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Friday 3 June 2022
Red Lake Man Sentenced to More Than 19 Years in Prison for Sexual Abuse of a ChildRead the Press Release
ST. PAUL, Minn. – A Red Lake man was sentenced to 235 months in prison, followed by five years of supervised release, for sexually abusing a child over the course of several years, announced United States Attorney Andrew M. Luger.
According to court documents, between August 2014 and August 2020, Kory Paul Lussier, 25, knowingly and repeatedly engaged in sexual contact with a minor female who was between seven and thirteen years old at the time.
Lussier was sentenced today in U.S. District Court before Senior Judge Paul A. Magnuson. On October 21, 2021, Lussier pleaded guilty to one count of abusive sexual contact with a child.
This case was the result of investigations conducted by the Red Lake Department of Public Safety and the FBI Headwaters Safe Trails Task Force.
Assistant U.S. Attorney Alexander D. Chiquoine prosecuted the case.
Readout of U.S. Attorney General Merrick B. Garland’s Meeting with EU Commissioner for Justice and Consumer Affairs Didier ReyndersRead the Press Release
Attorney General Merrick B. Garland hosted the European Union’s Commissioner for Justice and Consumer Affairs Didier Reynders in Washington, D.C. yesterday ahead of the U.S.-EU Justice and Home Affairs Ministerial, which will take place later this month. The two leaders discussed joint efforts underway to find, restrain, freeze, seize, and, where appropriate, confiscate or forfeit the assets of individuals and entities in connection with Russia’s unjust and unprovoked war of aggression against Ukraine. They also discussed how to best support ongoing war crimes investigations related to Russian aggression toward Ukraine. Attorney General Garland and Commissioner Reynders reaffirmed shared priorities in countering terrorism, violent extremism, and hate crimes and discussed opportunities to strengthen U.S.-EU cooperation in fighting environmental crime and protecting consumers.
Plainville Man Sentenced to Eight Years in Prison for Child Exploitation OffensesRead the Press Release
BOSTON – A Plainville man was sentenced yesterday on child exploitation charges arising from his transfer of obscene photos of himself to someone he believed to be a 13-year-old girl and possession of child pornography.
David Cerasuolo, 49, was sentenced by U.S. District Court Judge Patti B. Saris to eight years in prison and five years of supervised release. On March 4, 2022, Cerasuolo pleaded guilty to one count of attempted transfer of obscene material to a minor and one count of possession of child pornography.
Starting in June 2020, Cerasuolo used chat applications to engage in conversations with an individual he believed to be a 13-year-old girl named “Amy,” but who was actually an undercover federal agent. Over the course of nearly six weeks, Cerasuolo sent over 1,000 text messages to “Amy,” including one that contained a photograph displaying his genitalia. He also attempted to persuade “Amy” to take and send photos and/or videos of herself to him and attempted to entice her to meet in person for the purpose of engaging in sexual activity. Additionally, during a search of his residence, Cerasuolo was found in possession of child pornography on his cell phone, including images depicting children between the ages of six and 10 engaged in sexual conduct.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. The Plainville, Arlington, Boston and Newton Police Departments and Massachusetts Department of Correction provided assistance with the investigation. Assistant U.S. Attorney Adam Deitch of Rollins’s Major Crimes Unit prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Peter Navarro Indicted for Contempt of CongressRead the Press Release
WASHINGTON – Former White House advisor Peter K. Navarro has been indicted by a federal grand jury on two counts of contempt of Congress stemming from his failure to comply with a subpoena issued by the House Select Committee investigating the Jan. 6 breach of the United States Capitol.
Navarro, 72, is charged with one contempt count involving his refusal to appear for a deposition and another involving his refusal to produce documents, despite a subpoena from the House Select Committee to Investigate the January 6th Attack on the United States Capitol. The indictment was returned yesterday and unsealed today. Navarro is to make his initial appearance this afternoon in the U.S. District Court for the District of Columbia.
The announcement was made by U.S. Attorney Matthew M. Graves of the District of Columbia and Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office.
As detailed in the indictment, on Feb. 9, 2022, the Select Committee issued a subpoena to Navarro. The subpoena required him to appear and produce documents to the Select Committee on Feb. 23, 2022, and to appear for a deposition before the Select Committee on March 2, 2022. According to the indictment, Navarro refused to appear to give testimony as required by subpoena and refused to produce documents in compliance with a subpoena.
In its subpoena, the Select Committee said it had reason to believe that Navarro had information relevant to its investigation. Navarro, formerly an advisor to the President on various trade and manufacturing policies, has been a private citizen since departing the White House on Jan. 20, 2021.
Each count of contempt of Congress carries a minimum of 30 days and a maximum of one year in jail, as well as a fine of up to $100,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI’s Washington Field Office. The case is being prosecuted by the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
Oshkosh Sex Offender Charged with Distribution and Possession of Child PornographyRead the Press Release
United States Attorney Richard G. Frohling announced that on June 2, 2022, a criminal complaint was issued alleging that Matheau P. Martinez (age: 38) of Oshkosh, Wisconsin, distributed and possessed child pornography in violation of Title 18, United States Code, Sections 2252A(a)(2)(A) and 2252A(a)(5)(B).
Based on a previous conviction, Martinez is required to register as a sexual offender in the State of Wisconsin. As a result, he faces enhanced mandatory minimum penalties. If he is convicted for the distribution of child pornography charge, he faces a mandatory minimum sentence of 15 years and up to 40 years of incarceration in federal prison. If he is convicted for the possession of child pornography charge, he faces a mandatory minimum of 10 years to and a maximum of 20 years of imprisonment.
According to court filings, Martinez utilized “peer-to-peer” software to distribute images and digital videos depicting child pornography. On June 2, 2022, a search warrant was executed at Martinez’s residence, and he was arrested without incident.
This case is being investigated by the Milwaukee Division of the Federal Bureau of Investigation (FBI) and the Winnebago County Sheriff's Office.
A criminal complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Orange County Man Agrees to Plead Guilty to Federal Charges for Obtaining More Than $5 Million in COVID Loans for Sham CompaniesRead the Press Release
LOS ANGELES – An Orange County man has agreed to plead guilty to federal criminal charges that he fraudulently obtained more than $5 million in COVID-relief loans for three sham companies.
Raghavender Reddy Budamala, 35, of Irvine, agreed to plead guilty to one count of bank fraud and one count of money laundering in a plea agreement filed today in United States District Court. Budamala, who has agreed to forfeit his ill-gotten gains to the government, is scheduled to enter his guilty plea on June 21 before United States District Judge Otis D. Wright II.
According to his plea agreement, in 2019 Budamala formed or acquired three shell companies with no operations – Hayventure LLC, Pioneer LLC, and XC International LLC. Following the outbreak of the COVID-19 pandemic, and the enactment of federal programs designed to address the economic fallout from the pandemic, Budamala submitted to the Small Business Administration seven applications for pandemic-relief loans under the Paycheck Protection Program and Economic Injury Disaster Loan.
As part of the applications filed from April 2020 through March 2021, Budamala falsely represented to the banks administering the COVID-relief business loan programs that his companies employed dozens of individuals and earned millions of dollars in revenue, and that he needed the money for payroll and business expenses.
The listed addresses for the companies were bogus, nonexistent or residential. The states where Budamala’s companies purportedly operated have no records of those companies paying wages to any employees, and bank records for the companies reflect no significant business income or operating expenses.
The SBA and the banks funded six of the loans and disbursed $5,151,497. Budamala applied to have several of the loans forgiven and falsely represented that he had used the SBA money entirely for payroll.
Once the loans were funded, Budamala used the money to pay for personal expenses, including the purchase of a $1.2 million investment property in Eagle Rock, the purchase of a $597,585 property in Malibu, the purchase of a personal residence in Irvine, a $970,000 investment in an EB-5 Immigrant Investor Visa Program and a nearly $3 million deposit into Budamala’s personal TD Ameritrade account.
Upon entering his guilty plea, Budamala will face a statutory maximum sentence of 40 years in federal prison.
Budamala has been in federal custody since his arrest on February 23, when he attempted to abscond from the United States to Mexico via the San Ysidro border crossing. A criminal complaint was filed against him on February 24.
IRS Criminal Investigation, the FBI, and the Small Business Administration’s Office of Inspector General investigated this matter.
Assistant United States Attorney Gregory D. Bernstein of the Major Frauds Section is prosecuting this case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Operator of Multiple PACs Pleads Guilty to False Reporting to FECRead the Press Release
The former owner and operator of seven political action committees (PACs) pleaded guilty today to making a false statement in connection with PAC expenses reported to the Federal Election Commission (FEC).
According to court documents, Tyler D. Whitney, 33, of Austin, Texas, formed and operated the PACs beginning in mid-2012. Whitney also owned and operated Amagi Strategies, a consulting corporation, and Amagi Imports, an affiliated business. Between 2012 and 2018, Whitney operated each of the PACs by creating and managing a PAC-related website; purchasing email lists of potential contributors; utilizing vendors that provided blast email services to send mass emails to potential contributors; using urgent language in email solicitations to potential donors for contributions; and representing to potential donors that contributions would be used to support or oppose a particular candidate or cause via “voter outreach” and “advertising.”
During this time, Whitney spent a small portion of the donated funds to benefit the political candidates or causes the PACs represented they were going to support or oppose. He also transferred a large portion of the donated funds from the PACs to his consulting company, Amagi Strategies, or withdrew the money as cash. Whitney used funds in bank accounts for Amagi Strategies to either pay himself, pay for personal expenses, or pay for services (such as website management, email list purchases or rentals, and blast email services) to raise additional funds via email solicitations. Whitney filed and caused to be filed FEC reports that, among other things, were false as to amounts, dates, and descriptions of expenditures and disbursements by the PACs, including payments made to Amagi Imports.
For instance, in July 2016, Whitney transferred $10,000 from one of his PACs to Amagi Strategies. On the same day, Whitney transferred $9,000 from Amagi Strategies to Amagi Imports and then $8,787.73 from Amagi Imports to an international shipping company. Whitney’s PAC did not report this $10,000 payment on its FEC reports for 2016 and 2017. However, in January 2018, Whitney caused the PAC’s treasurer to file an amended FEC quarterly report for the PAC that falsely disclosed the $10,000 payment as “PAC Management Fees.”
Whitney pleaded guilty to making a false statement. He is scheduled to be sentenced on Aug. 26 and faces up to five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, and Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office made the announcement.
The FBI Washington Field Office investigated the case.
Senior Litigation Counsel Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Kimberly R. Pedersen for the Eastern District of Virginia are prosecuting the case.
Operator of Multiple PACs Pleads Guilty to False Reporting to FECRead the Press Release
ALEXANDRIA, Va. – The former owner and operator of seven political action committees (PACs) pleaded guilty today to making a false statement in connection with PAC expenses reported to the Federal Election Commission (FEC).
According to court documents, Tyler D. Whitney, 33, of Austin, Texas, formed and operated the PACs beginning in mid-2012. Whitney also owned and operated Amagi Strategies, a consulting corporation, and Amagi Imports, an affiliated business. Between 2012 and 2018, Whitney operated each of the PACs by creating and managing a PAC-related website; purchasing e-mail lists of potential contributors; utilizing vendors that provided blast e-mail services to send mass emails to potential contributors; used urgent language in e-mail solicitations to potential donors for to solicit contributions; and representing to potential donors that contributions would be used to support or oppose a particular candidate or cause via “voter outreach” and “advertising.”
