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30 June 2022
Second Jamaican National Sentenced for Stealing more than $970,000 in Lottery ScamRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Jamaican national Rajay Dobson of Trelawny Parish, Jamaica, was sentenced to 63 months in federal prison, followed by 3 years of supervised release and was ordered to pay $881,477.41 in restitution for his role in a lottery scheme that targeted an elderly woman in Estes Park, Colorado.
According to court documents, Dobson and another Jamaican national, Leonard Luton, conspired to convince an elderly victim that she had won a $2.8 million dollar lottery and a Mercedes Benz but needed to pay thousands of dollars in “fees” in order to receive her winnings. During the scam, Dobson instructed the victim to mail packages of cash and cashier’s checks, in addition to six iPhones, to the addresses of Luton’s friends. Dobson called the victim hundreds of times, grooming her to convince her to carry out his instructions.
On two occasions, at Dobson’s direction, Luton made trips to the victim’s home in Estes Park to pick up packages of cash. During the first trip in October of 2018, one of Luton’s co-conspirators went to the victim’s door at 1:30 a.m., identified himself as an FBI agent, showed her a fake FBI badge, and directed her to hand over a package containing $65,000 in cash. On the second trip in January of 2019, Luton was arrested at the victim’s residence when he arrived to pick up more cash. Upon his arrest, Luton was in possession of one of the iPhones purchased by the victim. In total, the victim was scammed out of more than $970,000.
United States District Court Judge Christine M. Arguello sentenced Dobson on June 29, 2020. He pleaded guilty on March 24, 2022 to one count of conspiracy to commit mail fraud. The Court also entered an order of forfeiture in the amount of $881,477.41 and imposed a $100 special assessment fee.
“These fraudsters took advantage of one of our community’s most vulnerable victims,” said U.S. Attorney Cole Finegan. “We want to make it clear: individuals who prey on the elderly will be held accountable.”
"Scammers often prey on elderly individuals, who might be embarrassed and reluctant to come forward. In this case, by the time legitimate law enforcement was notified, the victim was defrauded of almost one million dollars," said Special Agent in Charge Michael Schneider. "The FBI is committed to combating these scammers, even those located outside of the United States."
Luton was sentenced on August 4, 2021, to 108 months in prison after being convicted at trial in February of 2020. His sentence was enhanced due to multiple instances of obstruction of justice. He was also ordered to pay $881,477.41 in restitution to the victim and an order of forfeiture was issued in the amount of $484,123.16.
After Luton was sentenced, the United States successfully located, arrested, and extradited Dobson from Jamaica.
This case was investigated jointly by the FBI and the Estes Park Police Department with assistance from the Larimer County District Attorney’s Office.
Assistant United States Attorneys Martha Paluch, Sarah Weiss and Elizabeth Young prosecuted this matter.
CASE NUMBER: 19-cr-00098
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Salem Drug Trafficker Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A Salem, Oregon area drug trafficker was sentenced to more than 12 years in federal prison today after being arrested with distribution quantities of methamphetamine and heroin and two handguns.
Chase Benjamin Russell-Brown, 31, was sentenced to 150 months in federal prison and four years’ supervised release.
According to court documents, on November 5, 2019, officers from the Salem Police Department Strategic Investigations Unit (SIU) were conducting surveillance at a Salem hotel known for drug activity. Officers observed Russell-Brown, who had twice been arrested in the prior two months for drug trafficking offenses, exit the hotel carrying a bag and leave in a vehicle with expired registration. When the officers attempted a traffic stop, Russell-Brown fled.
Russell-Brown led officers into a crowded grocery store parking lot where the officers attempted to block him in a parking aisle. When officers positioned behind Russell-Brown’s vehicle approached on foot, Russell-Brown put his car into reverse, accelerated, and rammed a patrol car, nearly hitting the officers. After the collision, an officer in another patrol car drove forward and contacted Russell-Brown’s vehicle from the front, attempting to pin the vehicle in place. As officers approached on foot a second time, Russell-Brown continue to accelerate the vehicle trying to break free. Finally, officers were able to break the window of Russell-Brown’s vehicle and place him under arrest.
Officers found two loaded handguns on Russell-Brown’s person and several dozen grams of methamphetamine and heroin, drug packaging material, and additional ammunition and magazines in his vehicle. In total, approximately 380 grams of methamphetamine were seized from Russell-Brown during his three drug trafficking arrests.
On November 21, 2019, a federal grand jury in Portland returned an eight-count indictment charging Russell-Brown with possessing with intent to distribute methamphetamine and heroin, using and carrying a firearm during and in relation to a drug trafficking crime, and illegally possessing a firearm as a convicted felon.
On September 16, 2020, Russell-Brown pleaded guilty to possessing with intent to distribute methamphetamine and illegally possessing a firearm as a convicted felon.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Salem Police Department with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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.
Repeat Drug Trafficker Sentenced to 10 Years in PrisonRead the Press Release
TUCSON, Ariz. – On June 28, 2022, Modesta Solano, 51, of Tucson, Arizona, was sentenced by United States District Judge John C. Hinderaker to 10 years in prison, followed by three years of supervised release. Solano previously pleaded guilty on April 6, 2022, to conspiracy to distribute fentanyl.
A federal grand jury indicted Solano in October 2020 on drug and firearms charges after Solano sold a handgun and over 4,000 fentanyl pills to an undercover agent in Tucson. Solano was prohibited from possessing firearms due to a prior felony drug conviction for which she was sentenced to five years. Solano was on supervision when she committed these new offenses.
Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Tucson Police Department conducted the investigation in this case. Assistant U.S. Attorney Stefani Hepford, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR 20-01978-TUC-JCH (MSA)
RELEASE NUMBER: 2022-103_SOLANO# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Randolph County man sentenced for drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Albert Perry Shreve, III, of Elkins, West Virginia, was sentenced today to five months of home confinement for a drug charge, United States Attorney William Ihlenfeld announced.
Shreve, 43, pleaded guilty in February 2022 to one count of “Distribution of Methamphetamine.” Shreve admitted to selling methamphetamine in Randolph County in April 2021.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug Task Force investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Prairie du Chien Resident Sentenced to 10 Years for Possessing Methamphetamine for DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Christopher Fernette, 45, Prairie du Chien, Wisconsin was sentenced yesterday by U.S. District Judge William M. Conley to 120 months in federal prison for possessing methamphetamine with intent to distribute. Fernette pleaded guilty to this charge on April 6, 2022. Judge Conley also ordered Fernette to forfeit $17,200.
During the course of a long-term, multi-agency investigation, law enforcement officers determined that a group of people, including Fernette, distributed significant amounts of methamphetamine in western Wisconsin. Investigators also learned that Fernette purchased methamphetamine from sources-of-supply who lived in multiple states.
On April 3, 2021, investigators followed Fernette as he and a passenger crossed into Wisconsin from Minnesota. When the car stopped at a tavern in Ferryville, a deputy from the Crawford County Sheriff’s Office approached Fernette and asked for permission to pat him down for weapons. Fernette consented to the pat down but attempted to hide a small plastic baggie in his hand. When the deputy questioned Fernette about the object in his hand, Fernette tossed the baggie and became combative. A fight ensued and the deputy eventually detained Fernette.
After the altercation, the deputy located the baggie and determined that it contained a personal use amount of methamphetamine. The deputy then found a discarded black canvas tool bag in a ditch that contained approximately three pounds of methamphetamine. The deputy used his canine partner to sniff the car that Fernette had been driving. When the canine alerted, investigators searched the car and found $17,200 in cash.
During a post-arrest interview, Fernette waived his Miranda rights and admitted that he and the passenger drove to Minnesota to purchase the methamphetamine found inside the black canvas bag. Fernette also explained that he and the passenger planned to split the methamphetamine with a third person in Wisconsin.
At sentencing, Judge Conley noted that the three pounds of methamphetamine found on April 3, 2021 likely understated the total amount of methamphetamine that Fernette sold on the street.
The charge against Fernette was the result of an investigation conducted by the Crawford County Sheriff’s Office, Prairie du Chien Police Department, Richland-Iowa-Grant Task Force, Dakota County (Minnesota) Drug Task Force, Iowa Division of Criminal Investigation, and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Philadelphia Heroin Supplier Sentenced to 10 Years for Drug TraffickingRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Roberto DeJesus Negrin, 35, of Philadelphia, PA, was sentenced to ten years in prison and five years of supervised release by United States District Court Judge Nitza I. Quinones-Alejandro for multiple narcotics offenses stemming from his role as a drug trafficker and a leading supplier of heroin in one of the most drug-laden neighborhoods in Philadelphia.
In January 2022, the defendant pleaded guilty to an Indictment charging him with conspiracy to distribute heroin, and two counts of possession with intent to distribute heroin. In pleading guilty, the defendant acknowledged that he coordinated shipments of heroin into Philadelphia and arranged for it to be packaged into street-level, sale-ready quantities at two locations which he obtained for the purpose of operating this bagging operation. During much of 2018, the defendant was the main heroin supplier to a drug trafficking organization that controlled an open-air drug market in the Kensington section of the city. In November 2018, when law enforcement executed search warrants at the two locations controlled by the defendant, they recovered over two kilograms of heroin in each place and other items consistent with drug trafficking.
“Drug use and the violence that surrounds it are – and have been – an epidemic in Philadelphia, and the federal government is aggressively prosecuting those who seek to profit from it,” said U.S. Attorney Romero. “This defendant played a key role in the supply chain of heroin distribution, for which he will now spend a decade in prison. We want to thank our law enforcement partners in this case, the FBI and the Philadelphia Police Department, for their hard work and dedication.”
The case was investigated by Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert and Timothy M. Stengel.
Passaic County Accountant Admits Subscribing to False Returns and Conspiring to Defraud United StatesRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man who was employed as a certified public accountant in northern New Jersey today admitted failing to disclose income on his tax returns, U.S. Attorney Philip R. Sellinger announced.
William Kawam, 57, of Hewitt, New Jersey, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with subscribing to false tax returns and conspiracy to defraud the United States.
According to documents filed in this case and statements made in court:
In 2015, Kawam and a conspirator undertook a scheme to conceal certain money from the IRS. The conspirator compensated Kawam for a portion of his accounting services by providing him with a credit card belonging to one of the conspirator’s businesses that Kawam could use for personal expenses. Kawam failed to report the charges as income, and the conspirator failed to report the charges as business expenses. Kawam failed to report $146,605 for tax years 2015, 2016, and 2017, resulting in a tax loss of approximately $54,400.
The count of subscribing to false tax returns to which Kawam pleaded guilty carries a maximum penalty of three years in prison and a $100,000 fine; the conspiracy to defraud the United States count carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 21, 2022.
U.S. Attorney Sellinger credited special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, and special agents of the FBI, under the direction of Acting Special Agent in Charge Terence Reilly in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark.
Operators of over $16 Million International Boiler Room Fraud Sentenced to Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that CHRISTOPHER WRIGHT and STEVEN HOOPER were sentenced to 52 months in prison and 42 months in prison, respectively, for defrauding elderly victims in connection with the fraudulent sale of stock and fake carbon credits as part of an over $16 million international telemarketing scheme. WRIGHT and HOOPER previously pled guilty before U.S. District Judge Jed S. Rakoff, who imposed the sentences.
According to the allegations in the Indictment, court filings, and statements made in Court:
From in or about 2009 up to and including in or about 2015, WRIGHT, HOOPER, and other co-conspirators engaged in a scheme to defraud victims in the United Kingdom through the sale of false, fraudulent, and materially misleading investments, and to launder the proceeds of the fraud through bank accounts in the United States and foreign countries. WRIGHT and HOOPER used the services of telemarketing call centers to identify and cold-call potential victims, who were primarily elderly or retired individuals residing in the United Kingdom. Over a series of telephone calls, the telemarketers persuaded victims to invest money under various false and misleading pretenses, including the promise of short-term, high-yield, no-risk returns, when in fact the investments were high-risk, illiquid, and in some instances, entirely fictitious. Many victims were persuaded to make additional investments under the false pretense that they would not be permitted to sell their holdings until they purchased more. In reliance on the false representations and promises, the victims wired funds to various bank accounts in the United States, including in the Southern District of New York, in the names of corporate entities controlled by one of WRIGHT’s and HOOPER’s co-conspirators. WRIGHT and HOOPER assisted in emailing of documents related to the fraudulent investments, including purchase contracts and investment certificates, to the victims. Victims who tried to sell their investments found they were unable to do so. The victims never received a refund on their principal or any return on their investments.
In order to conceal the nature, location, source, ownership, and control of the proceeds of the fraudulent scheme, WRIGHT, HOOPER, and their co-conspirators set up overseas bank accounts, including in Cyprus, Switzerland, and the United Kingdom, in the names of various shell companies, which were used to launder a substantial portion of the fraud proceeds.
The nature of the particular fraudulent investment vehicles being marketed to the victims changed over time. From in or about 2009 until in or about 2011, WRIGHT and his co-conspirators sold the stock of Florida-based corporation DirectView Holdings, Inc. (“DirectView”) to the victims based on telemarketers’ false representations and promises that the shares were a no-risk, short-term investment in a debt-free company, and that the shares were likely to increase over 100 percent in value in a short period of time. In fact, DirectView’s annual report filed with the United States Securities and Exchange Commission (“SEC”) for the year ending December 31, 2010, contained dire warnings about the poor fiscal health of DirectView and the risk attendant in purchasing stock, including that the company “may be forced to cease operations” due to losses and cash flow problems, and purchasers “may find it extremely difficult or impossible to resell our shares.”
From in or about 2011 until in or about 2015, WRIGHT, HOOPER, and their co-conspirators engaged in the sale of fraudulent “carbon credits.” The boiler room callers appealed to victims by claiming that the investments would be environmentally friendly and help address the climate crisis. “Carbon credits,” which are issued as part of governmental and voluntary regulatory regimes, are permits representing the right to emit a certain number of tons of carbon dioxide into the atmosphere. “Carbon offsets,” which are tied to particular carbon-dioxide emissions reducing projects, represent a reduction in carbon dioxide emissions, and can be purchased by individuals and companies to “offset” their or third parties’ “carbon-footprints.” The victims were falsely promised that the carbon-related investments they purchased could be easily sold, carried no risk, and would yield a significant, short-term return. In fact, the carbon credits and offsets that were sold to the victims were fake, and did not represent any actual carbon credits or offsets.
In total, victims lost over $16 million.
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In addition to their prison terms, WRIGHT, 49, and HOOPER, 49, who are both citizens of the United Kingdom, were ordered to pay restitution in the respective amounts of $16,407,459.52 and $14,457,104.19. WRIGHT and HOOPER were also ordered to pay forfeiture in the amount of $1,632,443.10 and $760,977.12, respectively.
Mr. Williams praised the outstanding investigative work of IRS Criminal Investigation in this case.
This case is being prosecuted by the Office’s Money Laundering and Transnational Criminal Enterprises and Complex Frauds and Cybercrime Units. Assistant U.S. Attorneys Jessica Feinstein, Olga I. Zverovich, and David Felton are in charge of the prosecution.
Ocean City Business Owner Admits to Intentionally Failing to Report $70,000 in Annual Income TaxRead the Press Release
Baltimore, Maryland – Sunil Chawla (“Chawla”), age 66, of Berlin, Maryland, pleaded guilty today to tax fraud. As part of his plea agreement, Chawla will be required to pay $70,000 in restitution.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Acting Special Agent in Charge Selwyn Smith of Homeland Security Investigations (HSI) Baltimore.
According to his guilty plea, Chawla owned and operated “India Emporium”, a seasonal retail store near Ocean City, Maryland for over 20 years. Chawla also received income from a business (Company 1) operated by his son, defendant Saurabh Chawla (“Saurabh”), age 36, of Aurora, Colorado, from 2009 to August 2019. Chawla’s duties at Company 1 included receiving electronics and other items obtained by Company 1. Chawla was involved in reselling, maintaining and tracking Company 1’s inventory, and packaging and shipping daily orders as directed by his son, Saurabh. From 2009 to 2018, Chawla received an annual salary from Company 1 of approximately $60,000. Each month, Chawla frequently wrote himself a $5,000 check that was drawn against Company 1’s bank account. In 2009 and 2010, Chawla intentionally did not report any income from Company 1. Ultimately, from 2012 to 2018, Chawla repeatedly engaged in tax fraud by underreporting his $60,000 annual salary at Company 1, resulting in a tax loss of $70,000 to the IRS.
