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Newest first across public DOJ and U.S. Attorney press releases.
Monday 9 May 2022
British Man Charged with Attempted Online Enticement of Minor and Travel with the Intent to Engage in Illicit Sexual ConductRead the Press Release
NEWARK, N.J. – A British citizen was charged today with attempted online enticement of a minor and travel with the intent to engage in illicit sexual conduct, U.S. Attorney Philip R. Sellinger announced.
Stephen Hudson, 51, of Ealing, England, is charged by complaint with one count of attempted online enticement of a minor and one count of travel with the intent to engage in illicit sexual conduct. He appeared by videoconference today before U.S. Magistrate Judge José R. Almonte in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
From April 14, 2022, to May 6, 2022, Hudson used an encrypted email account to communicate with federal law enforcement, acting in an undercover capacity, to facilitate his access to and sexual abuse of two minor female children. Hudson agreed to travel from Massachusetts to New Jersey and pay approximately $1,200 in cash in exchange for, among other things: 1) engaging in sexual acts with 11- and 12-year-old girls; 2) supplying Hudson with illicit drugs; and 3) administering the illicit drugs and alcohol to the 11- and 12-year-old girls. On May 6, 2022, Hudson traveled to an agreed-upon location in New Jersey for the purpose of engaging in sexual activity with the two minors and provided approximately $1,200 in cash to the undercover law enforcement agents as previously agreed. After providing the cash to law enforcement, Hudson was arrested.
The charge of attempted online enticement of a minor carries a maximum statutory penalty of life in prison, a mandatory minimum sentence of 10 years, and a maximum fine of $250,000. The charge of interstate travel with the intent to engage in illicit sexual conduct carries a maximum statutory penalty of 30 years in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, and members of the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Camila A. Garces of the General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bloomsburg Man Sentenced to 18 Months of Imprisonment for $430,000 Fraud Scheme, Including $300,000 in Covid Relief FraudRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Darryl Corradini, age 63, was sentenced by United States Chief District Judge Matthew W. Brann, to 18 months’ imprisonment for a bank fraud and money laundering scheme that included nearly $300,000 in COVID-19 relief guaranteed by the Small Business Administration through the Paycheck Protection Program (PPP).
The PPP is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, PPP funds are offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses.
According to United States Attorney John C. Gurganus, Corradini pleaded guilty to a money laundering conspiracy involving his codefendant, Vicki Hackenberg, age 57, and others. Corradini created a shell corporation, CGM Realty LLC, and opened bank accounts and a Bitcoin trading account in the corporation’s name, by using false and forged documents. The conspirators used the accounts to receive over $135,000 in fraudulently obtained funds, and over $296,000 from a PPP loan that was obtained with false and forged documentation. That documentation included false information and certifications about CGM Realty LLC’s employee payroll obligations, and intention to use the funds for approved purposes, when in fact CGM Realty LLC had no employees or legitimate business operations. Forged IRS documentation also was included with the PPP application, containing false information about CGM Realty LLC’s nonexistent payroll obligations.
Over $350,000 of the fraudulent proceeds was used to purchase Bitcoins, a type of cryptocurrency. Although Corradini and Hackenberg were to each receive $40,000 for their participation in the offense, they ultimately received less than $10,000 of the fraudulent proceeds.
During sentencing, Chief Judge Brann highlighted Corradini’s lies to law enforcement officials and concealment of a separate bank account used to receive fraudulent proceeds. In addition to the Corradini’s sentence of imprisonment, Chief Judge Brann also ordered him to perform 20 hours of community service, and to pay $431,289 to the victims of his crimes. That restitution obligation is shared by Hackenberg, who previously was sentenced by Chief Judge Brann to serve 12 months’ imprisonment.
The case was investigated by agents with the Internal Revenue Service’s Criminal Investigations Division. The matter was prosecuted by Assistant U.S. Attorney Phillip J. Caraballo.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Berkley Nurse Pleads Guilty to Tampering with Patients' FentanylRead the Press Release
BOSTON – A Berkley nurse pleaded guilty today in federal court in Boston to tampering with fentanyl intended for patients at a hospital’s post-surgery recovery unit and an outpatient vascular surgery center.
Hugo Vieira, 41, pleaded guilty to one count of tampering with a consumer product. U.S. District Court Judge Angel Kelley scheduled sentencing for Aug. 24, 2022. Vieira was charged on March 3, 2022.
From December 2018 to January 2019, while working at a Massachusetts hospital and an outpatient vascular surgery center, Vieira removed fentanyl from vials meant for patients who were undergoing surgery or recovering from surgery. To conceal his conduct, Vieira replaced the diverted fentanyl with saline. Sixty tampered vials were identified at the vascular surgery center and two vials at the hospital post-surgery recovery unit. Those vials contained only 1.3–7% of the declared concentration of fentanyl citrate.
The charge of tampering with a consumer product provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Margret R. Cooke, Commissioner of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorneys Elysa Q. Wan and David J. Derusha of Rollins’ Health Care Fraud Unit are prosecuting the case.
Berkeley County woman sentenced for role in drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jaime Renee Coddington, of Falling Waters, West Virginia, was sentenced today to 21 months of incarceration for her role in a drug distribution operation, United States Attorney William Ihlenfeld announced.
Coddington, 35, pleaded guilty in June 2021 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Eutylone and Cocaine Base.” Coddington admitted to working with others to distribute Eutylone and Cocaine Base from October 2019 to April 2020 in Berkeley and Jefferson Counties.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. District Judge Gina M. Groh presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/west-virginia-and-virginia-residents-indicted-drug-trafficking-operation-berkeley-and
Bartlesville Teenager Pleads Guilty to Second Degree MurderRead the Press Release
A 17-year-old who abused a toddler, causing the child’s death, pleaded guilty Monday in federal court, announced U.S. Attorney Clint Johnson.
Terry Nathan Hindman, of Bartlesville, pleaded guilty to second degree murder.
“The abuse this young child endured at the hands Terry Hindman is horrific and his death a tragedy,” said U.S. Attorney Clint Johnson. “The U.S. Attorney’s Office takes seriously our charge to protect Oklahoma’s children and will bring to justice those who harm them.”
In a plea agreement, Hindman admitted that on Sept. 29, 2021, he was caring for a 23-month-old male child when he intentionally threw the young child across the room toward a couch with excessive force. The child’s head hit the wall directly behind the couch then he landed on a table in front of the couch striking his head again. Hindman said the child then stumbled and seemed dazed. Hindman failed to seek medical attention and did not tell anyone about the incident, including doctors when the child was taken to the hospital later that day.
On Oct. 2, 2021, Hindman was watching the child again when the child began having medical problems and appeared to have trouble breathing. Hindman did not seek medical care. The child’s mother later called an ambulance, and the child was transported to the hospital. During the second hospital visit, Hindman again failed to tell anyone about the Sept. 29 injury. The child was transferred to Oklahoma City and died on Oct. 7, 2021, from blunt force trauma, which was a result of the abuse that occurred on Sept. 29.
Hindman was charged as an adult for the crime.
The FBI and Bartlesville Police Department conducted the investigation. Assistant U.S. Attorneys Shannon Cozzoni and Chantelle D. Dial are prosecuting the case.
Baltimore man sentenced for drug trafficking chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dontaz Lavan Brandon, of Baltimore, Maryland, was sentenced today to five years of probation for a drug a charge, United States Attorney William Ihlenfeld announced.
Brandon, 24, pleaded guilty in December 2021 to one count of “Aiding and Abetting Possession with Intent to Distribute Fentanyl.” Brandon admitted to working with another to distribute fentanyl in January 2020 in Berkeley County.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. 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.
Assistant U.S. Attorneys Lara Omps-Botteicher and Timothy D. Helman prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated. The task force consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
U.S. District Judge Gina M. Groh presided.
Abingdon Man Sentenced for Stealing Mail and Bank FraudRead the Press Release
ABINGDON, Va. – An Abingdon, Virginia man, who stole hundreds of pieces of mail from over 100 different addresses in the Abingdon area, including a check he altered and cashed at a local bank, was sentenced today to 36 months in federal prison.
Bradley Alan Wolfe, 38, pleaded guilty in December 2021 to one count of possession of stolen mail and one count of bank fraud.
Wolfe admitted stealing mail from residential mailboxes in the Abingdon, Meadowview, Glade Spring, and Chilhowie areas from March through September of 2021. Items taken included multiple packages, cash, a United States passport, diabetes medication, and multiple checks worth thousands of dollars. In one instance, Wolfe altered a stolen check by replacing the payee’s name with his own and then cashed it at Eastman Credit Union in Abingdon for $4,890.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Greg L. Torbenson, Acting Postal Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division, made the announcement.
The Washington County Sheriff’s Office and the United States Postal Inspection Service investigated the case, with assistance provided by the United States Marshals Service.
Assistant U.S. Attorney Lena L. Busscher prosecuted the case.
3 Found Guilty of Participating in Scheme to Submit Millions of Dollars in Fraudulent Bills for Substance Abuse Treatment for TeensRead the Press Release
LOS ANGELES – A federal jury today convicted three defendants who participated in an $18.5 million scheme that submitted fraudulent claims to California’s Drug Medi-Cal program for alcohol and drug treatment services for high school and middle school students.
With today’s guilty verdicts, a total of 19 people have been convicted of federal criminal charges stemming from fraudulent bills submitted by a Long Beach company – the non-profit Atlantic Recovery Services (ARS), later called Atlantic Health Services – that provided substance use disorder treatment services to students at local high schools and middle schools through Medi-Cal and its Drug Medi-Cal program.
The three defendants convicted today of health care fraud charges are:
- Gregory Hearns, 66, of Compton, the billing supervisor for ARS who compiled the monthly billing and arranged for its submission to Medi-Cal (guilty of one count and acquitted on 10 others);
- LaLonnie Egans, 64, of Bellflower, a former manager at ARS (guilty of three counts);
- Tina Lynn St. Julian, 58, of Inglewood, a former counselor at ARS (guilty of four counts).
United States District Judge Philip S. Gutierrez is scheduled to sentence all three defendants on July 15, at which time each will face up to 10 years in prison for each count of conviction.
According to court documents and the evidence presented at a 12-day trial, the participants in the ARS scheme defrauded the Drug Medi-Cal program by submitting bills for services to students who did not medically need alcohol or drug treatment. ARS also billed Drug Medi-Cal for group and individual counseling sessions that were not provided or did not meet the requirements for reimbursement as to size, length, or setting. To support the false billings, ARS employees falsified numerous documents.
The former president and chief executive officer of ARS – Richard Mark Ciampa, 68, of Commerce – pleaded guilty last year and was sentenced in September to seven years in federal prison.
In March 2009, Drug Medi-Cal ordered ARS to repay an overpayment, which caused a significant amount of financial pressure on Ciampa and ARS. Ciampa, in turn, passed along this financial pressure to his employees and threatened the employees that they would lose their jobs with ARS or have their hours reduced to part-time if they did not generate significant billings. In response to Ciampa’s threats, ARS employees generated false and fraudulent claims for submission to Drug Medi-Cal.
Hearns also pressured ARS employees to increase billings. The pressure from ARS management prompted Egans and St. Julian to commit specific actions, including enrolling students in ARS’s substance abuse treatment program even if the students had used drugs or alcohol only one time or just occasionally, exaggerating documentation to falsely show that enrolled students had a medically diagnosed substance use disorder, falsifying documents to make it look like group and individual counseling sessions had taken place, collecting student signatures on sign-in sheets for group counseling sessions that the students did not attend or that were not conducted, and forging signatures on sign-in sheets and other documents that were used to support claims for reimbursement.
During the four-year period that ended in March 2013, ARS submitted false and fraudulent claims of just over $18.5 million, and Drug Medi-Cal paid approximately $17,635,100 on those claims.
The California Department of Justice, Division of Medi-Cal Fraud and Elder Abuse; the United States Department of Health and Human Services, Office of Inspector General; and the Internal Revenue Service - Criminal Investigation investigated this matter.
Assistant United States Attorneys Cathy J. Ostiller and Karen E. Escalante of the Major Frauds Section, and Assistant United States Attorney Nisha Chandran of the General Crimes Section are prosecuting this case.