During this time, Whitney spent a small portion of the donated funds to benefit the political candidates or causes the PACs represented they were going to support or oppose. He also transferred a large portion of the donated funds from the PACs to his consulting company, Amagi Strategies, or withdrew the money as cash. Whitney used funds in bank accounts for Amagi Strategies to either pay himself, pay for personal expenses, or pay for services such as website management, e-mail list purchases or rentals, and blast e-mail services to raise additional funds via e-mail solicitations. Whitney filed and caused to be filed FEC reports that, among other things, were false as to amounts, dates, and descriptions of expenditures and disbursements by the PACs, including payments made to Amagi Imports.
For instance, in July 2016, Whitney transferred $10,000 from one of his PACs to Amagi Strategies. On the same day, Whitney transferred $9,000 from Amagi Strategies to Amagi Imports and then $8,787.73 from Amagi Imports to an international shipping company. Whitney’s PAC did not report this $10,000 payment on its FEC reports for 2016 and 2017. However, in January 2018, Whitney caused the PAC’s treasurer to file an amended FEC quarterly report for the PAC that falsely disclosed the $10,000 payment as “PAC Management Fees.”
Whitney pleaded guilty to making a false statement. He is scheduled to be sentenced on Aug. 26 and faces up to five 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 Jessica D. Aber for the Eastern District of Virginia; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea.
Assistant U.S. Attorney Kimberly R. Pedersen and Senior Litigation Counsel Edward P. Sullivan of the Criminal Division’s Public Integrity Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-73.
Norfolk Man Pleads Guilty to Possessing a Firearm Used in a Killing on Interstate 264Read the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty yesterday to possessing a firearm after previously being convicted in Norfolk Circuit Court in 2017 of multiple felonies: malicious wounding, use of a firearm in the commission of a felony, and abduction.
According to court documents, Curtis Hathaway, 27, was involved in a shooting on I-264 in Norfolk on November 17, 2020, which resulted in the death of another driver. The decedent’s car approached Hathaway’s from the rear. The decedent began to shoot at Hathaway, striking his vehicle and Hathaway in the leg. Hathaway returned fire from the driver’s seat while driving down the interstate. The decedent was shot in the head and died.
After the shooting, the police located Hathaway at his sister’s residence in Virginia Beach. When the police arrived, they saw that Hathaway had a bullet wound in his leg and his car had multiple bullet holes and contained several spent cartridge casings. Hathaway attempted to flee from the police but was caught and detained. Police found a firearm in the bushes outside his sister’s residence. An analysis through the National Integrated Ballistic Information Network (NIBIN) linked the firearm located in the bushes to the discharged casings in Hathaway’s car, and a subsequent forensic analysis confirmed they had been fired by the weapon. Hathaway also had gunshot primer residue on his hands, indicating he recently discharged a firearm. Also, in July 2021, Hathaway was caught by police with another semi-automatic handgun.
Hathaway is scheduled to be sentenced on October 21. He faces a maximum of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Ramin Fatehi, Norfolk Commonwealth’s Attorney; Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; Mike Goldsmith, Interim Chief of Norfolk Police; and Paul Neudigate, Chief of Virginia Beach Police made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea.
Special Assistant U.S. Attorney Graham Stolle and Assistant U.S. Attorney Andrew Bosse are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-24.
New Orleans Resident Sentenced to 120 Months for Possessing a Loaded Ak-47 and for Possessing with Intent to Distribute Crack Cocaine Found Hidden on His Body at JailRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that Judge Wendy B. Vitter sentenced BLAKE MONROE on June 2, 2022, to 120 months in prison, three (3) years of supervised release, and $200 in mandatory special assessment fees for being a felon in possession of a loaded AK-47 seized during a New Orleans Police Department traffic stop and for possessing with intent to distribute a quantity of crack cocaine.
MONROE, age 31, a resident of New Orleans, Louisiana, pled guilty on November 3, 2021, to being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1), and to the crack cocaine offense, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). MONROE has prior felony convictions in Orleans Parish.
According to court records, during a December 11, 2019, traffic stop, NOPD officers observed in plain sight a loaded AK-47, with the selector switch in the fire position, on the back floor of a Mercedes driven by MONROE. NOPD officers had pulled MONROE over after two NOPD officers observed MONROE conduct a suspected hand-to-hand crack sale in New Orleans East. During his booking at jail that same afternoon, an Orleans Parish Sheriff’s Office deputy found approximately 24 grams of crack cocaine that MONROE had hidden on his body.
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.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Hammond Police Department, New Orleans Police Department, and Slidell Police Department in investigating this matter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
New Orleans Man Sentenced for Conspiracy to Distribute DrugsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MARK RICHBURG, age 40, of New Orleans, was sentenced on June 2, 2022 by United States District Judge Eldon E. Fallon after previously pleading guilty to one count of conspiracy to distribute 5 kilograms or more of cocaine, 100 grams or more of heroin, and a quantity of cocaine base, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), 841(b)(1)(C), and 846.
According to court records, RICHBURG and others conspired to distribute multiple kilograms of cocaine and heroin in the New Orleans area. Additionally, RICHBURG arranged for the transport of multiple kilograms of cocaine and heroin between Texas and New Orleans.
Judge Fallon sentenced RICHBURG to 292 months of imprisonment, 5 years of supervised release, and a $100 mandatory special assessment fee.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Evans praised the work of the U.S. Drug Enforcement Administration and Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Elizabeth Privitera and Jonathan L. Shih are in charge of the prosecution.
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New Orleans Man Pleads Guilty to Fentanyl, Heroin and Firearms ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that LAWRENCE ROBERTSON (“ROBERTSON”), age 37, pled guilty on June 2, 2022 to one count of conspiracy to distribute and possess with the intent to distribute 40 grams or more of fentanyl and a quantity of heroin, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B), 841(b)(1)(C), and 846; one count of possession with the intent to distribute fentanyl and heroin, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C); and one count of possession of a firearm during and in relation to a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i).
According to court documents, on September 11, 2018, ROBERTSON possessed over 40 grams of fentanyl, quantities of heroin, and a Glock Model 27, .40 caliber semiautomatic pistol.
On the drug conspiracy count, ROBERTSON faces a mandatory minimum sentence of 5 years up to 40 years of imprisonment, at least 4 years of supervised release, a fine of up to $4,000,000, and a $100 mandatory special assessment fee. On the firearm count, ROBERTSON faces a mandatory minimum sentence of 5 years up to life imprisonment, up to 5 years of supervised release, a fine of up to $250,000, and a $100 mandatory special assessment fee.
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.
U.S. Attorney Evans praised the work of the U.S. Drug Enforcement Administration and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
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Navajo man indicted for sexual abuse of a minorRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Leonard Lewis was arraigned on an indictment charging him with sexual abuse of a minor in Indian Country. Lewis, 65, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending space at a halfway house, after which he will remain on conditions of release pending trial, which has not been scheduled.
A federal grand jury indicted Lewis on May 25. According to the indictment, between March 1, 2021, and April 30, 2021, Lewis allegedly sexually abused a child, identified as Jane Doe. The alleged abuse occurred on the Navajo Nation in San Juan County, New Mexico.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Lewis faces up to 15 years in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Criminal Investigation and Navajo Police Department. Special Assistant United States Attorney Chelsea N. Van Deventer is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
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Mother of Inmate Sentenced for Facilitating Smuggling of Cellphones into Dauphin County PrisonRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Aida Rosado, age 62, of Harrisburg, Pennsylvania, was sentenced on June 1, 2022, to two years of probation with the first four months on home detention by United States District Court Judge Christopher C. Conner, for assisting her son in smuggling cellular telephones into the Dauphin County Prison.
According to United States Attorney John C. Gurganus, Rosado’s son, Danny Cruz, was an inmate in Dauphin County Prison when she, on her son’s behalf, agreed to help him smuggle cellphones into the prison. On multiple occasions between October 2015 and January 2016, she gave money and cellular telephones to Correctional Officer Kyle Bower, who then smuggled phones into the prison for her son. Correctional Officer Bower was paid hundreds of dollars for each phone.
All other participants in the conspiracy have entered guilty pleas to conspiracy to smuggle phones into the prison:
- Former Correctional Officer Bower was sentenced to two months in federal prison and two months of home detention after his release from federal prison;
- Alice Martinez was sentenced to twelve months in prison; and
- Danny Cruz and Lizarrah Matthews pleaded guilty and are awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation (FBI) and the Dauphin County Criminal Investigation Division. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.
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Monroe County Man Pleads Guilty to Covid-Relief Fraud Mid-TrialRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Julian J. Levons, age 64, of Henryville, Pennsylvania, pleaded guilty yesterday to perpetrating a wire fraud and money laundering scheme to obtain COVID-19 relief guaranteed by the Small Business Administration through the Economic Injury Disaster Loan (EIDL) program. The plea was entered after Levons commenced trial on May 31, 2022.
The EIDL program is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, EIDL funds are offered in low-interest rate loans, designated for specific business expenses, such as fixed debts, payroll, and business obligation.
According to United States Attorney John C. Gurganus, Levons was charged with obtaining two EIDL loans for a combined approximate $300,000, and attempting unsuccessfully to obtain a third EIDL loan for approximately $150,000. In applying for the loans, Levons falsified revenue and expense figures for two supposed small businesses that he and his wife owned. The money was allegedly used to pay down a high interest rate line of credit for Levons’s personal expenses, and to pay off a high interest rate mortgage on a rental property, despite prohibitions on the use of EIDL funds to refinance pre-existing debt. Investigators seized over $210,000 in fraudulently obtained EIDL funds from bank accounts under his control.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Phillip J. Caraballo and James Buchanan are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
The maximum penalty under federal law are 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mexican and U.S. Justice Sector Officials Celebrate Launch of Mexico’s First Judicial Bench Book for New Accusatory Criminal Justice SystemRead the Press Release
MEXICO CITY - The Mexican federal judiciary, the Mexico City state judiciary, the Puebla state judiciary, and the U.S. Department of Justice’s Office of Prosecutorial Development, Assistance and Training (OPDAT) launched their Bench Book for Criminal Hearings and Trials, which is designed to increase judicial economy, decrease caseloads, and standardize judicial practices across Mexico. With funding from the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL), this resource will serve as an effective and practical tool for justice sector actors including criminal judges, prosecutors, and defense counsel across the country.
This judicial bench book is the first designed specifically for Mexico’s accusatory criminal justice system, which was fully implemented in 2016. They will build national capacity in the system and encourage the sustainable standardization of best practices. With standardized procedures for criminal hearings thanks to the Bench Book, criminal justice actors will efficiently establish all required elements within their respective hearings, resulting in sturdier convictions, fewer successful appeals, and less criminal impunity.
Over the past three years, OPDAT, 25 Mexican judges, and three Colombian judges with bench book experience worked tirelessly to compose standards for a Mexican Bench Book. Then, multiple institutions, to include the federal Attorney General’s Office and Public Defender’s Office, took part in the revision of the Bench Book, which ensured the final product is a true collaborative effort by multiple Mexican institutions.
Officials from state and federal judiciaries, state attorney general offices, and other institutions that helped create and revise the guide attended the launch.
U.S. Ambassador Ken Salazar, who delivered opening remarks, stated, “As a former state attorney general I know just how important bench books can be. And what a great collaboration between the U.S. government and all sorts of Mexican officials. This is the Seguridad Compartida we’re continually talking about, in action.”
Mexican Supreme Court of Justice, Alfredo Gutierrez Ortiz Mena, also participated in the inauguration and stated, “These guidelines not only define the nature and timing of roles, but also support said roles in jurisprudence, allowing to strategize.”
