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8 August 2022
Three Defendants Sentenced in Fraud and Identity Theft Scam Targeting Customers of Banks and Credit UnionsRead the Press Release
Three Miami Residents Stole $1,400,000 From Hundreds of Depositors by Posing as Security Officials to Obtain Access to Online Accounts.
GRAND RAPIDS, MICHIGAN — U.S. District Judge Paul Maloney today sentenced Cedric Smith to a prison term of 70 months. His sentence is the last handed down in a West Michigan federal case charging three Miami, Florida residents with bank fraud and aggravated identity theft.
In February 2021, a grand jury charged Cedric Smith, Daja Smith and Devonte Hoskins with stealing the identities of customers of banks and credit unions and then using that information to commit widespread fraud. Prior to today’s sentence, Judge Maloney ordered Daja Smith to a prison term of five years; Devonte Hoskins received a term of six years.
The fraudulent scheme exploited the online system used by customers of banks and credit unions everywhere. The defendants identified a targeted customer’s online account using compromised personal information they purchased from computer hackers on the internet. To obtain a customer’s confidential password and access to the money in the customer’s account, the defendants called the customer, posing as bank security personnel, and induced the victim to share the onetime code a bank sends its customers when they need to reset their password. Then defendants drained the victim’s account and moved the money to where they could use it for their own purposes. The defendants, operating out of Miami, Florida, targeted victims around the U.S. in this fashion, including customers of United Federal Credit Union in St. Joseph, Michigan. Total losses are estimated at $1,400,000.
U.S. Attorney Mark Totten stated he was pleased with the convictions and sentences. “Online thieves like these think they will never be caught because they can hide on the internet. They are wrong. We have the tools to identify and hunt them down, even if they committed their crimes from hundreds of miles away. And that is what we will do.”
“These defendants may have thought they were beyond the reach of law enforcement because their crimes were committed entirely online," said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “They were sorely mistaken. The FBI treats these types of financial crimes very seriously and we will use our considerable resources to bring cybercriminals to justice.”
This case was investigated by the St. Joseph office of the Federal Bureau of Investigation. Prosecution was handled by Assistant United States Attorney Timothy VerHey.
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Tampa Area Man Arrested for Robbing Businesses While Brandishing A FirearmRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces the arrest and filing of a criminal complaint charging Donald Robert Smith (27, Tampa) with two Hobbs Act robberies and brandishing a firearm during the commission of those robberies. If convicted, Smith faces up to 20 years for each robbery. The firearm charges will carry a mandatory minimum term of imprisonment of 7 years, and up to, life in prison consecutive to any other term of imprisonment.
According to the complaint, on August 1, 2022, Smith robbed a restaurant in Tampa. While the restaurant employee was preparing a soft drink for Smith, Smith pointed a firearm at the employee and demanded money. Two days later, on August 3, 2022, Smith robbed a retail establishment in Tampa. He approached a store employee who was at the cash register, pointed a firearm at them, and demanded money from the register.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff’s Office, and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Samantha Newman.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case 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.
Syracuse Man Convicted of Conspiracy to Distribute Methamphetamine and Heroin and Firearms ViolationsRead the Press Release
SALT LAKE CITY- on August 3, 2022, after a two-week trial, a federal jury in the District of Utah found Christopher Flynn, 38, of Syracuse, guilty of conspiracy to distribute methamphetamine, conspiracy to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm as a convicted felon.
At trial, federal prosecutors presented evidence that Flynn worked with others to sell $720,000 dollars’ worth of methamphetamine and heroin along the Wasatch Front. Evidence was also presented that Flynn traded 16 firearms, 6 of which were stolen, to his supplier as payment for narcotics.
The jury found Flynn guilty of conspiring with his co-defendants to distribute heroin and methamphetamine. Flynn was also convicted of the possession of a handgun which he used in furtherance of the distribution of methamphetamine and heroin. Because Flynn had previously been convicted of a felony, it was also illegal for Flynn to possess a firearm at any time. Flynn’s co-defendants previously pleaded guilty to similar charges.
Assistant United States Attorney Aaron Flater and Special Assistant United States Attorney Michael Gadd tried the case against the defendant. Special Agents from the ATF, DEA, and the Davis Metro Narcotics Strike Force conducted the investigation.
Sentencing in this matter is currently set for November 10, 2022.
St. Louis man sentenced to 15 years in prison on carjacking, gun chargesRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Monday sentenced a man involved in two carjackings and the theft of a gun after a shooting to 15 years in prison.
Jeremiah Couch, 32, pleaded guilty in April to two carjacking charges, a charge of possession of a stolen firearm and a charge of being a felon in possession of a firearm.
Couch admitted stealing a Mini Draco AK-47-style pistol on Oct. 17, 2019 from a man who had just been shot in the 5500 block of South 37th Street in St. Louis.
On Oct. 19, 2019, Couch and two others stole a 2020 Jeep Cherokee from outside a home located in the 4100 block of Camellia Avenue in St. Louis, as well as the driver’s phone.
Couch also admitted stealing a man’s 2007 Ford Edge and his money at gunpoint on Oct. 21, 2019 in the 4700 block of South Spring Avenue in St. Louis.
Saint Louis Metropolitan Police Department officers spotted the stolen car less than two hours later. Couch sped off, but crashed while exiting Interstate 70 at West Florissant Avenue. He was caught a short distance away, and officers found a pistol and a shotgun behind the driver’s seat of the stolen car.
The case was investigated by the Saint Louis Metropolitan Police Department and the FBI.
St. Louis man admits threatening to blow up a St. Louis synagogueRead the Press Release
ST. LOUIS – A man from St. Louis on Monday admitted threatening to blow up a St. Louis synagogue in 2021.
Cody Steven Rush admitted calling the St. Louis office of the FBI on Nov. 5, 2021 and saying, “I’m going to blow up a church.” Rush gave his name and identified his target as the Central Reform Congregation in St. Louis. Rush said he would take action the next morning, when people were inside. Rush said he hated Jewish people. He called back later and again threatened to attack the synagogue “while they are in service.” Asked if had anything else he wanted to say, Rush said, “Yeah, that I hate them with rage.”
In a third call, Rush gave his location, which was on the same street as the CRC. When authorities called Rush back, he again made threats.
Officers with the St. Louis Metropolitan Police Department, the St. Louis County Police Department and the FBI found Rush, who told them, “I am feeling suicidal and homicidal. I just feel like killing Jews.” He was arrested without incident.
Rush, 30, pleaded guilty Monday in front of U.S. District Judge Henry E. Autrey to use of a telephone and instrument of interstate commerce to make a threat. The charge carries a potential sentence of up to 10 years in prison. He is scheduled to be sentenced Nov. 8.
The case was investigated by the FBI, the St. Louis Metropolitan Police Department and the St. Louis County Police Department.
St. Louis man admits federal murder-for-hire plot, drug chargeRead the Press Release
ST. LOUIS – A man from St. Louis pleaded guilty Monday to a murder-for-hire charge and a drug conspiracy charge and admitted trying to have a man who owed him more than $100,000 killed.
Kevin Cunningham, 36, pleaded guilty Monday in front of U.S. District Judge Audrey G. Fleissig to the murder-for-hire charge. He pleaded guilty later in the day in front of U.S. District Judge Henry E. Autrey to a charge of conspiring to distribute fentanyl.
Cunningham admitted as part of his plea that the victim owed more than $100,000, and that he approached higher-ranking members in the conspiracy to arrange the victim's murder. A Mexico-based member of the organization connected a confidential source secretly working with the Drug Enforcement Administration to a woman working with the drug group. The woman said the confidential source and an associate would each get $5,000 for the murder and gave the source Cunningham’s phone number.
On Oct. 13, 2021, the source and another person met with Cunningham, who said he wanted them to pick up the debtor, get as much money as they could from him and kill him.
Cunningham later texted a picture of the target and his address to the source and provided them with $600 in expense money and four firearms.
Cunningham and a co-defendant were arrested after the guns were handed over.
Cunningham agreed in his plea to forfeit those guns: two .45-caliber pistols, a 12-gauge shotgun and an AR-15 style pistol with a 50-round drum magazine. He is scheduled to be sentenced in November.
"We often say that drug trafficking and violence are closely connected," said Assistant Special Agent in Charge Colin Dickey of the DEA’s St. Louis office. “But this case of murder between drug traffickers shows the people in this illegal industry have no limits to the criminal activities they are willing to engage in. Selling fentanyl that causes overdose deaths and plotting to kill someone? It’s best for St. Louis that this man will not be on our streets.”
The case was investigated by the St. Louis County Police Department and the Drug Enforcement Administration.
Shots fired call leads to conviction of San Benito manRead the Press Release
BROWNSVILLE, Texas - A 27-year-old man has pleaded guilty to illegally possessing numerous firearms, announced U.S. Attorney Jennifer B. Lowery.
Marco Antonio Moreno pleaded guilty to unlawfully possessing four semiautomatic rifles and five pistols while under felony indictment.
On May 8, 2021, law enforcement responded to reports of shots fired at a residence located in San Benito. Upon arrival, they encountered Moreno who denied discharging a firearm. He claimed unknown individuals had entered his property and shot a gun.
However, they observed spent shell casings in the area and asked Moreno if he owned any firearms. He said he did not and granted consent to search his residence.
After entering the residence, authorities discovered various amounts of illegal narcotics as well as numerous firearms, including three AR-15 style semiautomatic rifles, one AK-47 style semiautomatic pistol, one .45-caliber rifle and four handguns. They also found over 450 rounds of ammunition of various calibers.
At that time, Moreno was under indictment for charges of unlawful use of a criminal instrument. He was, therefore, prohibited from possessing any firearms or ammunition.
U.S. District Judge Fernando Rodriguez Jr. will impose sentencing Nov. 15. At that time, Moreno faces up to five years in federal prison and a possible $250,000 maximum fine.
He will remain in custody pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Brownsville Police Department and Cameron County Sheriff’s Office. Assistant U.S. Attorney Edgardo J. Rodriguez is prosecuting the case.
Rome-area methamphetamine distributor and money launderer sentenced after trialRead the Press Release
ROME, Ga. - Juan Cain Valencia-Ramirez has been sentenced for conspiring to distribute large quantities of methamphetamine and to launder drug money.
“This defendant was responsible for importing, processing and distributing hundreds of kilograms of methamphetamine in the metro-Atlanta and Northwest Georgia areas,” said U.S. Attorney Ryan K. Buchanan. “His long history of methamphetamine dealing and eluding arrest has ended thanks to the coordinated efforts of DEA and other federal and local law enforcement partners.”
“No matter how sophisticated the techniques get for smuggling drugs, the DEA and its law enforcement partners remain a step ahead of criminals and will deny them the opportunity to destroy communities with their insidious drugs,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This investigation was a success as it dismantled a once-thriving meth ring in North Georgia.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: In April 2018, Juan Cain Valencia-Ramirez operated a methamphetamine processing and distribution cell in Rome, Georgia. Valencia-Ramirez processed liquid methamphetamine imported in vehicle gas tanks from Mexico and coordinated the distribution of the drugs in metro-Atlanta and Northwest Georgia. He also directed associates to deposit thousands of dollars in drug money that he funneled through bank accounts.