Chawla and Saurabh discussed and agreed on the amounts that Chawla would list on his tax returns, which would then be listed on Saurabh’s returns as an expense of Company 1. In later years, part of Chawla’s compensation was fraudulently classified by Chawla and Saurabh as a non-taxable gift rather than compensation related to Chawla’s employment in an effort to lower Chawla’s taxable income in any given year.
Further, Saurabh failed to file a Form 1099 each year to report Chawla’s income to the IRS. In September 2013, Chawla emailed Saurabh, expressing his concern about whether a 1099 had been filed by Company 1 that would require Chawla to pay self-employment taxes.
As stated in his plea agreement, Chawla submitted a U.S. Joint Income Tax Return, IRS Form 1040, for the year 2017, in which he falsely reported that his adjusted joint gross income was $19,849 and that his total tax due was $3,571 when, in fact, Chawla knew that his joint taxable income was much greater than the amount reported.
In September 2021, U.S. District Judge Catherine C. Blake sentenced co-defendant Saurabh Chawla to 66 months in federal prison, followed by three years of supervised release for conspiracy, interstate transportation of stolen goods, and tax evasion. The Court also ordered Saurabh Chawla to pay $713,619 in restitution and sign an order of forfeiture requiring him to forfeit several fraud related assets including a 2013 Tesla Model S, $2,308,062.61 from accounts held in his name, and the sale of property in Aurora, Colorado.
Sunil Chawla faces a maximum sentence of three years in federal prison followed by one year of supervised release for tax fraud. U.S. District Judge Catherine C. Blake has scheduled sentencing for October 13, 2022, at 2 p.m.
United States Attorney Erek L. Barron commended the IRS and HSI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Harry M. Gruber and Paul A. Riley, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Oakland Resident Charged with Fentanyl and Methamphetamine Sales in San Francisco’s TenderloinRead the Press Release
SAN FRANCISCO – Alex Murillo appeared in federal court today and was ordered detained in custody on charges of distribution of fentanyl and methamphetamine, announced United States Attorney Stephanie M. Hinds and Drug Enforcement Administration (DEA) Special Agent in Charge Wade R. Shannon.
Murillo, 26, who resides in Oakland, was arrested on June 21, 2022, following the filing of a federal criminal complaint. The complaint charges multiple street drug sales by Murillo in San Francisco’s Tenderloin District. It specifically alleges that on April 7, 2022, Murillo met up with two undercover police officers near 8th and Market Streets in the Tenderloin and sold the undercover officers approximately 5 grams of a substance containing fentanyl for $100. The complaint further alleges that on June 8, 2022, Murillo communicated again with one of the undercover police officers and then met with the undercover officer in the area of the San Francisco Civic Center BART platform in the Tenderloin. This time, the complaint alleges, Murillo sold the undercover officer approximately two ounces of suspected fentanyl and approximately three ounces of methamphetamine for $1,400.
In a filed memo seeking his detention, the government described the arrest of Murillo on June 21 as he was leaving his residence in Oakland. Police searched Murillo upon his arrest and found in his backpack a digital scale, over three ounces of a substance containing methamphetamine, and over an ounce of a substance containing cocaine base.
The complaint charges Murillo with one count of distributing fentanyl in violation of 21 U.S.C. § 841(a)(1), (b)(1)(C). The maximum statutory penalty for the charge is 20 years of imprisonment with three years of supervision upon release from prison. The complaint also charges Murillo with one count of distributing 50 grams or more of a substance containing methamphetamine in violation of 21 U.S.C. § 841(a)(1), (b)(1)(B)(viii). The statutory penalty for this charge is a minimum of five years imprisonment and a maximum of 40 years imprisonment as well as a minimum of 4 years of supervision following release from prison with a maximum of life supervision. However, any sentence following a conviction would be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the complaint are only allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Murillo made his initial court appearance to face the federal complaint on June 22, 2022, in United States District Court in San Francisco. He appeared today before United States Magistrate Judge Laurel Beeler for a detention hearing and was ordered to remain detained in custody. His next court appearance is a status hearing scheduled for July 13 before United States Magistrate Judge Alex Tse.
Assistant U.S. Attorneys Christa Hall and Chris Kaltsas are prosecuting the case, with the assistance of Lance Libatique. The prosecution is the result of an investigation by DEA and the San Francisco Police Department.
Nurse Practitioner Pleads Guilty to Conspiracy in $15 Million Durable Medical Equipment SchemeRead the Press Release
CHARLOTTE, N.C. – Justin Segrest, 44, of Mount Airy, N.C., appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to a conspiracy charge for his role in a durable medical equipment (DME) scheme that defrauded Medicare of almost $15 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tamala E. Miles, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the region including North Carolina, join U.S. Attorney King in making today’s announcement.
According to filed plead documents and today’s plea hearing, during 2018 and 2019, Segrest was a nurse practitioner and was working for a telemedicine company based in Delaware. During the relevant time, Segrest caused thousands of claims to be submitted to Medicare for medically unnecessary orthopedic braces and other DME. As Segrest admitted in court today, Segrest facilitated the scheme by making false claims in medical records to support the fraudulent claims. He did so by signing false medical records describing purported “assessments” of Medicare beneficiaries and certifying that he had performed corresponding medical examinations when, in fact, Segrest had no interaction with the beneficiaries and made no medical determination whether the devices were medically necessary or the beneficiaries needed the DME. Segrest received from the telemedicine company unsigned orders for orthopedic braces for the beneficiaries, which he signed and returned to the telemedicine company in exchange for $15 for each purported assessment that he performed. Through this scheme, Segrest caused the submission of nearly $15 million in false and fraudulent claims to Medicare.
Following today’s plea hearing, Segrest was released on bond. The conspiracy charge carries a maximum prison term of five years and a $250,000 fine. A sentencing date for Segrest has not been set.
The investigation was handled by the FBI and HHS-OIG. Assistant U.S. Attorney Graham Billings of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
New Orleans Man Sentenced to 168 Months on Federal Drug Trafficking ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that ANDREW PAYTON, age 48, a resident of New Orleans, Louisiana, was sentenced by U.S. District Judge Wendy B. Vitter on Tuesday June 28, 2022 to serve 168 months in the custody of the Federal Bureau of Prisons after pleading guilty to the charge of possession with the intent to distribute 500 grams or more of cocaine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B). PAYTON’s federal term of imprisonment is to be followed by five years of supervised release.
Federal, state, and local law enforcement officials investigated the 2019 distribution of illegal narcotics into Orleans and St. Tammany Parishes from the Houston, Texas area. This investigation culminated with the indictment of PAYTON on October 18, 2019.
The case was investigated by the United States Drug Enforcement Administration (D.E.A.), the Louisiana State Police, the New Orleans Police Department, and the St. Tammany Parish Sheriff’s Office. Assistant United States Attorney Maurice E. Landrieu, Jr.is in charge of the prosecution.
Multiple Individuals Convicted in Crackdown on Unlicensed Marijuana Dispensary IndustryRead the Press Release
SAN DIEGO – Shahram “Sean” Sheikhan and Sabriana Williams pleaded guilty in federal court today to drug distribution charges, the latest individuals convicted as part of an ongoing investigation by federal and state authorities targeting unlicensed, illegal marijuana dispensaries throughout Southern California.
From at least 2019 through 2022, Sheikhan and Williams, along with others, operated an unlicensed, illegal marijuana business known as “Cannaland,” which functioned primarily as a wholesale supplier of marijuana and marijuana products to unlicensed and illegal marijuana dispensaries in Southern California. Additionally, Cannaland operated as an unlicensed, illegal marijuana dispensary in its own right, serving individual customers.
In April 2021, law enforcement executed a search warrant at Cannaland, which at the time was located at 10630 Willie Baker Way in Spring Valley, California. During the execution of the search warrant, more than 3,000 pounds of marijuana was seized, with an estimated street value in excess of $6 million, along with five firearms. Following the search warrant, Sheikhan and Williams personally coordinated and facilitated the procurement of replacement firearms for the business’ armed security guards and continued to operate their business and distribute vast amounts of marijuana. As part of their plea agreements, Sheikhan and Williams admitted the amount of marijuana products distributed during the course of the conspiracy exceeded 3,000 kilograms.
Sheikhan and Williams join several others who have pleaded guilty to various drug, firearm, and money laundering charges in federal court as part of this investigation.
“Over the last two years, federal and state law enforcement targeted the operation of dozens of illegal, unlicensed marijuana dispensaries in San Diego County in order to enforce the law and curtail the related crime alleged in this case,” Grossman said. He thanked the prosecution team and the investigating agencies for their efforts to protect the community.
“The FBI is committed to keeping our communities safe from the vast array of violent crimes and criminal activity which accompanies these illegal establishments,” said FBI Special Agent in Charge Stacey Moy. “I want to thank our law enforcement partners at the San Diego County Sheriff’s Department, the San Diego Police Department, the Chula Vista Police Department, the Internal Revenue Service, the United States Attorney’s Office for the Southern District of California, and the San Diego County District Attorney’s Office for their commitment and collaboration on these cases. It’s these ongoing partnerships which enable law enforcement from around the county to be agile and able to handle these types of cases using a variety of investigative techniques with different prosecutive options.”
“IRS has been a part of the Organized Crime Drug Enforcement Task Force (OCDETF) for over 30 years. ‘Stronger Through Partnership’ is the OCDETF motto, and the success of this highly impactful investigation truly exemplifies that motto,” noted Ryan L. Korner, Special Agent in Charge of the Los Angeles Field Office of IRS-Criminal Investigation (IRS-CI). “The primary motivation of drug traffickers is greed. They don’t care how their actions negatively impact innocent people, the community, or our society. The role of IRS-CI is to fully dismantle these criminal organizations by following the money that fuels the drug trade, and ultimately ensure that the peddlers of these illicit drugs do not reap the benefits of their criminal activity.”
“The Sheriff's Department has been a proud partner in the collaborative law enforcement response to organized criminal activity related to unlicensed marijuana distribution in the East County,” said Kelly A. Martinez, Undersheriff of the San Diego County Sheriff’s Department. “Sheriff deputies, investigators, and analysts committed countless hours of investigative support, surveillance, and analysis to this effort. Today's outcome is a culmination of the dedication of federal, state, and local law enforcement partnerships in the region which are the hallmark of public safety in San Diego. East San Diego County is safer today because of this hard work.”
“This operation demonstrates that strong partnerships, including participating on federal task forces, keeps our community safe,” said San Diego Police Department Chief David Nisleit. “The San Diego Police Department is committed to working with neighboring law enforcement agencies to combat organized crime in our region. We are proud of the work that has been done to close these illegal distribution centers and stop the violent crime associated with them.”
“Illegal marijuana dispensaries have been responsible for numerous complaints by our community members,” added Chula Vista Police Department Chief Roxana Kennedy. “We’ve seen many of them open up near our schools over time. They pose a significant health and safety hazard to the public, especially our youth, and they move around trying to avoid enforcement. Collaborating with our law enforcement partners in the region and pooling our resources to stop these criminal organizations from putting our communities at risk is absolutely critical.”
To date, law enforcement has executed dozens of search warrants and charged more than 30 individuals with violating state and federal law. As a result of this joint effort, law enforcement has seized nearly 30,000 pounds of marijuana and marijuana products; 68 firearms, including ghost guns; and millions of dollars in currency, jewelry, and other valuables. Nearly 30 unlicensed, illegal marijuana dispensaries and wholesale distributors have been shut down as a result.
Of those who have been charged, two groups of individuals recently pleaded guilty in federal court besides Sheikhan and Williams.
The first group, headed by Lance Kachi, admitted to operating multiple unlicensed, illegal marijuana dispensaries in Spring Valley and El Cajon, including locations at 9545 Campo Road, 9600 Campo Road, 9070 Jamacha Road, 985 Greenfield Drive, and 9143 Birch Street. Since at least 2020, Kachi, Michael Yono, Avrin Yakou, Fabian Yakou, and others, oversaw multiple unlicensed dispensaries that would each generate up to $25,000 daily, and were open 24 hours a day, seven days a week.
Kachi and his coconspirators grossed millions of dollars in revenue from their illegal, unlicensed operation. Several times a week, Kachi and others would meet at various hotels where they would spend hours counting hundreds of thousands of dollars in dispensary proceeds using automated money counters. Before leaving the room with bags of money, the defendants would pack up their money counters as well as the various notes they took to account for their profits and expenses, such as the cost of armed security.
In July 2021, law enforcement executed multiple search warrants targeting the Kachi operation. In May 2022, Kachi, Yono, and the Yakou brothers pleaded guilty to various drug, firearms, and money laundering charges, as well as the forfeiture of millions of dollars in cash, jewelry, and other valuables.
Also in May 2022, a second group, comprised of the Shamoun brothers – Sean, Alvin, Vincent, and Andrew – pleaded guilty in federal court to charges stemming from their wholesale distribution of marijuana products to unlicensed, illegal marijuana dispensaries from Los Angeles to San Diego. Operating under the name of Babylon’s Garden, the Shamoun brothers manufactured a variety of marijuana products at a warehouse in San Diego, which they would deliver directly to dispensaries or ship in the United States mail. The Shamoun brothers admitted that their operation was responsible for the manufacturing and distribution of more than 3,000 kilograms of marijuana.
In their plea agreements, all the various defendants referenced above admitted that they had an obligation to report their income to both the Internal Revenue Service (“IRS”) and California state tax authorities, as well as pay taxes on any income derived from these illegal businesses, which they failed to do. Additionally, all individuals agreed to forfeit seized cash, which currently exceeds $5 million.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Case Number 22cr1445-CAB
Name
Age
Hometown
Shahram “Sean” Sheikhan
52
Las Vegas, Nevada
SUMMARY OF CHARGES
Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846
Maximum Penalties: Forty years in prison with a mandatory minimum sentence of five years and a $5 million fine.
DEFENDANT Case Number 22cr1444-CAB
Name
Age
Hometown
Sabriana Williams
26
San Diego, California
SUMMARY OF CHARGES
Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846
Maximum Penalties: Twenty years in prison and a $1 million fine.
DEFENDANT Case Number 22cr1261-CAB
Name
Age
Hometown
Travis George
44
San Diego, California
SUMMARY OF CHARGES
Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846
Maximum Penalties: Forty years in prison with a mandatory minimum sentence of 5 years and a $5 million fine.
DEFENDANT Case Number 22cr1002-CAB
Name
Age
Hometown
Lance Kachi
33
San Diego, California
SUMMARY OF CHARGES
Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846
Conspiracy to Launder Monetary Instruments, in violation of Title 18, U.S.C., Secs. 1956(a)(1)(B)(i) and 1956(h)
Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, U.S.C., Sec. 924(c)
Maximum Penalties: For the drug charges: 20 years in prison, $1 million fine. For money laundering charges, 20 years in prison, and a fine of $500,000 or twice the value of the monetary instrument or funds involved.
DEFENDANT Case Number 22cr1006-CAB
Name
Age
Hometown
Michael Yono
32
San Diego, California
SUMMARY OF CHARGES
Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846
Conspiracy to Launder Monetary Instruments, in violation of Title 18, U.S.C., Secs. 1956(a)(1)(B)(i) and 1956(h)
Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, U.S.C., Sec. 924(c)
Maximum Penalties: For the drug charges, 20 years in prison and a $1 million fine. For money laundering charges, 20 years in prison and a fine of $500,000 or twice the value of the monetary instrument or funds involved. For the firearms charges, life in prison with a mandatory minimum sentence of 5 years, and a $250,000 fine.
DEFENDANT Case Number 22cr1000-CAB
Name
Age
Hometown
Avrin Yakou
30
San Diego, California
SUMMARY OF CHARGES
Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846
Conspiracy to Launder Monetary Instruments, in violation of Title 18, U.S.C., Secs. 1956(a)(1)(B)(i) and 1956(h)
Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, U.S.C., Sec. 924(c)
Maximum Penalties: For the drug charges, 20 years in prison and a $1,000,000 fine. For money laundering charges, 20 years in prison and a fine of $500,000 or twice the value of the monetary instrument or funds involved. For the firearms charges, life in prison with a mandatory minimum sentence of 5 years, and a $250,000 fine.