After the bench books’ dissemination, OPDAT and the federal judiciary will implement a monitoring and evaluation plan to show how effective the book is at reducing average hearing durations, and minimizing unnecessary delays and appeals.
https://www.cjf.gob.mx/PJD/guias/Default.aspx
Mexican National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane Evans announced today that on June 2, 2022 ALFREDO ERASMO CASTILLO-MORALES, age 32, was charged in a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, ALFREDO ERASMO CASTILLO-MORALES (“CASTILLO-MORALES”), reentered the United States after he was previously deported on November 1, 2019. If convicted, CASTILLO-MORALES faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment fee.
U. S. Duane Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
McLean Man Sentenced for Role in Call Center Tech Support Fraud ScamRead the Press Release
ALEXANDRIA, Va. – A McLean man was sentenced today to 3 years in prison for his role in a conspiracy to defraud more than 1,300 victims out of $1.6 million in connection with a call center scam.
According to court documents, Bruhaspaty Prasad, 33, conspired with several other individuals primarily based in India at a call center to carry out a tech support scheme that primarily affected elderly victims. The defendant’s co-conspirators contacted the victims through unsolicited telephone calls and pop-up notifications on their computers claiming, in part, that the victims needed assistance to remove malware from their computers. In other instances, the call center employees pretended to be associated with companies like Amazon and Microsoft and falsely led the victims to believe that there were issues with their online accounts. The victims were duped into signing contracts for technical support services that were never rendered. Once the victims agreed to pay for services, they were frequently contacted again for additional services and charged additional fees.
Prasad, as the primary U.S.-based conspirator, was responsible for creating several businesses that purported to offer technical support to clients. During the life of the conspiracy, Prasad opened three businesses in the Commonwealth of Virginia, all of which received the fraudulently obtained proceeds of the scheme. Prasad was the sole signatory on the bank accounts for the entities he created. He was also responsible for transferring a significant portion of the fraud proceeds to his co-conspirators in India. Prasad continued operating these businesses and obtaining victims’ funds even after personally receiving several complaints and negative online reviews. Rather than closing the business entirely, Prasad continued to open businesses to allow the fraud scheme to proceed.
From April 2016 through September 2021, more than 1,300 individuals were defrauded. The victims suffered losses totaling more than $1.6 million.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
Amazon provided law enforcement with substantial assistance during the investigation.
Assistant U.S. Attorneys Jamar K. Walker and Kaitlin Cooke prosecuted the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-40.
Maryland Man Sentenced to 123 Months in Prison for Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
WASHINGTON – Jan Astaphan, 41, of Baltimore, Maryland, was sentenced today to 123 months in prison on a federal charge of traveling interstate to engage in illicit sexual conduct with a minor.
The announcement was made by U.S. Attorney Matthew M. Graves, Special Agent in Charge Raymond Villanueva of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD)
Astaphan pleaded guilty in June 2021, in the U.S. District Court for the District of Columbia, to a charge of travel with intent to engage in illicit sexual conduct. He was sentenced by the Honorable Randolph D. Moss. Upon completion of his prison term, Astaphan will be placed on a term of 10 years of supervised release, and required to pay a special assessment fee. He also will be required to register as a sex offender for a minimum period of 15 years upon his release from prison.
According to the government's evidence, on January 29, 2019, Astaphan agreed to pay $300 to engage in sexual activity with an under-aged child at a hotel in Washington D.C. HSI undercover agents identified Astaphan as a user of a website known to law enforcement as a site where members actively sexually exploit children. HSI agents identified Astaphan’s account in February 2018, and began communicating with him on multiple platforms, including by text message. As their conversations continued, Astaphan arranged to travel from his home in Maryland, on January 29, 2019, to a hotel in the District of Columbia. After handing $300 in cash to an individual he believed had access to the under-aged child, he was arrested by law enforcement. He has been in custody ever since.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Villanueva, and Chief Contee commended the work of the MPD Detectives and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). They also commended the efforts of Assistant U.S. Attorney Amy E. Larson, who is prosecuting the case.
Maryland Man Charged with Money Laundering Offenses Related to Computer Intrusions that Targeted New Jersey CompanyRead the Press Release
NEWARK, N.J. – A Maryland man was indicted on money laundering charges related to money obtained through unlawful computer intrusions that targeted a New Jersey-based employee benefit and payroll management company, U.S. Attorney Philip R. Sellinger announced today.
Oladapo Sunday Ogunbiyi, 40, of Greenbelt, Maryland, is charged by indictment with one count of conspiracy to commit money laundering, two counts of money laundering, and two counts of engaging in transactions in property derived from criminal activity. Ogunbiyi appeared before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court.
According to documents filed in this case and statements made in court:
Ogunbiyi conspired with others to launder funds obtained through an unlawful computer fraud scheme in which they obtained unauthorized access to a 401k account held for the benefit of a person at the New Jersey company. They then added a bank account belonging to another individual to the victim’s 401k account without the victim’s knowledge or authorization. This account was designated as the account to receive withdrawals from the victim’s 401k account. Thereafter, $246,390 was transferred to the bank account belonging to account that had been added without the victim’s knowledge or consent.
Ogunbiyi and others directed that the fraud proceeds be converted into cashier’s checks, which were provided to Ogunbiyi. He then deposited the cashier’s checks into bank accounts under his control and withdrew the funds in a series of ATM and counter withdrawals designed to conceal the source of the money, which he used for personal expenditures.
The counts of money laundering and money laundering conspiracy carry a maximum penalty of 20 years in prison and a fine of $500,000, or twice the value of the property involved in the transaction, whichever is greater. The counts of engaging in transactions in property derived from criminal activity carry a maximum penalty of 10 years in prison and a fine of $250,000, or twice the value of the property involved in the transaction, whichever is greater.
U.S. Attorney Sellinger credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Acting Special Agent in Charge Michael Messenger in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Office’s Cybercrime Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Malden Woman Sentenced for Embezzling Nearly $800,000 from EmployerRead the Press Release
BOSTON – A Malden woman was sentenced today in federal court in Boston on fraud and identity theft charges in connection with her embezzlement of more than $795,000 from her employer.
Kayla Figelski, 34, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to three years in prison and two years of supervised release. Figelski was also ordered to pay restitution in the amount of $796,747. In May 2021, Figelski pleaded guilty to seven counts of bank fraud and one count of aggravated identity theft.
From in or about April 2017 through June 2019, Figelski stole at least $796,747 from her employer, an elder law attorney, in Malden. Figelski perpetrated the scheme by forging checks to herself from her employer’s checking accounts, including conservatorship, trust and estate administration accounts her employer maintained for the firm’s elderly clients and their estates. Figelski deposited the checks into her own bank account, from which she withdrew the funds, or directly cashed the checks. Figelski concealed the scheme by altering bank statements to make it appear that the checks were written to legitimate vendors. As a result of Figelski’s theft, her employer was forced to sell the building where her law practice was located, which had been in the victim’s family since 1976.
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. Valuable assistance was provided by the Malden Police Department. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Main Line Accountant Convicted at Trial of Tax EvasionRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Michael Goldner, 51, of Malvern, PA, was convicted today at trial of tax evasion and failing to file tax returns, charges arising from his scheme to use his cash and his employer’s business bank accounts to hide his actual income and therefore avoid paying his legitimate tax obligations.
In June 2021, the defendant was charged by Indictment, and a Superseding Indictment was filed in November 2021 charging the defendant with one count of tax evasion and two counts of failure to file personal income tax returns. Evidence presented at trial showed that for the tax years 2013 through 2017, Goldner reported more than $4 million in income and $1.8 million in tax due, of which he paid less than $100,000. Further, from 2016 to 2020, the defendant evaded the payment of these outstanding taxes while earning a substantial income. Instead of depositing his paychecks into a personal bank account, he cashed the checks and used his employer’s business accounts to pay hundreds of thousands of dollars of personal expenses, including rent, a second home, groceries, private school and dance lessons for his child, country club dues, and restitution from a prior fraud conviction for which he was on federal probation. For the years 2016 and 2017, the defendant filed tax returns that failed to report this additional income from his employer. For tax years 2018 and 2019, the defendant failed to file a return altogether.
“The American tax system provides government services critical to our people,” said U.S. Attorney Williams. “Every time someone cheats the tax system, the burden of providing vital services increases on taxpayers who pay their fair share. As a professional accountant, this defendant knew what his obligations were and willfully chose to ignore them, even while he was on federal probation for a previous fraud conviction. The jury’s verdict has sent a clear message that tax cheats will not be tolerated.”
“Mr. Goldner went through great lengths to not pay taxes, including hiding money from the IRS,” said Yury Kruty, IRS Criminal Investigation Special Agent in Charge. “In all the steps he took to hide his money, he failed to account for the hallmark expertise IRS Special Agents possess when it comes to following the money. Mr. Goldner thought he could fly under the radar, but the verdict returned today shows how futile his efforts were.”
“‘If at first you don’t succeed, try, try again’ really shouldn’t be a fraudster’s mantra,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “But Michael Goldner apparently thought he’d give it a whirl. Hopefully, this second federal conviction will be more impactful than his first. To put it plainly: if you keep defrauding the government and cheating honest taxpayers, the FBI and our partners are going to keep locking you up.”
The case was investigated by Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney David Ignall and Department of Justice Trial Attorney for the Criminal Division’s Tax Section Jack Morgan.
Luzerne County Man Sentenced to Nine Years in Prison for Role in Methamphetamine and Heroin Trafficking ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that William Terron, age 38, formerly of Nanticoke, Pennsylvania, was sentenced on June 1, 2022, by U.S. District Court Judge Robert D. Mariani, to nine years’ imprisonment for his role in a methamphetamine and heroin trafficking conspiracy.
According to United States Attorney John C. Gurganus, Terron previously pleaded guilty and admitted to participating in a conspiracy to distribute between 1.5 and 5 kilograms of crystal methamphetamine and 1 to 3 kilograms of heroin in Luzerne, Lackawanna and Schuylkill Counties in 2018. Terron was one of five individuals indicted by a grand jury in December 2018 for methamphetamine trafficking in Northeastern Pennsylvania.
The following defendants were previously sentenced for their roles in this same drug trafficking conspiracy:
- Amanda Boyle, age 37, of Sweet Valley, PA, was sentenced to nine years in prison;
- Rudolph Ford, age 33, of Olyphant, PA, was sentenced to seven years in prison;
- Francheska Quinones, age 28, of Nanticoke, PA, was sentenced to 63 months in prison; and
- Adam Holcomb, age 37, of Shickshinny, PA, was sentenced to 10 months in prison.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Pennsylvania State Police, the Kingston Police Department, the Luzerne County Drug Task Force, and the Pennsylvania Office of Attorney General. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Lovington man sentenced to 15 years in prison for attempted murder and firearms violationsRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Jose Angel Baeza was sentenced on June 2 to 15 years in prison. Baeza, 39, of Lovington, New Mexico, pleaded guilty on Sept. 17, 2021, to attempted murder of a federal officer, being a felon in possession of a firearm and ammunition, and using a firearm during a crime of violence.
According to the plea agreement and other court records, on Oct. 1, 2020, officers from the Hobbs Police Department (HPD) responded to a report of a man going room to room at the Econolodge Hotel on Marland Street while brandishing a firearm. During the investigation, Baeza fired rounds in the direction of the officers, and the HPD Special Weapons and Tactics Team (SWAT) was activated.