Valencia-Ramirez had remained an elusive law enforcement target because he frequently changed phones and relied on associates to complete drug deals. But federal investigators successfully tracked Valencia-Ramirez’s phone to his residence in Rome following an undercover methamphetamine purchase during which DEA agents recorded a phone call with him.
Undercover agents again recorded a phone call with Valencia-Ramirez during an attempted methamphetamine purchase in September 2018. In October 2018, DEA agents, the Dalton Police Department, and the Rome/Floyd Metro Task Force searched Valencia-Ramirez’s stash house located in a wooded area outside Rome. During the search, investigators recovered approximately 176 kilograms of crystal methamphetamine (worth more than $1.1 million at 2018 prices), evidence of a methamphetamine processing lab, and several firearms. The drugs were buried in caches of camouflaged ice chests and plastic bins concealed in the woods around the property.
Valencia-Ramirez fled to Houston, Texas, following the search, where he continued managing his methamphetamine and money laundering operation. In November 2018, DEA agents searched a stash house belonging to Valencia-Ramirez in Houston where they seized approximately 17 kilograms of methamphetamine. DEA agents eventually located him in June 2019 in Smyrna, Georgia, and arrested him. That same day, agents searched the residence of two of Valencia-Ramirez’s co-defendants, Javier Rivera and Jasmine Garcia, and found more methamphetamine and firearms.
Juan Cain Valencia-Ramirez, a/k/a “Chapa,” 39, of Rome, Georgia, was sentenced to 22 years, one month in prison to be followed by five years of supervised release. On November 1, 2021, a jury convicted Valencia-Ramirez of the offenses of conspiracy to distribute methamphetamine, distribution of methamphetamine, attempted distribution of methamphetamine, and conspiracy to launder money.
The following co-defendants pleaded guilty, including several who have been sentenced:
- Javier Rivera, 26, of Lawrenceville, Georgia, was sentenced to 17 years and one month of imprisonment, followed by five years of supervised release. He pleaded guilty to the offenses of conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking offense, and conspiracy to launder money on December 11, 2020.
- Luis Perez, 28, of Norcross, Georgia, was sentenced to 11 years and 10 months of imprisonment, followed by five years of supervised release. He pleaded guilty to the offense of conspiracy to distribute methamphetamine on March 12, 2020.
- Ricky McPherson, 26, of Rome, Georgia, was sentenced to five years and five months of imprisonment, followed by five years of supervised release. He pleaded guilty to the offense of conspiracy to distribute methamphetamine on October 16, 2019.
- Jasmine Garcia, 24, of Lawrenceville, Georgia, pleaded guilty to the offenses of conspiracy to distribute methamphetamine, conspiracy to launder money, and possession of a firearm in furtherance of a drug trafficking offense on December 1, 2020, and is awaiting sentencing.
This case was investigated by the Drug Enforcement Administration, with assistance provided by IRS Criminal Investigations, the Dalton Police Department, and the Rome/Floyd Metro Task Force.
Assistant U.S. Attorneys John DeGenova and Nicholas Joy prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Ringleader of credit card skimming scheme sent to prisonRead the Press Release
HOUSTON - A 31-year-old Cuban citizen who resided in Houston has been sentenced for his role as leader of an organization that installed hundreds of credit card skimmers in Southeast Texas over the last six years, announced U.S. Attorney Jennifer B. Lowery.
Durlan Garica-Pupo pleaded guilty May 18, 2021, to one count of conspiracy to commit fraud in connection with access devices and one count of aggravated identity theft.
Today, U.S. District Judge Lee Rosenthal sentenced Durlan Garcia-Pupo to 60 months in prison for the conspiracy. He also must serve 24 months for the aggravated identity theft which must be served consecutively for a total 84-month prison term. In handing down the sentence, Judge Rosenthal noted Garcia-Pupo’s leadership role in the scheme, sophistication of the scheme and the volume of stolen personal information involved. Garcia-Pupo is expected to face removal proceedings following his incarceration.
From 2017 through 2019, Garcia-Pupo directed other members of the scheme to install credit card skimmers at gas station pumps located around Harris and Montgomery counties to steal personal and banking information. Garcia-Pupo also used at least one of those stolen identities himself to purchase fuel.
Authorities executed a search at his residence and found a laptop computer filled with up to 1500 stolen credit card numbers as well as materials to make credit card skimmers. Garcia-Pupo and his co-defendants would either sell the stolen information to other criminals or use the information to buy fuel that was then resold at much lower prices to generate cash.
Two others - Lazaro Martinez-Garcia, 36, Houston, and Julio Cesar Blanco-Diaz, 41, Houston, were previously sentenced to 33 and 24 months, respectively.
Garcia-Pupo has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Thomas H. Carter prosecuted the case.
Retired New Jersey Doctor Convicted at Trial of Selling Toxic Chemical as Weight-loss DrugRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that William Merlino, 85, of Mays Landing, NJ, was convicted at trial of selling misbranded drugs online, arising from his scheme to sell a toxic industrial chemical as a weight-loss drug which he manufactured in a lab in his home.
In December 2019, the defendant was charged with one count of introduction of misbranded drugs into interstate commerce in connection with operating a business through which he packaged and sold Dinitriophenol (DNP) for human consumption from at least November 2017 until March 2019. In the 1930s, before the law required drugs to be proven safe before they were marketed, DNP was used as a weight-loss drug despite significant negative side effects, including dehydration, cataracts, liver damage, and death. The chemical has never been approved for human consumption by the U.S. Food and Drug Administration, but has a variety of industrial/commercial uses, such as herbicides, dyes, and wood preservatives. Using Twitter to advertise, eBay to sell, and email to communicate with clients, Merlino earned approximately $54,000 from clients in the U.S., Canada, and the U.K. through the sale of this drug. During trial, a witness from the shipping service the defendant used to ship the drug to customers testified that they referred to Merlino among their colleagues as ‘the yellow man,’ due to the fact that every time he would bring in a package to ship, he would have yellow dust from the chemical on his skin, nails and clothes.
After a year-long investigation by the FDA, investigators served a search warrant at the defendant’s residence, where they found bulk DNP, packaging and encapsulating materials, and a pill press. Subsequently, while awaiting trial on this charge, Merlino faked a diagnosis of pancreatic cancer in order to attempt to avoid trial; the jury heard evidence that the defendant altered a doctor’s letter and his medical records. As a result, the defendant is now separately facing obstruction of justice charges related to these fraudulent submissions to the court.
“The United States sets standards for the foods and drugs we ingest in order to keep American consumers and patients safe,” said U.S. Attorney Romero. “The defendant knowingly skirted our country’s regulations by marketing an unsafe chemical to people hoping for a quick and easy solution. This scheme put many people’s health and safety at risk. We urge everyone to refrain from ingesting DNP for any reason.”
“The distribution of misbranded, unapproved and dangerous drugs in the U.S. marketplace puts consumers’ health at risk,” said Special Agent in Charge George A. Scavdis, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to pursue and bring to justice those who jeopardize the public health.”
“The Postal Service has no interest in being the unwitting accomplice to anyone using the U.S. Mail to distribute contraband or other harmful substances,” said Damon Wood, Inspector in Charge of the Philadelphia Division of the United States Postal Inspection Service. “One of the Inspection Service’s key objectives is to rid the mail of illegal and dangerous substances that at best fleece our fellow citizens, and at worst, cause serious harm. William Merlino is no different than the snake oil salesmen from a century ago. Thanks to hard work of the Inspectors, Special Agents from the FDA and an Assistant United States Attorney’s Office, a jury saw through Merlino’s lies and held him accountable.”
The case was investigated by U.S. Food & Drug Administration Office of Criminal Investigations, U. S. Postal Inspection Service, and Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Joan Burnes
Rapid City Man Charged with Multiple Counts of Fraud and Money LaunderingRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for five counts of Bank Fraud, eight counts of Money Laundering, and one count of Wire Fraud.
Steven Arthur Knigge, 76, was indicted in July 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on August 3, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 30 years in federal prison and/or a $500,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from Knigge devising a scheme to defraud Rapid City banking institutions for his own personal gain between April 2021 and October 2021, and for filing a fraudulent application under the Paycheck Protection Program. The charges are merely an accusation and Knigge is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internal Revenue Service-Criminal Investigations. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Knigge was released pending trial. A trial date has been scheduled for October 11, 2022.
Philadelphia Men Charged with Tax Fraud and Commercial Bribery OffensesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 5, 2022, Den Lam, age 48, and Danny Sing, age 59, both of Philadelphia, Pennsylvania, were charged in criminal informations with various federal tax offenses and commercial bribery.
According to United States Attorney Gerard M. Karam, the information filed against Den Lam alleges that he conspired with other individuals to evade federal income taxes for approximately $1,600,000 in wages paid by Global Staffing Services, Inc. (Global Staffing), a temporary staffing company that he and his coconspirators owned and operated. Global Staffing leased temporary employees to a manufacturing business in northeastern Pennsylvania. Den Lam also was charged with failing to withhold and remit approximately $1,360,000 in federal employment taxes owed, but never paid, by Global Staffing to the Internal Revenue Service (IRS).
The information filed against Danny Sing alleges that he conspired with other individuals to evade federal income taxes for approximately $1,600,000 in wages paid by Global Staffing, and to fail to withhold and remit approximately $1,360,000 in federal employment taxes to the IRS. Den Lam and Danny Sing allegedly paid Global Staffing employees in cash, paid themselves in cash, and cashed all checks received from Global Staffing’s client, to conceal the income and wages from the IRS. The criminal activities allegedly occurred between 2013 and 2020. Sing also was charged with allegedly providing in excess of approximately $400,000 in bribes and kickbacks to managers and supervisors at Global Staffing’s client, to obtain business for Global Staffing.
Three other individuals were previously prosecuted in this investigation:
- Mark Holmes, age 66, of Hughes Springs, Texas, pleaded guilty to failing to remit approximately $135,000 in employment taxes to the IRS that were owed by Encore. Holmes also pleaded guilty to accepting, as the General Manager of a Pennsylvania food services company, approximately $400,000 in bribes and kickbacks from two temporary staffing companies, one of which was Penns Independent Staffing, in exchange for hiring their employees. The two temporary staffing companies, in turn, received approximately $7,800,000 from Holmes’s employer. Holmes awaits sentencing.
- Nari Lam, age 29, of Wilmington, Delaware, pleaded guilty to failing to remit employment taxes to the IRS. From 2016 through 2020, Nari Lam, the owner of Pennsylvania-based temporary staffing company Penns Independent Staffing, failed to pay approximately $300,000 in employment taxes owed by Penns Independent Staffing to the IRS. Nari Lam awaits sentencing.