DEFENDANT Case Number 22cr1001-CAB
Name
Age
Hometown
Fabian Yakou
26
San Diego, California
SUMMARY OF CHARGES
Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846
Conspiracy to Launder Monetary Instruments, in violation of Title 18, U.S.C., Secs. 1956(a)(1)(B)(i) and 1956(h)
Maximum Penalties: For the drug charges, 20 years in prison and a $1,000,000 fine. For money laundering charges, 20 years in prison and a fine of $500,000 or twice the value of the monetary instrument or funds involved.
DEFENDANTS Case Number 21cr2994-CAB
Name
Age
Hometown
Sean Shamoun (1)
32
San Diego, California
Alvin Shamoun (2)
41
San Diego, California
Vincent Shamoun (3)
39
San Diego, California
Andrew Shamoun (4)*
35
San Diego, California
SUMMARY OF CHARGES
Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846
Conspiracy to Launder Monetary Instruments, in violation of Title 18, U.S.C., Secs. 1956(a)(1)(B)(i) and 1956(h)
Maximum Penalties: For the drug charges, 40 years in prison with a mandatory minimum sentence of five years and a $5 million fine (*20 years in prison and a $1 million fine). For money laundering charges, 20 years in prison and a fine of $500,000 or twice the value of the monetary instrument or funds involved.
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service - Criminal Investigation
San Diego County Sheriff’s Department
San Diego Police Department
Chula Vista Police Department
MorseLife Nursing Home Health System Agrees to Pay $1.75 Million to Settle False Claims Act Allegations for Facilitating COVID-19 Vaccinations of Ineligible Donors and Prospective DonorsRead the Press Release
The Justice Department announced today that MorseLife Health System Inc. (MorseLife) has agreed to pay the United States $1.75 million to resolve its potential liability under the False Claims Act for facilitating COVID-19 vaccinations for hundreds of individuals ineligible to participate in the Centers for Disease Control and Prevention’s (CDC) Pharmacy Partnership for Long-Term Care Program (LTC PPP), a program specifically designed to vaccinate long-term care facility (LTCF) residents and staff when doses of COVID-19 vaccine were in limited supply at the beginning of the CDC COVID-19 Vaccination Program. MorseLife is a not-for-profit corporation located in West Palm Beach, Florida, that oversees health care facilities on its campus, including a nursing home and an assisted living facility.
“This specific vaccination program was designed to protect some of the nation’s most vulnerable individuals at a critical time when the COVID-19 pandemic was devastating that population,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable those who misused vital pandemic relief programs for their own financial gain.”
“The settlement today exemplifies my office and its law enforcement partners’ strong commitment to combatting all forms of health care fraud-related schemes, especially those that exploit government resources designed to assist individuals who were acutely affected by the COVID-19 global pandemic,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “We will not relent in holding accountable those in South Florida who exploit health care programs intended to assist vulnerable populations during the COVID-19 pandemic.”
“It is disturbing to see initiatives designed to provide protections against COVID-19, for individuals who critically need them, manipulated in this way,” said Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Miami Region. “Our agency, working closely with our law enforcement partners, will continue to vigorously investigate those believed to illegally divert resources from federal pandemic-related health programs.”
The CDC announced the launch of the LTC PPP in October 2020. Because the LTCF population was at the highest risk of COVID-19 infections, the CDC created the LTC PPP to prioritize vaccinations of that population as quickly as possible and while vaccine availability was limited. Under this program, the CDC engaged with pharmacy partners to provide “end to end” management of the COVID-19 vaccination process, including conducting on-site vaccination clinics at the nursing homes and other LTCFs. Over 8 million vaccine doses were administered to LTCF residents and staff through this program.
MorseLife enrolled in the LTC PPP and scheduled its first vaccination clinic at MorseLife on Dec. 31, 2020 (the vaccination clinic) for residents and staff of the Joseph L. Morse Health Center, a skilled nursing facility on MorseLife’s campus. The settlement resolves allegations that MorseLife knew that the LTC PPP covered only LTCF residents and staff, but nevertheless invited and facilitated the vaccination of hundreds of ineligible persons at the clinic by characterizing them as “staff” and “volunteers,” many of whom MorseLife targeted for donations. Specifically, the United States alleged that MorseLife (1) characterized board members as “staff,” (2) directed the organization’s fundraising arm to invite donors and potential donors to the vaccination clinic, and (3) allowed the Vice Chairman of the MorseLife Health Systems Inc. Board and his brother to invite close to 300 ineligible individuals to receive the vaccine at MorseLife.
First, MorseLife allegedly invited members of MorseLife’s various boards of directors to the vaccination clinic and characterized them as “staff.” The vast majority of these individuals were donors to MorseLife. In addition to actual board members, MorseLife invited emeritus board members, as well as board members’ spouses, children, family members and friends to the vaccination clinic. In one instance, MorseLife’s CEO sent a text message to an ineligible individual stating, “I will find you when you come in the morning and we’re going to make you an employee of Morse . . . Guarantee you get the vaccine.” In all, MorseLife facilitated the vaccination of 128 ineligible board members, and their family and friends (along with the other ineligible persons described below).
Second, MorseLife’s CEO allegedly directed the MorseLife Foundation, the organization’s fundraising arm, to invite donors and potential donors to the vaccination clinic, encouraging Foundation employees to take advantage of the vaccination opportunity to target billionaires and millionaires for donations. For example, in one text message MorseLife’s CEO stated: “Of course go after the billionaires first hell we’re taking care of their life what the hell do you think you little boys and girls in the foundation go for the 25,000 I’ll go for the billions; I’m a little disappointed in the foundations mentality; I have delivered you 350 of the richest people in the country and you’re still thinking $25,000 gift . . . . Do not be weak be strong you have the opportunity to take advantage of everyone who needs the shot and figure out what they have and what we can go after and what their affinity [sic] as that’s what I would do [sic] I was running the foundation.”
Third, MorseLife’s CEO allegedly allowed the Vice Chairman of the MorseLife Health Systems Inc. Board and his brother to invite approximately 290 people to the vaccination clinic, none of whom lived or worked on the MorseLife campus and most of whom did not volunteer on MorseLife’s campus and had no prior affiliation with MorseLife. A significant number of these invitees were members of the same country club as the Vice Chairman and his brother, and some of the invitees flew to Florida just to get vaccinated at the clinic. As reflected in a MorseLife Foundation strategy document, “[t]his group was ‘recruited’ by [Vice Chairman and his brother] and owe allegiance to them at least as much as they owe it to us;” “[w]e allowed these people to be vaccinated mostly because [Vice Chairman and his brother] wanted us to;” “[t]hese prospects understand that and owe allegiance to [Vice Chairman and his brother] for arranging for them to get the vaccine;” and [w]e should use that allegiance to effectively get significant gifts from that group in a short amount of time.” The United States alleged that MorseLife falsely characterized donors and potential donors who had no previous affiliation with MorseLife, but were invited by the Foundation or the Vice Chairman and his brother, as “volunteers” for purposes of the LTC PPP.
Ultimately, the United States alleged that of 976 persons vaccinated at the Dec. 31, 2020, clinic, 567, or more than half, were ineligible to participate in the LTC PPP.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Southern District of Florida, with substantial assistance from HHS-OIG, the FBI and the CDC. This matter was handled by Civil Division Fraud Section Attorneys Andy Mao, Natalie A. Waites, Elizabeth J. Kappakas and Jessica Sievert, and Assistant U.S. Attorney Rosaline Chan for the Southern District of Florida.
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. Run out of the Office of the Deputy Attorney General, the Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil or criminal fraud 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 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.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Morris County Man Charged with Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was arrested for distributing and possessing videos of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
Bryan Wesselius, 45, of Whippany, New Jersey, is charged by complaint with one count of distribution of child pornography and one count of possession of child pornography. He appeared by videoconference today before U.S. Magistrate Judge Cathy L. Waldor and was released on $100,000 unsecured bond, with home detention and electronic monitoring.
According to documents filed in this case and statements made in court:
From September 2021 through May 2022, Wesselius distributed material containing video files of child sexual abuse via a publicly available online peer-to-peer (P2P) file-sharing program, which allows internet users to trade digital files. An undercover law enforcement officer conducted online sessions using the (P2P) program. During multiple sessions, a user shared multiple files featuring videos of child sexual abuse from an IP address traced to Wesselius’ address. Law enforcement officials later recovered one file previously shared during one of those sessions from one of Wesselius’ electronic devices.
The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. The count of possession of child pornography carries a maximum penalty of 10 years in prison, and a fine of $250,000.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the charges. He also thanked the Boonton Township Police Department under the direction of Chief Michael Danyo, the Morris County Prosecutor’s Office under the direction of Prosecutor Robert J. Carroll, the Hanover Township Police Department under the direction of Chief Michael Loock and the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division, for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Clara Kim of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Montana man, woman sentenced to prison terms for trafficking drugs, including meth and fentanylRead the Press Release
BILLINGS — A Montana man and woman convicted of trafficking multiple drugs, including methamphetamine and more than 9,000 fentanyl pills, were each sentenced to prison terms this week, U.S. Attorney Jesse Laslovich said.
Eric Charles Swan, 35, of Wolf Point, was sentenced today to eight years in prison, to be followed by five years of supervised release. Swan pleaded guilty in March to possession with intent to distribute controlled substances.
Co-defendant Elizabeth Ardell Grace Ronshaugen, 30, of Great Falls, was sentenced on June 29 to four years in prison, to be followed by five years of supervised release. Ronshaugen pleaded guilty in March to possession with intent to distribute controlled substances.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that law enforcement began investigating Swan and Ronshaugen in 2021 after receiving information of possible drug trafficking. In November, agents observed that Swan was traveling to Denver and returning to Montana. Law enforcement pulled over Swan and Ronshaugen near Buffalo, Wyoming, and Swan was found to have several fentanyl pills in the pocket of his clothing. Ronshaugen was found to have several fentanyl pills hidden in her clothing and approximately 52 additional fentanyl pills were located in a plastic zip lock bag on her person. Wyoming law enforcement searched the vehicle and found approximately 9,616 fentanyl pills, a little more than one pound of heroin, 103 grams of meth, a gram of cocaine, 14 Dialudid pills and $9,775 in U.S. currency.
Assistant U.S. Attorney Thomas K. Godfrey prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Mississippi Pharmacist Returns $7.1 Million Unlawfully Taken from MedicareRead the Press Release
BIRMINGHAM, Ala. – The federal government has received $7.1 million in forfeited funds that were unlawfully obtained from Medicare by a Mississippi man who was convicted in 2021 of health care fraud and conspiracy to commit health care fraud, announced U.S. Attorney Prim F. Escalona and Tamala E. Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General.
In August 2021, Phillip Anthony Minga pleaded guilty to four counts of health care fraud and one count of conspiracy to commit health care fraud. In December 2021, Chief U.S. District Court Judge L. Scott Coogler sentenced Minga to 78 months in prison. At that time, the Court ordered Minga to repay more than $16.1 million in restitution and ordered him to forfeit $7.1 million. After filing a motion to forfeit certain property, the United States last week confirmed the receipt of $7.1 million from Minga. The U.S. Attorney’s Office will seek to restore these funds to the Medicare Program.
“It is always a goal of the justice system to make the victim whole following wrongdoing. When public agencies like Medicare are defrauded for personal gain, it harms all American taxpayers,” said United States Attorney Prim F. Escalona. “I’m grateful that the collaborative work of federal law enforcement agencies and state partners in Alabama and Mississippi have restored taxpayer dollars to an agency purposed to serve some of the most vulnerable in our communities,” added Escalona.
“Healthcare fraud is not a victimless crime. Defrauding federal healthcare programs not only wastes valuable taxpayer dollars, it also takes resources away from individuals in need of medical care,” said Tamala E. Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work with our law enforcement partners to return these funds to the Medicare program.”
Minga failed to report a 2010 wire fraud conviction to the Centers for Medicare and Medicaid Services. Consequently, on October 17, 2016, Minga was excluded from the Medicare Program for 10 years. The exclusion provided that Medicare would not pay claims submitted by anyone who employed Minga in a management or administrative role. Nevertheless, from 2016 until 2021, Minga committed health care fraud by continuing to manage and control pharmacies that submitted claims for payment to Medicare. In order to avoid detection, Minga ensured that those submitting Medicare enrollment/revalidation paperwork for these pharmacies would not disclose Minga’s ownership interest or managerial role in these pharmacies. From October 17, 2016, to August 16, 2021, Medicare paid approximately $16,109,446.67 to the pharmacies in which Minga had an ownership interest or managerial role.
HHS was the lead federal investigative agency. HHS was closely assisted by the State of Mississippi’s Office of the Attorney General and the State of Alabama’s State Board of Pharmacy. Assistant U.S. Attorneys Tom Borton, Austin Shutt, and Kristen Osborne led the forfeiture recovery proceedings, while Lloyd Peeples, Ryan Rummage, and Don Long prosecuted the criminal health care fraud case.
Milford Man Pleads Guilty to Meth ConspiracyRead the Press Release
Justin Haubrich, 46, from Milford, pled guilty June 28, 2022, in federal court in Sioux City, to conspiracy to distribute methamphetamine.
At the plea hearing, Haubrich admitted that from May 2018 through January 2019, he was involved in a conspiracy that distributed at least five pounds of methamphetamine. Haubrich was supplied methamphetamine from sources in Denison and Council Bluffs, Iowa for further distribution in Northwest Iowa. During a traffic stop in January 2019, Haubrich was found in possession of a .45 caliber handgun and was known to keep and store guns during his drug trafficking activities.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Haubrich remains in custody of the United States Marshal pending sentencing. Haubrich faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, the Dickinson County Sheriff’s Office, the Palo Alto County Sheriff’s Office, the Okoboji, Iowa Police Department, and the Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4097.
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Michigan Man Charged with Attempting to Entice a Minor to Engage in Sexual ActivityRead the Press Release
ALBANY, NEW YORK – Daniel Higgs, age 39, of Kalamazoo, Michigan, was arrested yesterday and charged with attempting to entice a minor to engage in unlawful sexual activity. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The complaint alleges that between January 2022 and June 29, 2022, Higgs exchanged messages with two individuals, one posing as a parent of a 10-year-old daughter and the other as the guardian of a 12-year-old girl. Higgs discussed plans to travel from Michigan in order to engage in sexual acts with the minors. On June 29, 2022, Higgs flew from Kalamazoo to Albany where he was encountered by the FBI and arrested. The allegations in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charge filed against Higgs carries a term of imprisonment of at least 10 years and potentially up to life, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant United States Attorney Dustin C. Segovia.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc/.
Miami Residents Sentenced for Their Roles in a Money Laundering Conspiracy Connected to a Nationwide Gas Station Skimming SchemeRead the Press Release
ALBANY, NEW YORK – Yanio Montes de Oca, age 35, of Miami, Florida, was sentenced on Tuesday to 27 months in prison, and Atnetys Ferreira Milian, age 42, of Miami, was sentenced today to 1 year of probation, for their respective roles in a conspiracy to commit money laundering. The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Ketty Larco-Ward, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service (USPIS).
As part of his guilty plea on March 10, 2021, De Oca admitted to being a part of a conspiracy that, between December 2015 and July 2019, laundered thousands of gift cards that were obtained using fraudulent debit and credit cards encoded with information stolen using gas station skimming devices. After obtaining the gift cards from co-conspirators, De Oca sold them on a gift card exchange website using a “bulk seller” account he established in the name of a Florida company he created in 2015 for that purpose. After selling the fraudulently obtained gift cards, De Oca transferred the resulting amounts to bank accounts he controlled. De Oca then distributed some of the money he obtained through gift card sales to other conspirators, retaining the rest of the funds for himself. As part of his plea agreement, De Oca agreed to be subject to a forfeiture money judgment in the amount of $1,020,193.10.
As part of her guilty plea on December 6, 2019, Ferreira Milian admitted to being a part of the same conspiracy and using multiple bank accounts that she controlled to launder money orders that had been purchased with fraudulent debit cards. The debit cards used stolen account numbers that had been skimmed at gas station pumps across the country. During the period of the conspiracy, Ferreira Milian deposited over 1,100 money orders, totaling over $691,000, into her accounts, and then withdrew most of the laundered funds in cash. As part of her plea agreement, Ferreira Milian agreed to be subject to a forfeiture money judgment in the amount of $49,162.00.
Senior United States District Judge Gary L. Sharpe also imposed on Montes de Oca a 3-year term of supervised to follow the term of incarceration.