Baeza then fired his weapon at the SWAT team, which included a federal task force officer. In his plea agreement, Baeza admitted that he was trying to kill the officers.
At the time of the incident, Baeza previously had been convicted of attempted armed robbery, robbery and unlawful possession of a firearm by a felon. As a convicted felon, Baeza cannot legally possess a firearm or ammunition.
Upon his release from prison, Baeza will be subject to three years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hobbs Police Department investigated this case. Assistant United States Attorney Maria Y. Armijo prosecuted the case.
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Leaders of International Organization that Trafficked in Counterfeit Apple Products Plead GuiltyRead the Press Release
Assistant U.S. Attorney Timothy F. Salel (619) 546-8055
NEWS RELEASE SUMMARY – June 3, 2022
SAN DIEGO - Three brothers from San Diego pleaded guilty in federal court yesterday, admitting that for eight years, they led an international conspiracy to traffic counterfeit iPhones and iPads.
As part of their plea agreements, the Liao brothers – Zhiwei, Zhimin and Zhiting - and their wives - Dao La, Mengmeng Zhang, and Tam Nguyen, who also pleaded guilty yesterday - agreed to forfeit their interests in five residences in San Diego, more than $250,000 in criminal proceeds, and more than 200 Apple iPhones that were counterfeit, fraudulently obtained, or linked to their criminal conspiracy.
The Liaos admitted that, from 2011 through at least August 2019, they managed an organization to traffic in counterfeit Apple products. The Liaos imported counterfeit iPhones and iPads from China that looked genuine and included identification numbers that matched identification numbers on real iPhones and iPads that were under warranty and had been previously sold to customers in the United States and Canada.
At the direction of the Liao brothers, co-conspirators traveled to hundreds of Apple Stores across the United States and Canada and attempted to exchange more than 10,000 counterfeit iPhones and iPads for genuine iPhones and iPads. The Liaos exported fraudulently obtained iPhones and iPads to individuals in foreign countries for profit. The estimated total infringement amount or loss suffered by Apple was approximately $6.1 million.
“As our markets become more global, more complex and more sophisticated, protecting intellectual property rights become even more important,” said U.S. Attorney Randy S. Grossman. “Our office will aggressively prosecute criminals who try to steal intellectual property and attempt to exchange counterfeit products for genuine products. We will continue fighting IP crime and upholding the rule of law.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.
“For years, the Liao brothers and their co-conspirators trafficked thousands of counterfeit Apple products in exchange for genuine Apple products totaling millions of dollars,” said FBI Special Agent in Charge Stacey Moy. “The FBI and our law enforcement partners at the San Diego Police Department, the San Diego County Sheriff’s Department, U.S. Customs and Border Protection, Homeland Security Investigations, and the U.S Attorney’s Office will pursue criminal organizations who target legitimate businesses through fraudulent means for their own financial gain.”
The Liao brothers and their wives are scheduled to appear for sentencing before U.S. District Judge Cynthia A. Bashant on August 15, 2022, at 9:00 a.m.
DEFENDANTS Case Number 19CR4407-BAS
Zhiwei Liao, aka “Allen” San Diego, CA Age: 34
Zhimin Liao, aka “Jimmy” San Diego, CA Age: 36
Zhiting Liao, aka “Tim” San Diego, CA Age: 33
Dao Trieu La, aka “Selena”
aka “Denise” San Diego, CA Age: 32
Mengmeng Zhang, aka “Aria” San Diego, CA Age: 31
Tam Thi Minh Nguyen, aka “Kelly,”
aka “Actheart” San Diego, CA Age: 39
CO-CONSPIRATORS WHO PREVIOUSLY PLEADED GUILTY
Charley Hsu San Diego, CA Age: 41
Danny Tran Chan,
aka “Stanley” San Diego, CA Age: 32
Phillip Pak, aka “Teddy” San Diego, CA Age: 33
Deedee Zhu, aka “David,”
aka “Peter” San Diego, CA Age: 35
Jiaye Jiang, aka “joejoekong”
aka “yipkong” San Diego, CA Age: 34
Hyo Yang, aka “Will” San Diego, CA Age: 33
SUMMARY OF CHARGES
The Liao brothers (Zhiwei, Zhimin, and Zhiting) all pleaded guilty to conspiracy to traffic in counterfeit goods. The Liaos’ wives pleaded guilty to substantive counts of wire fraud or mail fraud. Dao Trieu La pleaded guilty to wire fraud. Mengmeng Zhang and Tam Nguyen pleaded guilty to mail fraud.
Conspiracy to Traffic in Counterfeit Goods – Title 18, U.S.C., Section 2320
Maximum penalty: Ten years in prison, $2 million fine, mandatory restitution, and forfeiture.
Wire fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison, the greater of $250,000, or twice the value of the gross gain or twice the gross loss to the victims, mandatory restitution, and forfeiture.
Mail fraud – Title 18, U.S.C., Section 1341
Maximum penalty: Twenty years in prison, the greater of $250,000, or twice the value of the gross gain or twice the gross loss to the victims, mandatory restitution, and forfeiture.
AGENCIES
Federal Bureau of Investigation
San Diego Police Department
San Diego Sheriffs
U.S. Customs & Border Protection
Homeland Security Investigations
Justice Department secures settlement against DeKalb County, Georgia, after officials terminated a sexual harassment complainantRead the Press Release
ATLANTA - The Department of Justice announced it has reached a settlement agreement with DeKalb County, Georgia, that will resolve its lawsuit alleging the county violated Title VII of the Civil Rights Act of 1964 when it retaliated against former administrative assistant Cemetra Brooks, first by extending her probationary period and then by terminating her employment during the extended period, because she made a sexual harassment complaint. Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, national origin, sex and religion and prohibits retaliation against employees for opposing employment practices that are discriminatory under Title VII.
“Discrimination in the workplace is toxic,” said U.S. Attorney Ryan K. Buchanan. “An employee who faces discrimination in the workplace should be able to freely exercise their rights under Title VII without fear of retaliation.”
“Probationary employees are especially vulnerable to discrimination as they have fewer employment protections than permanent employees and are often reluctant to file a complaint since it could easily cost them their jobs,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This settlement agreement underscores that Title VII’s protections apply equally to probationary employees. The Civil Rights Division stands ready to vigorously enforce the law when employees who complain about sexual harassment are subject to retaliation.”
According to the Justice Department’s complaint filed in the U.S. District Court for the Northern District of Georgia, during her initial six-month probation, Brooks filed a sexual harassment complaint with DeKalb County alleging her supervisor, the deputy director of the county’s Facilities Management Department, subjected her to unwelcome sexual advances, comments and conduct. these claims were later investigated and substantiated by the county. The United States’ lawsuit further alleges that, just one month after Brooks complained, the deputy director’s supervisor, the director, contacted human resources asking for information from the county’s still-active investigation of Brooks’ complaint that would help him fire Brooks while she remained on probation. According to the lawsuit, on advice of a high-level county official, the director extended Brooks’ probation by three months instead. However, near the end of her extended probation, the director fired Brooks without giving her any reason.
Under the settlement agreement, submitted for court entry and approval, the county will pay Brooks $190,000 for lost wages and compensatory damages. The agreement also requires the county to develop, and submit to the Justice Department for approval, anti-discrimination and anti-retaliation policies and to provide the supervisors and managers in its Facilities Management Department with training on those policies and on the types of workplace conduct that constitute unlawful employment practices under Title VII.
The Atlanta District Office of the Equal Employment Opportunity Commission (EEOC) investigated and attempted to resolve Brooks’ charge of discrimination before referring it to the Department of Justice as an enforcement action. More information about the EEOC’s jurisdiction is available on its website at www.eeoc.gov.
Assistant U.S. Attorney Aileen Bell-Hughes, Civil Rights Enforcement Coordinator, handled this matter for the U.S. Attorney’s Office for the Northern District of Georgia.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and www.justice.gov/crt/employment-litigation-section.
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.
Justice Department Secures Settlement Against Dekalb County, Georgia, After Officials Terminated a Sexual Harassment ComplainantRead the Press Release
The Department of Justice announced it has reached a settlement agreement with DeKalb County, Georgia, that will resolve its lawsuit alleging the county violated Title VII of the Civil Rights Act of 1964 when it retaliated against former administrative assistant Cemetra Brooks, first by extending her probationary period and then by terminating her employment during the extended period, because she made a sexual harassment complaint. Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, national origin, sex and religion and prohibits retaliation against employees for opposing employment practices that are discriminatory under Title VII.
“Probationary employees are especially vulnerable to discrimination as they have fewer employment protections than permanent employees and are often reluctant to file a complaint since it could easily cost them their jobs,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This settlement agreement underscores that Title VII’s protections apply equally to probationary employees. The Civil Rights Division stands ready to vigorously enforce the law when employees who complain about sexual harassment are subject to retaliation.”
“Discrimination in the workplace is toxic,” said U.S. Attorney Ryan K. Buchanan of the Northern District of Georgia. “An employee who faces discrimination in her workplace should be able to freely exercise her rights under Title VII without fear of retaliation.”
According to the Justice Department’s complaint filed in the U.S. District Court for the Northern District of Georgia, during her initial six-month probation, Brooks filed a sexual harassment complaint with DeKalb County alleging her supervisor, the deputy director of the county’s Facilities Management Department, subjected her to unwelcome sexual advances, comments and conduct. these claims were later investigated and substantiated by the county. The United States’ lawsuit further alleges that, just one month after Brooks complained, the deputy director’s supervisor, the director, contacted human resources asking for information from the county’s still-active investigation of Brooks’ complaint that would help him fire Brooks while she remained on probation. According to the lawsuit, on advice of a high-level county official, the director extended Brooks’ probation by three months instead. However, near the end of her extended probation, the director fired Brooks without giving her any reason.
Under the settlement agreement, submitted for court entry and approval, the county will pay Brooks $190,000 for lost wages and compensatory damages. The agreement also requires the county to develop, and submit to the Justice Department for approval, anti-discrimination and anti-retaliation policies and to provide the supervisors and managers in its Facilities Management Department with training on those policies and on the types of workplace conduct that constitute unlawful employment practices under Title VII.
The Atlanta District Office of the Equal Employment Opportunity Commission (EEOC) investigated and attempted to resolve Brooks’ charge of discrimination before referring it to the Department of Justice as an enforcement action. More information about the EEOC’s jurisdiction is available on its website at www.eeoc.gov.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and www.justice.gov/crt/employment-litigation-section.
Jicarilla Apache man charged with kidnapping and assaultRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Kevin El Cavazone has been charged by criminal complaint with kidnapping and assault of an intimate partner by strangling. Cavazone, 39, of Mescalero, New Mexico, and an enrolled member of the Jicarilla Apache Tribe, made an initial appearance in federal court on June 2 and will remain in custody pending a preliminary and detention hearing scheduled for June 7.
According to the complaint, from May 5 to May 11, Cavazone allegedly confined his ex-girlfriend within his home on the Mescalero Apache Reservation. To keep her confined, Cavazone allegedly threatened the victim, who is an enrolled member of the Mescalero Apache Tribe, and threatened to harm her family and others if she tried to leave. During this period of confinement, Cavazone allegedly assaulted the victim and strangled her until she could no longer breathe.
The victim was able to escape on May 11 and got a ride from a passing car to the Bureau of Indian Affairs Police Station a few miles away. She was taken to an emergency room for treatment for her injuries.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Cavazone faces up to 10 years in prison for assault of an intimate partner by strangling and up to life in prison for kidnapping.