- Madeline Nieves, age 48, of Plains, Pennsylvania, was indicted by a federal grand jury on tax fraud and conspiracy offenses. Nieves allegedly conspired with other individuals to defraud the IRS, from 2018 to 2020, in connection with a temporary staffing company, Encore Staffing Solutions LLC (Encore), that she and her coconspirators owned and operated. Encore leased temporary employees to manufacturing businesses throughout Pennsylvania. Nieves also was charged with failing to report Encore employee wages to the IRS, resulting in approximately $67,000 in employment taxes owed, but never paid, by Encore to the IRS. Nieves further was charged with three counts of tax evasion, for failing to report her own personal income from Encore. Nieves awaits trial.
The cases were investigated by the Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
The maximum penalty under federal law for each tax offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty under federal law for the commercial bribery offense is 20 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 and Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Omaha Man Sentenced for Firearm OffensesRead the Press Release
COUNCIL BLUFFS, IA – Jesse Dean Seifert, age 33, was sentenced on Wednesday, August 3, 2022, to 77 months in prison for charges of Possession of an Unregistered Firearm and Prohibited Person in Possession of a Firearm. This sentence is consecutive to any state prison sentence. Seifert must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
In September 2021, police attempted to stop Seifert who was driving stolen dump truck. Seifert eluded officers and abandoned the truck in a residential neighborhood and fled on foot. Seifert dropped a firearm—a loaded sawed off shotgun—as he eluded police. Seifert was apprehended a short distance from the firearm. He was also in possession of methamphetamine and drug paraphernalia.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department, Pottawattamie County Sheriff Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of Project Safe Neighborhoods, 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.
Nurse Arrested for Diversion of Controlled SubstancesRead the Press Release
Amy J. Vickers, 44, of Bradford, Vermont was arrested today on a complaint charging her with obtaining controlled substances by misrepresentation, fraud, forgery, deception or subterfuge, U.S. Attorney Jane E. Young announced.
According to the complaint, on June 17, 2022, Vickers was working as a nurse at Alice Peck Day Memorial Hospital in Lebanon, New Hampshire, when hospital personnel noticed a discrepancy regarding the purported disposal of a dosage of hydromorphone. When confronted with the discrepancy, Vickers is alleged to have admitted to diverting the substance for her personal use, and having done so repeatedly over the course of a few months. It is not believed that any patients were affected by Vickers’ diversion of medications.
Vickers was arrested on August 8 and had an initial appearance before a U.S. Magistrate Judge. She was released pending further proceedings.
This matter is being investigated by the Drug Enforcement Administration, with assistance from the Lebanon Police. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
The charges in the complaint are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Northampton County Man Convicted of CyberstalkingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Elonis, age 39, of Bethlehem, Pennsylvania, was convicted on August 5, 2022, of three counts of cyberstalking after a five-day trial in Easton before U.S. District Court Judge Edward G. Smith.
According to United States Attorney Gerard M. Karam, jurors deliberated for approximately an hour and a half before rendering a guilty verdict. Elonis was indicted by a grand jury in Philadelphia in July 2021 and charged with three counts of cyberstalking involving three separate victims, including a government employee in the Eastern District of Pennsylvania, Elonis’ former girlfriend, and Elonis’ ex-wife. The indictment alleged that between 2018 and 2021, Elonis send numerous harassing and intimidating emails directly to the governmental employee and sent or posted numerous harassing and intimidating communications via Twitter, text message or other form of electronic communication regarding the governmental employee, his former girlfriend and his ex-wife.
Sentencing has been scheduled for November 18, 2022, in Easton. The matter has been specially assigned to the United States Attorney’s Office in the Middle District of Pennsylvania for prosecution.
The charges resulted from an investigation conducted by the Federal Bureau of Investigation, Allentown Office. Assistant U.S. Attorneys Robert O’Hara and Geoffrey MacArthur prosecuted the case.
Under federal law, Counts One and Three of the Indictment, involving a government employee and Elonis’ ex-wife as victims, each carry a maximum penalty of up to five years in prison, a term of supervised release following imprisonment, and a fine. Count Two, involving Elonis’ former girlfriend as a victim, carries a maximum penalty of up to ten years in prison because the offense of cyberstalking was committed in violation of a Protection from Abuse Order (PFA) previously issued against Elonis in Northampton County. 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.
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Nigerian National Pleads Guilty to Role in Fraud and Money Laundering SchemeRead the Press Release
HUNTINGTON, W.Va. – A Nigerian national pleaded guilty today to receipt of stolen money in connection with a fraud and money laundering scheme that defrauded at least 200 victims, many of whom are elderly, of at least $2.5 million.
According to court documents and statements made in court, John Nassy, 29, admitted to participating in the scheme from June 2018 until at least May 2019 while he attended college in Huntington. Other members of the conspiracy created online false personas and contacted victims via email, text messaging or online dating and social media websites. The conspirators sought to induce the victims into believing they were in a romantic relationship, friendship, or business relationship with various false personas. The victims were persuaded to send money for a variety of false and fraudulent reasons for the benefit of the false personas. Nassy admitted that he let victims transfer at least $148,000 to his bank accounts that he knew was from unlawful activity.
Nassy further admitted that after the victims’ funds were deposited in his accounts, he kept some of the money for himself and forwarded some of the money to his co-conspirators via the Zelle digital payments network. Nassy also transferred money to bank accounts located in Nigeria.
Nassy is among 10 men charged in four separate indictments with various fraud-related crimes in connection with the scheme. Six co-defendants have pleaded guilty. Charges remain pending against the other co-defendants. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nassy is scheduled to be sentenced on November 14, 2022, and faces a maximum penalty of 10 years in prison, three years of supervised release and a $250,000 fine. Nassy also agrees that he owes $148,000 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Secret Service, the United States Postal Inspection Service, the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), the West Virginia State Police and the South Charleston Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Kathleen Robeson is prosecuting the case.
The public is encouraged to report potential online fraud activity or scams at https://www.ic3.gov/.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
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. 3:21-cr-68.
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New York Man Sentenced to Prison for Role in Identity Theft ConspiracyRead the Press Release
A Springfield Gardens man was sentenced to five years in prison yesterday for conspiring to commit aggravated identity theft and aiding in the preparation of false tax returns for his transportation business.
According to court documents and evidence presented at trial, Afolabi Ajelero worked at Kaybamz, a tax preparation business, during tax season from approximately 2012 through 2016. Ajelero conspired with Hakeem Bamgbala, the owner of the business, and others to prepare and file tax returns seeking fraudulent refunds in the names of individuals whose identities had been acquired unlawfully. Bamgbala then forged the names of the taxpayers on the refund checks and provided the checks to Michael Campbell and other co-conspirators to be cashed at banks. Among other roles, Ajelero was responsible for supplying his Electronic Filing Identification Number (EFIN) for use on each fraudulent return and helping fabricate tax paperwork to satisfy a third party that audited some of the returns filed by Kaybamz.
In addition to participating in the identity theft conspiracy, Ajelero also owned Mo-Betta Ventures, a transportation business that provided airport shuttle services in the New York City metropolitan area. From 2011 through 2016, Ajelero aided the filing of false corporate tax returns for Mo-Betta Ventures. Each of these returns included false items, including exaggerated fuel tax credits or deductions intended only for off-highway vehicles such as farm equipment.
In addition to the term of imprisonment, U.S. District Judge William F. Kuntz II ordered Ajelero to serve two years of supervised release and to pay approximately $45,000 in restitution to the United States.
Bamgbala previously pleaded guilty to 18 counts of wire fraud, 22 counts of aggravated identity theft, one count of conspiring to commit aggravated identity theft, and one count of aiding and assisting the filing of a false tax return. Bamgbala died before he could be sentenced. Campbell pleaded guilty to one count of conspiracy to commit aggravated identity theft. He is scheduled to be sentenced on August 19.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Breon S. Peace for the Eastern District of New York made the announcement.
Trial Attorneys Mark McDonald and Eric B. Powers of the Tax Division prosecuted the case.
Massachusetts Construction Company Owner Indicted for Tax CrimesRead the Press Release
A Massachusetts man was arrested on Saturday, after being charged by indictment with willfully failing to pay over employment taxes to the IRS, conspiring to defraud the IRS, and aiding in the preparation of a false tax return.
According to the superseding indictment, Mauricio Baiense, formerly of Quincy, owned and operated Contract Framing Builders, Inc. (CFB), a Medford construction business. Baiense allegedly was responsible for filing CFB’s quarterly employment tax returns and collecting and paying over to the IRS payroll taxes withheld from the wages of the company’s employees.
From approximately 2013 through 2017, Baiense allegedly took a series of steps to convert CFB’s corporate funds into cash. The indictment charges that he allegedly wrote checks drawn on CFB’s bank account to purported subcontractors, which were in fact nominee entities controlled by him. Baiense allegedly then cashed or directed others to cash approximately $11 million in such checks at a check cashing business during this period. Baiense, and at times another man, then allegedly used the cash to operate an “off-the-books” cash payroll for CFB’s employees. He allegedly did not report the cash wages to the IRS and did not pay employment taxes on wages paid to employees in cash. Baiense also allegedly assisted in the preparation of at least one fraudulent employment tax return that understated the actual wages paid to CFB’s employees.
In June, Baiense was indicted for making a false statement when questioned at a U.S. Department of Labor Occupational Safety and Health Administration hearing regarding a workplace accident.
If convicted, Baiense faces up to five years in prison for each of the seven counts of willful failure to collect or pay over employment taxes, five years in prison for conspiring to defraud the United States, and three years in prison for aiding and assisting in the preparation of a false tax return. He also faces up to five years in prison for the false statement charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rachael S. Rollins for the District of Massachusetts made the announcement.
IRS-Criminal Investigation, the Department of Labor’s Occupational Health and Safety Administration, and Homeland Security Investigations investigated the case.
Trial Attorney Thomas F. Koelbl of the Justice Department’s Tax Division and Assistant U.S. Attorney David Tobin of the U.S. Attorney’s Office are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mason County Man Pleads Guilty to Child Pornography CrimeRead the Press Release
HUNTINGTON, W.Va. – A Mason County man pleaded guilty today to possession of prepubescent child pornography.
According to court documents and statements made in court, on November 11, 2020, law enforcement officers executed a search warrant at the residence of Joseph Curtis Hubman, 50, of Henderson. Officers recovered multiple external hard drives, mobile phones, two desktop computers and a micro SD memory card. A forensic analysis of the devices revealed more than 10,000 videos depicting child pornography. Hubman admitted that he possessed the child pornography, and that it included videos of prepubescent minors engaged in sexually explicit conduct.
Hubman is scheduled to be sentenced on November 14, 2022, and faces a maximum penalty of 20 years in prison, at least five years and up to a lifetime of supervised release and a $250,000 fine. Hubman must also register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Mason County Sheriff’s Department, and the West Virginia State Police.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Julie White is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 3:22-cr-24.
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Maryland Casino and Hotel Kidnapping Defendant is Sentenced to 14 Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Anthony Erik Hebron, a/k/a “Pain”, age 29, of Washington, D.C., to 14 years in federal prison, followed by 5 years of supervised release, for conspiracy to commit kidnapping.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; and Acting Special Agent in Charge Robert Turner of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, in February 2021, Hebron, and co-defendants Darius Young, a/k/a “Mup”, age 30, Christopher Young, age 27, Lamar Perkins, age 28, and Tray Sherman, age 27, all of D.C., worked together to kidnap a victim from a Maryland casino and hotel.