These cases were investigated by the FBI Albany Field Office and USPIS Boston Division, with assistance from the FBI Field Offices in Miami and Pittsburgh, the USPIS Miami Division, and the United States Secret Service Miami Field Office. The case was prosecuted by Assistant U.S. Attorney Rick Belliss.
Methamphetamine Distributor Sentenced to 188 Months in Prison for Drug Conspiracy Involving Postal CarriersRead the Press Release
A drug dealer who worked with postal carriers to conduct a methamphetamine drug conspiracy was sentenced Thursday in federal court, announced U.S. Attorney Clint Johnson.
Chief U.S. District Judge John F. Heil III sentenced Kamau Jahi Williams, 43, of Tulsa, to 188 months in federal prison followed by 10 years of supervised release.
Starting as early as December 2019 and continuing to October 2021, the defendant conspired with others to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. Williams admitted in his plea agreement to purchasing methamphetamine from a source of supply in California and redistributing the drug to third parties in Tulsa. His source of supply normally fronted the methamphetamine for Williams. After Williams received payment from customers, he would pay the source of supply.
According to court documents, Williams ran the operation in the Northern District of Oklahoma with the support of several postal workers. As part of the conspiracy, Williams’ source in California mailed shipments of methamphetamine to an abandoned Tulsa address through the U.S. Postal Service. Several postal carriers allegedly intercepted those packages. As part of the conspiracy, they marked the packages as delivered and then would meet Williams at various locations in Tulsa to deliver the methamphetamine packages.
In September 2021, a federal jury convicted Williams in a separate drug conspiracy. In that case, Williams was sentenced to 77 months in federal prison for Distribution of Methamphetamine, Drug Conspiracy, and Distribution of Heroin. The two federal sentences will run concurrently.
The Drug Enforcement Administration, U.S. Postal Service Office of Inspector General, U.S. Postal Inspection Service, and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Joel-lyn McCormick prosecuted the case.
Memphis Man Pleads Guilty to Trafficking 14-Year-Old to New Orleans for Commercial SexRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that JEREMY TALBERT, age 26, from Memphis, Tennessee pleaded guilty on June 29, 2022 to Sex Trafficking of a Minor, in violation of Title 18, United States Code, Sections 1591(a)(1), 1591(b)(2), 1594(a), and 2.
According to court documents, TALBERT brought a fourteen-year-old female (“Minor Victim”) from Memphis to New Orleans for the purpose of her engaging in commercial sex acts between October 2020 and December 17, 2020. During this time, TALBERT was aware of Minor Victim’s age from conversations with her mother. TALBERT advertised Minor Victim on websites commonly used to advertise sexual services in exchange for money. TALBERT required Minor Victim to earn approximately $1,000 per day from commercial sex acts and TALBERT kept all or most of the money she earned.
In pleading guilty, TALBERT faces a minimum sentence of ten (10) years imprisonment up to life imprisonment. The defendant also faces supervised release for a term of five years to up to life, up to a $250,000 fine, a requirement that the defendant participate in the sex offender registration and notification program, and a mandatory $100.00 special assessment fee, as to each count. The Honorable Lance Africk set sentencing in this matter for October 5, 2022 at 2 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, the New Orleans Police Department, and the Memphis Police Department in investigating this matter. Assistant United States Attorneys Maria Carboni and Jordan Ginsberg are in charge of the prosecution.
McKees Rocks Woman Pleads Guilty to Trafficking Large Amounts of Mexican-Sourced Cocaine in Western PARead the Press Release
PITTSBURGH, PA – A former McKees Rocks, PA resident pleaded guilty in federal court to a violation of the federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Rachel Novalesi, 39, formerly of McKees Rocks, PA, pleaded guilty to an Indictment charging her, and 26 other codefendants, with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine before United States District Judge W. Scott Hardy.
In connection with the guilty plea, the Government advised the Court that the prosecution of Novalesi arose out of a two-year investigation into a drug trafficking organization whose members distributed kilograms of cocaine, sourced from Mexico, throughout the United States (in California, Arizona, Pennsylvania, and elsewhere). The Court was advised that co-conspirators obtained kilograms of cocaine in Los Angeles, California, and sent them to the Western District of Pennsylvania (and elsewhere) through the United States Postal Service. In connection with her guilty plea, Novalesi admitted that she received cocaine-laden parcels that were sent by co-conspirators from Los Angeles, California, to the Western District of Pennsylvania, and that she redistributed the kilograms of cocaine to others. As part her plea, Novalesi admitted that she possessed roughly five ounces of cocaine that was seized in May 2019 during a traffic stop by the Bridgewater Police Department in Beaver County, PA. Novalesi admitted as part of the plea that the cocaine was sourced from a codefendant, and that she intended to redistribute it. Novalesi admitted that the total quantity of cocaine attributable to her, through her conduct and the foreseeable conduct of co-conspirators, was at least 15 kilograms but less than 50 kilograms. The Court was advised that agents seized in excess of 100 kilograms of cocaine during its two-year investigation into the drug trafficking organization, of which Novalesi admitted to being a member.
Judge Hardy scheduled sentencing for November 4, 2022. The law provides for a total sentence of not less than 10 years and not more than life imprisonment, a fine of up to $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Drug Enforcement Administration (in Pittsburgh, PA) and the United States Postal Service – Office of Inspector General led the multi-agency investigation that included members of the Drug Enforcement Administration (in Los Angeles, CA; in Tucson, AZ; in New York, NY; in Nashville, TN; at the Special Operations Division; and in Mexico); the Pennsylvania Office of Attorney General; the Los Angeles Police Department; the Pittsburgh Bureau of Police; the Allegheny County Police Department; the New Castle Police Department; the Monessen Police Department; and the Pennsylvania State Police.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Massachusetts Woman Sentenced for Role in Sex Trafficking ConspiracyRead the Press Release
BOSTON – A Massachusetts woman was sentenced today in federal court in Boston for her involvement in a sex trafficking conspiracy.
Muriel Close, 42, was sentenced by U.S. District Court Judge Patti B. Saris to 12 months of home detention. In April 2021, Close pleaded guilty to two counts of conspiracy to commit sex trafficking.
Close was charged in July 2020 with co-defendant and serial sex trafficker Bruce Brown. On Feb. 10, 2022, Brown was sentenced to 138 months in prison on charges arising from his exploitation of multiple victims in operating a sex trafficking enterprise for more than 15 years.
“As a prosecutor, some of the most difficult cases are those in which harmed and victimized individuals inflict trauma and harm on others,” said United States Attorney Rachael S. Rollins. “Ms. Close was herself a victim of brutal physical and psychological abuse at the hands of her co-defendant, Bruce Brown. However, her recruitment and involvement with other victims in Mr. Brown’s enterprise caused others to experience the same force, fraud and coercion she did. Ultimately, it was Mr. Brown who ran his enterprise that inflicted inexplicable pain and trauma on numerous victims for his own financial benefit. For that, he is exactly where he deserves to be - behind bars for at least the next decade. But Ms. Close, although a victim herself, engaged in egregious conduct which requires consequences. Ultimately, people who prey on the vulnerable and engage in sex trafficking will be held accountable. We remain steadfast and dedicated in our fight on behalf of trafficking victims and survivors.”
“While Muriel Close conspired with Bruce Brown to commit sex trafficking, it’s important to remember that she too is a victim who suffered physical and psychological abuse at his hands. Today’s sentence reflects that, and while nothing can wipe away the trauma inflicted upon the victims in this case, we hope it helps them heal,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “With a victim-centered approach, FBI Boston’s Child Exploitation – Human Trafficking Task Force will continue to investigate and bring to justice those who commit these reprehensible crimes.”
Close aided Brown’s sex trafficking operation through recruitment efforts and by monitoring victims on behalf of Brown.
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement today. The Newton Police Department provided valuable assistance in the investigation. Assistant U.S. Attorneys Mackenzie A. Queenin and Mackenzie J. Duane of Rollins’ Civil Rights Enforcement Team prosecuted the case.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888 or text 233733.
Maryland Man Charged with Defrauding Medicaid in Scheme Involving Personal Care ServicesRead the Press Release
WASHINGTON – Joseph Tamjong, 50, of Lanham, Maryland, was arrested today after being charged in federal court with defrauding the D.C. Medicaid program out of hundreds of thousands of dollars.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services’ Office of Inspector General for the region that includes Washington, D.C., and Daniel W. Lucas, Inspector General for the District of Columbia.
Tamjong was charged in a criminal complaint with health care fraud and health care false statements. He is to make his initial appearance later today in the U.S. District Court for the District of Columbia.
According to charging documents, between approximately December 2014 and the present, Tamjong has been employed as personal care aide and/or a participant-directed worker to provide personal care aide services to District of Columbia residents who need assistance performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. Tamjong is alleged to have submitted false timesheets claiming that he provided such services when in fact he did not, including when he was traveling outside the United States on eight different trips. Charging documents allege that between December 2014 and February 2022, Medicaid issued payments totaling approximately $733,405 for personal care aide services that Tamjong purportedly provided as a personal care aide or participant-directed worker.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Today’s arrest marks a continued effort by the FBI, the Department of Health and Human Services’ Office of Inspector General, the District of Columbia’s Office of the Inspector General’s Medicaid Fraud Control Unit, and the U.S. Attorney’s Office to investigate and prosecute individuals who defraud the D.C. Medicaid program. Since August 2018, 11 former personal care aides have pleaded guilty to defrauding Medicaid in the United States District Court for the District of Columbia. Six of those aides were sentenced to 13 months in prison; a seventh was sentenced to serve 15 months. An eleventh, Susan Tingwei—a licensed attorney—is scheduled to be sentenced on July 11, 2022.
The government urges the public to provide tips and assistance to stop health care fraud. If you have information about individuals committing health care fraud, please call the Department of Health and Human Services’ Office of Inspector General hotline at (800) HHS‑TIPS [(800) 447-8477] or the D.C. Office of the Inspector General at (800) 724-TIPS [(800) 274-8477].
This case is being prosecuted by Assistant U.S. Attorney Kondi Kleinman, with assistance from Paralegal Specialist Michon Tart.
Marion County man admits to his role in a drug conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Justin Paul Thompson, of Fairmont, West Virginia, has admitted to his role in a drug trafficking conspiracy, United States Attorney William Ihlenfeld announced.
Thompson, 20, pleaded guilty today to one count of “Distribution of Methamphetamine in Proximity to a Protected Location.” Thompson admitted to selling methamphetamine near a public housing facility in June 2019 in Marion County.
Thompson faces at least one and up 40 years of incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Three Rivers Drug Task Force and the Fairmont Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/west-virginia-and-detroit-residents-indicted-drug-trafficking-operation
Marion County Felon Convicted of Drug Conspiracy and Illegal Firearm PossessionRead the Press Release
Ocala, FL – United States Attorney Roger B. Handberg announces that a federal jury has found Nishera Remon Johnson (41, Silver Springs Shores) guilty of one count of conspiracy to distribute a controlled substance (methamphetamine, cocaine, cocaine base, and marijuana) and one count of possession of a firearm by a convicted felon. Johnson faces a minimum mandatory sentence of 15 years, and up to life in federal prison, for the firearm offense and a minimum mandatory 10 years, and up to life imprisonment, for the drug offense. Her sentencing hearing is scheduled for September 22, 2022. A grand jury had indicted Johnson on September 2, 2020.
According to testimony and evidence presented at trial, on November 26, 2019, investigators searched a vehicle belonging to Johnson and found nearly two pounds of methamphetamine. They also found evidence of a marijuana grow operation at Johnson’s residence. When that home was searched pursuant to a warrant in December 2020, agents located numerous firearms and ammunition along with nearly half a kilogram of powder cocaine. In a shed behind the home, agents discovered the hidden marijuana grow operation. Johnson had been living at the home with her minor child and a co-defendant. Johnson, a convicted felon, is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the City of Ocala Police Department, and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Man Who Sold Pistol Used in Synagogue Hostage Crisis Pleads Guilty to Gun CrimeRead the Press Release
The man who sold Malik Faisal Akram the gun he used to kidnap hostages in a Texas synagogue pleaded guilty today to a federal firearm crime, announced United States Attorney for the Northern District of Texas Chad E. Meacham.
Henry “Michael” Dwight Williams, 32, was charged via criminal complaint in January 2022. He pleaded guilty to being a felon in possession of a firearm before U.S. Magistrate Judge Irma Carrillo Ramirez on Thursday.
“This defendant, a convicted felon, had no business carrying – much less buying and selling – firearms. Whether he suspected his buyer would use the gun to menace a community of faith is legally irrelevant: In the U.S., convicted felons cannot possess firearms,” said U.S. Attorney Chad Meacham. “The Justice Department is committed to prosecuting those who violate our nation’s federal firearm laws, which are designed to keep guns from falling into the hands of dangerous offenders. We are grateful to the FBI, which sprang into action as soon as the synagogue hostage crisis began, and to the agents who worked tirelessly to track the weapon from Mr. Akram to the defendant.”
“Tireless days of nonstop investigation revealed the connection of Mr. Akram to Mr. Williams, we are grateful to the many law enforcement agencies and personnel that traced the weapon’s nefarious source,” said Dallas FBI Special Agent in Charge Matthew DeSarno. “We are fortunate to be able to celebrate the brave actions of the hostages and will continue to support Congregation Beth Israel and the Jewish community in their process of healing.”
According to the complaint, Mr. Williams – a felon previously convicted of aggravated assault with a deadly weapon and attempted possession of a controlled substance – sold Mr. Akram a semiautomatic Taurus G2C pistol on Jan. 13. In plea papers, Mr. Williams admitted to possession of that firearm despite his prior conviction.
According to the complaint, on Jan. 15, agents recovered the pistol from Colleyville’s Congregation Beth Israel synagogue, where Mr. Akram had held four individuals hostage for several hours before he was fatally shot by federal law enforcement.
As part of its intensive investigation into the hostage taking, the FBI tied Mr. Williams to Mr. Akram through an analysis of Mr. Akram’s cellphone records, which showed the pair exchanged a series of calls from Jan. 11 through Jan. 13.
When agents first interviewed Mr. Williams on Jan. 16, Mr. Williams stated that he recalled meeting a man with a British accent, but that he could not recall the man’s name. (Mr. Akram was a British citizen.) Agents interviewed the defendant again on Jan. 24, after he was arrested on an outstanding state warrant. After viewing a photo of Mr. Akram, Mr. Williams confirmed he sold Mr. Akram the handgun at an intersection in South Dallas. Analysis of both men’s cellphone records showed that the two phones were in close proximity on Jan. 13. Mr. Williams now faces up to 10 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of the Dallas Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, Homeland Security Investigations’ Dallas Field Division, and the Colleyville Police Department. Assistant U.S. Attorney Joe Magliolo is prosecuting the case with the support of Assistant U.S. Attorneys Errin Martin, Jay Weimer, Alex Lewis, Nicole Dana, P.J. Meitl, and Assistant U.S. Attorney Lindsey Beran (fmr), along with Trial Attorneys David Smith and Michael Dittoe of the Justice Department’s National Security Division.
Man Sentenced to Statutory Maximum of 20 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
FORT WORTH, TX – Angel Aguilar Montalvo was sentenced June 28, 2022, by U.S. District Judge Means to the statutory maximum sentence of 20 years in federal prison following his guilty plea to an indictment charging one count of receipt of child pornography, announced U.S. Attorney Chad E. Meacham of the Northern District of Texas.
In April 2019, Homeland Security Investigations initiated an investigation into a dark web website offering child pornography material for purchase. During the investigation, it was discovered that Angel Aguilar Montalvo purchased child pornography from this website using crypto currency on more than one occasion. On February 23, 2021, HSI Agents executed a search warrant on Aguilar’s residence. Aguilar was interviewed by Agents. Aguilar described some of the child pornography videos he had as “pretty hardcore.” He stated, “I know it’s illegal,” but he did not “see any harm done.” He stated that we are all sexual beings.
A forensic analysis of three electronic devices revealed thousands of images and videos of child pornography. These images included children under five years of age. An arrest warrant was issued for Aguilar in August 2021. He was subsequently arrested attempting to reenter the United States from Mexico. At that time, Aguilar possessed a new computer which contained evidence that Aguilar downloaded and deleted child pornography videos onto it as well. Aguilar was indicted for receipt of child pornography on January 12, 2022. He subsequently pled guilty to that charge in February 2022.