The Las Cruces Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Bureau of Indian Affairs. Assistant United States Attorneys Matilda McCarthy Villalobos and Eliot Neal are prosecuting the case.
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Iowa Man Charged with Production of Child PornographyRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Larchwood, Iowa, man has been indicted by a federal grand jury for Production of Child Pornography.
Shane Allan Nelson, age 36, was indicted on May 3, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 1, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about between March 13, 2020, and March 18, 2020, Nelson knowingly employed, used, persuaded, induced, enticed, and coerced a minor female to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct, knowing that such depictions would be transported in interstate or foreign commerce or mailed. Such depictions would also be produced using materials that had been mailed, shipped, and transported in interstate and foreign commerce, including by computer.
The charge is merely an accusation and Nelson is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations, the Iowa Division of Criminal Investigation, and the Iowa Internet Against Children Task Force. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Nelson was released on bond pending trial. A trial date has not been set.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on June 2 was:
Zacheriah Paul Siek, 33, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Siek faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Siek was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-61.
William Leonard, 52, of Cheney, Washington, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Leonard faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Leonard was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-38.
James Lawrence Archer, 44, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Archer faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Archer was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-58.
Appearing on May 31 was:
Tre Cy Kron, 29, of Miles City, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Kron faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Kron was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
PACER case reference. 22-60.
Michael David Brumfield, 54, a transient, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Brumfield faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Brumfield was detained pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 22-39.
Cecil Jerome Hatchett, 31, of Las Vegas, Nevada, on charges of conspiracy to transport a minor with intent to engage in prostitution and tampering with a witness, victim or informant. If convicted of the most serious crime, Hatchett faces a maximum of life in prison, a $250,000 fine and five years of supervised release. Hatchett was detained pending further proceedings. The FBI investigated the case. PACER case reference. 21-41.
Appearing in Great Falls before Chief U.S. District Judge Brian M. Morris and pleading not guilty on June 1 was:
Shaide Jo Demontiney, 19, no permanent residence, on charges of use of a firearm in relation to a crime of violence. If convicted of the most serious crime, Demontiney faces a mandatory minimum 10 years to life in prison, a $250,000 fine and five years of supervised release. Demontiney was detained pending further proceedings. The FBI and Rocky Boy’s Police Department investigated the case. PACER case reference. 22-33.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Houston Resident Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – ALEJANDRO MUNOZ, age 41, a resident of Houston, Texas, pled guilty on June 2, 2022 before U.S. District Judge Eldon E. Fallon to a one-count indictment that charged him with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and five kilograms or more of cocaine hydrochloride, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, beginning in October of 2014, Special Agents with the Drug Enforcement Administration identified MUNOZ as a supplier of heroin and cocaine hydrochloride to customers in Houston, Texas and New Orleans. As a result of his plea, MUNOZ faces a minimum term of imprisonment of ten years, a maximum term of imprisonment of life, a fine of up to $10,000,000.00, at least five years of supervised release following any term of imprisonment and a $100 mandatory special assessment fee.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Drug Enforcement Administration offices in New Orleans, Louisiana and Houston, Texas, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Orleans Police Department, and the Jefferson Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones.
Houma Woman Pleads Guilty to Theft of Government FundsRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that NICOLE COCKERHAM (“COCKERHAM”), age 42, of Houma, Louisiana, pled guilty on June 2, 2022 to Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to documents filed in federal court, from March 2019 to July 2020, COCKERHAM knowingly converted approximately $38,851.00 in Social Security Administration and Coronavirus Aid, Relief, and Economic Security Act (“CARES ACT”) funds.
COCKERHAM faces a maximum penalty of 10 years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee. Sentencing in this matter is scheduled for September 13, 2022, before United States District Judge Wendy D. Vitter.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General, and the Treasury Inspection General for Tax Administration with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
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Holbrook Man Sentenced for Cocaine Trafficking; Boston Man Pleads Guilty to Cocaine DistributionRead the Press Release
BOSTON – A Holbrook man was sentenced and a Boston man pleaded guilty yesterday in connection with their respective roles in a drug trafficking conspiracy.
Andre Echevarria, 41, of Holbrook, was sentenced by U.S. District Court Judge Richard G. Stearns to 41 months in prison and three years of supervised release. In September 2021, Echevarria pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine.
Tarik Muhammad, 27, of Boston, pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine. Judge Stearns scheduled sentencing for June 21, 2022.
The defendants were charged in June 2020 along with 23 others as part of “Operation Snowfall” – a multi-year investigation into drug trafficking activities by a drug trafficking organization (DTO) comprised of Boston-based street gang members and associates. According to the charging documents, beginning in November 2018, law enforcement investigated drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown.
The investigation identified Echevarria as a drug trafficker who purchased cocaine from co-defendants and wholesale drug suppliers Winston McGhee and, allegedly, Derek Hart. According to the charging documents, McGhee and Hart were the two highest-level drug suppliers within the DTO. Over the course of the investigation, investigators identified Echevarria coordinating drug deals on intercepted calls with others, including McGhee and allegedly Hart, and also surveilled him participating in drug trafficking activity. On a call in April 2020, Echevarria received a “cooking class” from McGhee in which McGhee instructed him on how to convert cocaine into crack with the powder he had previously sold to him. When those efforts failed, Echevarria returned cocaine to McGhee in exchange for a replacement batch.
During a search of Echevarria’s vehicle at the time of his arrest, law enforcement recovered a Smith & Wesson .380 caliber pistol with an obliterated serial number. A search of his residence resulted in the seizure of a Smith & Wesson magazine and 10 rounds of ammunition.
The investigation also identified Muhammad as a drug distributor. Law enforcement intercepted calls between Muhammad and Kenji Drayton, one of the main suppliers and distributors within the DTO, in which they coordinated a meetup. Law enforcement subsequently surveilled Drayton’s meeting with Muhammad at an agreed-upon location discussed in the calls. Soon thereafter, Drayton entered a location known to have been used by Drayton during the investigation for drug trafficking purposes. After emerging minutes later, Drayton joined Muhammad in a vehicle and drove away. Law enforcement stopped the car soon after and ordered the occupants Muhammad out of the car. While searching Muhammad for possible weapons or drugs, law enforcement felt an object at the crease of Muhammad’s buttocks. Law enforcement restrained Muhammad, placed him in the back of an empty, clean police wagon, and transported him to the police station.
During the transport, law enforcement saw Muhammad throw himself to the ground and thrash about. Officers radioed those observations onto the station. When the wagon arrived at the station, Muhammad was observed to be covered with white powder. The back of the wagon also was dusted with white powder. Officers subsequently recovered a ripped plastic bag containing a white residue from the outer area of Muhammad’s buttocks.
Of the defendants charge in this case, Muhammad is the 12th defendant to plead guilty and Echevarria is the seventh defendant to be sentenced. Four defendants have pleaded guilty and are awaiting sentencing. Four defendants have pleaded not guilty and are awaiting trial. One defendant, Derek Hart, remains at large.
The charge of conspiracy to distribute and possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release, and a fine of up to $1 million. 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.
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.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance in the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Offices. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
High School Rowing Coach Pleads Guilty to Sexually Abusing a High School StudentRead the Press Release
WASHINGTON – Kirkland Shipley, 48, a former teacher and girls’ rowing coach at Walt Whitman High School in Bethesda, Maryland, pleaded guilty today to sexually abusing a high school student and possessing sexually explicit material of a 17-year-old former high school student, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Shipley, of Washington, D.C., pleaded guilty in the Superior Court of the District of Columbia to first-degree sexual abuse of a secondary education student and possession of a sexual performance by a minor. Sentencing is scheduled for September 9, 2022 before the Honorable Maribeth Raffinan. As part of his sentence, Shipley will be required to register for the rest of his life as a sex offender.
According to the government’s evidence, one of the victims was on the girls’ crew team at Walt Whitman High School in Bethesda, Maryland from 2014-2018. Shipley was her head coach from her sophomore year to her senior year, as well as her history and geography teacher. During her sophomore year of high school, Shipley began texting the victim about rowing and personal matters. This continued into her senior year, in which Shipley began to text the victim more frequently and about increasingly personal topics. On at least two occasions in May 2018, prior to this victim’s graduation, he picked the victim up in his car and sexually abused her at his residence in Northwest Washington.
The other victim was on the girls’ crew team at Walt Whitman High School from 2009—2013. Shipley was her head coach from her sophomore year to her senior year. He also was this victim’s history teacher during her junior year. During the spring of the victim’s senior year, Shipley began to message her on GChat more frequently, about rowing and personal matters. A month after her graduation, in July 2013, when the victim was 17 years old, Shipley invited her to his residence in Washington, D.C., and had sex with her. He continued having sex with this victim throughout the summer and after she began college in the fall of 2013. During this time, Shipley possessed sexually explicit photos and videos of the victim, while she was a 17-year-old minor. He also sent this victim photos and videos of his penis and of himself masturbating.
Shipley was arrested on Aug. 24, 2021. He was released from custody with an order to stay away from all current and former students and athletes.
In announcing the plea, U.S. Attorney Graves and Chief Contee commended the work of the Metropolitan Police Department, which investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson and Paralegal Specialist ReShawn Johnson.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Caroline Burrell and Felice Roggen, who investigated and prosecuted the case.
Hartford Man Charged with Firearm Offense Stemming from April ShootoutRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, James Ferguson, Special Agent in Charge, ATF Boston Field Division, and Hartford Police Chief Jason Thody today announced that a federal grand jury in New Haven has returned an indictment charging KEJUAN WILLIAMS, 29, of Hartford, with unlawful possession of a firearm by a felon.
The indictment was returned on May 24. Williams has been detained since his federal arrest on May 12.
As alleged in court documents, on April 18, 2022, after an unidentified shooter opened fire at individuals who were standing in a parking lot outside of a memorial gathering in Hartford, surveillance cameras at the location recorded at least nine individuals drawing firearms, and some of them returned fire. Shot Spotter technology recorded approximately 50 shots fired within approximately 90 seconds in and around the location, and law enforcement recovered at least 31 shell casings from the scene. Williams was present at the memorial gathering and was recorded on video brandishing a handgun and firing approximately eight times at the fleeing assailant. He then fled the scene in a black Acura.
It is further alleged that, on April 21, 2022, Hartford Police officers located Williams’ car parked near a restaurant on Westland Street. Williams was found inside the restaurant crouching behind a counter. Officers apprehended Williams and seized a loaded Taurus G2C 9mm handgun on the ground where Williams had been crouching. Investigators subsequently submitted to the National Integrated Ballistic Information Network (NIBIN) a test-fired shell casing from the seized handgun. Analysis of the shell casing revealed that it matched shell casings that were recovered from the shooting on April 18.
It is alleged that Williams’ criminal history includes multiple felony convictions, including a conviction in 2015 for carrying a pistol or revolver without a permit. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the offense, Williams faces a maximum term of imprisonment of 10 years.
Another individual alleged to be involved in the shooting incident on April 18, Kyrin Jackson, 31, of Hartford, is currently detained in federal custody on a federal supervised release violation. It is alleged that surveillance video shows Jackson brandishing a handgun and holding a young child while facing oncoming gunfire.
“Gunfire erupting at a memorial service attended by families and young children cannot be tolerated in any community,” said U.S. Attorney Avery. “The reckless shooting event on April 18 may cause lasting trauma to all who witnessed it. Based on the number of shots fired, it is fortunate that no one lost their life and only one individual was injured. The U.S. Attorney’s Office and our law enforcement partners are committed to using the full weight of federal law to help bring an end to this senseless violence.”
