 5, 2022.
These cases are being prosecuted by Assistant United States Attorney Rebecca Weber and Special Assistant United States Attorney Linda Kato.
Case numbers: 22-cr-00064-RMR, 22-cr-00062-DDD, 22-cr-00065-PAB.
To report a suspected violation of environmental laws and regulations go to https://echo.epa.gov/report-environmental-violations.
Department of Justice Announces Additional Distribution of $92 Million to Victims in FIFA Corruption CaseRead the Press Release
The Department of Justice announced today a further distribution of approximately $92 million in compensation for losses suffered by FIFA, the world organizing body of soccer; CONCACAF, the confederation responsible for soccer governance in North and Central America, among other jurisdictions; CONMEBOL, the confederation responsible for soccer governance in South America; and various constituent national soccer federations (collectively, the “Victims”). The funds, which were remitted following the department’s recognition of losses and grant of remission up to a total of $201 million in August 2021, were forfeited to the United States in the Eastern District of New York as part of the government’s long-running investigation and prosecution of corruption in international soccer. To date, the prosecutions have resulted in charges against more than 50 individual and corporate defendants from more than 20 countries, primarily in connection with the offer and receipt of bribes and kickbacks paid by sports marketing companies to soccer officials in exchange for the media and marketing rights to various soccer tournaments and events and the laundering of those payments.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Ryan L. Korner, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, Los Angeles (IRS-CI), made the announcement.
“Today’s distribution of approximately $92 million underscores our commitment to returning money obtained through the corruption and fraud prosecuted in this case to the victims, where it will be used to benefit the sport,” stated United States Attorney Peace. “Over much of the past decade, this investigation and prosecution has concentrated on bringing wrongdoers to justice and recovering ill-gotten gains. Our Office, working in collaboration with our law enforcement partners and colleagues in the Department of Justice, will continue our work to compensate victims of crime.”
“From the beginning of the FIFA investigation and prosecutions, one of the department’s primary goals has been to make the victims whole,” stated Assistant Attorney General Polite. “The department has used every tool at its disposal to make this a reality, while depriving the perpetrators of the proceeds of their crimes. This distribution of approximately $92 million as compensation for losses suffered highlights the importance of asset forfeiture as a critical tool in this endeavor.”
“There was an extraordinary amount of money flowing between corrupt officials and businesses in this massive scheme,” stated FBI Assistant Director-in-Charge Driscoll. “It is gratifying to know assets seized from the criminals involved will be distributed to groups in need of the money, one specifically focused on educating and safeguarding football for women and girls. The silver lining is that some good will come from the rampant greed uncovered in this investigation.”
“As the distributions to victims have demonstrated, IRS-CI and our law enforcement partners will leave no stones unturned when it comes to conducting investigations involving financial crimes,” stated IRS-CI Special Agent-in-Charge Korner. “Not only have dozens of individuals been brought to justice through the course of the investigation, but the additional $92 million will be returned in full to the victims to help compensate them for the injuries caused by this corruption.”
On May 27, 2015, an indictment was unsealed charging 14 FIFA officials and sports marketing executives with racketeering, honest services wire fraud and money laundering offenses, among others. On December 3, 2015, a superseding indictment was unsealed charging an additional 16 FIFA officials with similar crimes. During the course of the prosecutions, 27 individual defendants have pleaded guilty to their roles in the charged crimes. In December 2017, two former FIFA officials, Juan Ángel Napout and Jose Maria Marin, were convicted after trial of racketeering conspiracy and related offenses. Four corporate entities have pleaded guilty and others, including banks, have acknowledged their roles in criminal conduct through deferred prosecution or non-prosecution agreements.
As part of these proceedings, many of the defendants were ordered to forfeit assets obtained through their criminal activity. Under federal law, the Department of Justice has the authority to distribute the proceeds of forfeited assets through the remission process to victims of crimes, including to the soccer organizations that employed and were defrauded by the corrupt soccer executives.
FIFA, CONCACAF, and CONMEBOL have committed to distributing funds received through the remission process, including $32.3 million previously remitted in August 2021, to and through a newly created World Football Remission Fund (the “Fund”) focused on women’s/girl’s football, education, safeguarding, youth programs, community outreach and humanitarian needs. The fund has been established under the FIFA Foundation, an independent foundation that uses soccer, and sport in general, as a tool for social development. The terms of the Fund provide for oversight and independent audit measures to ensure remitted funds are distributed appropriately.