Aguilar had previously been charged at the state level with Aggravated Sexual Assault of a Child in 1990, which was later dismissed. Additionally, in 2006 he was charged with Aggravated Sexual Assault of a Child involving two children. The trial on that case ended in a mistrial due to a hung jury and was subsequently dismissed.
At Aguilar’s sentencing on June 28, 2022, the victim from Aguilar’s 1990 case and a victim from Aguilar’s 2006 case testified of the sexual abuse they endured at the hands of Aguilar.
HSI New York and HSI Dallas participated in the investigation of this case.
Lubbock Man Charged with Possession of Child PornographyRead the Press Release
LUBBOCK, TX – Tyler Patrick Brown a 24-year-old Lubbock, native appeared in federal court yesterday, charged with possession of child pornography, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
According to the complaint, unsealed following the defendant’s arrest on Tuesday, multiple law enforcement agencies were investigating Brown after parents reported to law enforcement that Brown was having inappropriate contact and sexual relationships with high school students. Brown was interviewed by law enforcement and admitted to engaging in fourteen sexual relationships with minor females while he was an adult. Brown further admitted, he would typically tell the females that he was also a minor high school student to gain their confidence. A subsequent search of Brown’s cell phone revealed he possessed a video of a 15-year-old minor engaging in sexual acts, which constitutes child pornography as defined by federal law. Even after the interview with law enforcement, Brown was seen by a parent of one of his victims at a Lubbock area high school basketball game wearing a “Press” lanyard. He was confronted by one of the investigators and left the game.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Brown is presumed innocent until proven guilty in a court of law.
This investigation is on-going. If you have any relevant information pertaining to this investigation, please contact the FBI – Lubbock, Texas field office at 806-765-8571.
Leader of Violent Fentanyl Pill Trafficking Organization and His Mother Sentenced to Years in JailRead the Press Release
BOSTON – The leader of a North Shore-based drug trafficking organization (DTO) and his mother have been sentenced for their roles in a conspiracy that manufactured and flooded the streets of Massachusetts with hundreds of thousands of counterfeit prescription pills containing fentanyl made on high-volume pill press machines.
Vincent Caruso, 27, a/k/a “Fatz,” of Lynn, was sentenced by U.S. District Court Judge Denise J. Casper to 250 months (more than 20 years) in prison and five years of supervised release. On March 15, 2022, Vincent Caruso pleaded guilty to one count of conspiracy to manufacture, distribute and possess with intent to distribute 400 grams or more of fentanyl, cocaine, marijuana and other controlled substances; one count of conspiracy to possess firearms in furtherance of a drug trafficking crime; possession of firearms in furtherance of a drug trafficking crime; conspiracy to interfere with commerce by robbery (Hobbs Act robbery); and one count of conspiracy to commit money laundering.
Yesterday, Vincent Caruso’s mother, Laurie Caruso, 52, also of Lynn, was sentenced by U.S. District Court Judge Nathaniel Gorton to nine years in prison and four years of supervised release. On Feb. 28, 2022, Laurie Caruso pleaded guilty to one count of conspiracy to manufacture, distribute and possess with intent to distribute fentanyl and other controlled substances.
“This family business has been shut down for good. Vincent Caruso was a prolific and violent drug trafficker who flooded North Shore communities with hundreds of thousands of deadly counterfeit prescription pills containing fentanyl. Caruso and his associates orchestrated numerous shootings and armed robberies using an arsenal of firearms – including machine guns – and then took to social media to brag about their incredibly destructive criminal conduct. That this all took place while he was on pretrial release is even more appalling. Caruso, along with his mother and co-conspirator Laurie Caruso, pumped poison and violence into our communities and you won’t be hearing from them on Instagram for a long long time,” said First Assistant United States Attorney Joshua S. Levy. “Thanks to the exceptional, coordinated efforts of our law enforcement partners, this career criminal will now spend over 20 years behind bars – out of our communities and off of social media. This office will continue its relentless pursuit of individuals who threaten public safety for the sake of profit.”
“Vincent Caruso, a self-admitted Crip gang member, and his mother, Laurie Caruso ran a major drug trafficking organization that, for years, brought nothing but poison, mayhem, and violence to the North Shore of Massachusetts, and beyond. They peddled hundreds of thousands of counterfeit pills containing fentanyl, capitalizing on those struggling with addiction, while raking in an obscene amount of money,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The severity of these sentences reflects the seriousness of their criminal conduct, and the tireless efforts of our North Shore Gang Task Force to make our communities safer for everyone.”
“ATF will continue to work in conjunction with our local, state and federal law enforcement partners to identify organized violent criminals in our joint effort to protect the public,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division. “The sentencing of a self-admitted gang member of the Crips in federal court for possession of a machine gun and dangerous drugs should send a loud and clear message to anyone who chooses to engage in this type of criminal activity; it cannot and will not be tolerated and you will be held accountable.”
The Carusos were arrested and charged by complaint on June 30, 2021 along with co-conspirators Ernest Johnson and Nicole Benton as part of an investigation that began in 2020 in response to an increased number of shootings in communities north of Boston by street gangs whose violence was fueled by drug distribution. Vincent Caruso was later indicted by a federal grand jury on Jan. 19, 2022. Benton has pleaded guilty to her role in the DTO and is scheduled to be sentenced on Sept. 8, 2022. Ernest Johnson has also pleaded guilty and is scheduled to be sentenced on Sept. 13, 2022.
Vincent Caruso, a self-admitted Crip gang member, operated a large and sophisticated DTO with multiple subordinates that sold counterfeit prescription pills containing fentanyl to street gangs for further distribution on the North Shore. Laurie Caruso served as her son’s right-hand in the operations and was the primary distributor for his well-armed DTO.
The investigation identified Vincent Caruso’s DTO as a common supply source of counterfeit pressed fentanyl pills and other controlled substances for several street gangs responsible for the uptick in violence. Vincent Caruso’s DTO distributed approximately 36 kilograms of fentanyl, largely in the form of pressed fentanyl pills – equating to a total of over 360,000 fentanyl pills – of which, a significant portion was manufactured directly by Vincent Caruso’s DTO itself using multiple pill presses capable of generating thousands of pills per hour. In order to move these quantities, Laurie Caruso personally distributed fentanyl pills for the DTO at all hours of the day and retrieved cash owed by drug customers. A single counterfeit fentanyl pill retails at between $10-$20, thereby generating millions of dollars in proceeds for the DTO. In an effort to conceal the DTO’s operations, Vincent and Laurie Caruso conspired to launder their illegal proceeds by conducting cash transactions through sports bets at a New Hampshire casino.
In furtherance of his drug trafficking activities, Vincent Caruso possessed and used firearms and orchestrated multiple violent offenses, including two armed robberies and a shooting involving a machinegun.
The first armed robbery took place on March 5, 2020, while Vincent Caruso on pretrial release for state fentanyl and firearm charges. He orchestrated an armed robbery and home invasion in which two individuals armed with a firearm and zip ties robbed the occupants of an apartment of approximately $18,000 and jewelry. Vincent Caruso dropped off the robbers, waited at a nearby coffee shop and returned to pick them up after the robbery.
In May 2021 a second armed robbery took place also while Vincent Caruso on pretrial release for state fentanyl and firearm charges. For this incident, Vincent Caruso enlisted associates to rob an individual. Surveillance video shows assailants run up to the victim, including one assailant who was armed with an AR-15 style rifle. The victim escaped and ran off. Police responded and chased the assailant, who threw the AR-15 style rifle in a dumpster. The assailant ran into the highway and escaped police.
A third violent incident took place shortly after midnight on June 29, 2021, in Lynn. For this incident, Vincent Caruso provided a fully automatic handgun to an associate. The associate then used a fully automatic handgun to fire dozens of rounds at a number of victims who were gathered on a porch. Bullets hit residences, vehicles and three individuals who were hit by the gunfire and survived. This incident was captured on surveillance video.
In addition, while on state pretrial release Vincent Caruso sent dozens of photos and videos via social media that depicted him in possession of firearms and machine guns, large quantities of fentanyl that would be distributed by his organization, large amounts of cash and high-end jewelry.
Over 1.5 kilograms of pressed fentanyl pills, over 12 firearms, multiple luxury brand watches, chains, four medallions, two custom ATVs, a dirt bike and over $177,000 in cash were recovered through various search warrants executed in this and related investigations.
First Assistant U.S. Attorney Levy, FBI SAC Bonavolonta, ATF SAC Ferguson and Colonel Christopher Mason, Superintendent of the Massachusetts States Police made the announcement today. Assistance was provided by the Essex, Middlesex and Suffolk County District Attorneys’ Offices; Essex, Middlesex, Suffolk and Hancock (Maine) County Sheriffs’ Departments; U.S. Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; and the Boston, Cambridge, Chelsea, Danvers, Everett, Lynn, Malden, Salem, Saugus, Somerville, Revere, Bolton (Maine), Bangor (Maine), Portland (Maine) and Westbrook (Maine) Police Departments. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the cases.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Lansing Man Sentenced to 10 Years for Drugs and Firearm After Fleeing in High-Speed Car ChaseRead the Press Release
GRAND RAPIDS, MICHIGAN —U.S. Attorney Mark Totten announced today that Eugene Jonas Hicks, age 38, of Lansing, was sentenced to 10 years imprisonment after previously pleading guilty to possessing with the intent to distribute controlled substances and possessing a firearm in furtherance of drug trafficking. In addition to the prison term, U.S. District Court Judge Janet T. Neff imposed a 4-year term of supervised release, which will begin when Hicks is released from prison. Hicks was previously convicted of multiple prior felonies, including home invasion and aggravated stalking.
On May 12, 2021, law enforcement officers in Lansing attempted a traffic stop of a vehicle driven by Hicks in Lansing. A high-speed vehicle pursuit followed. During the pursuit, Hicks threw a loaded Taurus .357 revolver from the vehicle. Hicks also threw plastic bags containing cocaine, cocaine base, and methamphetamine from the sunroof. These items could have been accessible to the public had they not been recovered by law enforcement. Hicks disregarded stop signs and red lights, driving into oncoming traffic. The pursuit ultimately ended when Hicks crashed his vehicle in traffic, resulting in injuries to a passenger. Hicks then attempted to flee on foot but was apprehended by authorities.
U.S. Attorney Totten said, “Drugs and guns are a toxic mix, which is only made worse when they are possessed by convicted felons and thrown out of vehicles onto our streets. Our office will continue to work together with all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.”
This case resulted from a coordinated investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lansing Police Department, Lansing’s Violent Crime Initiative Unit, and the Michigan State Police. This case was prosecuted by Assistant U.S. Attorney Lauren F. Biksacky.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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La Crosse Man Sentenced to More Than 12 Years for Possessing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jeremy Hogenkamp, 45, of La Crosse, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 12 ½ years in prison for possessing child pornography. This term of imprisonment will be followed by 25 years of supervised release. Hogenkamp pleaded guilty to this charge on March 8, 2022.
In September 2021, the La Crosse Police Department received a Cybertip regarding images uploaded into a Google Cloud account. Based on the information provided in the Cybertip, a search warrant was obtained for Hogenkamp’s home.
Agents executed the search warrant on October 6, 2021, and found two flip phones in the house. A short time later, the police dispatch center received an anonymous call that Hogenkamp had a laptop at his place of employment. After an initial search at the workplace was unsuccessful, officers received another anonymous call saying they did not look in the right spot. Officers went back to Hogenkamp’s workplace and found a black tote near his work area containing a laptop and a cell phone. Hogenkamp admitted there would be “bad stuff with kids” on the laptop.
A search of the laptop revealed thousands of images of minors engaged in sexually explicit conduct. This is Hogenkamp’s second federal conviction for possessing child pornography. He was on supervision for an offense he committed in 2011 at the time of this offense.
At sentencing, Judge Conley observed that Hogenkamp obviously has an attraction to children that will be a life-long struggle unless he gains some self-awareness. The judge concluded that until that happens, Hogenkamp remains a danger to children.
The charge against Hogenkamp was the result of an investigation conducted by the La Crosse, Onalaska, Holmen, and Town of Campbell Police Departments and the Federal Bureau of Investigation. Assistant U.S. Attorney Elizabeth Altman prosecuted this case.
Kyle Man Sentenced to Ten Years in Federal PrisonRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Kyle, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on June 23, 2022, by Judge Karen E. Schreier, U.S. District Court.
Chester Benjamin Apple, a/k/a Chester Janis, age 39, was sentenced to 10 years in federal prison, followed by five years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Apple was indicted for the charge by a federal grand jury in March 2021 and pleaded guilty in December 2021. The conviction stems from Apple obtaining methamphetamine and distributing it in South Dakota from approximately January 2015 through March 2021.
The case was investigated by the Badlands Safe Trails Task Force, which includes the FBI, Bureau of Indian Affairs, Oglala Sioux Tribe Department of Public Safety, South Dakota Department of Criminal Investigation, and the Martin, South Dakota, Police Department. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Apple was immediately turned over to the custody of the U.S. Marshals Service.
Kanawha County Woman Pleads Guilty to Social Security FraudRead the Press Release
CHARLESTON, W.Va. – Melissa Waller, 45, of St. Albans, pleaded guilty today to theft of Social Security benefits.
According to court documents and statements made in court, Waller received Social Security Administration (SSA) benefits on behalf of a deceased relative. Waller admitted that she knew that she was not entitled to receive these SSA benefits once her relative passed away in April 2012. Between June 2012 and April 2020, Waller received $84,509 in federal benefits that she was not entitled to receive and converted those SSA benefits to her own use.
Waller is scheduled to be sentenced on October 13, 2022, and faces a maximum penalty of 10 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Social Security Administration and the Social Security Administration-Office of Inspector General (SSA-OIG).
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Erik S. Goes is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-89.
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Justice Department Opens Application Period for Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
The Department of Justice is pleased to announce the opening of the application period for federally recognized Tribes and intertribal consortia to participate in the Tribal Access Program (TAP) for National Crime Information, which provides federally recognized Tribes the ability to access and exchange data with national crime information databases for authorized criminal justice and non-criminal justice purposes.
“The Tribal Access Program (TAP) is a proven and powerful tool for Tribal police officers, government and court officials to investigate crimes, keep children safe and hold domestic violence offenders accountable, among other important uses,” said Deputy Attorney General Lisa Monaco. “As TAP continues to expand, more Tribes will be able to protect their communities by participating in this successful program.”
The program provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots and submit information to FBI Criminal Justice Information Services (CJIS) systems. There are currently 108 federally recognized Tribes participating in TAP. The department will accept TAP applications from July 1 – Aug. 31. Tribes selected to participate will be notified in September.
“The Tribal Access Program has allowed our Tribe to more effectively serve and protect its citizens by being able to prevent individuals from illegally purchasing firearms, and ensuring its personal protection orders are entered into federal databases, making their existence known, not only in Indian country, but across the nation,” said Court Administrator/Magistrate Traci L. Swan of the Sault Ste. Marie Tribe of Chippewa Indians. “Obtaining fingerprint-based checks… has allowed our Tribe to expedite placement of our children in safe foster care homes.”
For Tribes that are considering applying, TAP staff will be conducting informational webinars describing the program and its capabilities. Webinars will be offered throughout the month of July and August. For more information about TAP, including our webinar dates, times and access information, visit www.justice.gov/tribal/tribal-access-program-tap.
Using TAP, Tribes have shared information about missing persons; entered domestic violence orders of protection for nationwide enforcement; registered convicted sex offenders; run criminal histories; arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
“Prior to receiving the system our community had no direct access to the services the TAP program provides,” said Chief of Police Bruce R. Janes for The Metlakatla Indian Community. “Being the only reservation in Alaska and a remote community on an island the TAP program has provided independence for our community and Police Department giving us the ability [to] be self-sufficient with the vast programs available with TAP.”
The department offers TAP services through one of the following two methods:
- TAP-LIGHT: Provides software that enables full access (both query and entry capabilities) to national crime information databases including the National Crime Information Center (NCIC), the Interstate Identification Index (III), and the International Justice and Public Safety Network (Nlets) for criminal justice purposes.
- TAP-FULL: In addition to the basic access capabilities of TAP-LIGHT, provides a kiosk workstation that enables the ability to submit and query fingerprint-based transactions via FBI’s Next Generation Identification (NGI) system for both criminal justice and non-criminal justice purposes.