"Long Time Coming" Update: Parkersburg Woman Sentenced to Prison for Role in Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Parkersburg woman was sentenced today to one and one-half years in prison, to be followed by three years of supervised release, for her role in a multi-state drug trafficking organization (DTO) responsible for distributing methamphetamine, fentanyl, cocaine and marijuana in Parkersburg and elsewhere.
According to court documents and statements made in court, Ambera Roberts, 34, admitted to participating in a conspiracy with Carlo Ramsey to distribute methamphetamine in and around Parkersburg. Roberts acquired methamphetamine from Carlo Ramsey and distributed it to others in the Parkersburg area between June and September 2021. Roberts was responsible for the distribution of nearly 100 grams of methamphetamine during the conspiracy.
Roberts previously pleaded guilty to conspiracy to distribute methamphetamine. Matthew Edward Depew, Carlo Ramsey, Floyd Dermonta Ramsey, Era Dawn Corder, and Robert Sanders, Jr. previously pleaded guilty to felony charges in United States District Court for the Southern District of West Virginia, as a result of a nearly year-long investigation dubbed “Long Time Coming.” All other defendants are awaiting sentencing. The investigation also resulted in more than a dozen arrests on state criminal complaints in Wood County.
United States Attorney Will Thompson made the announcement and commended the excellent investigative work of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Parkersburg Narcotics Task Force (PNTF), the Parkersburg Police Department, the West Virginia State Police, the United States Postal Inspection Service, the Vienna Police Department, the Williamstown Police Department, the Wood County Sheriff’s Department, the Cabell County Sheriff’s Department, the Boyd County, Kentucky, Sheriff’s Department, the Russell, Kentucky, Police Department and the Raceland, Kentucky, Police Department.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-163.
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Friday 6 May 2022
Wheeling man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Wright of Wheeling, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Wright, 42, pleaded guilty today to today on one count of “Unlawful Possession of a Firearm and Ammunition.” Wright, a person prohibited from having firearms, admitted to having a .9mm pistol, a five-shot revolver and ammunition for both firearms in June 2021 in Ohio County.
Wright faces up to 10 years of incarceration and a fine of up to $250,000. 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 Clayton J. Reid is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Wheeling Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Western Massachusetts Man Charged with Traveling to Meet Minor for SexRead the Press Release
ALBANY, NEW YORK – Martin Connearney, age 32, of Lenox, Massachusetts, was arrested yesterday and charged with traveling across state lines with the intent to engage in a sexual act with a minor.
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 charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The criminal complaint alleges that between April 6, 2022 and May 4, 2022, Connearney exchanged text messages with another person in which Connearney expressed interest in engaging in sexual conduct with a child. Connearney and the other person discussed plans in which Connearney would travel from Massachusetts in order to meet at a prearranged location in New York and engage in sexual acts with the child. On the morning of May 5, 2022, Connearney drove from Lenox to New York, where he was encountered by law enforcement officials and arrested.
Connearney appeared today before United States Magistrate Judge Daniel J. Stewart and was ordered detained after he waived his right to a detention hearing.
The charge filed against Connearney carries a maximum sentence of 30 years in prison, 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 Benjamin S. Clark.
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.
Virginia Company Agrees to Pay $800,000 to Resolve False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – An information technology service provider to the United States military has agreed to pay $800,000 to resolve allegations that it violated the False Claims Act by purchasing items for the personal use of their employees and billing those items against its government contracts, U.S. Attorney Philip R. Sellinger announced today.
The settlement resolves allegations that from Jan. 1, 2012, to Jan. 31, 2017, employees of Subsystems Technologies Inc. (STI), of Arlington, Virginia, purchased various electronic and luxury items for personal use, and then provided those items, along with sporting event tickets and other things of value, to government employees in order to gain favorable treatment. STI admitted that its employees purchased electronic and luxury items for the personal use by both STI employees and government employees while improperly charging those items against the government contracts awarded to STI for services at Picatinny Arsenal in Morris County, New Jersey.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; and special agents of the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge is Larry S. Moreland, with the investigation that led to the settlement.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Government Fraud Unit in Newark.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Vandalia Man Sentenced to 60 Months Imprisonment for Distributing Child PornographyRead the Press Release
EAST ST. LOUIS, Ill. – Bradley L. Matthews, 40, of Vandalia, Illinois, was sentenced on May 4,
2022, to 60 months imprisonment for distributing child pornography.According to the stipulation of facts agreed to by the parties, Matthews came to the attention of
law enforcement in February 2019 during an FBI undercover internet investigation of
child pornography. During the investigation, an undercover officer engaged in a
conversation with Matthews during which he sent the undercover officer three videos depicting
child pornography.In an interview with law enforcement on September 5, 2019, Matthews admitted distributing child
pornography. When shown the printout of the conversation with the undercover officer that took
place on February 5, 2019, Matthews identified himself as the person in the profile picture and
admitted that he was the person who had engaged in the conversation with the undercover officer and
distributed the child pornography videos.In addition to the 60-month term of imprisonment, Matthews will serve a ten-year term
of supervised release, fined $200, and ordered to pay a $100 special assessment.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.”
The case was investigated by the Federal Bureau of Investigation-Springfield Field Office.
Assistant United States Attorney Angela Scott prosecuted the case.United States Settles Suit Against VoIP Service Providers for Facilitating Millions of Illegal Telemarketing Calls about COVID-19Read the Press Release
Voice over Internet Protocol (VoIP) service providers, VoIP Terminator Inc. and BLMarketing Inc., and their owner, Muhammed Usman Khan, agreed to a court order resolving Federal Trade Commission (FTC) allegations that they facilitated tens of millions of illegal telemarketing calls, including some calls to numbers listed on the “Do Not Call” Registry and robocalls that displayed “spoofed” or fake caller ID numbers. This stipulated order resolves a lawsuit the United States filed in federal district court in the Middle District of Florida.
The government’s complaint alleges that Florida-based VoIP Terminator, Virginia-based BLMarketing and Pakistan resident and citizen Khan violated the FTC Act and the FTC’s Telemarketing Sales Rule (TSR). The defendants violated the TSR by assisting and facilitating the transmission of illegal calls for their customers, continuing to do so even after learning that their services were being used to initiate calls to numbers on the Do Not Call Registry and to place spoofed robocalls. The complaint alleges that the illegal calls transmitted by defendants included recorded messages about air duct cleaning services that purportedly filtered out COVID-19, preying on consumers’ fears of the virus, as well as messages involving credit card interest rate reduction and tech support scams.
The stipulated order bars the defendants from similar misconduct in the future, requires them to screen and monitor customers, terminate customers if they are engaged in improper telemarketing activity and imposes a $3.2 million civil penalty, payment of which is suspended due to defendants’ inability to pay. This is the FTC’s third case against VoIP services providers.
The FTC referred this case and the proposed stipulated order to the Department of Justice. The case was handled by attorneys in the Civil Division’s Consumer Protection Branch, including Trial Attorneys Ellen Bowden McIntyre and Zachary Dietert and Assistant Director Lisa Hsiao, in conjunction with attorneys at the FTC’s Bureau of Consumer Protection/Division of Marketing Practices.
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 and 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 attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866 720 5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
U.S. Attorney’s Office Reaches ADA Settlement with Milnor Public School DistrictRead the Press Release
Fargo - Interim United States Attorney Nicholas W. Chase announced today that the U.S. Attorney’s Office for the District of North Dakota entered into a settlement agreement with the Milnor Public School District ("School District") to resolve an allegation that the School District violated the Americans with Disabilities Act of 1990 ("ADA").
The settlement agreement resolves an ADA complaint alleging that the newly constructed playground at the Milnor Public School is inaccessible to students with disabilities, and that the School District failed to provide accessible transportation to a student with a disability for a field trip. Through its investigation into the complaint, the U.S. Attorney’s Office learned of serious barriers to access for students with disabilities at the playground. These barriers included a newly installed Engineered Wood Fiber playground surface that was loose and unstable, such that a wheelchair user would have extreme difficulty navigating the playground surface. Additionally, the route to the playground area included changes in level, running slopes, and cross slopes far exceeding those permitted under the ADA Standards for Accessible Design. Further, the U.S. Attorney’s Office learned about an incident in which a student with a disability was, rather than provided with accessible transportation, picked up and carried on to a non-accessible school bus for a field trip during the school day.
Under the terms of the settlement agreement, the School District will make modifications to the playground by September 1, 2022, to bring it into compliance with the ADA. Further, when transporting students with disabilities who use mobility devices, the School District will use vehicles with features such as lifts or ramps to properly assist and secure these students.
Interim U.S. Attorney Chase commended the School District for its exemplary cooperation throughout this investigation and for its commitment to the ADA. "Every child in North Dakota should have equal access to educational facilities," said Interim U.S. Attorney Chase. "I personally thank the Milnor Public School District for its full cooperation with our investigation and for its agreement to correct the issues at the playground before the upcoming school year. We hope other schools, park districts, and providers of playground equipment and installation services remain focused on the requirements of the ADA. Our office is committed to ensuring children with disabilities have full and equal access to educational and recreational opportunities in North Dakota."
Assistant U.S. Attorneys Tara Vavrosky Iversen and Melissa H. Burkland represented the United States in this matter, with assistance from Paralegal Specialist Michelle Erdmann.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in North Dakota is not accessible to persons with disabilities may file a complaint online at www.ada.gov or contact the U.S. Attorney’s Office at 701-297-7400.
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U.S. Attorney Cole Finegan Delivers Remarks at Colorado Law Enforcement MemorialRead the Press Release
Remarks as delivered:
Distinguished members of our law enforcement community, honored guests, friends, and most importantly our surviving family members:
Good morning. My name is Cole Finegan. I am the United States Attorney for the District of Colorado.
It is an honor today to be here with each of you to commemorate all Colorado Law Enforcement officers who have given their lives in the Line of Duty, dating back 160 years to 1862. We also are here to recognize the 17 officers whose names today will be added to this Memorial. With their addition, we now will have 342 names inscribed forever. We have surviving families with us today from Pueblo to Grand Junction, from Windsor to Antonito, and beyond.
Martin Luther King once noted, “Life’s most persistent and urgent question is what are you doing for others?”
As we gather today, we have no doubts that those we honor did all they could for their fellow citizens. When these men and women—husbands, wives, sons, daughters, fathers, mothers—put on their uniforms and headed out, there were no guarantees that they would return home safely. They did not. There are no guarantees today. And while most move away from danger, from gunfire, from violence, there are those among us who run toward the danger, knowing all too well that they truly are heading into harm’s way. I marvel at this. Frankly, I don’t know how those brave officers do that, how they summon the courage and will to run toward danger. But we are all grateful that they do that. We owe them our gratitude and our respect. And, for their ultimate sacrifice, we owe them the legacy that we commemorate and underscore here.
Today, I want to talk about these heroes and also about the men and women, the families and friends, that these heroes leave behind when they do make the ultimate sacrifice: when they do die in the line of duty. When I speak of heroes, I am not talking about athletes or celebrities we idolize, or even about the wonderful comic book characters that our children (and some of us adults love): Superman, Wonder Woman, Spiderman.
No, I am speaking about those brave officers who went into public service, put it all on the line, and made the ultimate sacrifice. And I am speaking about those who continue to put it all the on the line: many of you sitting here today.
Just miles from here, we saw first-hand the heroic actions of two such people last year.
On March 22, 2021, Boulder Police Officer Eric Talley had stopped to help a woman changing a tire. Moments later, he got a call. An active shooter at the King Soopers on Table Mesa Road. He was needed.
Officer Talley arrived, sized up the situation, and ran toward the gunfire. He was the first officer on the scene. As I said before, there are some people so brave that they run toward danger.
In the blink of an eye, Officer Talley was killed by the gunman who killed 9 other innocent people that day. But from the time Officer Talley entered the store and confronted the suspect, no other innocent civilians were hurt. Officer Talley’s Supervisor said, “Eric died a hero, giving his all to save others. He did not die in vain. He answered a call for help in which he knew people were dying. He saved many lives.”
Eric was a man of deep faith, a devout Catholic. At his funeral, a priest observed wisely that Eric’s life was not taken: Eric gave his life.
Eric was devoted to his family and to his faith, and by all accounts, he had a wicked sense of humor. He was kind. He was brave. He will be missed forever by those who knew him and loved him.
Three months after Eric’s murder, on June 21, 2021, Arvada Police Officer Gordon Beesley responded to a call about a suspicious incident near the Arvada Library. A gunman ambushed Officer Beesley, killing him in an instant. The gunman targeted Officer Beesley because he was a police officer, he was wearing a uniform and a badge. The gunman had expressed a hatred of police officers, and he acted out his hatred by murdering Officer Beesley.