Hebron and Sherman met Victim A at the casino and hotel, where they made the false promise that they would get women for Victim A if Victim A accompanied them to Southeast Washington, D.C. At approximately 7:30 a.m., Victim A agreed to travel to Southeast Washington, D.C. in Sherman’s car with Hebron.
At 8:13 a.m., Young called Mup to report that Hebron and Sherman had “snatched” Victim A. Soon after Sherman, Hebron, and Victim A arrived in Southeast D.C., Mup and Young entered Sherman’s vehicle with Victim A inside. Hebron then pointed a gun at Victim A while his co-conspirators took Victim A’s personal items including Victim A’s wallet, cell phone, hotel room key, and a watch valued at $500.
Hebron, Mup, Young, and Sherman then demanded the code to Victim A’s hotel safe. When Victim A refused, Hebron struck Victim A in the forehead with the gun. In response, Victim A told the co-conspirators the code to the hotel safe. Victim A was then forced out of the car by Hebron. Soon after, Mup and Young exited the vehicle with Victim A and forced the victim into a boiler room within a D.C. apartment building while Hebron and Sherman drove back to the hotel and casino to burglarize Victim A’s hotel room.
Inside the boiler room, Mup and Young repeatedly assaulted Victim A, threatened his life, demanded Victim A’s PIN number to his ATM card, and demanded information about the items located in his hotel room.
Simultaneously, Hebron and Sherman accessed Victim A’s hotel room, where they stole Victim A’s property, including a gaming system, $1,500 in casino chips, and approximately $6,000 in cash.
After Victim A was released by the conspiracy members, law enforcement saw Victim A near the apartment building. Victim A sustained several injuries, including a bloody wound on his forehead, a broken nose, and cuts on his mouth and eye.
Co-defendants Perkins, Young, Sherman, and Mup pleaded guilty to federal charges relating to the kidnapping earlier this year. Mup was sentenced to 126 months in federal prison. Young was sentenced to 126 months in federal prison. Perkins was sentenced to 120 months in federal prison. Sherman is scheduled to be sentenced in October 2022 to at least 96 months.
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. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. 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 is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the FBI Washington, and the FBI Baltimore Field Offices for their work in the investigation. Mr. Barron also praised the Prince George’s County Police Department for their assistance in the investigation. Mr. Barron thanked Assistant U.S. Attorney Jeffrey J. Izant and Special Assistant U.S. Attorney Jared C. Engelking, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Manager of Key West Labor Staffing Companies Sentenced for Tax Crimes and Immigration FraudRead the Press Release
The manager of Key West, Florida, labor staffing companies was sentenced today to 48 months in prison for tax and immigration crimes related to the operation of those businesses.
According to court documents and statements made in court, from approximately January 2016 through October 2020, Volodymyr Ogorodnychuk, of Key West, helped operate Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC and Tropical City Group LLC, all of which were labor staffing companies in southern Florida. The staffing companies facilitated the employment of individuals in hotels, bars and restaurants in Key West and other locations, even though the employees were not authorized to work in the United States.
As part of his plea, Ogorodnychuk admitted that he and his co-conspirators paid the workers without withholding Social Security, Medicare and income taxes from their wages, and then did not report those wages to the IRS as required by law. Ogorodnychuk also admitted he and his co-conspirators defrauded the IRS out of more than $3.5 million in employment taxes.
In addition to the term of imprisonment, U.S. District Court Judge Jose E. Martinez for the Southern District of Florida ordered Ogorodnychuk to serve three years of supervised release. Restitution will be determined within 90 days.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida made the announcement.
The U.S. Department of Homeland Security, Homeland Security Investigations and IRS-Criminal Investigation investigated the case.
Senior Litigation Counsel Sean Beaty, Trial Attorneys Jessica A. Kraft and Nicholas J. Schilling Jr. of the Justice Department’s Tax Division and Assistant U.S. Attorney Chris Clark of the Southern District of Florida prosecuted the case.
Local Man Sentenced to 10 Years in Federal Prison for Meth ConvictionRead the Press Release
Carmelo Valdez Romero, 35, from Sioux City, Iowa, was convicted of possession with intent to distribute methamphetamine on February 25, 2022, after a 4-day jury trial.
Evidence at trial and sentencing showed that on March 17, 2020, Valdez Romero and others possessed with intent to distribute about 20 pounds of methamphetamine. Valdez Romero aided others in the removal of 20 one-pound packages of methamphetamine hidden in the gas tank of a rental vehicle which had traveled from California to rural Dickinson County, Iowa. The methamphetamine was intended for redistribution in northwest Iowa. Specifically, in a machine shed on the property, Valdez Romero removed the rear seats of the vehicle, removed the fuel pump, as well as other equipment attached to the gas tank and physically helped another retrieve the methamphetamine from the two-part gas tank. During the execution of a search warrant at the property, law enforcement agents seized 15 pounds of methamphetamine from a safe inside the machine shed, and five more pounds of methamphetamine being driven away from the property, including one pound of methamphetamine from the vehicle operated by Valdez Romero. Agents also seized $700 from Valdez Romero and $900 from the other two vehicle occupants, all the cash was pre-serialized money used by agents earlier that day to purchase one pound of methamphetamine from Valdez Romero’s drug associate.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Valdez Romero was sentenced to ten years’ imprisonment and must serve a term of five years supervised release following any imprisonment. There is no parole in the federal system. Valdez Romero remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office, as well as the Dickenson County Sheriff’s Department, the Iowa State Patrol and other members of the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4051. Follow us on Twitter @USAO_NDIA.
Local Fabrication Company Executive Charged for Fraud and Failing to Pay over $440,000 in Employment TaxesRead the Press Release
Des Moines, IA – A Keswick man made his initial appearance today in federal court in Des Moines for tax and bank fraud charges.
Thomas Sieren, age 59, is charged in a 24-count indictment returned on July 19, 2022. According to court documents, Sieren was the Vice President of TCS Fabricating, Inc., a local fabrication company. TCS Fabricating, Inc. was required by law to withhold taxes from employee wages and to pay the withheld amounts to the Internal Revenue Service (IRS) on a periodic basis. These withheld taxes, sometimes known as “trust fund taxes,” include income taxes and Federal Insurance Contributions Act (FICA) taxes that fund Social Security and Medicare. It is alleged that Sieren failed to pay the IRS over $440,000 from 2016 to 2020. On TCS Fabricating, Inc.’s behalf, Sieren also allegedly submitted two Paycheck Protection Program loan applications in which he falsely represented that the company had employees for which it paid payroll taxes.
“Business owners are required to withhold income taxes for their employees and remit those taxes to the IRS,” said Special Agent in Charge, Tyler Hatcher. “IRS-Criminal Investigation takes these crimes very seriously not only because of the impact on federal revenue, but more importantly because of the way employee benefits are impacted.”
Sieren is charged with twenty counts of Failure to Collect, Account for, and Pay Over Trust Fund Taxes, two counts of Bank Fraud, and two counts of False Statements to a Financial Institution. If convicted, he faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa and made the announcement. Internal Revenue Service Criminal Investigation is investigating the case. Assistant U.S. Attorney Kyle Essley is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Leader of Lottery and Romance Fraud Scheme Sentenced to 14 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that FAROUQ FASASI, 28, of Manchester, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 168 months of imprisonment, followed by three years of supervised release, for his role in lottery and romance scams that defrauded primarily elderly victims across the country of millions of dollars.
According to the evidence presented during a trial in this matter, in a lottery scam, scammers notify victims by telephone, through online communications, or by mail, that they have won the lottery. The victims are then told that in order to collect the prize they must pay fees for things like taxes, shipping and processing. Often, once a victim sends a small amount of money, a scammer will ask for larger sums of money with a promise of more winnings. The victims never receive winnings. In a romance scam, scammers take advantage of people looking for companionship by pretending to be prospective companions. Scammers typically create fake online profiles on dating websites that include false personal details such as the death of a spouse, or military service, to lure victims to trust them. Once they have gained the trust of victims, scammers will ask victims for money, falsely claiming to need money for medical or business emergencies, for travel to see the victim, or other purposes.
Between approximately August 2015 and March 2020, Fasasi, Rodney Thomas, Jr. and others used lottery scams, romance scams and other fraudulent means to induce elderly victims to provide them with money, gifts and personal details. Victims sent cash, money orders or checks through the mail to various addresses in Connecticut, and also wired or deposited money into bank accounts in Connecticut controlled by conspiracy members and their associates.
Fasasi, Thomas, and other co-conspirators lived together for a time at a residence on Sherman Avenue in New Haven, where many packages containing cash, checks and money orders from victims were delivered. Fasasi recruited others into the scheme, including those who served as “money mules.” These individuals used personal bank accounts, and also established and used bank accounts in the names of businesses and charitable organizations, to launder money obtained from fraud victims.
The investigation revealed that these scams defrauded more than 200 victims across the U.S. of more than $5 million. Many of the victims were elderly and vulnerable, and some victims lost their life savings. One Connecticut victim lost more than $1 million.
Judge Underhill ordered Fasasi to pay restitution in the amount $5,946,371.58.
“This is an appropriate sentence for a financial predator who made his money by systematically and cruelly victimizing seniors and other vulnerable individuals,” said U.S. Attorney Avery. “The Justice Department has made it a priority to investigate and prosecute those who commit these crimes. If you suspect that you or someone you know may be falling victim to one of these schemes, I encourage you to call your local police department or 833-FRAUD-11 for assistance.”
“The U.S. Postal Inspection Service has a long and proud history of protecting the United States mail from criminal attack,” said Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service’s Boston Division. “This defendant took advantage of one of our most vulnerable populations, senior citizens. As long as we have criminals with such disregard for the law, Postal Inspectors will continue to focus their efforts on the protection of the American public. I fully commend the hard work and countless hours put forth by all of the law enforcement agencies involved, which resulted in bringing this case to justice.”
On February 15, 2022, Fasasi and Thomas were found guilty of multiple charges stemming from this scheme. Thomas awaits sentencing.
Four other individuals have been charged and convicted of offenses stemming from their participation in this scheme.
Fasasi, who is released on a $200,000 bond, is required to report to prison on September 21.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311). For more information, please visit. https://ovc.ojp.gov/program/stop-elder-fraud/providing-help-restoring-hope.
This matter is being investigated by the U.S. Postal Inspection Service, Treasury Inspector General for Tax Administration (TIGTA), Homeland Security Investigations (HSI), U.S. Secret Service, U.S. Army-CID, and New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Heather L. Cherry and Stephanie T. Levick.
Jury Finds Henderson County Man Guilty of Trafficking MethamphetamineRead the Press Release
Jackson, TN - After a four-day trial, Preston Anton McNeal, 35, was found guilty on four counts of a seven-count indictment. Joseph C. Murphy, Jr., United States Attorney, announced the guilty verdict today.