“Some of those allegedly responsible for the blatant disregard of human life in this incident have been delivered to the judicial system,” said FBI Special Agent in Charge Sundberg. “We are steadfast in our conviction to seek out those who choose violence over peaceful communities. The FBI and all of our law enforcement partners remain in lockstep in our fight against gun crimes.”
“This investigation should send a clear message that this type of violence will not be tolerated” ATF Special Agent in Charge Ferguson. “ATF will continue to stand shoulder to shoulder with our partners at the Hartford Police and the FBI to take violent offenders off the street. The use of the National Integrated Ballistic Information Network (NIBIN), which allowed us to match ballistic evidence to the firearm seized, has been critical in this investigation.”
“This is another great example of technology, forensics and great police work coming together to take dangerous persons off the street and make our community safer,” said Hartford Police Chief Thody. “We appreciate our federal partners for all that they do.”
U.S. Attorney Avery stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
U.S. Attorney Avery thanked the Hartford State Attorney’s Offices for its cooperation in the investigation and prosecution of this matter.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Gun Store Burglar, Trafficker Sentenced to 108 Months ImprisonmentRead the Press Release
ALBANY, Ga. – A Southwest Georgia resident who broke into two Cordele, Georgia, gun stores, stealing multiple firearms and selling or distributing them in the community was sentenced to prison for his crimes.
Demetri Lott, 44, of Ashburn, Georgia, was sentenced to serve 108 months in prison to be followed by three years of supervised release by U.S. District Judge Leslie Gardner on June 1, after previously pleading guilty to two counts of theft of a firearm from a licensed dealer. There is no parole in the federal system.
“Our office is committed to prioritizing prosecutions of those responsible for the greatest gun violence in our communities, including those who illegally traffic in firearms,” said U.S. Attorney Peter D. Leary. “The U.S. Attorney’s Office and our local, state and federal law enforcement partners are focused on reducing violent crime in our communities, and to use every available resource at our disposal to reduce gun violence.”
“The theft of firearms from a federally licensed firearms dealer and their diversion into the illegal firearms market is a crime that affects us all,” said ATF Assistant Special Agent in Charge Beau Kolodka. “FFL burglaries are a top priority for ATF and we are pleased that Mr. Lott has been sentenced to a significant term of incarceration for his crimes.”
According to court documents, Lott broke into Wells Hardware & Supply in Cordele, Georgia, on Nov. 12, 2020, accessing the store through the roof. Lott stole 11 firearms. While the case was under investigation, Lott burglarized another gun store in Cordele, Evans Outdoors, on Jan. 2, 2021. A rifle was stolen as well as trail cameras, scopes and several boxes of ammunition. A concerned citizen contacted the Sheriff’s Office soon after the theft to report information about the stolen rifle. A second anonymous tip to the Sheriff’s Office on Jan. 15 helped law enforcement locate Lott. Lott was arrested at a Cordele residence, hiding inside the attic crawl space. Lott told agents he was responsible for breaking into and stealing firearms from both businesses. He also admitted to selling the stolen firearms from Wells Hardware & Supply for cash and drugs, later returning to the person’s home that same day to find that all of the firearms had been distributed to other people. Lott said he gave the Evans Outdoors rifle to an acquaintance. Lott has multiple prior felony convictions, including convictions for aggravated battery, robbery and burglary.
These cases are 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.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Crisp County Sheriff’s Office and the Cordele Police Department investigated the case.
Assistant U.S. Attorney Melody Ellis prosecuted the case.
Funder of ISIS Foreign Fighter Sentenced to 15 Years' ImprisonmentRead the Press Release
Earlier today, in federal court in Brooklyn, Dilkhayot Kasimov, a citizen of Uzbekistan and resident of Brooklyn, was sentenced by United States District Judge William F. Kuntz, II to 15 years in prison for conspiring and attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS). Kasimov was convicted of both counts following a one-week trial in September 2019.
Breon Peace, United States Attorney for the Eastern District of New York; Matthew Olsen, Assistant Attorney General of the Justice Department’s National Security Division; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Today’s sentence demonstrates the significant consequences for those who help terrorist groups, including by facilitating travel of others to join ISIS,” stated United States Attorney Peace. “Kasimov was part of a group of individuals who sought to travel to Syria to join ISIS or to fund others who sought to become foreign fighters for ISIS. The Department of Justice and our law enforcement partners will continue working relentlessly to protect our country from terrorists and those who would provide support to them.”
“Kasimov is an ISIS supporter who collected and gave money to another individual to fund his travel to join the terrorist group. With this sentence, Kasimov is being held accountable for his crimes,” said Assistant Attorney General for National Security Matthew G. Olsen. “The National Security Division is committed to identifying and holding accountable those who seek to provide material support to foreign terrorist organizations. I would like to thank all of the agents, analysts, and prosecutors who are responsible for this case.”
"Providing financial support to potential ISIS-inspired foreign fighters comes with a stiff penalty. As Kasimov learned today, his actions will cost him 15 years behind bars. The FBI continues to make every effort to protect Americans at home and abroad and to bring other like-minded criminals to justice,” stated Assistant Director-in-Charge Driscoll.
“This sentence serves as a warning to anyone who seeks to fund or carry out acts of terror,” stated NYPD Commissioner Sewell. “The NYPD’s Intelligence Bureau and the Joint Terrorism Task Force will remain vigilant in our efforts to stem the flow of fighters and disrupt and dismantle the networks that support them, both here and abroad.”
According to court filings, in 2015, Kasimov’s co-consiprators Abdurasul Juraboev and Akhror Saidakhmetov planned to travel to Syria to fight on behalf of ISIS. Kasimov provided money – his own and cash collected by others – to help fund Saidakhmetov’s travel and expenses. On the evening of Saidakhmetov’s scheduled departure in February 2015, Kasimov drove to John F. Kennedy International Airport, met Saidakhmetov at Terminal 7 and handed him $1,600 in cash on behalf of himself, co-conspirator Abror Habibov and others.
Co-defendants Juraboev and Saidakahmetov were each sentenced to 15 years’ imprisonment, while co-defendant Azizjon Rakhmatov was sentenced to 12.5 years’ imprisonment. Habibov and co-defendant Akmal Zakirov are awaiting sentencing. A seventh co-conspirator, Dilshod Khusanov, who was charged in a separate indictment, pled guilty to conspiracy to provide material support to designated foreign terrorist organizations and is scheduled to be sentenced on July 5, 2022.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Douglas M. Pravda, David K. Kessler and J. Matthew Haggans are in charge of the prosecution, with assistance provided by Trial Attorney Steven Ward of the National Security Division’s Counterterrorism Section.
The Defendant:
DILKHAYOT KASIMOV
Age: 34
Brooklyn, New YorkE.D.N.Y. Docket No. 15-CR-95 (S-3)(WFK)
Funder of ISIS Foreign Fighter Sentenced to 15 Years in PrisonRead the Press Release
A citizen of Uzbekistan and resident of Brooklyn was sentenced today to 15 years in prison for conspiring to and attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS).
Dilkhayot Kasimov, 34, was convicted of both counts following a one-week trial in September 2019. According to court documents, in 2015, Kasimov’s co-conspirators Abdurasul Juraboev and Akhror Saidakhmetov planned to travel to Syria to fight on behalf of ISIS. Kasimov provided money – his own and cash collected by others – to help fund Saidakhmetov’s travel and expenses. On the evening of Saidakhmetov’s scheduled departure in February 2015, Kasimov drove to John F. Kennedy International Airport, met Saidakhmetov at the terminal and handed him $1,600 in cash on behalf of himself, co-conspirator Abror Habibov and others.
“Kasimov is an ISIS supporter who collected and gave money to another individual to fund his travel to join the terrorist group. With this sentence, Kasimov is being held accountable for his crimes,” said Assistant Attorney General for National Security Matthew G. Olsen. “The National Security Division is committed to identifying and holding accountable those who seek to provide material support to foreign terrorist organizations. I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”
“Today’s sentence demonstrates the significant consequences for those who help terrorist groups, including by facilitating travel of others to join ISIS,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Kasimov was part of a group of individuals who sought to travel to Syria to join ISIS or to fund others who sought to become foreign fighters for ISIS. The Department of Justice and our law enforcement partners will continue working relentlessly to protect our country from terrorists and those who would provide support to them.”
“Providing financial support to potential ISIS-inspired foreign fighters comes with a stiff penalty,” said Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office. “As Kasimov learned today, his actions will cost him 15 years behind bars. The FBI continues to make every effort to protect Americans at home and abroad and to bring other like-minded criminals to justice.”
Co-defendants Juraboev and Saidakahmetov were each sentenced to 15 years’ imprisonment, while co-defendant Azizjon Rakhmatov was sentenced to 12.5 years’ imprisonment. Habibov and co-defendant Akmal Zakirov are awaiting sentencing. A seventh co-conspirator, Dilshod Khusanov, who was charged in a separate indictment, pleaded guilty to conspiracy to provide material support to designated foreign terrorist organizations and is scheduled to be sentenced on July 5.
Assistant U.S. Attorneys Douglas M. Pravda, David K. Kessler and J. Matthew Haggans for the Eastern District of New York are prosecuting the case, with assistance provided by Trial Attorney Steven Ward of the National Security Division’s Counterterrorism Section.
The FBI investigated the case, with valuable assistance provided by the New York City Police Department.
Funcionarios del sector judicial de México y EE.UU. celebran el lanzamiento de las primeras Guías Judiciales de Conducción de Audiencias para el nuevo sistema de justicia penal acusatorio de MéxicoRead the Press Release
CIUDAD DE MÉXICO - El Poder Judicial de la Federación, el Poder Judicial de la Ciudad de México, el Poder Judicial del estado de Puebla y la Oficina Internacional para el Desarrollo, Asistencia y Capacitación (OPDAT) del Departamento de Justicia de los Estados Unidos, lanzaron sus Guías Judiciales de Conducción de Audiencias, las cuales están diseñadas para aumentar la economía judicial, disminuir el número de casos y estandarizar las prácticas judiciales en todo México. Con financiamiento de la Oficina de Asuntos Internacionales de Narcóticos y Aplicación de la Ley del Departamento de Estado (INL), este recurso servirá como una herramienta efectiva y práctica para los actores del sector judicial, incluyendo los jueces penales, fiscales y abogados defensores en todo el país.
Estas guías judiciales son las primeras diseñadas específicamente para el Sistema de Justicia Penal Acusatorio de México, que se terminó de implementar en 2016. Desarrollarán la capacidad nacional en el sistema y fomentarán la estandarización sostenible de las mejores prácticas. Con procedimientos estandarizados para audiencias penales gracias a las guías, los actores de la justicia penal establecerán de manera eficiente todos los elementos requeridos dentro de sus respectivas audiencias, lo que resultará en condenas más sólidas, menos apelaciones exitosas y una menor impunidad criminal.
Durante los últimos tres años, OPDAT, 25 jueces mexicanos y tres jueces colombianos con experiencia en guías judiciales, trabajaron incansablemente para redactar estándares para las Guías Judiciales mexicanas. Después, múltiples instituciones, incluidas la Fiscalía General de la República y el Instituto Federal de Defensoría Pública, participaron en la revisión de las Guías, lo que aseguró que el producto final sea un verdadero esfuerzo colaborativo de múltiples instituciones mexicanas.