Gordon Beesley was more than a police officer in his community. He was a school resource officer known for taking a compassionate approach with students. In 2015, he began biking to school alongside a 7th grader with a developmental delay. After learning that this boy was interested in bicycles, but his mom didn’t want him riding alone, Officer Beesley -- Gordon -- made time before his school shift to ride with the boy, to make a difference in his life.
Gordon, his wife, and his two sons, enjoyed living here. They loved the Colorado outdoors. They hiked, biked, skied, camped. Gordon liked to travel and to learn. He played drums in a band. His motto was “Look for the good in every day.”
Gordon was the good in every day. I hope that he knew that.
Both officers of whom I have spoken were taken away in a moment. From their families. From their friends. From their communities.
Yet others have been lost in the past year in different ways, no less heartbreaking and damaging. Sadly, COVID was the leading cause of death among American law enforcement officers last year.
Here in Colorado, we have added 8 names on these panels for those killed by the coronavirus. We pay tribute to those officers who sacrificed their health, and ultimately their lives, while keeping the rest of us safe.
The current pandemic prompted a Denver Police Sergeant to research the Spanish Flu epidemic of 1918. We now have 8 historical additions, including two Denver police officers, Frank Potestio and Peter Walsh, who died responding to the 1918 crisis.
Whether lost suddenly or gradually, recently or in 1918 in Denver or in 1908 in Antonito, the heaviness of grief weighs on those closest who are left behind. Remarkably, we have 30 family members here today from Antonito to honor the town marshal killed 114 years ago. They’ve all traveled from the very southern part of our state to be here, to pay their respect and honor Marshal Rafael Peña’s sacrifice made 114 years ago. His memory endures. As does our grief.
Grief is described in many ways: “Grief is the tax we pay for our attachment. Grief is the final act of love.” But no matter how it is described, it is real. It brings a heaviness that is physical, and there is no set time or day that it will leave. It may never fully leave.
I have read that “Loss is a kind of eternal conscience, urging us to make better use of our finite days.” And to quote Eric Talley’s wise priest once more, “What are we doing with the days we have left??"
In the U.S. Attorney’s Office, we know that we have much work to do in the days we have left. We are committed to work with our partners in law enforcement at the local, state, and federal levels, many of whom are represented right here, to do all we can to go after violent criminals who make our communities more dangerous. We do this work because we want for our citizens to be safe.
And on this day especially, we very much want the women and men in blue, who risk it all every day, to know how much they mean, and just how much we depend upon them.
As I close, let me say again that our debt not only is to those brave officers who have died in our service, but also to those loved ones left behind. We owe all of you our gratitude, our support, and our respect, and you certainly have every measure of that devotion.
The following words are inscribed on the National Law Enforcement Officers Memorial in Washington: “It is not how these officers died that made them heroes. It is how they lived.”
By every measure that matters, they lived well.
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Link to ceremony: https://fb.watch/cRdeJpbc-D/
Colorado State PatrolTwo Puerto Rico Mayors Arrested and Charged with Accepting BribesRead the Press Release
The mayors of two municipalities in Puerto Rico were arrested yesterday for allegedly engaging in conspiracy, soliciting bribes, and extortion.
According to the indictment, unsealed yesterday in the District of Puerto Rico, Javier García-Pérez, 46, Mayor of Aguas Buenas, was involved in a bribery conspiracy in which, from 2017 through 2021, he received and accepted cash payments from two businessmen in exchange for awarding municipal contracts for waste disposal services, asphalt and paving services, and debris removal and paying outstanding invoices on the contracts. The indictment alleges that García-Pérez received at least $32,000 in cash payments from the two businessmen from August 2020 through September 2021.
A second indictment unsealed yesterday alleges that Reinaldo Vargas-Rodriguez, 48, Mayor of Humacao, was involved in a bribery conspiracy in which, from January to July 2021, he received and accepted cash payments from two businessmen in exchange for awarding municipal contracts for waste disposal and asphalt and paving services, and for paying outstanding invoices on the contracts. The indictment alleges that Vargas-Rodriguez received at least $15,000 in cash payments from the two businessmen from March 18, 2021, through April 15, 2021.
If convicted of all counts, García-Pérez and Vargas-Rodriguez each face up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Assistant Director Luis M. Quesada of the FBI’s Criminal Investigative Division made the announcement.
The investigation was conducted by the FBI’s San Juan Field Office.
The cases are being prosecuted by Trial Attorney Nicholas W. Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Scott H. Anderson for the District of Puerto Rico.
The cases are part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matters, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts. See United States v. Luis Arroyo-Chiques, 21-485 (SCC); United States v. Eduardo Cintron-Suarez, 22-151 (SCC); United States v. Felix Delgado-Montalvo, 21-463 (RAM); United States v. Oscar Santamaria-Torres, 21-464 (RAM); United States v. Raymond Rodriguez, 21-465 (RAM).
Additionally, the department recently obtained indictments charging several former officials and contractors with bribery related to municipal contracts, and those cases are still pending. See United States v. Mario Villegas-Vargas, 21-468 (FAB); United States v. Angel Perez-Otero, 21-474 (ADC); and United States v. Radames Benitez-Cardona, 21-475 (PAD).
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Former Managers of National Grid Sentenced to Prison for Bribery and Kickback SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Patrick McCrann and Richard Zavada, two former managers in the facilities department of the New York utility company National Grid, were sentenced by United States District Judge Carol Bagley Amon for their participation in a years-long bribery and kickback scheme. Zavada was sentenced to a year and one day in prison, with a $10,000 fine and $330,735 forfeiture and McCrann was sentenced to a year and one day of prison, with a $10,000 fine and $200,000 forfeiture. The defendants each pleaded guilty to a violation of the Travel Act in October 2021.
Carolyn Pokorny, First Assistant United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentences.
“Today’s sentence metes out just punishment to these bid riggers who accepted hundreds of thousands of dollars in bribes and kickbacks, including cash, international vacations, home improvements, and recreational vehicles,” stated First Assistant United States Attorney Pokorny. “This Office will continue to root out corruption that undermines the integrity of competitive bidding in the procurement process.”
McCrann and Zavada were National Grid managers employed in the facilities department, who steered contracts to certain contractors in exchange for hundreds of thousands of dollars in bribes and kickbacks. One contractor (the “Contractor”) secured more than $50 million in facility maintenance contracts from National Grid during the time that the Contractor was paying bribes to the defendants. As managers, the defendants had the authority to approve “no-bid” contracts valued at less than $50,000. The Contractor understood that if it did not pay bribes, these defendants would award National Grid’s work to the Contractor’s competitors. In exchange for the bribe payments, the defendants also took various steps to assist the Contractor in obtaining contracts from National Grid, including, among other things, offering favorable reviews of the Contractor’s work. The Contractor paid bribes to ensure that the defendants did not slow or stop disbursement of project funds to the Contractor, provide negative performance reviews regarding the Contractor’s work, or otherwise claim that the Contractor’s work did not meet contractual specifications.
The illicit payments to the defendants took multiple forms, including cash, the purchase of recreational vehicles, home improvements, landscaping and overseas vacations. As part of the investigation, agents recovered approximately $300,000 in cash from a safe deposit box held by Zavada.
Three other former National Grid managers, Devraj Balbir, Ricardo Garcia and Jevan Seepaul, have previously entered pleas of guilty to accepting bribes from the Contractor and are awaiting sentence.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Turner Buford and Artie McConnell are in charge of the prosecution.
The Defendants:
Patrick McCrann
Age: 57
Selden, New YorkE.D.N.Y. Docket No. 21-CR-467 (CBA)
Richard Zavada
Age: 65
Hicksville, New YorkE.D.N.Y. Docket No. 21-CR-468 (CBA)
Two Florida Men Sentenced to Ten and Six and a Half Years in Prison for Roles in Massive COVID-19 Relief Fraud SchemeRead the Press Release
Two Florida men were sentenced today for leading a nationwide scheme to defraud the Paycheck Protection Program (PPP) for millions of dollars in loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The U.S. District Court for the Northern District of Ohio sentenced James Stote, 56, of Hollywood, to ten years in prison, and Phillip J. Augustin, 53, of Coral Springs, to six and a half years in prison. Stote and Augustin each pleaded guilty to conspiracy to commit wire fraud on Dec. 14, 2021.
According to court documents, Augustin and Stote obtained a fraudulent PPP loan for Augustin’s company, Clear Vision Music Group LLC, using falsified documents. After submitting that application, Stote and Augustin immediately began trying to illicitly obtain larger PPP loans for themselves and their associates. Stote and Augustin recruited additional PPP loan applicants and prepared and submitted fraudulent loan applications for them in exchange for a share of the loan proceeds. Augustin used his network of business contacts as a manager for professional football players to recruit loan applicants. The applications they submitted for these loans relied on fake payroll numbers, falsified IRS forms, and phony bank statements. Stote submitted or facilitated at least 79 fraudulent loan applications worth at least $35 million. Among those loans, Augustin was also held responsible for at least 34 fraudulent loan applications worth at least $15 million.
The scheme included at least two loans to entities in Northeast Ohio that fraudulently obtained approximately $875,000.
In addition to their prison sentences, Stote was ordered to serve three years of supervised released and pay $10,149,752.69 in restitution and forfeit $1,137,715.13 in U.S. currency, four Rolex watches and other jewelry items valued at more than $31,000.
Augustin was ordered to serve three years of supervised released and pay $5,910,277.72 in restitution and forfeit $280,269.35 in U.S. currency.
In total, 25 people have been charged for their participation in this scheme in the Northern District of Ohio, Southern District of Florida, and Middle District of North Carolina.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio; Special Agent in Charge Bryant Jackson of the IRS-Criminal Investigation (IRS-CI) Cincinnati Field Office; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Interim Special Agent in Charge Philip E Frigm, Jr. of the FBI’s Cleveland Field Office; and Special Agent in Charge Sharon Johnson of the SBA’s Office of Inspector General (SBA-OIG) Central Region made the announcement.
The IRS-CI, FBI, and SBA-OIG are investigating the cases.
This case was prosecuted by Assistant U.S. Attorney Elliot Morrison for the Northern District of Ohio and Trial Attorney Philip Trout of the Criminal Division’s Fraud Section.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Todd County Man Indicted for Aggravated Sexual Abuse and Abusive Sexual ContactRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Todd County, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Minor and Abusive Sexual Contact of a Minor.
Fremont Menard, a/k/a Fremont Menard, Jr., age 19, was indicted on February 8, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 5, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $250,000 fine, 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between on or about August 23, 2021, and September 4, 2021, in Todd County, South Dakota, Menard knowingly engaged in, and attempted to engage in, sexual contact with a minor under the age of 16, by the use of force. The Indictment further alleges that on or about September 4, 2021, Menard knowingly engaged in, and attempted to engage in, a sexual act with a different minor under the age of 16, by the use of force.
The charges are merely accusations and Menard is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Menard was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 28, 2022.
Texas Man Sentenced for Defrauding Cisco Systems and Other Companies Out of over $1.9 Million in Computer Hardware and ElectronicsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Vaugh Simon, 29, of Pearland, TX, was sentenced today to one year and three months in prison, and was ordered to pay a total of more than $1.9 million restitution, including more than $1.7 million to Cisco Systems Inc., by United States District Judge Joel H. Slomsky for operating a sophisticated warranty claim scheme which targeted multiple tech companies. Simon was also ordered to separately forfeit more than $178,000 in criminal proceeds that he earned through his fraud.
In June 2020, the defendant pleaded guilty to 22 counts of mail fraud, eight counts of wire fraud, two counts of filing a false tax return, and one count of tax evasion. Simon’s conviction stems from a complex scheme he perpetrated with several co-schemers in order to defraud Cisco, Sony Electronics, The Neat Company, Canon USA, APC by Schneider Electric, iRobot Corporation, and Skullcandy, Inc., out of various electronics and expensive computer hardware, by submitting to these manufacturers hundreds of false warranty claims seeking the advance replacement of more than $4 million worth of products. While not every false claim was successful, more than 200 of the claims did deceive the manufacturers, and Simon successfully induced them to ship more than $1.9 million worth of merchandise to him, most of which he sold via the internet or to computer equipment resellers.