According to information presented in court, from late 2016 until February 2019, McNeal formed and was the leader of a substantial methamphetamine trafficking conspiracy in West Tennessee. On January 2, 2017, the Lexington Police Department stopped a vehicle being driven by Mr. McNeal, the only occupant of the vehicle. After coming to a stop McNeal threw a bag containing 44 grams of actual methamphetamine, 16 grams of cocaine and a gram of crack cocaine into a nearby yard. All the narcotics were packaged separately for distribution. McNeal was placed into custody and the narcotics thrown by the defendant were recovered. A search of the vehicle revealed $1,281 in cash, a drug ledger, and a digital scale.
On February 9, 2019, and after the original indictment was returned against McNeal, Chester County Sheriff's Deputy stopped a vehicle being driven by McNeal and arrested him on the federal arrest warrant. He was placed into custody on a federal arrest warrant for the original indictment in this case. In the vehicle with McNeal was Whitney Jowers, who testified at trial that prior to being pulled over, McNeal handed her some items and told her to hide them, which she did. After both McNeal and Jowers were placed under arrest, Jowers told law enforcement that she had several items on her person, including four bags of methamphetamine, three of which weighed 14 grams. Officers also located another bag of methamphetamine under the driver's seat which also weighed 14 grams, and over $3,000 in cash which was scattered throughout the car. The total weight of the methamphetamine was 57 grams.
At trial, the government also called Christie Austin. She testified that from late 2016 through February 2019, she received 220 ounces of methamphetamine from McNeal for redistribution. Austin also testified that McNeal distributed methamphetamine to several other individuals in the Henderson County area.
During the trial, McNeal had to be admonished by the judge several times for his unruly behavior, and he also assaulted multiple correctional officers on the final day of trial, which delayed the jury's deliberation. McNeal also testified in his own defense during trial and claimed that he only sold marijuana. The jury rejected McNeal's story and convicted him of conspiring with others to distribute over 50 grams of actual methamphetamine and possessing with the intent to distribute over 5 grams and 50 grams of methamphetamine on January 2, 2017, and February 9, 2019, respectively. The jury also convicted McNeal of possessing cocaine with the intent to distribute on January 2, 2o17.
Sentencing is set for November 15, 2022, before Chief United States District Judge S. Thomas Anderson. McNeal faces a mandatory-minimum sentence of 15 years imprisonment, and he will also likely qualify as a career offender, in which case he would face a guideline range of 360 months to life imprisonment. There is no parole in the federal system.
This case was investigated by the Lexington, Tennessee Police Department, the Chester County Sheriff's Office, the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and the Tennessee Bureau of Investigation (TBI).
Assistant United States Attorneys Adam Davis and Josh Morrow prosecuted this case on behalf of the government.
###Jacksonville Man Sentenced to 25 Years in Federal Prison for Using A Minor in His Care to Produce Sexually Explicit ImagesRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Richard Earl Jenkins, Jr. (45, Jacksonville) to 25 years in federal prison, followed by10 years of supervised release for using a minor to produce sexually explicit images. Jenkins had pleaded guilty on November 10, 2021.
According to court documents, on November 2 and 3, 2019, a 12-year-old child, Child Victim 1 (CV1) spent the night at Jenkins’s residence. On November 6, 2019, an officer with the Jacksonville Sheriff’s Office (JSO) was dispatched to CV1’s mother’s residence regarding a complaint by CV1’s mother. While CV1 was spending the night at the defendant’s residence, she discovered a folder on the defendant’s computer with her name on it. CV1 said she opened the folder and discovered sexually explicit images of herself, from when she was younger to more recent.
On November 7, 2019, a JSO detective applied for, was granted, and executed a state search warrant at the defendant’s residence. The desktop computer described by CV1 was located in the defendant’s bedroom. A folder was observed on the bottom of the task bar, and when selected, revealed a folder named “[CV1]”.
JSO conducted a forensic review of the devices seized. Several images depicting CV1 were discovered on the devices. In addition to the images of CV1, hundreds of images of child sex abuse material were also discovered.
“Producers of child pornography are the worst of the worst, making victims of society’s most vulnerable victims” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Through HSI’s law enforcement partnership with the Jacksonville Sheriff’s Office, this predator will now be held accountable for his heinous actions.”
This case was investigated by the Jacksonville Sheriff’s Office and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Ashley Washington.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Inmate sentenced for threat chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Shawn L. Price, an inmate at Federal Corrections Institution Gilmer, was sentenced today to 60 months of incarceration for a threat charge, United States Attorney William Ihlenfeld announced.
Price, 42, pleaded guilty in May 2022 to one count of “Transmitting Threatening Communications in Interstate Commerce.” Price threatened someone by phone in November 2021. According to the indictment, the threat included breaking the subject’s neck and torturing the subject.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The Bureau of Prisons investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Huntington Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Tekoa Rivers, 22, of Huntington, was sentenced today to one year and six months in prison, to be followed by three years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, admitted that he sold approximately 10 grams of fentanyl to a confidential informant on Third Avenue in Huntington on April 29, 2021.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Monica D. Coleman 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. 3:22-cr-27.
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Huntington Man Sentenced to Prison for Federal Gun and Drug CrimesRead the Press Release
HUNTINGTON, W.Va. – Christopher Eugene Capers, 34, of Huntington, was sentenced today to seven years and eight months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm and possession with intent to distribute cocaine base, also known as “crack.”
According to court documents and statements made in court, on May 21, 2020, Capers was a passenger in a vehicle pulled over by law enforcement officers on Doulton Avenue in Huntington. Capers admitted that he possessed a Taurus G2 9mm handgun found by the officers in his waistband. Capers further admitted that on June 26, 2020, officers found approximately 46.2 grams of crack as well as drug paraphernalia and $3,734.25 in cash in his Huntington residence.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Capers knew he was prohibited from possessing a firearm because of his felony convictions for carrying a concealed deadly weapon-second offense on January 14, 2013, attempting to commit the felony of possession with intent to deliver heroin on September 8, 2016, and being a felon in possession of a firearm on February 21, 2019, all in Cabell County Circuit Court.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Violent Crime and Drug Task Force, the Huntington Police Department, and the Cabell County Sheriff’s Office.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe 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. 3:22-cr-26.
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High-Ranking Employee at Cryptocurrency Exchange Pleads Guilty to Bank Secrecy Act ViolationsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that GREGORY DWYER, a high-ranking employee of purportedly “off-shore” cryptocurrency derivatives exchange the Bitcoin Mercantile Exchange or “BitMEX,” pled guilty today to violating the Bank Secrecy Act (the “BSA”) by willfully failing to establish, implement, and maintain an anti-money laundering (“AML”) program at BitMEX, and aiding and abetting the same. DWYER pled guilty today before U.S. District Judge John G. Koeltl.
U.S. Attorney Damian Williams said: “With this plea, this Office has now obtained criminal convictions against all three founders, as well as a high-ranking employee at BitMEX, for willful violations of anti-money laundering laws. Today’s plea reflects that employees with management authority at cryptocurrency exchanges, no less than the founders of such exchanges, cannot willfully disregard their obligations under the Bank Secrecy Act.”
According to the Indictment, public court filings, and statements made in court:
DWYER was one of the first employees of BitMEX, and served as its Head of Business Development. BitMEX is an online cryptocurrency derivatives exchange that, during the relevant time period, had U.S.-based operations and served thousands of U.S. customers. From at least September 2015, and continuing at least through the time of the Indictment in September 2020, DWYER, working with BitMEX’s founders Arthur Hayes, Benjamin Delo, and Samuel Reed, willfully caused BitMEX to fail to establish and maintain an AML program, including a program for verifying the identify of BitMEX’s customers (or a “know your customer” or “KYC” program). As a result of its willful failure to implement AML and KYC programs, BitMEX was in effect a money laundering platform.
DWYER aided and abetted BitMEX’s failure to institute AML or KYC programs despite closely following U.S. regulatory developments that made clear the legal obligation to do so if BitMEX operated in the United States, which it did. DWYER knew that BitMEX’s purported withdrawal from the U.S. market after in or about September 2015 was a sham, and that purported “controls” BitMEX put in place to prevent U.S. trading were an ineffective facade that did not, in fact, prevent users from accessing or trading on BitMEX from the United States. Among his other tasks at BitMEX, DWYER collected and circulated data evidencing that BitMEX users included traders, and that the company earned revenue, from the United States.
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DWYER, 39, of Australia and Bermuda, pled guilty to one count of violating the Bank Secrecy Act, which carries a maximum penalty of five years in prison. Under the terms of his plea agreement, DWYER agreed to separately pay a $150,000 criminal fine representing pecuniary gain derived from the offense.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
HAYES, DELO, and REED, previously pled guilty to the same count, and were sentenced by Judge Koeltl.
Mr. Williams praised the outstanding investigative work of the FBI’s New York Money Laundering Investigation Squad, and thanked the attorneys and investigators at the Commodity Futures Trading Commission whose expertise and diligence were integral to the development of this investigation.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Jessica Greenwood, Samuel Raymond, and Thane Rehn are in charge of the prosecution.
Harrison County man admits to fentanyl chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – James Curtis Jones, of Clarksburg, West Virginia, has admitted to a fentanyl charge, United States Attorney William Ihlenfeld announced.
Jones, 25, pleaded guilty today to one count of “Distribution of Heroin and Fentanyl in Proximity to a Protected Location.” Jones admitted to selling heroin and fentanyl near Emmanuel Christian School in May 2020 in Harrison County.
Jones faces at least one year and up to 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 Greater Harrison Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Hannibal man sentenced to 5+ years in prison on gun chargeRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Monday sentenced a man from Hannibal who was caught with stolen firearms to five years and three months in prison.
Hannibal police and the Ralls County Sheriff’s Office were investigating the theft of firearms when they located Ronald Allen on Dec. 24, 2020 in a home in Hannibal. Officers found three stolen semi-automatic pistols, drug paraphernalia, prescription pains and marijuana in the home, Allen’s plea agreement says.
Two of the guns were stolen the night before in Ralls County and the other was stolen from Jefferson City, court documents show.
Allen, 46, pleaded guilty in April to being a felon in possession of a firearm.
The Hannibal Police Department, the Ralls County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Kourtney Bell prosecuted the case.
Goochland Powhatan Community Services Agrees to Settle Americans with Disabilities Act ComplaintRead the Press Release
ALEXANDRIA, Va. – The United States Attorney’s Office announced a settlement agreement under the Americans with Disabilities Act (ADA) with Goochland Powhatan Community Services (GPCS), which is the Community Service Board and local government mental health agency for Goochland and Powhatan Counties.