Because of the program’s funding sources, eligible Tribes must have — and agree to use TAP for — at least one of the following:
- A Tribal sex offender registry authorized by the Adam Walsh Child Protection and Safety Act;
- A Tribal law enforcement agency that has arrest powers;
- A Tribal court that issues orders of protection; or
- A Tribal government agency that screens individuals for foster care placement or that investigates allegations of child abuse/neglect.
TAP is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART); the Office of Community Oriented Policing Services (COPS); the Office for Victims of Crime (OVC); and the Office on Violence Against Women (OVW). TAP is co-managed by the department’s Office of the Chief Information Officer (OCIO) and Office of Tribal Justice (OTJ).
Justice Department Announces Six New Firearms Technical Assistance Project Sites and Awards $750,000 to National Resource Center on Domestic Violence and FirearmsRead the Press Release
The Department of Justice announced today six new sites selected to participate in the Firearms Technical Assistance Project (FTAP) expansion as part of the Department’s ongoing effort to reduce violent crime and help communities across the country reduce domestic violence homicides and injuries committed with firearms. The six new FTAP sites are: the City of Tucson, Arizona; the Georgia Department of Community Supervision; the City of Detroit, Michigan; the Young Women’s Christian Association (YWCA) of Knoxville and the Tennessee Valley in Tennessee; the City of Austin, Texas; and the City of Yakima, Washington. The six sites announced today join six existing FTAP sites, which include: Birmingham, Alabama; Muscogee (Creek) Nation; Columbus, Ohio; Brooklyn, New York; the State of Vermont; and Spokane, Washington.
In addition, the Office on Violence Against Women (OVW) will award $750,000 to fund the National Resource Center on Domestic Violence and Firearms, which supports all levels of government in comprehensive implementation and enforcement of domestic violence firearm prohibitions. OVW has awarded a total of $5.99 million to the 12 FTAP sites, which help communities nationwide reduce domestic violence homicides and injuries committed with firearms.
“At the Justice Department, our anti-violent crime strategy is centered on our partnerships with communities across the country and the law enforcement agencies that protect those communities every day,” said Attorney General Merrick B. Garland. “Our Firearms Technical Assistance Project focuses on the intersection of gun violence and domestic violence at the community level through specialized training for our law enforcement partners and enhanced support services for the survivors of domestic violence.”
“We cannot end domestic violence homicides without crafting strategies that meet the unique needs on the ground in communities, including centering those who have been historically marginalized,” said OVW Acting Director Allison Randall. “This is why it is critical that FTAP sites work with underserved communities to implement firearm prohibition strategies that reflect their needs. OVW’s Firearms Technical Assistance Project keeps survivors and communities safe by using a holistic, culturally specific approach to firearm relinquishment – addressing the critical and often lethal nexus of firearms and domestic violence.”
FTAP supports the Justice Department’s comprehensive strategy for reducing violent crime and was included in the White House’s Fact Sheet on Highlights from the Biden Administration’s Historic Efforts to Reduce Gun Violence. Under federal law, individuals with domestic violence misdemeanor and felony convictions, as well as individuals subject to domestic violence protective orders, are prohibited from possessing firearms. The data shows that offenders with domestic violence in their past pose a high risk of homicide. In fact, domestic violence abusers with a gun in the home are five times more likely to kill their partners, and in addition to their lethality, firearms are used by abusers to inflict fear, intimidation, and coercive control.
The new FTAP sites will receive direct financial support, ranging from $499,212 to $500,000, as well as technical assistance designed to help each site implement best practices for preventing the use of firearms in domestic violence and incorporate community partners, particularly partner organizations that center underserved populations, into their efforts to implement effective responses to firearms and domestic violence. In 2019, OVW and the National Council of Juvenile and Family Court Judges launched FTAP to help communities implement policies, protocols, and promising practices to prevent abusers from having access to firearms in domestic violence cases. The National Resource Center on Domestic Violence and Firearms is operated by the Battered Women’s Justice Project through OVW funding, and includes a model firearms relinquishment protocol, strategies for communities and spotlights on successful approaches, among other resources.
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Justice Department Announces Investigation of New York City Police Department's Special Victims DivisionRead the Press Release
Kristen Clarke, Assistant Attorney General for the Justice Department’s Civil Rights Division, Damian Williams, the United States Attorney for the Southern District of New York, and Breon Peace, the United States Attorney for the Eastern District of New York, announced today a civil pattern or practice investigation into the Special Victims Division (SVD) of the New York City Police Department (NYPD). The investigation will assess whether the SVD engages in a pattern or practice of gender-biased policing. The investigation will include a comprehensive review of the policies, procedures, and training for SVD investigations of sexual assault crimes, including how SVD interacts with survivors and witnesses, collects evidence, and completes investigations; any steps NYPD has taken to address deficiencies in its handling of sexual assault crimes; how SVD allocates staffing and other resources; and the services and support offered to survivors of sexual assault. As part of this investigation, the Justice Department officials will reach out to community groups and members of the public to learn about their experiences with SVD.
Prior to the announcement, Justice Department (Department) officials notified Mayor Eric Adams, NYPD Commissioner Keechant L. Sewell, and NYC Corporation Counsel Sylvia O. Hinds-Radix, who have pledged to cooperate with the investigation.
Assistant Attorney General Kristen Clarke said: “Survivors of sexual assault should expect effective, trauma-informed and victim-centered investigations by police departments. Based on information provided to the Justice Department, we find significant justification to investigate whether the NYPD’s Special Victims Division engages in a pattern or practice of gender-biased policing. Investigations into sexual assault that comply with the Constitution promote accountability, enhance public safety and foster community trust.”
EDNY U.S. Attorney Breon Peace said: “Respectful, thorough, and complete investigations of sexual assaults are fundamental to a well-functioning justice system. Over the last several months, we have learned concerning information from a variety of sources of historical issues about the way the Special Victims Division has conducted its investigations for many years. Our review is intended to ensure that, going forward, survivors of sexual assault in New York City receive fair and just treatment in the criminal justice system, and as a result, those who engage in sexual violence are held accountable. We appreciate that the NYPD has already taken steps to address these concerns.”
SDNY U.S. Attorney Damian Williams said: “Victims of sex crimes deserve the same rigorous and unbiased investigations of their cases that the NYPD affords to other categories of crime. Likewise, relentless and effective pursuit of perpetrators of sexual violence, unburdened by gender stereotypes or differential treatment, is essential to public safety. We look forward to working with our partners in EDNY and the Civil Rights Division to assess the NYPD’s practices in this area.”
The Department received information alleging deficiencies at SVD that have persisted for more than a decade, depriving survivors and the public of the prompt, thorough, and effective investigations needed to protect public safety. These deficiencies allegedly include failing to conduct basic investigative steps and instead shaming and abusing survivors and re-traumatizing them during investigations.
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The Act allows the Justice Department to remedy such misconduct through civil litigation. The Department will be assessing law enforcement practices under the Fourteenth Amendment to the United States Constitution, as well as the Safe Streets Act of 1968.
The Civil Rights Unit in the Civil Division of the U.S. Attorney’s Office for the Southern District of New York, the Civil Rights Team in the Civil Division of the U.S. Attorney’s Office for the Eastern District of New York, and the Special Litigation Section of the Justice Department’s Civil Rights Division will jointly conduct this investigation. Individuals with relevant information are encouraged to contact the Department via email at [email protected] or by calling 212-637-2746. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at www.civilrights.justice.gov, to the Eastern District of New York at https://www.justice.gov/usao-edny/civil-rights, or to the Southern District of New York at https://www.justice.gov/usao-sdny/civil-rights.
Information specific to the Justice Department’s Civil Rights Division’s Police Reform Work can be found here: https://www.justice.gov/crt/file/922421/download. The Department’s updated guidance on improving law enforcement response to sexual assault and domestic violence can be found here: Improving Law Enforcement Response to Sexual Assault and Domestic Violence by Identifying and Preventing Gender Bias (justice.gov).
Additional information about the U.S. Attorney’s Office for the Eastern District of New York is available on its website at https://www.justice.gov/usao-edny. Additional information about the U.S. Attorney’s Office for the Southern District of New York is available on its website at https://www.justice.gov/usao-sdny. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department Announces Investigation of New York City Police Department’s Special Victims DivisionRead the Press Release
The Justice Department announced today that it has opened a civil pattern or practice investigation into the Special Victims Division (SVD) of the New York City Police Department (NYPD). The investigation will assess whether the SVD engages in a pattern or practice of gender-biased policing. The investigation will include a comprehensive review of the policies, procedures and training for SVD investigations of sexual assault crimes, including how SVD interacts with survivors and witnesses, collects evidence and completes investigations; any steps NYPD has taken to address deficiencies in its handling of sexual assault crimes; how SVD allocates staffing and other resources; and the services and support offered to survivors of sexual assault. As part of this investigation, the Justice Department officials will reach out to community groups and members of the public to learn about their experiences with SVD.
Prior to the announcement, Justice Department officials notified Mayor Eric Adams, NYPD Commissioner Keechant L. Sewell, and NYC Corporation Counsel Sylvia O. Hinds-Radix, who have pledged to cooperate with the investigation.
“Survivors of sexual assault should expect effective, trauma-informed and victim-centered investigations by police departments,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Based on information provided to the Justice Department, we find significant justification to investigate whether the NYPD’s Special Victims Division engages in a pattern or practice of gender-biased policing. Investigations into sexual assault that comply with the Constitution promote accountability, enhance public safety and foster community trust.”
“Respectful, thorough and complete investigations of sexual assaults are fundamental to a well-functioning justice system,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Over the last several months, we have learned concerning information from a variety of sources of historical issues about the way the Special Victims Division has conducted its investigations for many years. Our review is intended to ensure that, going forward, survivors of sexual assault in New York City receive fair and just treatment in the criminal justice system, and as a result, those who engage in sexual violence are held accountable. We appreciate that the NYPD has already taken steps to address these concerns.”
“Victims of sex crimes deserve the same rigorous and unbiased investigations of their cases that the NYPD affords to other categories of crime,” said U.S. Attorney Damian Williams for the Southern District of New York. “Likewise, relentless and effective pursuit of perpetrators of sexual violence, unburdened by gender stereotypes or differential treatment, is essential to public safety. We look forward to working with our partners in EDNY and the Civil Rights Division to assess the NYPD’s practices in this area.”
The department received information alleging deficiencies at SVD that have persisted for more than a decade, depriving survivors and the public of the prompt, thorough and effective investigations needed to protect public safety. These deficiencies allegedly include failing to conduct basic investigative steps and instead shaming and abusing survivors and re-traumatizing them during investigations.
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The act allows the Justice Department to remedy such misconduct through civil litigation. The department will be assessing law enforcement practices under the Fourteenth Amendment to the U.S. Constitution, as well as the Safe Streets Act of 1968.
The Special Litigation Section of the Justice Department’s Civil Rights Division, the Civil Rights Unit in the Civil Division of the U.S. Attorney’s Office for the Southern District of New York, and the Civil Rights Team in the Civil Division of the U.S. Attorney’s Office for the Eastern District of New York will jointly conduct this investigation. Individuals with relevant information are encouraged to contact the department via email at [email protected] or by calling 212-637-2746. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at www.civilrights.justice.gov, to the Eastern District of New York at https://www.justice.gov/usao-edny/civil-rights or to the Southern District of New York at https://www.justice.gov/usao-sdny/civil-rights.
Information specific to the Justice Department’s Civil Rights Division’s police reform work can be found here: https://www.justice.gov/crt/file/922421/download. The department’s updated guidance on improving law enforcement response to sexual assault and domestic violence can be found here: Improving Law Enforcement Response to Sexual Assault and Domestic Violence by Identifying and Preventing Gender Bias (justice.gov).
Additional information about the U.S. Attorney’s Office for the Eastern District of New York is available on its website at https://www.justice.gov/usao-edny. Additional information about the U.S. Attorney’s Office for the Southern District of New York is available on its website at https://www.justice.gov/usao-sdny. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department Announces Investigation of New York City Police Department’s Special Victims DivisionRead the Press Release
Kristen Clarke, Assistant Attorney General for the Justice Department’s Civil Rights Division, Damian Williams, the United States Attorney for the Southern District of New York, and Breon Peace, the United States Attorney for the Eastern District of New York, announced today a civil pattern or practice investigation into the Special Victims Division (SVD) of the New York City Police Department (NYPD). The investigation will assess whether the SVD engages in a pattern or practice of gender-biased policing. The investigation will include a comprehensive review of the policies, procedures, and training for SVD investigations of sexual assault crimes, including how SVD interacts with survivors and witnesses, collects evidence, and completes investigations; any steps NYPD has taken to address deficiencies in its handling of sexual assault crimes; how SVD allocates staffing and other resources; and the services and support offered to survivors of sexual assault. As part of this investigation, the Justice Department officials will reach out to community groups and members of the public to learn about their experiences with SVD.
Prior to the announcement, Justice Department (Department) officials notified Mayor Eric Adams, NYPD Commissioner Keechant L. Sewell, and NYC Corporation Counsel Sylvia O. Hinds-Radix, who have pledged to cooperate with the investigation.
Assistant Attorney General Kristen Clarke said: “Survivors of sexual assault should expect effective, trauma-informed and victim-centered investigations by police departments. Based on information provided to the Justice Department, we find significant justification to investigate whether the NYPD’s Special Victims Division engages in a pattern or practice of gender-biased policing. Investigations into sexual assault that comply with the Constitution promote accountability, enhance public safety and foster community trust.”
SDNY U.S. Attorney Damian Williams said: “Victims of sex crimes deserve the same rigorous and unbiased investigations of their cases that the NYPD affords to other categories of crime. Likewise, relentless and effective pursuit of perpetrators of sexual violence, unburdened by gender stereotypes or differential treatment, is essential to public safety. We look forward to working with our partners in EDNY and the Civil Rights Division to assess the NYPD’s practices in this area.”
EDNY U.S. Attorney Breon Peace said: “Respectful, thorough, and complete investigations of sexual assaults are fundamental to a well-functioning justice system. Over the last several months, we have learned concerning information from a variety of sources of historical issues about the way the Special Victims Division has conducted its investigations for many years. Our review is intended to ensure that, going forward, survivors of sexual assault in New York City receive fair and just treatment in the criminal justice system, and as a result, those who engage in sexual violence are held accountable. We appreciate that the NYPD has already taken steps to address these concerns.”
The Department received information alleging deficiencies at SVD that have persisted for more than a decade, depriving survivors and the public of the prompt, thorough, and effective investigations needed to protect public safety. These deficiencies allegedly include failing to conduct basic investigative steps and instead shaming and abusing survivors and re-traumatizing them during investigations.
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The Act allows the Justice Department to remedy such misconduct through civil litigation. The Department will be assessing law enforcement practices under the Fourteenth Amendment to the United States Constitution, as well as the Safe Streets Act of 1968.
The Civil Rights Unit in the Civil Division of the U.S. Attorney’s Office for the Southern District of New York, and the Civil Rights Team in the Civil Division of the U.S. Attorney’s Office for the Eastern District of New York, and the Special Litigation Section of the Justice Department’s Civil Rights Division will jointly conduct this investigation. Individuals with relevant information are encouraged to contact the Department via email at [email protected] or by calling 212-637-2746. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at www.civilrights.justice.gov, to the Eastern District of New York at https://www.justice.gov/usao-edny/civil-rights, or to the Southern District of New York at https://www.justice.gov/usao-sdny/civil-rights.
Information specific to the Justice Department’s Civil Rights Division’s Police Reform Work can be found here: https://www.justice.gov/crt/file/922421/download. The Department’s updated guidance on improving law enforcement response to sexual assault and domestic violence can be found here: Improving Law Enforcement Response to Sexual Assault and Domestic Violence by Identifying and Preventing Gender Bias (justice.gov).
Additional information about the U.S. Attorney’s Office for the Eastern District of New York is available on its website at https://www.justice.gov/usao-edny. Additional information about the U.S. Attorney’s Office for the Southern District of New York is available on its website at https://www.justice.gov/usao-sdny. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department Announces Enforcement Action Charging Six Individuals with Cryptocurrency Fraud Offenses in Cases Involving over $100 Million in Intended LossesRead the Press Release
The Department of Justice, together with federal law enforcement partners, today announced criminal charges against six defendants in four separate cases for their alleged involvement in cryptocurrency-related fraud, including the largest known Non-Fungible Token (NFT) scheme charged to date, a fraudulent investment fund that purportedly traded on cryptocurrency exchanges, a global Ponzi scheme involving the sale of unregistered crypto securities, and a fraudulent initial coin offering.