The fraud scheme involved the registration of false domain names and the creation of false e-mail addresses, which were used to submit the false warranty claims under false identities. Simon typically obtained legitimate serial numbers for items that he did not own and then contacted the manufacturers, using the false identities and the false email addresses he had created, and claimed to be the owner of computer hardware or other electronic items that were supposedly broken and supposedly covered by warranties. The defendant knew how to explain the supposed problem in such a way that the items in question could not be fixed through trouble shooting and would instead require replacement. Simon promised to return the supposedly broken items as soon as he received the advance replacements, and he gave false addresses to which the replacement warranty items could be shipped. Simon then sold most of the replacement items at a deep discount and never returned any of the supposedly broken items, because he never owned them in the first place.
The primary victim of Simon’s fraud was Cisco. With respect to Cisco, between November 2014 and June 2017, Simon and two co-schemers submitted 284 false warranty claims using false identities for products they did not own. Of these, 209 successfully deceived Cisco into shipping Cisco hardware worth more than $1.7 million, all of which Simon and his co-schemers sold. Simon’s scheme was uncovered through the work of Cisco’s internal investigation team, which identified the suspected fraud and contacted the FBI, which then began a joint criminal investigation with the Internal Revenue Service, Criminal Investigation Division (IRS-CID).
In addition, the IRS-CID determined that Simon had filed false tax returns in 2014 and 2016, and also criminally evaded the payment of income taxes for 2015, during which time he earned over $400,000 through his fraud yet failed to declare that income to the IRS. Simon is the second person sentenced as part of this investigation: Justin David May, 32, of Wilmington, DE, was sentenced to four years and eight months in prison in June 2021.
“Warranties are designed to make consumers whole by replacing faulty products, not to be exploited by scammers looking to turn an illegal profit,” said U.S. Attorney Williams. “Warranty fraud is not a victimless crime, rather, companies which support employment for thousands of workers stand to lose millions of dollars, which was the case here. The defendant's scheme caused real harm, and for that he will now spend time behind bars. I would like to thank the FBI and IRS for their dedication and partnership in this matter.”
“Simon not only stole from these companies, but he also stole from the American public and the IRS,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “The loss of his liberty, along with restitution is the price he now has to pay.”
“Vaughn Simon took advantage of these companies’ warranty programs to score nearly $2 million in free merchandise,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “That’s not ‘gaming the system’ — that’s blatant, out-and-out fraud. To anyone else engaged in a scheme like this, know that the FBI will work to shut you down and hold you accountable for your actions.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Suburban Chicago Manufacturing Executives Guilty of Scheming to Hire Undocumented WorkersRead the Press Release
CHICAGO — Two siblings who operated a suburban Chicago manufacturing company have pleaded guilty in federal court to knowingly hiring undocumented workers.
KENNETH KUZELKA, 64, of Chicago, pleaded guilty Thursday to conspiracy to commit alien harboring for purposes of financial advantage, and his sister, KARI KUZELKA, 59, of Elgin, Ill., pleaded guilty to engaging in a pattern and practice of hiring unauthorized aliens.
The Kuzelkas admitted in plea agreements that in 2017 they schemed with the executive vice president of a Chicago staffing company to knowingly re-hire approximately 20 undocumented workers at KSO MetalFab Inc., a sheet metal fabrication company in Streamwood, Ill. The undocumented workers were previously employed by the company but had been terminated after agents from Homeland Security Investigations (HSI) served the company with notice of suspected violations regarding the workers’ employment-verification documents. The staffing agency facilitated the undocumented workers’ return to the company.
The conspiracy charge against Kenneth Kuzelka is punishable by up to ten years in federal prison, while Kari Kuzelka faces up to six months. U.S. District Judge Sara L. Ellis set sentencings for Aug. 2, 2022.
The Kuzelkas’ plea agreements were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the HSI Chicago office. The U.S. Department of Labor and U.S. Social Security Administration provided valuable assistance. The government is represented by Assistant U.S. Attorney Ashley A. Chung.
The staffing agency executive vice president – SERGIO BADANI of St. Charles, Ill. – previously pleaded guilty to his role in the scheme and was sentenced to two years of probation and fined $15,000. A fourth defendant – KEITH KUZELKA of Elgin – also pleaded guilty and was sentenced to a year of probation.
Steubenville man sentenced to more than 7 years in federal prison for distributing fentanylRead the Press Release
COLUMBUS, Ohio – A Steubenville, Ohio, man was sentenced in federal court today to 90 months in prison for his involvement in fentanyl trafficking.
Llyod George Douglas, Jr., 39, pleaded guilty in November 2021 to conspiring to attempt to possess with intent to distribute more than 400 grams of fentanyl.
According to court documents, in May 2021, law enforcement intercepted a package from Long Beach, California, addressed to Douglas’s residence that contained approximately 500 grams of fentanyl. Law enforcement then arranged for a controlled delivery of the package after removing the narcotics and inserting an electronic device that would signal when the package was opened.
Douglas transported the package to another residence in Steubenville where the mail was opened. Douglas ran outside shortly after the package was opened and was apprehended by law enforcement.
While searching both residences, investigators discovered firearms and nearly $15,000 in cash.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the sentence imposed today by Chief U.S. District Judge Algenon L. Marbley. U.S. Attorney Parker commended the cooperative investigation by the Cleveland Postal Inspection Service, Drug Enforcement Administration (DEA), Jefferson County Drug Task Force and Hancock Brooke Weirton Drug and Violent Crimes Task Force. Assistant United States Attorney Kevin W. Kelley and Jefferson County Prosecutor Jane Hanlin represented the United States in this case.
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Schuylkill County Man Sentenced to 120 Months’ Imprisonment for Possession of Child PornographyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jason Michael Herman, age 39, of Pine Grove, PA, was sentenced on May 5, 2022, to 120 months’ imprisonment to be followed by a 10-year term of supervised release, by United States District Court Judge Robert D. Mariani, for possessing visual depictions of minors engaged in sexually explicit conduct.
According to United States Attorney John C. Gurganus, during the Fall of 2020, Herman uploaded 9 videos (or approximately 675 images) of child pornographic content onto an internet-based social media application, including images showing the abuse of minors under the age of 12, and sent the videos to other users. At the time of this offense, Herman had a prior 2007 New Jersey conviction for possessing child pornography, the existence of which resulted in an enhancement of his federal sentence to a mandatory term of imprisonment of 120 months. At sentencing, Judge Mariani also ordered that Herman comply with the Sex Offender Registration and Notification Act (SORNA).
The case was investigated by the Federal Bureau of Investigation (FBI) – Philadelphia Division. Assistant United States Attorney Jeffery St. John prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit justice.gov/psc.
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Salt Lake City Estate Planning Attorney Sentenced to 97 Months in Prison and Ordered to Pay over $12.7 Million Dollars to 26 VictimsRead the Press Release
SALT LAKE CITY – Attorney Calvin Curtis, 61, of Salt Lake City, was sentenced to serve 97 months in federal prison by a U.S. District Court Judge today. Curtis was ordered to pay $12,779,496 in restitution to the 26 victims of his crimes and sentenced to an additional three years of supervised release upon his release from federal prison.
Curtis previously pleaded guilty in November of 2021, to embezzling millions of dollars from clients of his estate planning law firm based in Salt Lake City, known as Calvin Curtis Attorney at Law PLLC, and Curtiselderlaw.com. By the time of his sentencing, it had been discovered that Curtis had embezzled over $12 million dollars from his former clients who prosecutors say are elderly, incapacitated, or disabled individuals.
In the plea agreement, Curtis admitted that he is an attorney who specialized in special needs trusts and that beginning in January 2008, he began a fraudulent scheme to defraud a client known as “G.M.” out of money. Curtis admitted that due to his role, he had access to millions of dollars in two different trust accounts belonging to victim G.M., and that he transferred at least $9,500,000 intended for the care of G.M. into his own accounts, and then used this money for his own personal use. Curtis admitted that he also created fake financial statements and submitted these to the court ordered conservator of G.M. to conceal the fraud.
In pleading guilty to the wire fraud charge, Curtis admitted that on January 25, 2018, that he caused a wire communication from a Schwab Investment Account to his own Wells Fargo account, resulting in a transfer of $1,485,000. Curtis admitted that he used the money for his own personal benefit to make mortgage payments on his combined home and office located on South Temple Street in Salt Lake City, Utah; to support a lavish lifestyle with frequent travel; to purchase tickets to basketball and football games; to give lavish gifts to others; and to support the operations of his law firm.
In pleading guilty to the money laundering count, Curtis admitted that he fraudulently caused $135,000 to be transferred online from G.M. to his own Wells Fargo account, and that he used these funds to wire $95,000 to The Fechtel Company for the remodel of his home in Tampa, Florida. Curtis admitted that he knew these transactions were illegal at the time they occurred, and that the money was not used for the benefit of G.M.
Assistant United States Attorneys prosecuted the cases against Curtis and Special Agents from the FBI and IRS Criminal Investigation conducted the investigation.
Rogers Man Sentenced to 60 Years in Federal Prison for Aggravated Sexual Abuse and Production of Child PornographyRead the Press Release
FAYETTEVILLE – A Rogers man was sentenced today to 60 years in prison without the possibility of parole on one count of Production of Child Pornography and one count of Aggravated Sexual Abuse of a Minor. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the U.S. District Court in Fayetteville.
According to court documents, in July 2020, Rogers Police Department received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) regarding a Snapchat user that was uploading child sexual abuse material. The investigation led police to Michael Henderson LeClaire, 34, of Rogers, Arkansas. Results of search warrants conducted on LeClaire’s residence and electronics, showed LeClaire had produced videos of child sexual abuse material involving multiple minors. Multiple videos showed LeClaire sexually abusing an approximately 5-year-old male, 5-year-old female, and a 2-year-old male. Further, the investigation showed LeClaire had traveled across state lines to engage in sexual acts with two of the minors.
LeClaire was indicted by a Grand Jury in the Western District in July 2021 and entered a plea of guilty in November 2021.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Rogers Police Department and the Arkansas Child Exploitation and Human Trafficking Task Force investigated the case.
Assistant U.S. Attorney Tyler Williams prosecuted the case for the United States.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oxon Hill Man Sentenced to over 10 Years in Federal Prison for a Drug Distribution Conspiracy and for Illegal Possession of Stolen FirearmsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Zaid Rushdan, age 41, of Oxon Hill, Maryland, yesterday to 126 months in federal prison, followed by seven years of supervised release, on charges of conspiracy, possession with intent to distribute controlled substances, and possession of stolen firearms.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Special Agent in Charge Charlie Patterson of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Washington Field Division; and Chief Malik Aziz of the Prince George’s County Police Department.
According to his guilty plea, from at least December 2020 until February 11, 2021, Rushdan conspired with others to distribute and possess with intent to distribute over one kilogram of phencyclidine (“PCP”) and over 28 grams of crack cocaine.
Specifically, the DEA began investigating Rushdan, a co-conspirator, and others for distributing narcotics in Southern Maryland and the District of Columbia. Agents determined that Co-Conspirator 1 was transporting drugs and drug proceeds to facilitate Rushdan’s drug trafficking business after seeing Co-Conspirator 1 at Rushdan’s apartment on multiple occasions, leaving and picking up bags at the apartment while traveling to and from drug trafficking locations.
On February 11, 2021, law enforcement executed a search warrant at Rushdan’s apartment and seized: over a gallon (4,486 grams) of PCP with a purity of between 7% and 12%; approximately 299 grams of powder cocaine; approximately 31 grams of crack cocaine; plastic baggies containing pills and powders, subsequently identified to include 50 grams of heroin and 81.35 grams of Eutylone; approximately seven pounds of marijuana; seven handguns; two rifles; approximately 652 rounds of ammunition; and $14,485 in cash.
Rushdan admitted that the $14,485 in cash were proceeds of his drug trafficking business and the firearms were used, or were intended to be used, to facilitate his drug trafficking. As detailed in his plea agreement, Rushdan also knew, or had reasonable cause to believe, that four of the firearms were stolen, specifically, a Glock .40 caliber pistol, a Springfield Armory .45 ACP pistol, a Smith and Wesson 9x19mm pistol, and an Auto-Ordnance Corporation .45 ACP pistol.