The settlement agreement resolves allegations that GPCS failed to furnish sign language interpreting services during multiple consequential and complex interactions with an individual who is deaf during a 33-month period, including monthly interactions when GPCS personnel were supposed to assess the individual for, among other things, previously unidentified risks, injuries, needs, or other changes in status, and the individual was supposed to have an opportunity to provide meaningful input and feedback about the services being provided. In Virginia, Community Service Boards, like GPCS, provide a continuum of community-based education, prevention, crisis intervention, counseling and rehabilitation to individuals, families and groups in need of mental health, intellectual and developmental disability, and/or substance use disorder services, including support coordination services for individuals with intellectual and developmental disabilities. Entities covered by the ADA, such as state and local government agencies, are required to furnish appropriate auxiliary aid or services, including sign language interpreter services, when providing to people with communication disabilities. Ensuring that such services are provided is especially important for communication-intensive programs that human and social service providers offer to the public.
To resolve this complaint, GPCS agreed to adopt new ADA policies. These policies will make their services accessible to individuals with communication disabilities, including those who require the services of a sign language interpreter, by requiring GPCS to designate an ADA Administrator who will be responsible for ensuring the agency’s compliance with the ADA; requiring GPCS to enter into agreements with sign language interpreting service providers to provide their services to individuals who need them; and requiring GPCS to provide training for its personnel on the ADA’s effective communication requirements.
This resolution is particularly significant because Community Service Boards in Virginia are essential to ensuring that individuals with intellectual and developmental disabilities are able to receive community-based services and be integrated into their communities, and individuals who are deaf are entitled to have access to such services.
The matter was investigated by Assistant U.S. Attorney Steve Gordon, who is the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office. The civil claims settled by this ADA agreement are allegations only; there has been no determination of civil liability.
The Department of Justice has a number of publications available to assist entities in complying with the ADA including Effective Communication, a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings and ADA Update: A Primer for State and Local Governments. For more information on the ADA and to access these publications, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD).
2022 marks the ADA’s 32nd anniversary. The Justice Department continues to advance the nation's goal of equal opportunity, integration, full participation, inclusion, independent living, and economic self-sufficiency for people with disabilities. Through its enforcement and technical assistance tools, the Justice Department strives to eliminate unlawful discrimination against individuals with disabilities.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. of the U.S. Attorney’s Office for the Eastern District of Virginia.
Georgia Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Georgia man pleaded guilty today to aiding and abetting the distribution of 50 grams or more of methamphetamine.
According to court documents and statements made in court, Brian Donaldson, 30, of Oakwood, Georgia, admitted to selling approximately 8 ounces of methamphetamine to a confidential informant in the parking lot of a Huntington, West Virginia, restaurant on June 14, 2019.
Donaldson is scheduled to be sentenced on November 3, 2022, and faces a mandatory minimum of 10 years in prison as well as at least five years of supervised release and a $10 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA).
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Negar M. Kordestani is prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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-212.
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Friedens Man Sentenced to 70 Months in Prisonfor Possessing MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A former resident of Somerset County has been sentenced in federal court to a total of 70 months in prison followed by 4 years of supervised release on his conviction of possession with the intent to distribute 50 grams or more of methamphetamine, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Terrell Robison Ickes, 32, of Friedens, PA.
According to information presented to the court, on or about June 23, 2020, to on or about July 3, 2020, Ickes did possess with the intent to distribute 50 grams or more of methamphetamine.
Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.
Ms. Chung commended the Somerset County Detectives and the Drug Enforcement Administration for the investigation that led to the successful prosecution of Ickes.
Fresno Man Pleads Guilty to Conspiring to Distribute Fentanyl PillsRead the Press Release
FRESNO, Calif. — Isaiah Garcia, 20, of Fresno, pleaded guilty today to conspiring to possess with intent to distribute and to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Oct. 2, 2020, and Dec. 16, 2020, Isaiah Garcia and his brother, Mario Garcia, 28, who was incarcerated in the Fresno County Jail in an unrelated case, agreed that Isaiah Garcia would traffic fentanyl pills. The conspiracy was discovered when investigators listened to their recorded jail telephone calls. Federal agents then searched Isaiah Garcia’s residence and found over 1,200 fentanyl pills inside his bedroom.
The case is the result of an investigation by FORT, a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
Isaiah Garcia is set for sentencing on Oct. 31, 2022, and Mario Garcia is set for sentencing on Sept. 6, 2022. Both defendants face a mandatory minimum sentence of five years in prison up to a maximum sentence of 40 years and a fine up to $5 million. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Former Somerville Man Sentenced for Distributing Methamphetamine and Illegally Possessing a FirearmRead the Press Release
BOSTON – A former Somerville man was sentenced on Aug. 4, 2022 in federal court in Boston for his role in a cross-country methamphetamine conspiracy and illegally possessing a firearm and ammunition.
Antonio Gribaudo, a/k/a “Tony,” 41, was sentenced by U.S. Senior District Court Judge George A. O’Toole, Jr. to 50 months in prison and five years of supervised release. Gribaudo was also ordered to pay forfeiture of $5,300. In November 2020, Gribaudo pleaded guilty to one count of conspiring to distribute and possess with intent to distribute 500 grams or more of a substance or mixture containing methamphetamine and one count of illegally possessing a firearm and ammunition.
In November 2018, Gribaudo was introduced to Brandon Greenberg, a methamphetamine supplier living in Phoenix. Between November 2018 and July 23, 2019, Greenberg mailed more than 30 methamphetamine packages through the United States mail to Gribaudo and Gribaudo’s girlfriend and co-conspirator Mary Stout at their apartments in Boston and Somerville. Upon receipt of the drugs, Gribaudo and Stout then distributed the methamphetamine to their customers. One of Gribaudo and Stout’s customers was co-conspirator Aaron Smith, who later contributed funds with Gribaudo and Stout to purchase the methamphetamine from Greenberg and distributed the narcotics in the Boston area.
In April 2019, a parcel mailed from Phoenix and addressed for delivery to Stout was intercepted by law enforcement and found to contain 887.1 grams of “ice” methamphetamine. This methamphetamine was later determined to be 99% pure. Investigators subsequently determined that Gribaudo, Stout and Smith had contributed funds toward the purchase of this methamphetamine and that the parcel had been mailed by an individual acting on Greenberg’s behalf.
In July 2019, Gribaudo left a backpack with a loaded firearm at a blackjack table inside an Everett casino.. During a search of Gribaudo’s storage unit in September 2019, investigators recovered 50 rounds of ammunition and a small quantity of additional methamphetamine.
On Oct. 28, 2021, Greenberg was sentenced to 50 months in prison. On Feb. 17, 2022, Smith was sentenced to one year and one day in prison. On June 22, 2022, Stout was sentenced to time-served and five years of supervised release.
United States Attorney Rachael S. Rollins; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Melissa Llosa, Inspector in Charge of the U.S. Postal Inspection Service, Phoenix Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement today. The Middlesex County District Attorney’s Office, Suffolk County District Attorney’s Office, Arlington Police Department, and Massachusetts Attorney General’s Office assisted in the investigation. Assistant U.S. Attorney James E. Arnold of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Fort Bliss Soldier Pleads Guilty to Sexual Abuse of a ChildRead the Press Release
EL PASO – Trevor Dylan Lehew, 28, of Plano, pleaded guilty today to one count of aggravated sexual abuse of a child, announced U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Jeffrey R. Downey, El Paso Field Office.
According to court documents, between November 2014 and December 2015, Lehew engaged in the continuing sexual abuse of a six-year-old child at a residence located on Fort Bliss. During this period, Lehew was an active-duty soldier stationed at the military installation. By pleading guilty, Lehew admitted that he knowingly engaged in a sexual act with a child.
At the time of his arrest for these crimes, Lehew was serving a Texas state sentence for aggravated sexual assault of a child and indecency with a child related to two other minor children.
A sentencing date has not been set. Lehew faces a mandatory minimum sentence of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case with assistance from the U.S. Army Criminal Investigation Division. FBI-Louisville and FBI-Seattle, Tacoma Resident Agency also assisted with this case.
Assistant U.S. Attorney Michelle Winters is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Florida Man Sentenced to Twenty Years Imprisonment for Methamphetamine TraffickingRead the Press Release
Sean P. Costello, the United States Attorney for the Southern District of Alabama, announced that Enrique Miranda Martinez was sentenced on August 4, 2022 to twenty years imprisonment for trafficking methamphetamine. Martinez plead not guilty and was convicted by a federal jury in April 2022 of conspiracy to distribute methamphetamine and possession of methamphetamine with the intent to distribute. The convictions followed a three-day trial before United States District Judge Terry F. Moorer.
Testimony at the April 2022 jury trial of Martinez established that Martinez and a co-defendant, Yuri Maikel Hernandez Perez, were stopped on Interstate 10 in Baldwin County in June, 2020. The traffic stop lead to the recovery of close to four kilograms of nearly pure methamphetamine in the lining of a cooler on the back seat of the Mercedes SUV that Martinez was driving. The insulation for the cooler had been removed and the methamphetamine was packed in vacuum sealed bags and placed in the area where the insulation had been removed from the cooler.
Martinez testified at the trial and claimed to have no knowledge of the drugs in the vehicle he was driving. Evidence at the trial included a picture from a Wal-Mart in Tucson, Arizona, taken several days before the traffic stop in Baldwin County, showing Martinez purchasing a vacuum sealer of the same brand as the brand of bags the drugs were sealed in. An expert DEA agent testified that the overwhelming majority of methamphetamine trafficked in the United States comes across the border from Mexico. A large amount of the methamphetamine first goes to stash houses in the United States in cities close to the Mexican border like Tucson, where it is then distributed further into the United States.
The co-defendant, Yuri Maikel Hernandez Perez, plead guilty to the charges in April 2022 and is scheduled to be sentenced on August 15, 2022.
U.S. Attorney Sean P. Costello praised the dedication and the outstanding investigative work of the federal and local investigative agencies and his prosecutors involved in the case. Costello said, “The Baldwin County Sheriff’s Office does an outstanding job interdicting drugs and investigating other illegal activities on the highways in Baldwin County, and their partnership with our local, state, and federal partners is a cornerstone in fighting crime in the Southern District of Alabama.”
This case was investigated by the Drug Enforcement Administration, the Department of Homeland Security, Homeland Security Investigations, and the Baldwin County Sheriff’s Office.
The case was prosecuted by Assistant United States Attorneys George F. May and Alex Lankford.
Federal Jury Convicts Wagoner Resident of First Degree Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that George McEntire Smith, age 22, of Wagoner, Oklahoma was found guilty by a federal jury of one count of Murder in the First Degree in Indian Country and one count of Causing the Death of a Person by Use of a Firearm During and in Relation to a Crime of Violence.
The jury trial began with testimony on Monday, August 1, 2022, and concluded on Friday, August 5, 2022, with the guilty verdicts. Based on the verdicts, the defendant is facing a mandatory minimum sentence of life imprisonment.
During the trial, the United States presented evidence that on April 8, 2021, a 69-year-old male was shot and killed inside his residence in Wagoner. The physical evidence indicated that the victim was shot twice in the back of the head, at a relatively close distance, with a .25-caliber firearm. The Defendant told responding officers that he was with the victim when unknown intruders entered the residence, shot the victim, then fled. Subsequent investigation revealed that the Defendant was in possession of a .25-caliber firearm several hours before the victim was killed and that Defendant’s account of how the killing occurred was inconsistent with the physical evidence at the scene.