“The Department of Justice and our partners are dedicated to using every available tool to protect consumers and investors from fraud and manipulation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These indictments reflect our deep commitment to prosecuting individuals involved in cryptocurrency fraud and market manipulation.”
“Our office is committed to protecting investors from sophisticated scammers seeking to capitalize on the relative novelty of digital currency,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “As with any emerging technology, those who invest in cryptocurrency must beware of profit-making opportunities that appear too good to be true.”
“These cases serve as a crucial reminder that some con artists hide behind trendy buzzwords, but at the end of the day they are simply seeking to separate people from their money,” said U.S. Attorney Tracy L. Wilkison for the Central District of California. “We will continue to work with our law enforcement partners to educate and protect potential investors about both traditional and trendy investments.”
“As cryptocurrency marketplaces advance and offer new opportunities for consumers, criminals also seek ways to exploit them,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI, alongside our law enforcement partners, will continue to investigate and bring those criminals to justice, and to protect the American people.”
“This investigation and prosecution exemplifies the importance of public-private partnerships,” said Executive Associate Director Steve K. Francis of Homeland Security Investigations (HSI). “As a result of our strong relationships with industry partners, HSI received information leading to this investigation and ultimate indictment. HSI will continue to investigate criminal organizations operating in emerging technologies and are proud to have worked with the Department of Justice Fraud Section to put an end to this criminal activity.”
The following charges are announced today as a part of this national enforcement action.
Crypto NFT Scheme:
United States v. Le Ahn Tuan:
Le Anh Tuan, 26, a Vietnamese national, was charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in the Central District of California in connection with a scheme involving the “Baller Ape” NFT. As alleged in the indictment, Tuan was involved in the Baller Ape Club, an NFT investment project that purportedly sold NFTs in the form of various cartoon figures, often including the figure of an ape. According to the indictment, shortly after the first day Baller Ape Club NFTs were publicly sold, Tuan and his co-conspirators engaged in what is known as a “rug pull,” ending the purported investment project, deleting its website, and stealing the investors’ money. Based on blockchain analytics, shortly after the rug pull, Tuan and his co-conspirators laundered investors’ funds through “chain-hopping,” a form of money laundering in which one type of coin is converted to another type and funds are moved across multiple cryptocurrency blockchains, and used decentralized cryptocurrency swap services to obscure the trail of Baller Ape investors’ stolen funds. In total, Tuan and his co-conspirators obtained approximately $2.6 million from investors. If convicted of all counts, Tuan faces up to 40 years in prison. HSI is investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Tian Huang are prosecuting the case.
Crypto Ponzi and Unregistered Securities Scheme:
United States v. Emerson Pires, Flavio Goncalves, and Joshua David Nicholas:
Emerson Pires, 33, and Flavio Goncalves, 33, both of Brazil, and Joshua David Nicholas, 28, of Stuart, Florida, were each charged in the Southern District of Florida with one count of conspiracy to commit wire fraud and one count of conspiracy to commit securities fraud in connection with a global cryptocurrency-based Ponzi scheme that generated approximately $100 million from investors. Pires and Goncalves also were charged with conspiracy to commit international money laundering. The indictment alleges that Pires and Goncalves, both founders of EmpiresX, along with Nicholas, the so-called “Head Trader” for EmpiresX, fraudulently promoted EmpiresX, a cryptocurrency investment platform and unregistered securities offering, by making numerous misrepresentations regarding, among other things, a purported proprietary trading bot and fraudulently guaranteeing returns to investors and prospective investors in EmpiresX. As alleged in the indictment, blockchain analytics shows that Pires and Goncalves then laundered investors’ funds through a foreign-based cryptocurrency exchange and operated a Ponzi scheme by paying earlier investors with money obtained from later EmpiresX investors. If convicted of all counts, Pires and Goncalves face up to 45 years in prison and Nicholas faces up to 25 years in prison. FBI and HSI are investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Sara Hallmark and Assistant U.S. Attorney Yisel Valdes of the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the case.
Crypto Initial Coin Offering Scheme:
United States v. Michael Alan Stollery:
Michael Alan Stollery, 54, of Reseda, California, was the CEO and founder of Titanium Blockchain Infrastructure Services (TBIS), a purported cryptocurrency investment platform. Stollery was charged in an information filed in the Central District of California with one count of securities fraud for his role in a cryptocurrency fraud scheme involving TBIS’s initial coin offering, which raised approximately $21 million from investors in the United States and overseas. As alleged, in order to lure investors, Stollery falsified TBIS white papers (a document for prospective investors that typically explains how the technology underlying the cryptocurrency works and the purpose of the cryptocurrency project), planted fake testimonials on TBIS’s website, and fabricated purported business relationships with the U.S. Federal Reserve Board and dozens of prominent companies, including Apple Inc., Pfizer Inc., and The Walt Disney Company, to create the appearance of legitimacy. If convicted of all counts, Stollery faces up to 20 years in prison. The FBI and the Federal Reserve Board’s Western Region San Francisco Office are investigating the case. Fraud Section Trial Attorneys Kevin Lowell, Tian Huang, and Andrew Tyler are prosecuting the case.
“Those who fraudulently misrepresent their relationship with the Federal Reserve to deceive the public in cryptocurrency or other fraud schemes will be held accountable and brought to justice,” said Acting Special Agent in Charge Cory Nootnagel of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Western Region. “I commend our agents, their federal law enforcement partners, and the Justice Department’s Criminal Division’s Fraud Section for their hard work and persistence.”
Crypto Commodities Scheme:
United States v. David Saffron:
David Saffron, 49, of Las Vegas, Nevada, was the owner of Circle Society, a cryptocurrency investment platform. Saffron used Circle Society to solicit investors to participate in an unregistered commodity pool, which is a fund that combines investors’ contributions to trade on the futures and commodity markets. Saffron was charged in the Central District of California with one count of conspiracy to commit wire fraud, four counts of wire fraud, one count of conspiracy to commit commodities fraud, and one count of obstruction of justice. As alleged in the indictment, Saffron falsely represented to investors that he traded investors’ funds to earn profits using a trading bot that could execute over 17,000 transactions per hour on various cryptocurrency exchanges. Saffron falsely represented that his trading bot would generate between 500% to 600% returns on the amount invested. To entice investors to invest, Saffron allegedly led investor meetings at luxury homes in the Hollywood Hills and elsewhere, and traveled with a team of armed security guards in order to create the false appearance of wealth and success. In total, Saffron fraudulently raised approximately $12 million from investors. If convicted of all counts, Saffron faces up to 115 years in prison. IRS Criminal Investigation (IRS-CI) is investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Theodore Kneller, and Assistant U.S. Attorney James Hughes of the U.S. Attorney’s Office for the Central District of California are prosecuting the case.
“Mr. Saffron preyed on investor interest in cryptocurrency by enticing victims with fake technology and false promises of guaranteed returns,” said Special Agent in Charge Ryan L. Korner of the IRS-CI’s Los Angeles Field Office. “In reality, Mr. Saffron was operating an illegal Ponzi scheme to defraud victim investors and used the funds for his own personal benefit. IRS-CI will pursue and root out these schemes to protect investors, preserve our commodity markets, and bring financial fraudsters to justice.”
Crypto Fraud Victims:
All investor victims of the Baller Ape Club, EmpiresX, TBIS, and Circle Society schemes are encouraged to visit the webpage https://www.justice.gov/criminal-vns/crypto-enforcement to identify themselves as potential victims and obtain more information on their rights as victims, including the ability to submit a victim impact statement.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Announces Enforcement Action Charging Six Individuals with Cryptocurrency Fraud Offenses in Cases Involving over $100 Million in Intended LossesRead the Press Release
LOS ANGELES – The Department of Justice, together with federal law enforcement partners, today announced criminal charges against six defendants in four separate cases for their alleged involvement in cryptocurrency-related fraud, including the largest known Non-Fungible Token (NFT) scheme charged to date, a fraudulent investment fund that purportedly traded on cryptocurrency exchanges, a global Ponzi scheme involving the sale of unregistered crypto securities, and a fraudulent initial coin offering.
“These cases serve as a crucial reminder that some con artists hide behind trendy buzzwords, but at the end of the day they are simply seeking to separate people from their money,” said U.S. Attorney Tracy L. Wilkison for the Central District of California. “We will continue to work with our law enforcement partners to educate and protect potential investors about both traditional and trendy investments.”
“The Department of Justice and our partners are dedicated to using every available tool to protect consumers and investors from fraud and manipulation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These indictments reflect our deep commitment to prosecuting individuals involved in cryptocurrency fraud and market manipulation.”
“Our office is committed to protecting investors from sophisticated scammers seeking to capitalize on the relative novelty of digital currency,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “As with any emerging technology, those who invest in cryptocurrency must beware of profit-making opportunities that appear too good to be true.”
“As cryptocurrency marketplaces advance and offer new opportunities for consumers, criminals also seek ways to exploit them,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI, alongside our law enforcement partners, will continue to investigate and bring those criminals to justice, and to protect the American people.”
“This investigation and prosecution exemplifies the importance of public-private partnerships,” said Executive Associate Director Steve K. Francis of Homeland Security Investigations (HSI). “As a result of our strong relationships with industry partners, HSI received information leading to this investigation and ultimate indictment. HSI will continue to investigate criminal organizations operating in emerging technologies and are proud to have worked with the Department of Justice Fraud Section to put an end to this criminal activity.”
The following charges are announced today as a part of this national enforcement action.
Crypto NFT Scheme:
United States v. Le Ahn Tuan:
Le Anh Tuan, 26, a Vietnamese national, was charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in the Central District of California in connection with a scheme involving the “Baller Ape” NFT. As alleged in the indictment, Tuan was involved in the Baller Ape Club, an NFT investment project that purportedly sold NFTs in the form of various cartoon figures, often including the figure of an ape. According to the indictment, shortly after the first day Baller Ape Club NFTs were publicly sold, Tuan and his co-conspirators engaged in what is known as a “rug pull,” ending the purported investment project, deleting its website, and stealing the investors’ money. Based on blockchain analytics, shortly after the rug pull, Tuan and his co-conspirators laundered investors’ funds through “chain-hopping,” a form of money laundering in which one type of coin is converted to another type and funds are moved across multiple cryptocurrency blockchains, and used decentralized cryptocurrency swap services to obscure the trail of Baller Ape investors’ stolen funds. In total, Tuan and his co-conspirators obtained approximately $2.6 million from investors. If convicted of all counts, Tuan faces up to 40 years in prison. HSI is investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Tian Huang are prosecuting the case.
“HSI is always looking at new trends transnational criminal organizations are exploiting to further their illegal operations” said Acting Special Agent in Charge Selwyn Smith of HSI Baltimore. “In the Baller Ape Club case, cyber criminals used the emerging market of Non-Fungible Tokens (NFT) to prey on investors seeking to diversify their portfolios and stole $2.6 million in cryptocurrency. HSI Baltimore will continue to investigate criminal organizations operating in emerging technologies. HSI Baltimore is proud to have partnered with the Department of Justice Fraud Section.”
Crypto Ponzi and Unregistered Securities Scheme:
United States v. Emerson Pires, Flavio Goncalves, and Joshua David Nicholas:
Emerson Pires, 33, and Flavio Goncalves, 33, both of Brazil, and Joshua David Nicholas, 28, of Stuart, Florida, were each charged in the Southern District of Florida with one count of conspiracy to commit wire fraud and one count of conspiracy to commit securities fraud in connection with a global cryptocurrency-based Ponzi scheme that generated approximately $100 million from investors. Pires and Goncalves also were charged with conspiracy to commit international money laundering. The indictment alleges that Pires and Goncalves, both founders of EmpiresX, along with Nicholas, the so-called “Head Trader” for EmpiresX, fraudulently promoted EmpiresX, a cryptocurrency investment platform and unregistered securities offering, by making numerous misrepresentations regarding, among other things, a purported proprietary trading bot and fraudulently guaranteeing returns to investors and prospective investors in EmpiresX. As alleged in the indictment, blockchain analytics shows that Pires and Goncalves then laundered investors’ funds through a foreign-based cryptocurrency exchange and operated a Ponzi scheme by paying earlier investors with money obtained from later EmpiresX investors. If convicted of all counts, Pires and Goncalves face up to 45 years in prison and Nicholas faces up to 25 years in prison. FBI and HSI are investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Sara Hallmark and Assistant U.S. Attorney Yisel Valdes of the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the case.
Crypto Initial Coin Offering Scheme:
United States v. Michael Alan Stollery:
Michael Alan Stollery, 54, of Reseda, California, was the CEO and founder of Titanium Blockchain Infrastructure Services (TBIS), a purported cryptocurrency investment platform. Stollery was charged in an information filed in the Central District of California with one count of securities fraud for his role in a cryptocurrency fraud scheme involving TBIS’s initial coin offering, which raised approximately $21 million from investors in the United States and overseas. As alleged, in order to lure investors, Stollery falsified TBIS white papers (a document for prospective investors that typically explains how the technology underlying the cryptocurrency works and the purpose of the cryptocurrency project), planted fake testimonials on TBIS’s website, and fabricated purported business relationships with the U.S. Federal Reserve Board and dozens of prominent companies, including Apple Inc., Pfizer Inc., and The Walt Disney Company, to create the appearance of legitimacy. If convicted of all counts, Stollery faces up to 20 years in prison. The FBI and the Federal Reserve Board’s Western Region San Francisco Office are investigating the case. Fraud Section Trial Attorneys Kevin Lowell, Tian Huang, and Andrew Tyler are prosecuting the case.
“Mr. Stollery convinced victims to invest by deceiving them with calculated lies about the profit potential and by artfully creating an illusion that he was well-connected and a proven success,” said Assistant Director in Charge Kristi Johnson of the FBI’s Los Angeles Field Office. “While cryptocurrency investments can be alluring to those seeking the latest opportunity, caution is warranted as the fraud associated with decentralized money investments is pervasive.”
“Those who fraudulently misrepresent their relationship with the Federal Reserve to deceive the public in cryptocurrency or other fraud schemes will be held accountable and brought to justice,” said Acting Special Agent in Charge Cory Nootnagel of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Western Region. “I commend our agents, their federal law enforcement partners, and the Justice Department’s Criminal Division’s Fraud Section for their hard work and persistence.”
Crypto Commodities Scheme:
United States v. David Saffron:
David Saffron, 49, of Las Vegas, Nevada, was the owner of Circle Society, a cryptocurrency investment platform. Saffron used Circle Society to solicit investors to participate in an unregistered commodity pool, which is a fund that combines investors’ contributions to trade on the futures and commodity markets. Saffron was charged in the Central District of California with one count of conspiracy to commit wire fraud, four counts of wire fraud, one count of conspiracy to commit commodities fraud, and one count of obstruction of justice. As alleged in the indictment, Saffron falsely represented to investors that he traded investors’ funds to earn profits using a trading bot that could execute over 17,000 transactions per hour on various cryptocurrency exchanges. Saffron falsely represented that his trading bot would generate between 500% to 600% returns on the amount invested. To entice investors to invest, Saffron allegedly led investor meetings at luxury homes in the Hollywood Hills and elsewhere, and traveled with a team of armed security guards in order to create the false appearance of wealth and success. In total, Saffron fraudulently raised approximately $12 million from investors. If convicted of all counts, Saffron faces up to 115 years in prison. IRS Criminal Investigation (IRS-CI) is investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Theodore Kneller, and Assistant U.S. Attorney James Hughes of the U.S. Attorney’s Office for the Central District of California are prosecuting the case.
“Mr. Saffron preyed on investor interest in cryptocurrency by enticing victims with fake technology and false promises of guaranteed returns,” said Special Agent in Charge Ryan L. Korner of the IRS-CI’s Los Angeles Field Office. “In reality, Mr. Saffron was operating an illegal Ponzi scheme to defraud victim investors and used the funds for his own personal benefit. IRS-CI will pursue and root out these schemes to protect investors, preserve our commodity markets, and bring financial fraudsters to justice.”