“The outcome of this case is the result of extremely great work done by the individuals that took part in this investigation. We can thankfully say, there is one less criminal off of our streets. We at ATF work tirelessly to keep our communities safe from people who endanger our neighborhoods,” said Special Agent in Charge Charlie J. Patterson. “We will continue to work collaboratively with all of our partners to combat violent crimes in an effort to maintain public safety.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the DEA, the ATF, and the Prince George’s County Police Department for their work in the investigation and thanked the U.S. Attorney’s Office for the District of Columbia, the Town of Vienna, Virginia Police Department, the Alexandria, Virginia Police Department, the Virginia State Police, the Arlington, Virginia Police Department, the Loudoun County, Virginia Sheriff’s Office, and the Fairfax County Police Department for their assistance. Mr. Barron thanked Special Assistant U.S. Attorney Patrick D. Kibbe and Assistant U.S. Attorney Adam K. Ake, 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 https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Nearly 100 dogs rescued during investigation into animal fightingRead the Press Release
SAVANNAH, GA: Nearly 100 dogs were rescued as a result of an investigation into animal fighting in three Georgia counties.
The investigation, led by the U.S. Department of Agriculture Office of Inspector General, the U.S. Drug Enforcement Administration, and the Laurens County Sheriff’s Office, culminated in the execution of seven search warrants in Laurens, Johnson, and Washington counties, with a total of 96 dogs rescued, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The animals rescued in the operation are in the custody of the USDA for evaluation.
The continuing investigation, with the assistance of personnel from the Laurens County Sheriff’s Office, the Johnson County Sheriff’s Office, and the Washington County Sheriff’s Office, targets animal fighting operations in the Southern District and beyond.
Montgomery County Drug Dealer Pleads Guilty to Distribution of Fentanyl that Led to an Overdose DeathRead the Press Release
Greenbelt, Maryland – Enitan Mouroukeji Agbi, a/k/a “Anton Agbi,” and “Tone,” age 38, of Germantown, Maryland, pleaded guilty yesterday to distribution of fentanyl. Agbi admitted that Victim 1 died as a result of using drugs that Agbi distributed.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Chief Marcus Jones of the Montgomery County Police Department; Chief Malik Aziz of the Prince George’s County Police Department; Chief Darryl McSwain of the Maryland National Capital Park Police; Chief Robert J. Contee III of the Metropolitan Police Department; and Chief Victor Brito of the City of Rockville Police Department.
According to his guilty plea, on August 10, 2020, just prior to Victim 1’s fatal overdose, Victim 1 contacted Agbi by telephone to obtain heroin/fentanyl. Victim 1 agreed to meet Agbi at Hotel A in Gaithersburg, where Agbi was staying. Victim 1 texted Agbi when Victim 1 arrived at the location and Agbi went out the Victim 1’s car to complete the transaction. Surveillance video from Hotel A, as well as cell site location records, confirmed that Victim 1 was in the vicinity of the hotel and that Agbi left the hotel and walked towards Victim 1’s car. A short time later, Victim 1’s car left the area and went straight home, without making any other stops.
At about 10:00 p.m. on August 10, 2020, Victim 1 was found dead in her bedroom. Law enforcement officers located a clear plastic baggie containing .42 grams of fentanyl mixed with heroin and a straw next to Victim 1’s body. No other people were in Victim 1’s residence at the time of Victim 1’s death and Victim 1 lived alone. An autopsy determined that Victim 1’s cause of death was acute intoxication by the combined effects of fentanyl, despropionyl fentanyl, and morphine. Victim 1 was an otherwise healthy individual.
After August 25, 2020, Agbi relocated to Hotel B in Germantown, Maryland. On August 28, 2020, law enforcement officers executed a search warrant at Agbi’s hotel room in Hotel B. Officers recovered approximately 10 clear plastic capsules containing a total of approximately 2.76 grams of fentanyl mixed with heroin, knotted bags containing a total of approximately 2.6 grams of heroin mixed with fentanyl, and drug distribution paraphernalia, including a digital scale and sandwich bags used to package controlled substances (and which were consistent with the clear plastic baggie found with Victim 1 on August 10, 2020).
Following the search, Agbi was placed under arrest. Agbi admitted that he was a user and distributor of opioid drugs and that he met with Victim 1 on August 10 at Hotel A and provided Victim 1 with opioid drugs. He stated that Victim 1 used opioid drugs Agbi provided in his presence.
Agbi and the government have agreed that, if the Court accepts the plea agreement, Agbi will be sentenced to 114 months in federal prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for September 20, 2022 at 9:00 a.m.
United States Attorney Erek L. Barron commended the DEA, the Montgomery County Police Department, the Prince George’s County Police Department the Maryland National Capital Park Police, the Metropolitan Police Department, and the City of Rockville Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Elizabeth Wright and Joel Crespo, 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 and click on the “Save A Life” link.
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Missoula man admits trafficking and firearm crimes after law enforcement seize more than seven pounds of meth, fentanyl and a handgunRead the Press Release
MISSOULA — A Missoula man today admitted to drug trafficking and firearm crimes after law enforcement seized more than seven pounds of meth from his residence and vehicle, fentanyl and a handgun, U.S. Attorney Leif M. Johnson said.
Carlos Guatimea Aguirre, 35, pleaded guilty to possession with intent to distribute meth and fentanyl and to possession of a firearm in furtherance of a drug trafficking crime. Aguirre faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug crime and a mandatory minimum five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearm crime.
U.S. Magistrate Judge Kathleen L. DeSoto presided. A sentencing date was set for Aug. 24 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Aguirre was released pending further proceedings.
In court documents, the government alleged that from about September 2020 until October 2021, Aguirre and a co-defendant, were trafficking meth and fentanyl. Law enforcement conducted a traffic stop of Aguirre to execute a search warrant on the car. Aguirre removed a pouch from his chest as he got out of the car and placed it inside the vehicle. A subsequent search determined that the pouch contained a Glock 9mm handgun. Law enforcement also located a quarter pound of meth that was packaged for sale inside the car. Officers also served a search warrant on Aguirre’s residence and located 6.9 pounds of meth and fentanyl pills. Seven pounds of meth is the equivalent of about 25,368 doses. The investigation showed that Aguirre made 34 wire transfers from August 2019 to September 2021 to addresses in Billings; Fresno, California; Las Vegas, Nevada; and Albuquerque, New Mexico, totaling approximately $22,000, and that he traveled multiple times to Fresno and Sacramento, California, and to Spokane, Washington.
Assistant U.S. Attorney Jennifer S. Clark is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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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Methamphetamine Dealer Sentenced to 16 Years in Federal PrisonRead the Press Release
HARRISONBURG, Va. – A Mount Jackson, Virginia man, who was convicted following a three-day jury trial in January of 2022 of distributing methamphetamine and carrying a firearm while doing so, was sentenced today to 16 years in federal prison to be followed by five years of supervised release.
Merle Brook Stephens, 53, was found guilty in January of one count of knowingly or intentionally possessing with the intent to distribute 50 grams or more of methamphetamine, one count of carrying a firearm in relation to a drug trafficking crime, and one count of possession of a firearm by a previously convicted felon.
According to evidence presented at trial, as part of a larger law enforcement sting operation, Stephens was arrested on December 7, 2018 as he left his hotel room in Mount Jackson, Virginia. At the time of his arrest, Stephens was in possession of more than 323 grams of methamphetamine, a loaded .45 caliber semiautomatic handgun with five loaded magazines, $3,637 in cash, and a variety of drug paraphernalia items.
U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia and Charlie J. Patterson, Special Agent in Charge of ATF’s Washington Field Division, announced the sentence.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Shenandoah County Sheriff’s Office, the Northwest Virginia Regional Drug and Gang Task Force, the Mount Jackson Police Department, the Woodstock Police Department, the Timberville Police Department, and the Shenandoah County Commonwealth’s Attorney’s Office investigated the case.
Assistant U.S. Attorneys Rachel B. Swartz and Ronald M. Huber prosecuted the case.
Massachusetts Woman Pleads Guilty to Bank FraudRead the Press Release
CONCORD - Donna Silva, 44, of Lowell, Massachusetts pleaded guilty in federal court to bank fraud, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, in February of 2019, Silva was involved in a scheme to defraud several financial institutions. The defendants in the scheme applied for and obtained multiple loans to purchase cars purportedly sold by Allied Imports, a Manchester car wholesaler, and Cap’s Auto Sales, a Manchester car retailer. The sales were fraudulent because the defendants never owned or greatly inflated the value of the cars. In total, the defendants defrauded the financial institutions of several hundred thousand dollars.
Silva signed a fraudulent purchase contract and Assignment of Title with Cap’s Auto Sales purporting to state that she would buy a car sold by the company. She then used the documents to apply for and obtain a car loan secured by the vehicle, which Cap’s Auto Sales did not own or have the title to.
Silva is scheduled to be sentenced on August 15, 2022.
“By submitting false documents to obtain fraudulent loans, the defendant participated in a substantial criminal scheme,” said U.S. Attorney Young. “As this case demonstrates, we work closely with our law enforcement partners to identify and prosecute those who commit fraud. By working together, we strive to hold these criminals accountable for their unlawful conduct and seek justice for victims.”
This matter was investigated by the United States Secret Service and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Charles Rombeau and Special Assistant U.S. Attorney Alexander S. Chen.
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Maryland Man Found Guilty by Jury in Firearms Trafficking ConspiracyRead the Press Release
WASHINGTON – James Hutchings Jr., 41, of Waldorf, Maryland, has been found guilty by a jury in the District of Columbia of a federal conspiracy charge for his role as the middleman in an illegal transfer of weapons involving people prohibited from possessing firearms.
The verdict was announced by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, and Charlie J. Patterson, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Hutchings was found guilty yesterday following a trial in the U.S. District Court for the District of Columbia, of conspiracy to defraud the United States. The Honorable Chief Judge Beryl A. Howell scheduled sentencing for Aug. 9, 2022.
In 2018, the FBI’s Safe Streets Task Force began investigating an individual named Linwood Douglas Thorne, as a major heroin supplier. On Dec. 19, 2018, the FBI and ATF executed simultaneous search warrants on Thorne’s Maryland business and residence in the District of Columbia, finding 44 kilograms of heroin laced with fentanyl; 55 pounds of marijuana; five firearms; and significant drug paraphernalia.
In addition to the search warrants, the task force’s investigation—which began in July of 2018—led to the recovery of eight additional firearms, approximately 1.5 additional kilograms of marijuana, 260 additional grams of heroin, and several firearms magazines and accessories.
The ATF conducted a parallel investigation into three of the firearms found at Thorne’s residence and discovered that the firearms were purchased by a Second Lieutenant in the U.S. Army named Kofi Appiah. After additional investigation, including the discovery of multiple digital devices, law enforcement identified Hutchings as the middleman who facilitated the transfer of the firearms from Georgia to the District of Columbia. Both Hutchings and Thorne were prohibited persons based on their prior convictions, and thus, were ineligible to possess firearms.
During trial, the government presented multiple law enforcement witnesses, along with digital and business records establishing and corroborating the defendant’s guilt. With this conviction, the defendant faces up to five years of imprisonment. He is currently on supervised probation out of the Commonwealth of Virginia.
Appiah pleaded guilty in September 2020 and was later sentenced to 37 months in prison. Thorne, 50, was found guilty in March 2022 of multiple counts and is awaiting sentencing.
In announcing the verdict, U.S. Attorney Graves, Special Agent in Charge Jacobs, and Special Agent in Charge Patterson commended the work of those who investigated the case from the FBI and ATF, as well as those from the Metropolitan Police Department (MPD) who were on the Safe Streets Task Force. They also expressed appreciation for the assistance provided by joint law enforcement and prosecution partners, including the U.S. Attorney’s Office for the Middle District of Georgia, the U.S. Attorney’s Office for the Eastern District of Virginia, and the U.S. Attorney’s Office for the District of Maryland. They also acknowledged the efforts of those who prosecuted the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Brandon Regan, Samuel Frey, and Gregory Rosen, as well as Paralegal Specialist Alexis Spencer-Anderson of the Federal Major Crimes Section.
Man Who Threatened a Woman with a Loaded “Ghost Gun” Pleads GuiltyRead the Press Release
A man who pointed a personally-made firearm, also known as a ghost gun, at a woman and threatened to kill her pleaded guilty Thursday in federal court, announced U.S. Attorney Clint Johnson.