The guilty verdicts were the result of an investigation by the Wagoner Police Department, the Muscogee (Creek) Nation Lighthorse Police, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the Defendant in this case is a member of a federally recognized Indian tribe and the crimes occurred within the boundaries of the Muscogee (Creek) Nation Reservation.
The Honorable Timothy D. DeGiusti, U.S. Chief District Judge of the United States District Court for the Western District of Oklahoma, in Oklahoma City, presided over the trial and ordered the completion of a presentence report. The sentencing will be scheduled following completion of the report and the Defendant will remain in custody of the United States Marshal until then.
Assistant United States Attorneys James Montoya and Casey Richmond represented the United States.
Federal Jury Convicts Tahlequah Resident of Aggravated Sexual Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Aaron Richard Eubanks, age 32, of Tahlequah, Oklahoma, was found guilty by a federal jury of five counts of Aggravated Sexual Abuse in Indian Country.
The jury trial began with testimony on Tuesday, August 2, 2022, and concluded on Friday, August 5, 2022, with the guilty verdicts.
During the trial, the United States presented evidence that between January of 2020 and February of 2021, Aaron Richard Eubanks engaged in sexual acts with a minor victim, who had not reached 10 years of age, on at least five occasions. Further, the United States presented evidence that in February of 2021, Aaron Richard Eubanks engaged in sexual acts with a second minor victim, who had not reached the age of 11 at the time of the abuse.
The guilty verdicts were the result of an investigation by the Cherokee 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 in this case is a member of a federally recognized Indian tribe and the crimes occurred in Adair and Cherokee Counties, within the boundaries of the Cherokee Nation Reservation, and within the Eastern District of Oklahoma.
The Honorable Charles B. Goodwin, 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. Eubanks was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorneys Caila M. Cleary and Anthony C. Marek represented the United States.
Federal Judge Sentences Three Men Convicted of Racially Motivated Hate Crimes in Connection with the Killing of Ahmaud Arbery in GeorgiaRead the Press Release
A federal judge in the Southern District of Georgia today sentenced Travis McMichael, 36, to life plus 10 years in prison; and his father Gregory McMichael, 66, to life plus seven years in prison; and William “Roddie” Bryan, 52, to 35 years in prison, for committing federal hate crimes and other offenses in connection with the killing of Ahmaud Arbery, a young Black man, who was jogging on the public streets of a Brunswick neighborhood when he was chased down and shot to death in February 2020.
All three defendants were convicted at trial in February 2022 on multiple counts, including one count of using violence to intimidate and interfere with Arbery because of his race and because he was using a public street. All three defendants were also found guilty of attempting to kidnap Arbery by chasing after him in their trucks in an attempt to capture and confine him. Finally, Travis McMichael was found guilty of using, carrying, brandishing, and discharging a Remington shotgun in the course of the hate crime, which added 10 years to his life sentence; and Gregory McMichael was found guilty of using, carrying and brandishing a .357 Magnum revolver, which added seven years to his life sentence.
“The Justice Department’s prosecution of this case and the court’s sentences today make clear that hate crimes have no place in our country, and that the Department will be unrelenting in our efforts to hold accountable those who perpetrate them,” said Attorney General Merrick B. Garland. “Protecting civil rights and combatting white supremacist violence was a founding purpose of the Justice Department, and one that we will continue to pursue with the urgency it demands.”
“It was important that this murder was prosecuted for what it was—a brutal and abhorrent racially-motivated hate crime,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “Ahmaud Arbery should be alive today. The tragic murder of Mr. Arbery reminds us that hate-fueled violence targeting Black people remains a modern-day threat in our country, and we must use every tool available to hold perpetrators accountable. We hope that this sentencing ends one painful chapter for the family of Ahmaud Arbery, the Brunswick community and the nation as a whole.”
“Those who commit hate crimes target what makes us who we are as Americans, striking at the very heart of our society,” said FBI Director Christopher Wray. “This is why combatting hate crimes and protecting civil rights are top priorities for the FBI. We will continue to fulfill our mission, working with our partners to investigate these acts of hatred and violence, and protecting the American people.”
“These substantial sentences should deliver a sense of finality and closure to an exceptionally tragic chapter in the Southern District of Georgia,” said U.S. Attorney David H. Estes for the Southern District of Georgia. “Even as the family and friends of Ahmaud Arbery continue to mourn his horrific and needless murder, we can find hope for our community’s future in the cooperative work of our law enforcement partners and prosecutors who brought these men to justice for their hateful crimes.”
Evidence at trial revealed that on Feb. 23, 2020, defendants Travis and Gregory McMichael armed themselves with firearms and chased after Arbery as he ran past their driveway. The pursuit passed by the home of defendant Roddie Bryan, who got into his own truck and joined the chase, despite the fact that he did not know and had never before seen Arbery. For the next four to five minutes, the three defendants pursued Arbery through the neighborhood, trying to box him in with their trucks. For that entire time, Arbery ran from the defendants, unarmed and with his hands in plain view. He never spoke a word to the defendants, and never made any threatening sound or gesture; rather, he repeatedly tried to run away. Ultimately, after Arbery had already changed direction multiple times, trying to escape from the defendants, Travis McMichael got out of his truck and pointed a shotgun directly at Arbery. When Arbery tried to defend himself, Travis McMichael shot him in the chest. Arbery, wounded, grabbed for the gun. During a struggle over the gun, Travis McMichael fired two more shots into Arbery, who then stumbled a few steps and fell face-first onto the pavement, where he died in the street.
Evidence at trial revealed that the defendants had strongly held racist beliefs that led them to make assumptions and decisions about Arbery that they would not have made if Arbery were white.
Travis McMichael’s social media comments and text messages to friends, offered as exhibits at trial, showed that Travis harbored racial animus against Black people, whom he described at points as “sub-human savages” who “ruin everything”; the social media comments also revealed that Travis had for many years associated Black people with criminality and had expressed a desire to see Black people — particularly those he viewed as criminals — harmed or killed.
Witnesses testified at trial about deeply racist comments Gregory McMichael had made to people he barely knew. One witness testified about a brief encounter she had with Gregory in a professional capacity, during which she commented that it was “too bad” that Julian Bond, a Black Georgia civil rights leader, had recently passed away; Gregory angrily responded that he wished Bond had “been put in the ground years ago” and that Bond and “those Blacks” were “nothing but trouble.” According to the witness, Gregory then went on a five-minute rant about Black people.
The jury also saw racist text messages from Roddie Bryan. When Bryan learned, just four days before the shooting, that his daughter was dating a Black man, Bryan referred to the boyfriend as a “ni----” and a “monkey.” In other messages on social media, Bryan also referred to other Black people using racial slurs. When the police spoke to Bryan about Arbery’s death, he admitted that he had never seen or heard anything about Arbery before; when he saw a Black man being chased, his “instinct” told him that the man must be a thief, or maybe had shot someone.
At trial, the jury found that the evidence proved beyond a reasonable doubt that race formed a but-for cause of the defendants’ actions on Feb. 23, 2020—meaning that, but-for Arbery being Black, the defendants would not have assumed he was a criminal, chased him down, and shot him.
All three defendants were previously convicted in a separate state trial on felony murder charges and other offenses. In state court, the McMichaels were both sentenced to life imprisonment without the possibility of parole, and Bryan was sentenced to life imprisonment with the possibility of parole.
This case was investigated by both the Georgia Bureau of Investigation and the FBI, and was prosecuted by Assistant U.S. Attorney Tara Lyons of the Southern District of Georgia, and Deputy Chief Bobbi Bernstein and Special Litigation Counsel Christopher J. Perras of the Civil Rights Division.
Fairmont man sentenced for his role in a drug conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Nathaniel Lee Williams, of Fairmont, West Virginia, was sentenced today to 60 months of incarceration for his role in a drug trafficking conspiracy, United States Attorney William J. Ihlenfeld, II announced.
Williams, also known as “Sticks,” 64, pleaded guilty in August 2021 to one count of “Possession with Intent to Distribute Five Grams or more of Methamphetamine.” Williams admitted to having 37.43 grams of methamphetamine, also known as “crystal” or “ice,” in August 2018 in Marion County. As a part of the plea agreement, Williams also admitted that he sold more than a half of a gram of fentanyl during three separate buys in July 2020.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Three Rivers Drug Task Force and the Fairmont Police Department investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/west-virginia-and-detroit-residents-indicted-drug-trafficking-operation
Everett Man Charged in Superseding Indictment for Additional Securities Fraud SchemeRead the Press Release
BOSTON – An Everett man has been charged in a superseding indictment in connection with two securities fraud schemes: one involving an alleged pump-and-dump and one involving the alleged misappropriation of tens of thousands of dollars of investor funds to pay his personal expenses.
Christopher R. Esposito, 55, was charged in a superseding indictment with one count of conspiracy to commit securities fraud and sale of unregistered securities, one count of securities fraud and one count of sale of unregistered securities, concerning the alleged pump-and-dump scheme. In April 2022, Esposito was indicted on one count of securities fraud and one count of wire fraud, in relation to the alleged misappropriation scheme.
According to the charging documents, Esposito and co-conspirator Anthony Jay Pignatello conspired between 2012 and 2015 to conceal their control over the Massachusetts-based microcap company Cannabiz Mobile, Inc. and to use backdated promissory notes to fraudulently obtain free-trading shares in the company. They then allegedly arranged for a promotional campaign in October 2015 to pump up Cannabiz Mobile’s stock so that they could sell – i.e., dump – their shares into the market and make money. In so doing, they allegedly sold and offered to sell Cannabiz Mobile stock in violation of the securities laws because the securities were not registered with the SEC and no exemption from SEC registration was available.
In addition, between August 2019 and February 2020, Esposito allegedly sold shares in a separate company, Code2Action, Inc., based on material misstatements and omissions and then misappropriated much of the proceeds. More specifically, Esposito is alleged to have, among other things, deliberately misled prospective investors about Code2Action’s plan and ability to complete a reverse merger, which Esposito touted would enable the investors to sell their shares at a profit, and spent over $57,000 of the investors’ funds to pay himself and his personal expenses.
The charges of conspiracy and sale of unregistered securities each provide for a sentence of up to five years in prison, three years of supervised release and a fine up to $250,000 or twice the gross gain or loss from the offense. The charges of securities fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $5 million. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today. Assistant U.S. Attorney James R. Drabick of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Eliot Maine Man Charged with Interstate StalkingRead the Press Release
CONCORD, N.H. – Michael Chick, 39, of Eliot, Maine, was charged via complaint in federal court with interstate stalking, United States Attorney Jane E. Young announced today.
Chick was arrested without incident on Friday evening in Eliot, Maine. According to court documents and statements made in court, Chick was employed as a school bus driver and was assigned to bus routes servicing the Greenland Central School in Greenland, New Hampshire. Chick is alleged to have threatened a child attending the Greenland Central School and threatening the child’s family, and to have travelled from Maine to New Hampshire to make the threats.