Assistant U.S. Attorneys Samuel P. Nitze, M. Kristin Mace, Brian D. Morris, Kaitlin T. Farrell, and Victor A. Zapana are in charge of the prosecution and the petition, solicitation, and providing recommendations on the victims’ petitions. Assistant U.S. Attorney Lauren H. Elbert and Trial Attorney Christian Nauvel and former Trial Attorney Michael Grady of the Money Laundering and Asset Recovery Section joined in the investigation and prosecution of the banks.
The Justice Department, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime. The victim compensation payments in the FIFA case would not have been possible without the extraordinary efforts of the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section, which reviewed and approved the victims’ petition for remission; the FBI’s New York Field Office; and the Internal Revenue Service-Criminal Investigation.
Delta Airlines to Pay $10.5 Million to Settle False Claims Act Allegations for Falsely Reporting Delivery Times of U.S. Mail Carried InternationallyRead the Press Release
The Justice Department announced today that Delta Airlines Inc. (Delta) has agreed to pay $10.5 million to resolve its alleged liability under the False Claims Act for falsely reporting information about the transfer of U.S. mail to foreign posts or other intended recipients under contracts with the U.S. Postal Service (USPS). Delta is an international air carrier incorporated in Delaware with headquarters in Atlanta, Georgia.
“The United States expects the air carriers with which the USPS contracts to accurately report the services they provide,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The resolution announced today reflects the department’s commitment to pursuing contractors that do not meet their contractual obligations to the United States and misrepresent their failure to perform.”
USPS contracted with Delta to take possession of receptacles of U.S. mail at six locations in the United States or at various Department of Defense and State Department locations abroad, and then deliver that mail to numerous international and domestic destinations. To obtain payment under the contracts, Delta was required to submit electronic scans of the mail receptacles to USPS reporting the time the mail was delivered at the identified destinations. The contracts specified penalties for mail that was delivered late or to the wrong location. The settlement resolves allegations that scans submitted by Delta falsely reported the time and fact that it transferred possession of the mail.
“The USPS contracts with commercial airlines for the safeguarding and timely delivery of U.S. mail to foreign posts, including the mail sent to our soldiers deployed to foreign operating bases,” said Executive Special Agent in Charge Ken Cleevely of USPS, Office of Inspector General (OIG). “The OIG supports the Postal Service by aggressively investigating allegations of contractual non-compliance within the mail delivery process, including the falsification of delivery information. Our special agents worked hand-in-hand with the Department of Justice to help ensure a reasonable resolution and we applaud the exceptional work done by the investigative and legal teams.”
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, with substantial assistance from the USPS OIG and the USPS Office of General Counsel. Senior Trial Counsel Don Williamson of the Civil Division’s Commercial Litigation Branch, Fraud Section, represented the government in the civil case. This is the sixth civil settlement involving air carrier liability for false delivery scans under the USPS ICAIR Contracts, and collectively the United States has recovered more than $80 million as a result of its investigation of such misconduct.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Convicted Felon Sentenced to 5 Years in Federal Prison for Illegal Possession of FirearmsRead the Press Release
EVANSVILLE – Matthew Allen Green, 39, of Evansville, was sentenced to 5 years in federal prison after pleading guilty to being a felon in possession of a firearm.
According to court documents, on November 10, 2020, law enforcement officers stopped a truck driven by Green after observing multiple traffic violations. Green was the sole occupant of the truck. During the investigation, officers discovered a loaded revolver inside the truck and a loaded semi-automatic pistol on Green’s person. Green is prohibited from lawfully possessing firearms due to multiple prior felony convictions, including trafficking in a controlled substance (fentanyl) in Henderson County, Kentucky and robbery in Vanderburgh County, Indiana.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana and Vanderburgh County Sheriff Dave Wedding made the announcement.
The Evansville-Vanderburgh County Drug Task Force and Vanderburgh County Sheriff’s Office investigated the case. The Federal Bureau of Investigation also provided valuable assistance. The sentence was imposed by U.S. District Judge Richard L. Young following the defendant’s guilty plea. As part of the sentence, Judge Young ordered that the defendant be supervised by the U.S. Probation Office for 2 years following his release from prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kristian R. Mukoski who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.