Ronnell Dontae Butler, 26, of Oklahoma City, pleaded guilty to felon in possession of ammunition.
According to court documents, an argument had escalated between Butler and a woman when he pulled a loaded gun from the waistband of his pants, pointed it in the direction of the victim, and threatened to kill her. He did so while in the presence of a four-year-old child.
The victim was able to move to the kitchen at one point where she dialed 911, allowing dispatchers to listen to what was occurring and at times whispering to the 911 operator that Butler was threatening to shoot her. When Tulsa police officers arrived, Butler was unarmed but officers quickly located a personally-made firearm in the child’s pink backpack. The firearm was loaded with 10 rounds of 9mm ammunition. The firearm used in the crime is known as a “ghost gun”—an unserialized and personally-assembled firearm built using a parts kit. The crime occurred on Nov. 1, 2021.
In April, the Department of Justice announced that it had submitted to the Federal Register the “Frame or Receiver” Final Rule, which modernizes the definition of a firearm. Once implemented, this rule will clarify that parts kits that are readily convertible to firearms are subject to the same regulations as traditional firearms. The Department noted that the regulatory updates would help curb the proliferation of “ghost guns,” which are often assembled from kits, do not contain serial numbers, and are sold without background checks, making them more difficult to trace and easy to acquire by criminals. An April 11, 2022, White House fact sheet explained that the “rule clarifies that these kits qualify as ‘firearms’ under the Gun Control Act, and that commercial manufacturers of such kits must therefore become licensed and include serial numbers on the kits’ frame or receiver, and commercial sellers of these kits must become federally licensed and run background checks prior to a sale – just like they have to do with other commercially-made firearms.”
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Cymetra M. Williams is prosecuting the case.
This case is being prosecuted as part of the Project Safe Neighborhoods initiative. PSN is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools. The initiative involves a partnership of federal, state, and local authorities, uniting their efforts and leveraging existing and new resources. The U.S. Attorney’s Office and its partners tailor their efforts to meet their own district’s unique needs, helping ensure the safety of communities in the Northern District of Oklahoma.
Man Who Rammed SUV into Police Charged with Drug, Gun CrimesRead the Press Release
An alleged Dallas drug trafficker who rammed his vehicle into a police car during his arrest has been charged with gun and drug crimes, announced U.S Attorney for the Northern District of Texas Chad E. Meacham.
Angel Manuel Fuentes-Melendez, 23, was indicted on Tuesday with one count of conspiracy to possess with intent to distribute methamphetamine, one count of possession with intent to distribute methamphetamine, and one count of possession of a firearm during a drug trafficking crime.
According to a criminal complained filed previously, in mid-April, DEA agents instructed a confidential source to negotiate the purchase of five kilograms of meth from a Mexican drug supplier he knew through the chat application WhatsApp. The Mexican drug supplier directed the source to meet a local drug supplier – later identified as Mr. Fuentes – at a parking lot on Lombardy Lane in northwest Dallas.
Early in the evening on April 14, teams observed Mr. Fuentes’ black Lincoln SUV exit the parking lot of a nearby apartment complex and pull up behind the source’s vehicle, which was parked in the gas station lot. The source then exited his vehicle and approached Mr. Fuentes’ vehicle to chat; while there, he observed methamphetamine in the defendant’s back seat.
Agents in covert police vehicles surrounded Mr. Fuentes’ vehicle, then activated their lights. Mr. Fuentes immediately placed the vehicle in reverse and collided with the police car behind him, which at the time was flashing red and blue. He was apprehended without further incident and transported to a police station, where he allegedly admitted that he’d been directed to deliver five kilograms of methamphetamine to the confidential source. He said he’d been receiving and delivering roughly 15 to 20 kilograms of meth per month for four to five months.
Meanwhile, agents searched an apartment where Mr. Fuentes had been staying. There, they found 33 kilograms of crystal meth stashed in the bedroom and adjoining closet and a Ruger 9mm pistol placed on top of the dresser in plain view.
Agents noted that three young toddlers were present and playing in the apartment at the time.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Fuentes is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to life in federal prison.
The Drug Enforcement Administration’s Dallas Field Office and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney L. Rachael Jones is prosecuting the case.
Man Who Illegally Possessed Firearm and Led Police on High Speed Chase Sentenced to Federal PrisonRead the Press Release
A man who led officers on a high-speed chase while illegally possessing a firearm was sentenced today to more than two years in federal prison.
Davon Terrell Biddle, age 22, from Waterloo, Iowa, received the prison term after a November 15, 2021 guilty plea to being a drug user in possession of a firearm.
In a plea agreement, Biddle admitted that, on March 29, 2021, he was driving a vehicle through Waterloo, Iowa. Police attempted to initiate a traffic stop of the vehicle, but Biddle refused to stop. Instead, Biddle fled from officers, reaching speeds of 60 miles per hour in a 30 mile per hour zone. Biddle eventually slowed the vehicle so that he and his passengers could flee on foot. Biddle continued to flee on foot and threw a Walther PPS 9x19mm caliber pistol as he ran from police. Police located the firearm, and DNA testing established that Biddle’s DNA was on the magazine area of the firearm. At the time he possessed the firearm, Biddle was an unlawful user of marijuana.
Biddle was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Biddle was sentenced to 27 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Biddle is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2059.
Follow us on Twitter @USAO_NDIA.
Man Sentenced to Prison for Possessing Guns While Using and Selling MarijuanaRead the Press Release
A man who possessed firearms while being a marijuana user and dealer was sentenced today to more than four years in federal prison.
Xzavier Kristian Cummings, age 22, from Waterloo, Iowa, received the prison term after a November 16, 2021 guilty plea to possession of a firearm while being a drug user.
At the sentencing hearing, the court found that Cummings possessed firearms in connection with marijuana trafficking and that some of the firearms Cummings possessed had high-capacity magazines attached. When he bought the guns, Cummings failed to disclose his drug use. Further evidence showed that he was using social media to distribute marijuana during 2021. The court also noted that Cummings would have received a lower sentence, but due to violations of his conditions of release while on pretrial release, the ultimate sentence was increased.
Cummings was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Cummings was sentenced to 49 months’ imprisonment. He must serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Cummings is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated by a Federal Task Force composed of the Waterloo Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and the Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-cr-02065.
Follow us on Twitter @USAO_NDIA.
Macy Woman Sentenced to 76 Months for Drug Trafficking and Firearm CrimesRead the Press Release
United States Attorney Jan Sharp announced that Teriona Freemont, age 25, of Macy, Nebraska, was sentenced today in federal court, in Omaha, Nebraska, for conspiracy to distribute and possession with intent to distribute methamphetamine and for being an unlawful user of a controlled substance in possession of a firearm. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Freemont to 76 months of imprisonment. There is no parole in the federal system. After completing her term of imprisonment, Freemont will begin a 5-year term of supervised release.
On March 8, 2020, after traveling through Nebraska, Freemont and co-conspirators Pablo Leyva and Chrystian Townsley drove in a truck in Arizona on their way to Mexico to engage in drug trafficking. They brought a Diamondback Arms, Inc., DB-15 rifle to facilitate the drug trafficking. Officers in Arizona pulled them over and took the rifle. Freemont was prohibited from possessing firearms because she was an unlawful user of methamphetamine and marijuana.
After the traffic stop, Freemont, Leyva, and Townsley continued traveling toward Mexico. During the next few days, they reached the Mexican border, entered Mexico to facilitate drug trafficking, left the truck in Mexico, and re-entered the United States on foot. After re-entering, another individual drove to Arizona, picked them up, and they began traveling back to Nebraska. On March 14, 2020, in Liberal, Kansas, while driving to Nebraska, an officer pulled them over and located 5 cellophane wrapped packages collectively containing about 4 pounds of methamphetamine and 65 fentanyl pills in the vehicle. Freemont, Leyva, and Townsley were transporting the drugs to distribute them.
Leyva and Townsley both previously pled guilty to a firearm and conspiracy to distribute and possession with intent to distribute methamphetamine charges and received sentences of 20 years’ and 15 years’ imprisonment respectively.
The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Kansas Highway Patrol, the United States Secret Service, the Kansas Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
MS-13 Gang Member Sentenced to Life in Prison for Racketeering Conspiracy Involving Multiple MurdersRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced Oscar Armando Sorto Romero, a/k/a “Lobo,” age 23, to life in federal prison for a racketeering conspiracy and for racketeering, as well as related violent crimes in aid of racketeering, including two murders, connected to his participation in La Mara Salvatrucha, a transnational criminal enterprise also known as MS-13. On January 24, 2022, a federal jury convicted Sorto Romero of the racketeering charges, along with co-defendants Jose Joya Parada, a/k/a “Calmado,” age 21, Milton Portillo-Rodriguez, a/k/a “Little Gangster,” age 26; and Juan Carlos Sandoval-Rodriguez, a/k/a “Picaro,” age 24, after a three-month trial. Portillo-Rodriguez and Sandoval-Rodriguez were also convicted of multiple counts of murder in aid of racketeering.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Selwyn Smith of Homeland Security Investigations, Baltimore Office; Chief Jason Lando of the Frederick City Police Department; Frederick County Sheriff Charles A. “Chuck” Jenkins; Frederick County State’s Attorney J. Charles Smith, III; Chief Amal E. Awad of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Chief Malik Aziz of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha Braveboy; Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. Sorto Romero was a member of the Parque Vista Locos Salvatruchas (“PVLS”) clique and his co-defendants were members of the Fulton Locos Salvatruchas (“FLS”) clique.
The evidence at the three-month trial established that between 2015 and 2017, the defendants engaged in drug trafficking, extortion, and brutal acts of violence against suspected rivals of the gang in an effort to increase MS-13’s power in the Frederick County, Montgomery County, and Anne Arundel County areas of Maryland.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.” One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to promotion to a leadership position.
As detailed during the trial, from 2015 through 2017, the Fulton clique of MS-13 sought to increase its presence in Frederick, Wheaton, and Annapolis, Maryland through numerous acts of violence, extortion, and drug sales. Trial evidence focused on the defendants’ participation in four grisly murders of those suspected of association with rival gang members carried out in 2017.
Trial evidence related to Sorto-Romero focused on his participation in two of those four murders. First, on April 2, 2017, the gang kidnapped an individual from Silver Spring, Maryland and brought him to a wooded area in Frederick, where he was killed with knives and machetes before being buried in a shallow grave. Before being taken to Frederick, the victim, who was extremely intoxicated, was held in a basement laundry room in Wheaton, Maryland by members and associates of MS-13, including by co-defendant Joya Parada. Inside the laundry room, the victim was forced to remove his shirt so that gang members could examine his tattoos to satisfy themselves that the victim was associated with a rival gang and should therefore be killed.
Sorto Romero was contacted by members of MS-13 to assist with the victim’s murder. He agreed to assist as long as other, more junior gang members could participate to move up in the gang. Sorto Romero arranged vehicles to transport the victim and other members of MS-13 to the wooded area in Frederick where the victim would be killed. Sorto Romero and others went to the laundry room where the victim was being held, and they placed him in the backseat of a car in which Sorto Romero was a passenger. In the meantime, Joya Parada and other members of MS-13 went to the woods in Frederick with weapons and a shovel to dig a grave and to wait for the victim’s arrival. Sorto Romero eventually arrived with the victim, delivering the victim to other members of MS-13 who were waiting, including Joya Parada. A member of MS-13 incapacitated the victim by hitting him in the head with a tree branch. Joya Parada and others then dragged the victim through the woods to the hole they had dug for the victim’s grave. They placed the victim face down on the ground next to the hole and stabbed and slashed his body repeatedly with a machete. Joya Parada personally participated in this murder not only by slashing the victim with the long edge of the machete blade, but also by plunging the point of the machete into the victim’s back numerous times. The victim died as a result of the blunt force trauma, stabbing, cutting, and chopping inflicted by Joya Parada and his co-conspirators. Sorto Romero then picked up several gang members who participated in the murder to drive them home. During their drive back, MS-13 members stopped to dispose of the machete in a storm drain and threw a shovel away in a dumpster.