Funcionarios de los poderes judiciales estatales y federal, las oficinas de los fiscales generales estatales y otras instituciones que ayudaron a crear y revisar las Guías asistieron al lanzamiento.
El Embajador de Estados Unidos en México, Ken Salazar, pronunció un discurso de apertura y declaró, “Como ex fiscal general estatal, sé cuán importantes pueden ser los manuales de consulta. Qué gran colaboración entre el gobierno de los Estados Unidos y todo tipo de funcionarios mexicanos. Esta es la Seguridad Compartida, de la que hablamos continuamente, en acción.”
En la inauguración también participó el ministro de la Suprema Corte de Justicia de la Nación, Alfredo Gutiérrez Ortiz Mena, quien expresó, “Estas guías no solo definen el carácter y momento de la participación, sino que sustenta estas participaciones en jurisprudencia para permitir planear su estrategia.”
Después de la difusión de las Guías, OPDAT y el Poder Judicial de la Federación implementarán un plan de monitoreo y evaluación para mostrar qué tan efectivas son las Guías para reducir la duración promedio de las audiencias y minimizar las demoras y apelaciones innecesarias.
Guías Judiciales
Fresno Man Pleads Guilty to EscapeRead the Press Release
FRESNO, Calif. —Joel Jose Rueda, 29, of Fresno, pleaded guilty today to escaping from the custody of the Bureau of Prisons, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Rueda had been serving a federal sentence for being a felon in possession of a firearm when he escaped from federal custody in December 2021. He was later arrested by Fresno police officers following a traffic stop on March 11, 2021. During the stop, he attempted to flee and resisted arrest. After pleading guilty in Fresno County Superior Court to resisting the officers’ arrest, he was brought to federal court to face an escape charge and quickly entered his guilty plea.
This case is the product of an investigation by the U.S. Marshals Service. Assistant U.S. Attorneys Justin Gilio and Karen Escobar are prosecuting the case.
Rueda is scheduled for sentencing before U.S. District Judge Jennifer L. Thurston on Sept. 9, 2022. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, 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.
Four New York Men Sentenced to Prison for Identity Theft SchemeRead the Press Release
BOISE – Four New York men were sentenced to federal prison for an identity theft scheme designed to obtain iPhones on Sprint customer accounts.
According to statements made in court, Winston Torres, 44, Edgar Rodriguez, 36, Andres Rodriguez, 59, and Kenneth DeJesus, 25, all of New York, conspired to commit wire fraud and identity theft by obtaining personal identification of real Sprint customers, and using such personal identification to obtain merchandise at Sprint stores, primarily iPhones, on the accounts of real Sprint customers. To execute their fraud scheme, the four defendants obtained multiple false identification cards displaying the photographs of the four defendants, but with the personal identifying information of real Sprint customers.
In March 2019, the four defendants travelled together from New York to Oregon and Idaho to execute their fraud scheme using the false identification. The defendants executed, or attempted to execute, their fraud scheme at Sprint stores in Lewiston, Idaho, Moscow, Idaho, Ontario, Oregon, Boise, Idaho, and Garden City, Idaho, resulting in thousands of dollars in loss. A subsequent search of their vehicle after arrest in Garden City revealed an additional 12 false identification cards displaying the photographs of the four defendants, but with the identification of real Sprint customers.
U.S. District Judge Scott W. Skavdahl, from the District of Wyoming, sitting by designation, sentenced Winston Torres and Edgar Rodriguez to 18 months prison and 12 months prison, respectively, and ordered both men to serve three years of supervised release following their prison sentences. Torres and Rodriguez both pleaded guilty to the charges on October 20, 2021.
Chief U.S. District Judge David C. Nye sentenced Andres Rodriguez to six months prison and ordered him to serve two years of supervised release following his prison sentence. Andres Rodriguez pleaded guilty to the charges on December 10, 2019.
Senior U.S. District Judge Bill R. Wilson, from the Eastern District of Arkansas, sitting by designation, sentenced Kenneth DeJesus to 12 months prison, and ordered him to serve three years of supervised release following his prison sentence. Kenneth DeJesus pleaded guilty to the charges on March 14, 2022.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the U.S. Secret Service, Homeland Security Investigations, Boise Police Department, Garden City Police Department, Lewiston Police Department, and Ontario, Oregon Police Department, which led to the charges.
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Four Members and Associates of Reading Boarding House Sex Trafficking Gang “the Sevens” Convicted After Six-Week Trial in AllentownRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that four individuals from Reading, PA, were convicted at trial of offenses including conspiracy to participate in a racketeering enterprise; conspiracy to commit sex trafficking by force, fraud, and coercion of a minor; various violent crimes in aid of racketeering offenses including kidnapping and assaults with dangerous weapons; sex trafficking including of minors; and firearms offenses; all arising from their membership and association in a violent gang called “The Sevens,” which took control and operated out of a 50-room boarding house on South 4th Street in the City of Reading.
The individuals convicted at trial are:
- Shaquile Newson, 29;
- Alexander Malave, 31;
- Karvarise Person, 33;
- James Goode, 47.
In January 2020, fourteen defendants were charged by Superseding Indictment in connection with this case. The charges stemmed from a years’ long investigation by Homeland Security Investigations and the Reading Police Department into a racketeering conspiracy operating out of the boarding house as far back as December 2017 until roughly March 2019. Evidence presented at trial showed that multiple acts of violence in furtherance of the criminal enterprise were carried out as well as numerous acts involving the sex trafficking and attempted sex trafficking of women and minors. Victims were raped, shot, assaulted with batons, stabbed with a knife, and hit with a hammer. A minor was forced to have a sexual encounter with a gun held to her head. Sexually explicit photographs of a minor were also used to advertise the gang’s sex trafficking business. All fourteen people originally indicted have now been convicted of charges related to this case.
“The Sevens gang was a vicious and depraved group of sadistic thugs who clearly had no reservations about using and destroying human beings for their own greed,” said U.S. Attorney Williams. “Thanks to the hard work of the trial team and investigators, we have stopped this violence and the Sevens will no longer menace the streets of Reading. Our Office is committed to working with all of our federal, state, and local law enforcement partners to rid our District of the scourge of human trafficking and the trauma that it inflicts.”
“The defendants in this case committed truly heinous acts, treating living, breathing human beings like commodities for their own greed and profit. With this verdict, we hope the victims traumatized by The Sevens gang receive a measure of justice key to their healing,” said Homeland Security Investigations, Philadelphia Special Agent in Charge William S. Walker. “This investigation took years to conduct and the single-minded commitment of HSI special agents, Reading Police Department detectives and officers, and Assistant U.S. Attorneys in the Eastern District of Pennsylvania. HSI is grateful to our partners and will continue with our dedication to dismantle human trafficking operations and connect victims with services they need.”
The case was investigated by Homeland Security Investigations and the Reading Police Department, and is being prosecuted by Assistant United States Attorneys Sherri A. Stephan and Justin Ashenfelter.
Former Police Officer Sentenced to 20 Years for Sexual Relationship with Teen BoysRead the Press Release
A former police officer who sexually assaulted at least two teenage boys was sentenced this week to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Delia Ruiz, an 31-year-old former officer with the Friona Police Department, pleaded guilty to enticement of a minor in January. She was sentenced on Wednesday by U.S. District Judge Matthew J. Kacsmaryk.
In plea papers, Ms. Ruiz admitted that began having sexual intercourse with her 16-year-old victim, identified in court documents as John Doe 2, in fall 2020, and continued the relationship through spring 2021, when the boy turned 17.
She further admitted that she began having sexual intercourse with her 15-year-old victim, John Doe 1, in spring of 2021 after meeting him at John Doe 2’s home.
She sent the child flirtatious messages and arranged to meet him in a church parking lot for sex in her car on at least three occasions. She sent him sexually explicit photos and videos of herself and warned him not to tell anyone about what they did because she could get into “big trouble.”
She was arrested in October 2021 and later fired from the Fiona Police Department.
The Texas Rangers, Federal Bureau of Investigation’s Dallas Field Office – Lubbock Resident Agency, and the Amarillo Police Department conducted the investigation with the complete cooperation of the Fiona Police Department. Assistant U.S. Attorney Callie Woolam prosecuted the case with the help of Assistant U.S. Attorney Meredith Pinkham.
Former Honolulu Police Officer Indicted and Arrested for Child Sex OffensesRead the Press Release
HONOLULU – Mason Jordan, age 31, appeared in federal court in Albuquerque, New Mexico, today after his arrest there yesterday on charges of sexual exploitation of a child, coercion and enticement of a minor to engage in prostitution, sex trafficking of a child, and cyberstalking. On May 26, 2022, a Honolulu federal grand jury returned the eight-count indictment against Jordan, which was unsealed after his arrest.
According to the indictment and information presented to the court, Jordan—while an officer of the Honolulu Police Department—took sexually explicit photographs of a child in 2017 and used a hidden camera to record sexually explicit videos of that same child on two occasions in 2016. Jordan is also alleged to have impersonated that child, using social media, to recruit other local children to work for him as underage prostitutes in 2020. Jordan allegedly met up with some of those children for commercial sex acts in 2020. Jordan also allegedly “sextorted” a woman he encountered in connection with his duties as a police officer, using underage photographs he obtained of that woman.
If convicted of the charges, Jordan faces a mandatory minimum of 15 years in prison and up to 30 years on three counts of sexual exploitation, a mandatory minimum of ten years and up to life on two counts of coercion and enticement and two counts of sex trafficking, and up to five years in prison for cyberstalking. An indictment is merely an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
“The sexual exploitation of children is among the most reprehensible crimes we prosecute and deservedly carries severe criminal penalties,” said Clare E. Connors, U.S. Attorney for the District of Hawaii. “When, as here, the perpetrator is a law enforcement officer sworn to protect the community’s most vulnerable members, including our children, the crime is that much more egregious.”
“Homeland Security Investigations (HSI) is committed to protecting our keiki by investigating those who intend to do them harm,” says Special Agent in Charge John F. Tobon. “As a former Honolulu Police Officer, Mr. Jordan is well aware of the seriousness of the charges he faces. We look forward to the legal process playing out in court. If anyone has any additional information related to this case, we ask they call us at 808-532-3753.”
“Sexual predators who prey on the most vulnerable members of our society will be identified, investigated, and prosecuted to the fullest extent of the law,” said Federal Bureau of Investigation (FBI) Special Agent in Charge Steven Merrill. “The fact that Jordan was an active duty police officer - sworn to protect the public - makes this case particularly appalling. This arrest demonstrates the importance of the FBI’s commitment to work closely with our partners to investigate cases such as this with a sense of urgency to protect our keiki."
This case was the result of a joint investigation by Homeland Security Investigations and the Federal Bureau of Investigation, with the assistance of the Honolulu Police Department. Assistant U.S. Attorneys Wayne A. Myers and Christine Olson are handling the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section of the Department of Justice’s Criminal Division, 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.
Former Carpenters’ Benefit Plan Administrator Admits Embezzling $140,000Read the Press Release
NEWARK, N.J. – The former administrative manager of a carpenters’ union pension fund today admitted embezzling approximately $140,000 and making false statements on a required report to the U.S. Department of Labor (DOL), U.S. Attorney Philip R. Sellinger announced today.
George R. Laufenberg, 72, of Wall Township, New Jersey, pleaded guilty before U.S. District Judge Kevin R. McNulty in Newark federal court to two counts of an indictment charging him with embezzling approximately $140,000 in pension benefits (Count One) and making false statements to the DOL (Count Five).