Chick had an initial appearance hearing in federal district court this afternoon. The Court ordered him detained pending a detention hearing scheduled for August 18, 2022.
This matter was investigated by the Greenland Police Department, the Eliot, Maine Police Department, the New Hampshire Internet Crimes Against Children Task Force, and the Department of Homeland Security, Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Kasey Weiland.
The charges contained in the complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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District of Columbia Man Pleads Guilty to Armed Robberies for Role in Series of Crimes in Fall 2020Read the Press Release
Three Others Earlier Pleaded Guilty in the Investigation
WASHINGTON – Mekhi Truesdale, 19, of Washington, D.C., pleaded guilty today to two counts of armed robbery for his role in a series of armed robberies that took place during the fall of 2020 in Northwest Washington, admitting to two crimes in a 10-day period. He is the fourth defendant to plead guilty to charges involving multiple robberies.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, Christopher Stock, Acting Chief of the U.S. Park Police, and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Truesdale pleaded guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a sentence of eight to 10 years in prison, consistent with the Court’s voluntary sentencing guidelines. The Honorable Michael O’Keefe scheduled sentencing for Oct. 7, 2022
According to plea documents, on Oct. 22, 2020, at approximately 9:45 p.m., a woman was walking in the area of Belt Road and Harrison Street NW when Truesdale and an accomplice approached her. Truesdale told the woman he had a gun and demanded her cellphone and phone passcode. He lifted his sweatshirt to reveal a black semi-automatic handgun. The woman handed over her cellphone, passcode, and wallet. About 45 minutes later, the cellphone was used to transfer $500 to Truesdale via a Venmo account. The next morning, an unsuccessful attempt was made to transfer more than $12,000 to various Venmo accounts held by Truesdale and others.
Another robbery took place on Nov. 1, 2020. At approximately 1:05 a.m., a man and woman were getting into a vehicle that was parked in the 1400 block of 22nd Street NW. Truesdale and an accomplice approached them and demanded their cellphones, phone passcodes, wallets, and keys. The accomplice pointed a silver revolver, and the man and woman turned over their cellphone, wallets, and keys. The woman also turned over her Apple AirPods. Truesdale and the accomplice then ordered the man and woman to get into the car, which they locked using the stolen car keys. They then fled. Less than 15 minutes later, $20 was transferred from one of the victims’ accounts and an attempt was made to transfer another $50.
Three others pleaded guilty on July 13, 2022, to charges in the investigation, and all are awaiting sentencing. They include:
- William Bell, 20, of Washington, D.C. Bell pleaded guilty to one count of robbery and one count of attempted robbery for two hold-ups on Oct. 17, 2020, and Oct. 21, 2020. The first took place near the intersection of 22nd Street and Virginia Avenue NW, and the second in the area of the 1200 block of W Street NW.
- Dave Harding, 20 of Washington, D.C. Harding pleaded guilty to one count of armed robbery and one count of robbery, for two hold-ups, both on Oct. 31, 2020, including one at Fort Reno Park and another in the 3100 block of P Street NW.
- Jada Winder, 19, of Greenbelt, Maryland. She pleaded guilty to two counts of receiving stolen property involving the transfers from victims’ accounts.
Truesdale was arrested in Washington, D.C. on Nov. 5, 2020, following a foot chase in the Georgetown area. Bell was arrested Nov. 30, 2021, in San Luis Obispo, Calif., by the U.S. Marshals Service. Harding was arrested on April 8, 2022, in Washington, D.C. Winder was arrested in Greenbelt on Nov. 24, 2021.
This case was investigated by MPD, the FBI Washington Field Office’s Violent Crimes Task Force, and the U.S. Park Police. Valuable assistance was provided by the Metro Transit Police Department and the Montgomery County, Md., Police Department.
In announcing the pleas, U.S. Attorney Graves, Special Agent in Charge Jacobs, Acting Chief Stock, and Chief Contee expressed appreciation for the work of those investigating the case from MPD, the FBI Washington Field Office, and USPP, as well as for the assistance of the Deputy U.S. Marshals involved in locating the defendants. They also acknowledged the efforts of those working on the case from the U.S. Attorney’s Office, including Paralegal Specialists Debra McPherson and Alesha Matthews Yette.
Finally, they commended the work of Assistant U.S. Attorneys Joshua Gold and Charles R. Jones who investigated and prosecuted the case, along with Assistant U.S. Attorney Jamie Carter who investigated the case prior to indictment.
Convicted Felon Sentenced to 66 Months for Smuggling AmmunitionRead the Press Release
TUCSON, Ariz. – Luis Carlos Eriksen, 56, of Nogales, Arizona, was sentenced August 3, 2022, by United States District Judge James A. Soto to 66 months in prison for Smuggling Ammunition from the United States into Mexico and Possession of Ammunition by a Convicted Felon.
On May 20, 2020, Eriksen drove from Mexico to Phoenix, where he purchased 4,000 rounds of 7.62 x 39 ammunition, and 1,000 rounds of .38 Super ammunition from an ammunition retailer. After loading the ammunition into his vehicle, he began driving back to Mexico. He was stopped by an Arizona Department of Public Safety (DPS) officer, who discovered the ammunition in his vehicle. Eriksen admitted that he had entered into an agreement with individuals in Mexico to obtain bulk ammunition in the United States and smuggle it into Mexico for payment. Eriksen has prior convictions for drug trafficking offenses and is prohibited from possessing ammunition.
Homeland Security Investigations conducted the investigation in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and DPS. Assistant U.S. Attorney Angela W. Woolridge, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-0542-TUC-JAS
RELEASE NUMBER: 2022-132_Eriksen# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Colombian Man Sentenced to One Hundred Sixty Eight Months Imprisonment for Trafficking 4,951 Kilograms of CocaineRead the Press Release
Sean P. Costello, the United States Attorney for the Southern District of Alabama, announced that Nester Javier Salazar-Montano was sentenced on August 4, 2022 to one hundred and sixty eight months imprisonment for trafficking cocaine. The sentence was handed down by United States District Court Judge Terry F. Moorer. Salazar-Montano plead guilty to violating Title 46, United States Code, Section 70506(b), Conspiracy to Distribute Cocaine on Board a Vessel in April 2022.
Documents filed with the guilty plea established that on December 13, 2021, while on routine patrol, in the Eastern Pacific, a marine patrol aircraft detected a low profile go-fast vessel in international waters near Malpelo, Colombia. US Coast Guard Cutter James diverted to intercept. The Coast Guard cutter launched an intercept vessel and helicopter, and ultimately boarded the vessel and discovered the 4,951 kilograms of cocaine on board the vessel.
Title 46 § 70506(b) makes it a federal crime for individuals to conspire to possesses with the intent to distribute drugs in international waters on, among other things, vessels that are determined to be vessels without nationality under the law. The law further states that these cases can be prosecuted in any federal court in the United States. Three other drug smugglers, Alonzo Escobar-Valenzuela, Fernando Preciado and Henry Hernadez-Garcia were with Salazar-Montano on the drug smuggling venture. They have all plead guilty and are awaiting sentencing before Judge Moorer.
U.S. Attorney Sean P. Costello praised the outstanding work of the United States Coast Guard, the Department of Homeland Security, Homeland Security Investigations, and his prosecutor involved in the case. Costello said, “The United States Coast Guard unfailingly lives up to its motto of “Semper Paratus” and does an outstanding job interdicting these drug smuggling vessels in international waters. The Department of Homeland Security, Homeland Security Investigations then dedicates its resources and expertise to follow up and ensure these smugglers receive the full measure of justice. There is surely a drug cartel bemoaning the seizure of more than five tons of its cocaine, and the prosecution of four of its smugglers.”
This case was investigated by the United States Coast Guard and the Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney George F. May.
Co-Owner of Multiple Companies Admits Failing to Pay over $1 Million in Payroll TaxesRead the Press Release
NEWARK, N.J. – A co-owner of multiple businesses today admitted to his role failing to pay over $1 million in payroll taxes for his companies, U.S. Attorney Philip R. Sellinger announced.
Omar Mostafa, 57, of New Jersey, pleaded guilty before U.S. District Judge Georgette Castner to an information charging him with willful failure to collect or pay taxes.
According to documents filed in this case and statements made in court:
From 2016 through 2018, Mostafa co-owned three companies that operated in New Jersey and New York and was responsible for signing and causing to be filed the companies’ tax returns with the IRS. During those tax years, Mostafa substantially underreported each company’s payroll, causing a total tax loss to the IRS of approximately $1.4 million.
The count of failing to collect, account for, and pay employment taxes is punishable by a maximum penalty of five years in prison and a maximum $10,000 fine. Sentencing is scheduled for Dec. 12, 2022.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Charles Elsea, Jr., Leader of A Prison Gang, Sentenced to Life in Prison for Drug and Money Laundering OffensesRead the Press Release
GREENEVILLE, Tenn. – On August 8, 2022, Charles Elsea, Jr., 44, a longtime inmate of the Tennessee Department of Corrections, was sentenced to life in prison by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Following a six-day jury trial in March 2022, Elsea was convicted by a jury of Conspiracy to Distribute 50 Grams or More of Actual Methamphetamine, 21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(A); Conspiracy to Distribute Marijuana, 21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(C); Conspiracy to Commit Money Laundering 18 U.S.C. § 1956(a)(1)(A)(i).
During sentencing, Judge Greer found that Elsea was responsible for distributing over 56.8 kilograms of methamphetamine. Elsea was ordered to forfeit $1,263,490.00, which represented the illegal proceeds from distributing methamphetamine and money laundering.
According to court documents and evidence presented at trial, Elsea was serving a prison sentence for First Degree Murder for a 1996 homicide in Hamilton County, Tennessee when he rose through the ranks to become the State President of the Brotherhood Forever, a Tennessee based prison gang. Elsea led the drug trafficking organization from behind prison walls using smuggled cellphones to conduct his business on the outside. Elsea orchestrated multi-kilo methamphetamine deals that involved methamphetamine being transported from California and Arizona to Tennessee. Elsea and his coconspirators used the drug proceeds from the methamphetamine sales to create marijuana grow houses in and out of Tennessee. Elsea was also involved in starting two marijuana grow operations during the pendency of this case, utilizing the jail’s video system to speak to coconspirators about the cultivation of marijuana.
The case was the result of a five-year investigation that began in the spring of 2017 by the Department of Homeland Security – Homeland Security Investigations (“DHS-HSI”), the Drug Enforcement Administration (“DEA”), and the United States Postal Inspection Service (“USPIS”). Other agencies involved with the investigation included the Tennessee Department of Correction Office of Investigations and Conduct; the Elizabethton and Carter County Joint Drug Task Force; the Huron Undercover Narcotic Team with the Michigan State Police; the Arkansas Highway Patrol; the Missouri Western Interdiction Task Force with the Kansas City, Missouri Police Department; and the California Visalia Police Department. This investigation was led by HSI Special Agent John Bulla.
Assistant U.S. Attorneys Meghan L. Gomez and J. Christian Lampe represented the United States at sentencing.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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