On August 5, 2017, MS-13 lured another victim to Quiet Waters Park in Annapolis. When he arrived, the victim was hit in the head with a hammer and slashed with a machete until he died. The trial evidence revealed that the victim was a low-level member of the PVLS clique of MS-13 (the same clique as Sorto Romero) and was suspected of warning one of his relatives, who was believed to be in a rival gang, that he was an MS-13 target. Sorto Romero and co-defendant Portillo Rodriguez participated in the planning and execution of the murder of this victim. Once the victim arrived, an MS-13 member who was part of the PVLS clique hit the victim in the head with a hammer. The victim screamed after he was hit. Then, members of MS-13 dragged the victim to a hole that had been dug deeper in the woods. Sorto Romero and Portillo Rodriguez assisted in digging the hole earlier that day. Once at the hole, Sorto Romero, Portillo Rodriguez, and other members of MS-13 took turns striking the victim’s neck and shoulder area with a machete in an unsuccessful effort to decapitate the victim. Although they were unable to decapitate the victim, Sorto Romero, Portillo Rodriguez, and others struck the victim numerous times until he died. The victim was then buried in a clandestine grave in the park. After the murder, members of MS-13 took clothing and other evidence to a nearby house where the clothing was burned in a grill.
According to trial evidence, these murders were all intended to maintain and increase the status of MS-13, as well as allow individual MS-13 members to maintain or increase their status within the gang.
More than 30 MS-13 gang members and associates have been convicted in this and a related case.
On April 20, 2022, Chief Judge Bredar sentenced Jose Joya Parada, a/k/a “Calmado,” age 20, to 50 years in federal prison, for a racketeering conspiracy, racketeering, and related violent crimes in aid of racketeering. Portillo-Rodriguez and Sandoval-Rodriguez each face a mandatory sentence of life in prison for each of the murder in aid of racketeering charges. Chief Judge Bredar has scheduled sentencing for Portillo Rodriguez for May 13, 2022, at 10 a.m and for Sandoval Rodriguez for May 25, 2022, at 2:30 p.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (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.
This case is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
United States Attorney Erek L. Barron commended the FBI; HSI; the Frederick Police Department; the Frederick County Sheriff’s Office; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in the investigation, and the Baltimore County Police Department for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Kenneth S. Clark, Zachary Stendig, and Anatoly Smolkin, who are prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Louise Larivee Imprisoned for Non-Profit EmbezzlementRead the Press Release
The United States Attorney for the District of Vermont announced that Louise Larivee, 63, of Swanton, was sentenced today in United States District Court in Burlington upon her guilty plea to a charge of federal program embezzlement. Chief U.S. District Judge Geoffrey Crawford sentenced Larivee to serve 8 months of imprisonment, to be followed by three years of supervised release. The court also ordered Larivee to pay restitution in the amount of $96,700. Larivee had pleaded guilty on the third day of her jury trial in Rutland last November. The court ordered Larivee to report to the Federal Bureau of Prisons on July 5 to begin serving her sentence.
In June 2019, a federal grand jury in Burlington returned a two-count indictment charging Larivee with conspiracy and federal program embezzlement. Candy Thomas, 64, also of Swanton, a separately charged co-conspirator, had previously pled guilty to the federal program embezzlement charge. According to the indictment, between 2013 and 2017, Larivee was employed by the Abenaki Self Help Association, Inc. in Swanton as the director of a federal grant program administered by the U.S. Department of Labor. ASHAI functioned as a service arm of the Abenaki Nation, promoting economic and social development through programmatic efforts in education, employment and economic development. Each year, ASHAI received tens of thousands of dollars in grant money from the Department of Labor. During that same period, Candy Thomas worked at ASHAI as an office worker and bookkeeper. Thomas had check signing authority on ASHAI’s bank accounts.
According to the indictment and testimony at Larivee’s trial, between 2013 and 2017, Larivee and Thomas conspired to embezzle, and did embezzle, more than $100,000 from ASHAI. Thomas aided the commission of this theft by issuing checks and giving cash to Larivee, at Larivee’s request, in amounts that significantly exceeded Larivee’s authorized compensation. Larivee also received travel reimbursement checks based upon fraudulently inflated mileage claims. Thomas helped cover up this fraud by sending tax forms to the Internal Revenue Service that concealed the true amount of ASHAI funds that were being paid over to Larivee.
Thomas, who testified at Larivee’s trial, was sentenced to probation in December and was ordered to pay restitution in the amount of $20,000.
This case was investigated by the U.S. Department of Labor’s Office of Inspector General.
Larivee is represented by David Kirby. Thomas was represented by the Office of the Federal Public Defender. The prosecutors were Assistant U.S. Attorney Gregory Waples and former Assistant U.S. Attorney Spencer Willig.
Liberty County Man and Woman Behind My Buddy Loans Guilty of Fraud Related to COVID ReliefRead the Press Release
TEXARKANA, Texas– A Cleveland, Texas man and woman have pleaded guilty to wire fraud violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Clifton Pape, 47, and Sally Jung, 59, have each pleaded guilty to wire fraud violations before U.S. Magistrate Judge Caroline Craven. As part of their plea agreements, Pape and Jung have agreed to forfeit $680,710.31 and pay up to $3,223,870 in restitution.
According to court documents, Pape and Jung operated a sophisticated telemarketing scheme under the name My Buddy Loans from a house in Cleveland, Texas. In exchange for a fee, My Buddy Loans took personal identifying information from victims and promised to file an application for an agricultural grant, which they said was available to those who owned as little as one acre of land. Instead, Pape and Jung actually filed fraudulent EIDL applications with the SBA that contained the victims’ personal identification information. Based on these fraudulent applications, the SBA issued more than $1.56 million in EIDL Advances to people who were not eligible. Pape and Jung also submitted applications for an additional $1.44 million in EIDL Advances that were not funded because--among other reasons--the congressionally appropriated funds for the EILD Advance program were exhausted.
Pape and Jung used Square’s credit and debit card processing service to charge third parties the fee. Pape and Jung completed at least 700 successful charges, obtaining at least $700,000 in fees. Pape and Jung then transferred the proceeds of the fraud scheme into a bank account they controlled. On one occasion, Pape used the fraud proceeds to pay a traffic ticket. On another occasion, Pape and Jung used more than $3600 from the fraud scheme to pay for a stay at La Cantera Resort in San Antonio. A picture from that stay shows Pape and Jung celebrating over sparkling wine and other beverages.
“This investigation closed down one of the largest COVID fraud schemes in the country in terms of the number of fraudulent EIDL applications,” said U.S. Attorney Brit Featherston. “Well intended and needed economic assistance (taxpayer dollars) was brazenly stolen from legitimate deserving applicants. We are asking those with information about the My Buddy Loan fraud scheme, including those who believe they may be victims, to call the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or file a complaint using the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.”
“Predators that perpetuated schemes to steal vital funds aimed at mitigating the economic damage to the nation’s small businesses will be brought to justice,” said SBA Inspector General Hannibal Ware. “OIG continues to root out fraud and protect the integrity of SBA’s programs. I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
“Clifton Pape and Sally Jung used My Buddy Loans to exploit the Small Business Administration’s Economic Injury Disaster Loan program (EIDL) while also defrauding hundreds of individuals whom they misled,” said Special Agent in Charge William Smarr of the U.S. Secret Service Dallas Field Office. “The Secret Service stands ready with our law enforcement partners, like the SBA Office of Inspector General, to combat pandemic fraud. The Secret Service will continue to aggressively investigate and prosecute those who violate the public trust and exploit federal relief programs for their own personal gain.”
The CARES Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization or EIDL advances and low-interest loans to small businesses to meet financial obligations and operating expenses that could have been met had the disaster not occurred. Under the EIDL program applicants were eligible for a forgivable advance of up to $10,000 if the applicant had ten or more employees.
A federal grand jury returned an indictment charging Pape and Jung with federal violations on Feb. 10, 2021. They each face up to 30 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the U.S. Secret Service and the Small Business Administration-Office of Inspector General and prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
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Latin King Gang Member Sentenced to More Than 18 Years in Prison for the 2005 Murder of C.W. Post Student-Basketball StarRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Jaime Rivera, a member of the Almighty Latin King and Queen Nation street gang, was sentenced by United States District Court Judge Denis R. Hurley to 220 months’ imprisonment for the 2005 murder of C.W. Post college student and basketball star, Tafare Berryman. Rivera pleaded guilty to the gang-related murder in March 2019.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“Tafare Berryman, a college student, athlete and beloved member of the Brooklyn and Long Island communities, was senselessly murdered, depriving him of the bright future he worked so hard to achieve and leaving his bereaved family shattered,” stated United States Attorney Peace. “This murder, which occurred 17 years ago, was never forgotten and is an example of this Office’s unwavering commitment to justice for the victims of gang violence.”
Mr. Peace expressed his appreciation to the FBI, DEA and NCPD for their outstanding work on the case.
According to court filings and the facts presented at the plea proceeding, on April 2, 2005, Rivera and other Latin King gang members were present at La Mansion bar and nightclub, located on Long Beach Road in North Long Beach. Also present were several C.W. Post students, including the victim and several of his friends. At least one altercation occurred in the club between gang members and a C.W. Post student, and later continued outside in the parking lot. Berryman was not involved in either of the altercations.
After Berryman and one of his friends left the club together, and while walking to their car, the friend was hit in the head with a bottle, causing a laceration. The two entered a car and Berryman’s friend drove away from the area. A short time later, Berryman’s friend pulled the car over to the side of the road to tend to the cut on his head. Rivera then drove up alongside the car and fatally shot Berryman, under the erroneous belief that Berryman and his friend had been involved in the prior altercation that posed a threat to the gang.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Mark E. Misorek and Special Assistant United States Attorney Lara Treinis Gatz are in charge of the prosecution.
The Defendant:
Jamie Rivera
Age: 35
Freeport, New YorkE.D.N.Y. Docket No. 17-CR-50 (DRH)
Justice Department Participates in the 21st Annual International Competition Network Conference in Berlin, GermanyRead the Press Release
Assistant Attorney General Jonathan Kanter of the Antitrust Division led the Department of Justice’s delegation at the International Competition Network’s (ICN) 21st annual conference, hosted by the German Bundeskartellamt in Berlin, Germany, on May 4-6. Delegates from the ICN’s member jurisdictions included agency leadership and staff, competition experts from international organizations and the legal, business, academic and consumer communities. Over 80 jurisdictions participated in the conference. Assistant Attorney General Kanter delivered a keynote address on criminal enforcement policy and cooperation with law enforcement partners.
“The pandemic compelled us to find creative ways to maintain and deepen our international cooperation efforts,” said Assistant Attorney General Kanter. “Nevertheless, it is wonderful to engage again in-person with our ICN counterparts, especially to discuss the pressing competition issues we currently face.”
The conference showcased the achievements of the ICN’s Advocacy, Agency Effectiveness, Cartel, Merger and Unilateral Conduct Working Groups and examined a range of competition enforcement and policy issues. A main theme of the conference focused on planning for the third decade of the network. The continuing impact of the COVID-19 pandemic and digital markets on competition law also featured prominently.
During his keynote, Assistant Attorney General Kanter discussed the division’s updates to its leniency policy, expanding its litigation capabilities and cooperating with our enforcement partners. Deputy Assistant Attorney General Richard Powers discussed cartel enforcement in the next decade with a focus on priorities and trends beyond the COVID-19 pandemic. The Cartel Working group breakout sessions focused on bid rigging in public procurement, international cooperation in cross-border cartels and leniency.
The Merger Working Group’s plenary focused on challenges in merger control. Patty Brink, Senior Counsel for International and Intergovernmental Engagement, participated in a breakout session discussing killer acquisitions and reverse killer acquisitions. An additional Merger Working Group breakout session focused on economic tools to assist competition agencies analyze large volumes of data. The Merger Working Group also began reviewing the ICN Recommended Practices Chapter on entry and expansion.
Lynda Marshall, Chief of the International Section, also participated in a breakout session discussing the ICN Framework on Competition Agency Procedures (CAP). Introduced in 2019, the CAP provides a non-binding, opt-in framework that promotes agreement between competition agencies on procedural norms in competition law enforcement. There are currently 73 CAP participants.
The Advocacy Working Group’s plenary focused on enabling effective international enforcement through competition advocacy. Advocacy Working Group breakout sessions focused on the interplay between regulators and competition agencies, advocating competition principles for the provision of digital services and gender-inclusive competition policy.
The Agency Effectiveness Working Group’s plenary focused on how the COVID-19 pandemic changed competition agencies’ investigative process. Agency Effectiveness Working Group breakout sessions focused on tools competition agencies use to better understand markets affected by the pandemic, strategic planning and the digital transformation of competition agencies.