According to documents filed in this case and statements made in court:
Laufenberg was the administrative manager of the Northeast Carpenters Pension Fund, which was subject to the Employee Retirement Income Security Act (ERISA). Laufenberg was a fiduciary and participant in the pension fund. He admitted stealing $140,000 that was paid to him under a deferred compensation agreement to which he was not entitled. Laufenberg also admitted that he made false statements in a form required under ERISA that he filed to the Department of Labor on behalf of the pension fund.
The maximum penalty for each count is five years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 6, 2022.
U.S. Attorney Sellinger credited special agents of the DOL Employee Benefit Security Administration, under the supervision of Thomas Licetti, Regional Director; special agents of the DOL Office of the Inspector General, under the supervision of Special Agent in Charge Jonathan Mellone; and agents of the Port Authority of New York/New Jersey, under the supervision of Inspector General John Gay, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the Organized Crime/Gangs Unit, and Assistant U.S. Attorney Kendall R. Randolph of the Organized Crime and Drug Enforcement Task Force Unit.
Forged hours lands federal agent in custodyRead the Press Release
LAREDO, Texas – A 45-year-old Customs and Border Protection (CBP) supervisor has been charged with stealing money from the U.S. government, announced U.S. Attorney Jennifer B. Lowery.
Alfonso Gonzalez, Laredo, is expected to make his initial appearance before U.S. Magistrate Judge Diana Song Quiroga at 1:30 p.m. Monday, June 6.
A federal grand jury returned the one-count indictment June 1, which was unsealed today upon his arrest.
Gonzalez is a Supervisory CBP Officer, according to the charges. On multiple occasions between Sept. 27, 2020, and Sept. 27, 2021, he allegedly falsified hours on his timesheet. The indictment alleges he falsely recorded additional night and weekend hours when he did not actually report to work. On some of those occasions, he actually traveled to Mexico when he claimed to be at work, according to the allegations.
Further, Gonzalez allegedly fabricated excuses to justify his overtime hours.
As a result, Gonzalez allegedly stole approximately $6,497.52 from the U.S. government, according to charges.
If convicted, he faces up to 10 years in prison and a possible $250,000 maximum fine.
CBP - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorney Matthew Isaac is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Farrell, PA Felon Pleads Guilty to Illegally Possessing Firearms and AmmunitionRead the Press Release
PITTSBURGH, PA - A resident of Farrell, Pennsylvania, pleaded guilty in federal court to a charge of possession of a firearm and ammunition by a convicted felon, United States Attorney Cindy K. Chung announced today.
Darwin Lamel Green, 39, pleaded guilty to one count before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that on July 30, 2019, law enforcement executed a search warrant on Green’s residence and recovered a Spikes Tactical Crusader semi-automatic rifle, Ruger semi-automatic pistol, ammunition, and magazines. The court was further advised that Green had been convicted in October 2013 of possession with intent to deliver a controlled substance, a felony that prohibited him from possessing a firearm or ammunition.
Judge Colville scheduled sentencing for Sept. 29, 2022. The law provides for a maximum total sentence of 10 years’ imprisonment, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorneys Brendan Conway and David Lew are prosecuting this case on behalf of the government.
The Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, and Pennsylvania Office of Attorney General conducted the investigation leading to the prosecution on Green.
Federal Jury Finds Two California Men Guilty on Firearm Trafficking ChargesRead the Press Release
United States Attorney Bob Murray announced today that DARWIN THOMAS, age 34, and PHILLIP FLORES, age 37, both of Los Angeles, California, were found guilty by a federal jury of conspiracy to transfer firearms to an out-of-state resident and to provide false statements during the purchase of firearms. In addition, Thomas was convicted of six counts aiding and abetting making a false statement during the purchase of a firearm. Flores was convicted of one count on the same charge.
The trial began May 9 and ended on May 16, 2022, before Federal District Court Judge Alan B. Johnson in Cheyenne, Wyoming. Both men are scheduled to be sentenced on August 4, 2022.
This crime was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation; United States Postal Inspection Service; Wyoming Highway Patrol; Laramie, Wyoming Police Department; Inglewood, California Police Department; and the Los Angeles, California Police Department. Assistant United States Attorney Timothy J. Forwood and Jonathan C. Coppom prosecuted the case.
Case Number: 0:21-cr-00062-ABJ
FCA US LLC Enters Guilty Plea to Fraud ConspiracyRead the Press Release
FCA US LLC (FCA US), formerly Chrysler Group LLC, pleaded guilty to one criminal felony count and has agreed to pay approximately $300 million in criminal penalties as a result of the company’s conspiracy to defraud U.S. regulators and customers by making false and misleading representations about the design, calibration, and function of the emissions control systems on more than 100,000 Model Year 2014, 2015, and 2016 Jeep Grand Cherokee and Ram 1500 diesel vehicles, and about these vehicles’ emission of pollutants, fuel efficiency, and compliance with U.S. emissions standards.
FCA US entered a guilty plea to a criminal information charging the company with one count of conspiracy to defraud the United States, commit wire fraud, and violate the Clean Air Act. Pursuant to the plea agreement, FCA US has agreed to pay a criminal fine of $96,145,784 and to forfeit $203,572,892.
“FCA US engaged in a multi-year scheme to mislead U.S. regulators and customers,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s guilty plea demonstrates the department’s dedication to prosecuting all types of corporate malfeasance and holding accountable companies that seek to place profits above candor, good corporate governance, and timely remediation.”
“We expect all corporations to deal with regulators and the public openly and honestly,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Unfortunately, one of our district’s biggest corporations fell far short of that standard, resulting in today’s guilty plea. My office is committed to holding accountable anyone who engages in fraud and deceit that violates federal law, from an individual to one of the world’s largest automakers.”
“FCA’s attempts to circumvent pollution standards undermine the laws in place to protect human health, the environment, and consumers,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Today’s actions reflect the Justice Department’s continued and steadfast commitment to enforcing the Clean Air Act and holding individuals and companies accountable for corporate wrongdoing.”
“FCA’s engagement in this criminal scheme deceived both their regulators and consumers,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “These regulations have been put in place to protect the health and wellbeing of our citizens and environment. This guilty plea reflects the commitment of the FBI and our local, state, and federal partners to investigate and bring to justice those who engage in fraudulent and harmful practices.”
“Emissions testing is an important requirement of the Clean Air Act because it protects our nation’s air quality,” said Acting Assistant Administrator Larry Starfield for the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “Today’s guilty plea demonstrates EPA’s commitment to hold companies like Fiat Chrysler accountable for violating environmental regulations that protect public health and the environment.”
According to the company’s admissions and court documents, beginning at least as early as 2010, FCA US developed a new 3.0-liter diesel engine for use in FCA US’s Jeep Grand Cherokee and Ram 1500 vehicles (the Subject Vehicles) that would be sold in the United States. FCA US designed a specific marketing campaign to market these vehicles to U.S. customers as “clean EcoDiesel” vehicles with best-in-class fuel efficiency. However, according to court documents, FCA US installed software features in the Subject Vehicles and engaged in other deceptive and fraudulent conduct intended to avoid regulatory scrutiny and fraudulently help the Subject Vehicles meet the required emissions standards, while maintaining features that would make them more attractive to consumers, including with respect to fuel efficiency, service intervals, and performance.
Specifically, FCA US purposely calibrated the emissions control systems on the Subject Vehicles to produce less NOx emissions during the federal test procedures, or driving “cycles,” than when the Subject Vehicles were being driven by FCA US’s customers under normal driving conditions. FCA US then engaged in deceptive and fraudulent conduct to conceal the emissions impact and function of the emissions control systems from its U.S. regulators and U.S. customers by (a) submitting false and misleading applications to U.S. regulators to receive authorization to sell the vehicles, (b) making false and misleading representations to U.S. regulators both in person and in response to written requests for information, and (c) making false and misleading representations to consumers about the Subject Vehicles in advertisements and in window labels, including that the Subject Vehicles complied with U.S. emissions requirements, had best-in-class fuel efficiency as measured by EPA testing, and were equipped with “clean EcoDiesel engine[s]” that reduced emissions.
For example, FCA US referred to the manner in which it manipulated one method of emissions control as “cycle detection” and “cycle beating.” Without the “cycle beating” use of this emissions control software, the Subject Vehicles were unable to pass the emissions portions of the federal test procedures while also receiving a fuel efficiency rating that could be marketed to FCA US’s potential customers as “best-in-class,” consistent with FCA US’s 3.0-liter diesel program’s goals, timing, and marketing strategy. Because FCA US knew that the decision to calibrate the emissions control system used on the Subject Vehicles to perform differently “on cycle” versus “off cycle” would be subjected to significant scrutiny by U.S. regulators, FCA US made false and misleading representations to regulators to ensure that it obtained regulatory approval to sell the Subject Vehicles in the United States.
Under the terms of the guilty plea, which remains subject to court approval, FCA US has agreed to continue to cooperate with the Department of Justice in any ongoing or future criminal investigations relating to this conduct. In addition, as part of the guilty plea, FCA US has also agreed to continue to implement a compliance and ethics program designed to prevent and detect fraudulent conduct throughout its operations and will report to the department regarding remediation, implementation, and testing of its compliance program and internal controls.
The government reached this agreement with FCA US based on several factors including, among others, the nature and seriousness of the offense conduct, the company’s failure to voluntarily and timely disclose the conduct that triggered the investigation, and its failure to conduct sufficiently timely or appropriate remedial action. FCA US received credit for cooperation with the department’s investigation and has enhanced, and committed to enhance, its compliance program and internal controls.
Sentencing is scheduled for July 18.
In the related criminal prosecution, three FCA employees, Emanuele Palma, Sergio Pasini, and Gianluca Sabbioni were indicted for conspiracy to defraud the United States and to violate the Clean Air Act and six counts of violating the Clean Air Act. They await trial. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and EPA’s Criminal Investigations Division are investigating the case.
Trial Attorneys Jason M. Covert, Kyle W. Maurer, Michael P. McCarthy, and Assistant Chief Michael T. O’Neill of the Criminal Division’s Fraud Section; White Collar Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse of the U.S. Attorney’s Office for the Eastern District of Michigan; and Senior Trial Attorney Todd W. Gleason of the Environment and Natural Resources Division’s Environmental Crimes Section are prosecuting the case.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. If you believe you are a victim of the conduct described in the plea agreement and criminal information, please visit https://www.justice.gov/criminal-vns/united-states-v-FCA.
Enterprise Man Sentenced for Receiving Methamphetamine Through the MailRead the Press Release
Montgomery, Alabama – On Thursday, June 2, 2022, Eric Michael Caylor, a 40-year-old man from Enterprise, Alabama, was sentenced to 15 months in prison for attempting to possess with the intent to distribute methamphetamine, announced United States Attorney Sandra J. Stewart. Following his prison sentence, Caylor will be on supervised release for three years. There is no parole in the federal system.
According to Caylor’s plea agreement and other court records, in early 2019, Postal Inspectors noticed that Caylor was receiving suspicious packages through the mail. Further investigation revealed that Caylor was ordering controlled substances on the dark web and paying for them using Bitcoin. During Caylor’s plea hearing in February of 2022, he specifically admitted that, on May 2, 2019, he attempted to possess a package that he knew contained methamphetamine. Caylor also admitted to previously receiving packages containing controlled substances and sharing or trading the drugs with others.
This case was investigated by the United States Postal Inspection Service, with assistance from the Alabama Law Enforcement Agency and the Coffee County Sheriff’s Office. Assistant United States Attorney Russell T. Duraski prosecuted the case.