Crypto Fraud Victims:
All investor victims of the Baller Ape Club, EmpiresX, TBIS, and Circle Society schemes are encouraged to visit the webpage https://www.justice.gov/criminal-vns/crypto-enforcement to identify themselves as potential victims and obtain more information on their rights as victims, including the ability to submit a victim impact statement.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Announces Additional Distribution of Approximately $92 Million to Victims in FIFA Corruption CaseRead the Press Release
The Department of Justice announced today a further distribution of approximately $92 million in compensation for losses suffered by FIFA, the world organizing body of soccer; CONCACAF, the confederation responsible for soccer governance in North and Central America, among other jurisdictions; CONMEBOL, the confederation responsible for soccer governance in South America; and various constituent national soccer federations (collectively, the “Victims”).
The funds, which were remitted following the Justice Department’s recognition of losses and grant of remission up to a total of $201 million in August 2021, were forfeited to the United States in the Eastern District of New York as part of the government’s long-running investigation and prosecution of corruption in international soccer. To date, the prosecutions have resulted in charges against more than 50 individual and corporate defendants from more than 20 countries, primarily in connection with the offer and receipt of bribes and kickbacks paid by sports marketing companies to soccer officials in exchange for the media and marketing rights to various soccer tournaments and events and the laundering of those payments.
“From the beginning of the FIFA investigation and prosecutions, one of the department’s primary goals has been to make the victims whole,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The department has used every tool at its disposal to make this a reality, while depriving the perpetrators of the proceeds of their crimes. This distribution of approximately $92 million as compensation for losses suffered highlights the importance of asset forfeiture as a critical tool in this endeavor.”
“Today’s distribution of more than $80 million underscores our commitment to returning money obtained through the corruption and fraud prosecuted in this case to the victims of that corruption, where it will be used to benefit the sport,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Over much of the past decade, this investigation and prosecution has concentrated on bringing wrongdoers to justice and recovering ill-gotten gains. Our office, working in collaboration with our law enforcement partners and colleagues in the Department of Justice, will continue our work to compensate victims of crime.”
“There was an extraordinary amount of money flowing between corrupt officials and businesses in this massive scheme,” said Assistant Director in Charge Michael J. Driscoll of the FBI’s New York Field Office. “It is gratifying to know assets seized from the criminals involved will be distributed to groups in need of the money, one specifically focused on educating and safeguarding football for women and girls. The silver lining is that some good will come from the rampant greed uncovered in this investigation.”
“As the distributions to victims have demonstrated, IRS-CI and our law enforcement partners will leave no stones unturned when it comes to conducting investigations involving financial crimes,” said Special Agent in Charge Ryan L. Korner of IRS-Criminal Investigation (IRS-CI) Los Angeles. “Not only have dozens of individuals been brought to justice through the course of the investigation, but the additional $92 million will be returned in full to the victims to help compensate them for the injuries caused by this corruption.”
On May 27, 2015, an indictment was unsealed charging 14 FIFA officials and sports marketing executives with racketeering, honest services wire fraud and money laundering offenses, among others. On Dec. 3, 2015, a superseding indictment was unsealed charging an additional 16 FIFA officials with similar crimes. During the course of the prosecutions, 27 individual defendants have pleaded guilty to their roles in the charged crimes. In December 2017, two former FIFA officials, Juan Ángel Napout, of Paraguay, and José Maria Marin, of Brazil, were convicted after trial of racketeering conspiracy and related offenses. Four corporate entities have pleaded guilty and others, including banks, have acknowledged their roles in criminal conduct through deferred prosecution or non-prosecution agreements.
As part of these proceedings, many of the defendants were ordered to forfeit assets obtained through their criminal activity. Under federal law, the Department of Justice has the authority to distribute the proceeds of forfeited assets through the remission process to victims of crimes, including to the soccer organizations that employed and were defrauded by the corrupt soccer executives.
FIFA, CONCACAF, and CONMEBOL have committed to distributing funds received through the remission process, including $32.3 million previously remitted in August 2021, to and through a newly created World Football Remission Fund (the “Fund”) focused on women’s/girl’s football (soccer), education, safeguarding, youth programs, community outreach, and humanitarian needs. The Fund has been established under the FIFA Foundation, an independent foundation that uses soccer, and sport in general, as a tool for social development. The terms of the Fund provide for oversight and independent audit measures to ensure remitted funds are distributed appropriately.
Assistant U.S. Attorneys Samuel P. Nitze, M. Kristin Mace, Victor A. Zapana, Brian D. Morris, and Kaitlin T. Farrell are in charge of the prosecution, petition, solicitation, and providing recommendations on the victims’ petitions. Assistant U.S. Attorney Lauren H. Elbert and Trial Attorney Christian Nauvel and former Trial Attorney Michael Grady of the Money Laundering and Asset Recovery Section joined in the investigation and prosecution of the banks.
The Justice Department, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime. The victim compensation payments in the FIFA case would not have been possible without the extraordinary efforts of the Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section, which reviewed and approved the victims’ petition for remission; the FBI’s New York Field Office; and the IRS-CI.
Jury Convicts Father and Son of Multiple Conspiracies in Extensive Food Stamp Fraud SchemeRead the Press Release
OAKLAND – A federal jury yesterday convicted son Ali Mugalli Hassan and father Mugalli Ahmed Hassan of multiple counts involving government benefits fraud and conspiracies to commit such fraud, announced United States Attorney Stephanie M. Hinds and United States Department of Agriculture Office of Inspector General (USDA-OIG) Western Region Special Agent in Charge Dustin Cladis. The verdicts follow a one-week jury trial before United States Chief District Judge Phyllis J. Hamilton in Oakland.
Ali Mugalli Hassan, 32, of Alameda, and Mugalli Ahmed Hassan, 50, also of Alameda, were charged on March 14, 2019, in a multiple count superseding indictment along with another family member, co-defendant Ahmed Ahmed Hasan Dharahan, 41, of Oakland. The superseding indictment alleged the defendants defrauded the United States Department of Agriculture (USDA) by unlawfully trafficking federal food stamp benefits from 2014 through 2017.
Yesterday afternoon, a jury convicted son Ali and his father Mugalli of all four charges against them. Specifically, son and father were each convicted of conspiracy to defraud the United States; government benefits fraud greater than $5,000; conspiracy to commit wire fraud; and wire fraud.
According to evidence presented at trial, Ali Mugalli Hassan owned and operated a convenience store on International Boulevard in Oakland. Members of Ali’s family served as cashiers at the store, including his father Mugalli Ahmed Hassan and his uncle Ahmed Ahmed Hasan Dharahan. The convenience store was an authorized vendor for the USDA’s Supplemental Nutritional Assistance Program (SNAP), formerly known as the Food Stamp Program. SNAP helps economically disadvantaged persons pay for essential food items for themselves and their families. Program recipients receive their benefits via an electronic benefits transaction (EBT) card, which operates much like a debit card but limits purchases to program-eligible items. The store conducted a high-volume of SNAP transactions, including redeeming over $2.3 million in SNAP benefits between August 2014 and November 2017.
Trial evidence showed that the defendants conducted fraudulent SNAP transactions through the convenience store by charging purchases on the customers’ EBT cards, when in reality the customers received few or no SNAP-eligible products. The defendants kept approximately half the value of the fraudulent transactions and returned the remainder in cash to the customers. As part of the scheme, the defendants also kept customers’ EBT cards and used the federal benefits assigned to those cards at other stores to purchase items to sell at their own convenience store.
Evidence at trial described numerous instances of this fraud over multiple years. For example, evidence showed that the defendants engaged in 10 fraudulent transactions with undercover agents as well as over a hundred additional fraudulent transactions shown on surveillance video. The evidence further showed that the defendants’ store engaged in over $2.3 million in SNAP transactions over an approximately three-year period, in contrast to the average medium grocer in Alameda County that redeemed just $520,000.
The federal jury today convicted Ali Mugalli Hassan and Mugalli Ahmed Hassan of one count of conspiracy to commit benefits fraud and to defraud the United States in violation of 18 U.S.C. § 371, which carries a maximum penalty of five years imprisonment. Ali Mugalli Hassan and Mugalli Ahmed Hassan were each also convicted of one count of benefits fraud greater than $5,000 in violation of 7 U.S.C. § 2024(b), one count of conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349, and one count of wire fraud in violation of 18 U.S.C. § 1343. Before trial began Mugalli Ahmed Hassan also pleaded guilty to nine other charged counts of wire fraud in violation of 18 U.S.C. § 1343. Each conviction of a violation of 7 U.S.C. §2024(b) and of 18 U.S.C. §§ 1349 and 1343 carries a maximum sentence of 20 years imprisonment. All of the above counts of conviction carry a maximum fine of $250,000. However, any sentence for these convictions will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
United States Chief District Judge Phyllis J. Hamilton scheduled a sentencing hearing for both defendants on December 8, 2022. Both defendants remain out of custody pending sentencing.
Co-defendant Ahmed Ahmed Hasan Dharahan’s case is still pending. A trial date has not yet been set in his case.
Assistant U.S. Attorneys Abraham Fine and Molly Priedeman prosecuted the case at trial with the assistance of Patricia Mahoney, Kay Konopaske, and Leeya Kekona. The prosecution is the result of an investigation by the USDA-OIG with the assistance of the Oakland Police Department, the U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Indianapolis Man Sentenced to 18 Months in Federal Prison for Possessing a Firearm while Subject to a Domestic Violence Protective OrderRead the Press Release
INDIANAPOLIS – Jaylon Dorsey, 25, of Indianapolis was sentenced to 18 months in federal prison after pleading guilty to possessing a firearm while subject to a protective order.
According to court documents, on May 14, 2021, officers from the Indianapolis Metropolitan Police Department (IMPD) stopped a vehicle that Dorsey was driving. Officers recognized Dorsey from previous contacts and knew he had an outstanding arrest warrant from Marion County for violating a protective order and intimidation. During Dorsey’s arrest, officers located a loaded handgun under the driver’s seat of Dorsey’s vehicle. At that time, Dorsey was subject to a domestic violence protective order, which had been issued on behalf of Dorsey’s girlfriend. This court order prohibited Dorsey from possessing firearms under federal law.
Evidence presented at sentencing showed that Dorsey has a history of domestic violence and threatening behavior towards his girlfriend, women, law enforcement, and other members of the public.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Chief Randal Taylor, IMPD, and Daryl S. McCormick, Special Agent in Charge of the ATF’s Columbus Field Division made the announcement.
The Indianapolis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. The sentence was imposed by U.S. District Judge James Patrick Hanlon following Dorsey’s guilty plea. As part of the sentence, Judge Hanlon ordered that Dorsey be supervised by the U.S. Probation Office for 3 years following his release from prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kelsey Massa who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of IMPD Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the ATF, IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Hot Springs Man Sentenced to 18 Years in Federal Prison for Drug and Firearms PossessionRead the Press Release
HOT SPRINGS – A Hot Springs man was sentenced today to 216 months in prison followed by five years of supervised release on one count of Possession with Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Offense. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the U.S. District Court in Hot Springs.
According to court documents, on February 26, 2019, the Hot Springs Police Department (HSPD) received a complaint concerning a vehicle attempting to ram another vehicle. A HSPD Officer responded to the area and was able to observe the vehicle and the altercation. A traffic stop was initiated on the vehicle at that time.
The driver of the vehicle was identified as Ralph Andrew Stevens, age 37. Stevens was questioned and ultimately determined to be on parole through the state of Arkansas. Stevens was searched and officers located a clear drug pipe with white residue in his jacket pocket. Stevens was placed in custody at this time.
A search of Stevens vehicle resulted in officers locating two (2) loaded firearms, approximately 163 grams of suspected marijuana, approximately 101.8 grams of methamphetamine and drug paraphernalia. Officers also located and seized $3,916.00 in United States currency.
The suspected methamphetamine was tested by the Drug Enforcement Administration laboratory and confirmed to be not less than 93.56 grams of pure methamphetamine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Hot Springs Police Department investigated the case.
Assistant U.S. Attorney Bryan Achorn prosecuted the case.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This effort is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Honduran Man Charged with Illegal ReentryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Fausto Lorenzo-Gomez, age 31, was charged yesterday by a federal grand jury with illegal reentry into the United States by a previously deported alien.
According to United States Attorney Gerard M. Karam, Lorenzo-Gomez, a citizen of Honduras, had been deported in September 2019. He is alleged to have illegally reentered the United States sometime after that date. He was located in the United States in York County, Pennsylvania, during a traffic stop.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and is being prosecuted by Assistant United States Attorney Jaime M. Keating.
Lorenzo-Gomez faces a maximum penalty of 2 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Hartselle Man Pleads Guilty to Attempted Kidnapping and Sexual AssaultRead the Press Release
BIRMINGHAM, Ala. – Yesterday, a Hartselle man pleaded guilty to using the internet to orchestrate an attempted kidnapping and sexual assault, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
Matthias Jacob Edward Mann, 22, of Hartselle, pleaded guilty before U.S. District Judge Abdul K. Kallon to attempted kidnapping and attempted inducement of an individual to travel in interstate commerce to commit an illegal sex act. As part of the plea agreement, the parties stipulated to a 180-month term of imprisonment for Mann’s crimes.
According to the plea agreement, on December 29, 2021, an undercover detective with the Owatonna, Minnesota Police Department was monitoring the public Kik group “Abduction and R@pe 3.” During that time, the Kik User “Dylan H.,” who was determined to be Mann, posted in the group, asking for someone to abduct and sexually assault a woman from Wisconsin. The undercover detective responded and told Dylan H. that he was in Minnesota and would be interested.
On December 30, 2021, the undercover detective recorded a telephone conversation with Mann. On the call, Mann confirmed that his request for the abduction and sexual assault of the victim was not a fantasy. Mann provided the undercover detective with photos and a physical address of the victim, who he stated was a former friend. Mann requested a video to confirm that the abduction and sexual assault was carried out as requested. During their subsequent conversations, Mann agreed to pay the undercover detective gas money to travel to Wisconsin from Minnesota and approximately $2,000.00 once the abduction and sexual assault had been completed. Mann paid the undercover detective $75 on January 5, 2022.
Federal agents arrested Mann on the morning of January 6, 2022, in Hartselle, Alabama.
“This case highlights the dangers of the internet and how an online relationship can quickly take a turn into dangerous territory. Law enforcement is to be commended for their quick response across four states and among several different local, state, and federal agencies. They coordinated their efforts to ensure that the victim was safe, and then worked expeditiously to identify the defendant and arrest him.” said U.S. Attorney Prim F. Escalona.
“The crimes that Mann has pled guilty to are deplorable. I’m proud of the work of my agents and our partners to bring him to the justice he deserves,” said Johnnie Sharp, Jr., Special Agent in Charge, Federal Bureau of Investigation.
The FBI-Birmingham Division investigated the case along with the Sun Prairie, Wisconsin Police Department; Owatonna, Minnesota Police Department; and FBI-Atlanta Division. Hartselle Police Department also provided assistance. Assistant U.S. Attorneys Laura D. Hodge and John M. Hundscheid are prosecuting the case.
Hartford Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ERIC WHITE, 31, of Hartford, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of unlawful possession of a firearm by a felon.
According to court documents and statements made in court, on February 17, 2021, Hartford Police arrested White after they found him in possession of a loaded .45 caliber Taurus handgun.
White’s criminal history includes state felony convictions for assault and narcotics offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
White has been detained since his arrest. Judge Dooley scheduled sentencing for September 30 at which time White faces a maximum term of imprisonment of 10 years.
This investigation has been conducted by the Federal Bureau of Investigation’s Connecticut Violent Crime Task Force and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Glenham Man Sentenced for Bank FraudRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Glenham, South Dakota, man convicted of Bank Fraud was sentenced on June 27, 2022, by U.S. District Judge Charles B. Kornmann.
Gabe Outtrim, age 43, was sentenced to 21 months in federal prison, followed by five years of supervised release, restitution in the amount of $144,050.94, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Outtrim was indicted by a federal grand jury on August 3, 2021. He pled guilty on December 7, 2021.
The conviction stemmed from incidents beginning on approximately September 17, 2018, and continuing through February 21, 2019, when Outtrim, who was the branch manager and vice-president of the CorTrust Bank branch in Leola, South Dakota, knowingly executed a scheme to defraud the bank.
In his capacity, Outtrim had lending authority to approve loans up to $200,000 without having to send the loan application and supporting documentation to the bank’s loan committee for review and approval.
Outtrim made a nominee loan in the name of an unknowing bank customer and used the loan proceeds for his own benefit.
This case was investigated by the FBI. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Outtrim was allowed to self-surrender by October 4, 2022.