The Unilateral Conduct Working Group’s plenary focused on regulatory and competition law tools in digital markets. Unilateral Conduct Working Group breakout sessions focused on procedural tools, theories of harm in digital markets, and remedies.
The ICN was created in October 2001 to increase understanding of competition policy and promote convergence toward sound antitrust enforcement around the world. It was founded by 15 agencies, including the Antitrust Division, has grown to 140 agencies from 130 jurisdictions, supported by a wide network of non-governmental advisors from around the world.
Jury Finds Sand Springs Man Guilty for Attempting to Coerce a 13-Year-Old into a Sexual RelationshipRead the Press Release
A federal jury found a Sand Springs man guilty Friday for sending hundreds of sexually explicit messages to a male minor and for touching the child in a sexual manner, announced U.S. Attorney Clint Johnson.
Jeremy Nicholas Botonis, 44, was convicted of one count of coercion and enticement of a child and one count of abusive sexual contact in Indian Country.
“Jeremy Botonis was a predator lying in wait. He gained the trust of a vulnerable child then exploited the child for his own sexual gratification,” said U.S. Attorney Clint Johnson. “The victim in this case displayed incredible strength as he testified in federal court this week. He is to be commended along with our law enforcement partners and federal prosecutor Chris Nassar for ensuring Botonis was held accountable for his predatory crimes.”
“Too often, deviant individuals like Botonis use social media to gain access to minors and build trust only to exploit them,” said Christopher Miller, acting Special Agent in Charge, HSI Dallas. “Thanks to the bravery and testimony of the young victim, the perpetrator was brought to justice, providing a stark reminder to predators who sexually exploit children that HSI will never relent in our collective law enforcement efforts to protect our most vulnerable citizens.”
On Aug. 24, 2019, while in the woods, Botonis placed his hand inappropriately on the clothed minor victim’s thigh and what the victim described as his “private area.” Then he attempted to kiss the victim while the two were in the woods. When the child rejected his advances and pulled away, Botonis became upset and concerned the child might reveal what had occurred to his parents. Later, he stood over the victim and told him to delete prior messages between the two that were associated with Botonis’ name and Facebook account, knowing that those conversations would incriminate him. He continued pressuring the child to delete the messages, and the victim eventually relented.
After the incident, Botonis continued to communicate with the victim using a Facebook page titled “Wolf Page.” Several weeks later, the victim’s father discovered sexually explicit messages sent to the victim from “Wolf Page.” The victim told his father the page belonged to Botonis, and disclosed that Botonis had attempted to kiss him in the woods during an outing. The child’s parents reported the crime to authorities. During the investigation, the child further disclosed to law enforcement that Botonis had also touched him inappropriately the day of the incident.
Federal agents were eventually able to extract messages from the victim’s cell phone and discovered 5,000 messages related to the case. Starting in May 2019, Botonis began grooming the victim by sending increasingly flirtatious and suggestive messages over Facebook messenger. Hundreds of sexually suggestive messages from Botonis were recovered where the defendant talked about the child’s looks, professed his “love” for the victim, made sexual innuendos, described sex acts, and further suggested the two should engage in the “furry lifestyle,” which for some is a sexual fetish that involves dressing in animal costumes and performing sex acts. At one point, the victim indicated to the defendant that he was uncomfortable and did not want to receive any further sexual messages.
At trial, federal prosecutors contended that at the time of the crime, Botonis was a 41-year-old man obsessed with a vulnerable 13-year-old child, bombarding the victim with messages nearly every day and even guilt tripping the victim when he did not respond in kind. Prosecutors argued that while Botonis tried to portray himself as non-threatening and trustworthy, he was, in reality, a predator hiding in the shadows, waiting for a vulnerable victim and the right moment to engage. Prosecutors then asked the jury to hold Botonis accountable for the crimes he committed against the child.
The jury returned guilty verdicts within two hours. Sentencing is tentatively set for September 2022.
The case was initially charged in Mayes County District Court but was dismissed in April 2021 due to lack of jurisdiction based on the Supreme Court’s decision in McGirt v Oklahoma. The U.S. Attorney’s Office then charged the case in federal court in May 2021.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Mayes County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Christopher J. Nassar and Stephanie Ihler prosecuted the case.
Jury Convicts Southern Illinois University-Carbondale Professor of Concealing Foreign Bank Account from the Internal Revenue ServiceRead the Press Release
Benton, Ill. – Dr. Mingqing Xiao, 60, of Makanda, Illinois, was convicted by a federal jury on
Wednesday, May 4, 2022, in connection with lying to federal authorities about a foreign bank
account in China in 2017, 2018, and 2019.Dr. Xiao, a mathematics professor and researcher at Southern Illinois University-Carbondale, was
convicted of three counts of Making a False or Fraudulent Statement to the Internal
Revenue Service (IRS) on his tax returns and one count of Failure to File a report of a Foreign
Bank Account (FBAR). Evidence presented at the trial established that Xiao opened a foreign bank
account at Ping An Bank in China in 2016 and received monthly deposits into the account from
Shenzhenalo University in Shenzhen, China, from 2016 to 2020. Some of the funds were linked to
additional sources in China. By 2020, Xiao had accumulated more than $100,000 in the Chinese
account.
U.S. taxpayers are required to report the existence of any foreign bank account on their federal
income tax returns. In addition, individuals with funds in foreign accounts totaling
more than $10,000 at any time during a given year are required to file an FBAR with the
Treasury Department.“There are foreign entities that exploit American universities and grant agencies,” said
U.S. Attorney Steven D. Weinhoeft. “To guard against this abuse, the National Science Foundation
(NSF) requires grant applicants to disclose any conflicting activities, including foreign
activities, as a condition of receiving federal funding. Further, all U.S. citizens are obligated
to disclose any foreign bank accounts they may have. The evidence established that Dr. Xiao
concealed foreign work and hid more than $100,000 of foreign assets in an account in China, and he
was properly prosecuted and held accountable.”“Failing to disclose a foreign bank account and filing false tax returns demonstrates a lack
of truthfulness and an abdication of the duties of citizenship,” said FBI Special Agent in Charge
David Nanz. “Xiao received money from a Chinese employer and knowingly failed to report those
funds, thereby evading his income tax responsibilities. The FBI is committed to investigate and
bring to justice anyone who avoids their obligation to live by our nation’s laws.”“As this verdict shows, when you fail to disclose a foreign bank account and submit false income
tax statements to the IRS, you are committing tax fraud,” said Darrell J. Waldon, Special Agent in Charge of the IRS-CI Washington DC Field Office. “Xiao’s acts of fraud and dishonesty
undermine the integrity of our system of taxation. Our agency will continue to uphold its mission
to investigate tax and financial crimes in order to uphold confidence in our tax system, holding
individuals accountable for their crimes.”The court dismissed two additional counts against Xiao that charged wire fraud. In addition, Xiao
was found not guilty of a false statement charge. Those three charges were all related to alleged
fraud in connection with a grant Xiao obtained from the National Science Foundation.The charge of making and subscribing false income tax returns provides for a sentence of up to
three years in prison, one year of supervised release and a $100,000 fine. The charge of failing
to file an FBAR provides for a sentence of up to five years in prison, three years of supervised
release, and a fine of $250,000. Sentences are imposed by a federal district court judge based
upon the U.S. Sentencing Guidelines and other statutory factors. Sentencing is set before the
Honorable Staci M. Yandle on August 11, 2022.The case was investigated by the Federal Bureau of Investigation-Springfield Field Office and the
Internal Revenue Service—Criminal Investigations.The case was prosecuted by Assistant U.S. Attorneys Peter Reed and Scott Verseman of the U.S.
Attorney’s Office for the Southern District of Illinois and Trial Attorney Derek Shugert of the
National Security Division of the Department of Justice.Jury Convicts Men for Gang-Related Multistate Drug Trafficking Ring and MurderRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted four defendants on numerous charges relating to a murder, a violent gang enterprise, and a drug trafficking conspiracy operating in Virginia, California, and several other states.
According to court records and evidence presented at trial, Peter Le, 24, of Dunn Loring, Young Yoo, 26, of Centreville, Joseph Lamborn, 28, of California, and Tony Le, 28, also of California, were members of a violent Northern Virginia Street gang called the Reccless Tigers, which was affiliated with a California gang called the West Side Asian Boyz. The gang, which originated in Centerville in 2011, distributed thousands of pounds of marijuana as well as other THC products, cocaine, ecstasy, and prescription drugs. Many of the gang’s customers were middle and high school students in Northern Virginia and college students at a number of Virginia universities.
According to court records, victim Brandon White, owed Yoo approximately $10,000 for marijuana he had obtained from Yoo. In August 2018, White was severely beaten by a Reccless Tigers gang member, David Nguyen, because of this debt. Nguyen was arrested by Fairfax County Police and charged with robbery and malicious wounding. The gang was aware that White had been subpoenaed to testify against Nguyen at a preliminary hearing and attempted to pay him if he would refuse to testify. White was threatened that he would be killed if he testified. White refused the gang's offer, and he testified against Nguyen on Nov. 19, 2018.
On Jan. 31, 2019, and continuing into the early morning hours of February 1, 2019, White was abducted at a shopping mall in Fairfax County and then killed two hours later in a wooded area of Richmond by Peter Le, Yoo, and Lamborn.
The evidence at trial indicated that the gang also engaged in persistent pattern of intimidation and retaliation against individuals who did not pay their drug debts and anyone who were believed to have cooperated with law enforcement. Homes in Fairfax, Stafford, and Prince William counties were attacked with Molotov cocktails and vandalized on numerous occasions, forcing homeowners in some instances to move.
Peter Le was convicted of conspiracy to engage in racketeering, narcotics trafficking and related narcotics offenses, kidnapping, murder, and money laundering. Lamborn was convicted of conspiracy to engage in racketeering, narcotics trafficking, kidnapping, and murder. Yoo was convicted of conspiracy to engage in racketeering, narcotics trafficking, kidnapping, and murder. Tony Le was convicted of conspiracy to engage in racketeering and narcotics trafficking.
Peter Le, Young Yoo, and Joseph Lamborn face mandatory life sentences when sentenced on September 9. Tony Le faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life imprisonment when he is sentenced of September 9.
As demonstrated in the table below, 24 other persons have been charged in connection with the investigation of the Reccless Tigers. Sixteen defendants have pleaded guilty to federal charges and have been sentenced. Nine defendants, five who pleaded guilty earlier in addition to the four convicted today, are pending sentencing. Three defendants are fugitives.
Name
Conviction(s)
Result
Peter Le*
Conspiracy to participate in the affairs of an
enterprise engaged in a pattern of racketeering activity; Violent crimes in aid of racketeering murder; Conspiracy to engage in kidnapping; Kidnapping resulting in death; Conspiracy to distribute controlled substances; Killing while engaged in drug trafficking; Maintaining a drug-involved premises; Distribution of marijuana and cocaine; Use, carry, and possession of a firearm during a drug trafficking crime; Money laundering.
Faces mandatory life imprisonment on September 9, 2022
Young Yoo*
Conspiracy to participate in the affairs of an
enterprise engaged in a pattern of racketeering activity; Violent crimes in aid of racketeering murder; Conspiracy to engage in kidnapping; Kidnapping resulting in death; Conspiracy to distribute controlled substances, Killing while engaged in drug trafficking.
Faces mandatory life imprisonment on September 9, 2022
Joseph Duk-Hyun Lamborn*
Conspiracy to participate in the affairs of an
enterprise engaged in a pattern of racketeering activity; Violent crimes in aid of racketeering murder; Conspiracy to engage in kidnapping; Kidnapping resulting in death; Conspiracy to distribute controlled substances; Killing while engaged in drug trafficking; Firearms murder.
Faces mandatory life imprisonment on September 9, 2022
Tony Minh Le*
Conspiracy to participate in the affairs of an
enterprise engaged in a pattern of racketeering activity; Conspiracy to distribute controlled substances.
Faces a mandatory minimum of 10 years and a maximum of life on September 9, 2022
Kevin Aagesen
Conspiracy to distribute controlled substances; Conspiracy to commit kidnapping in aid of racketeering activity.
Sentenced to 188 months
Sascha Amadeus Carlisle
Conspiracy to participate in the affairs of an
enterprise engaged in a pattern of racketeering activity; Conspiracy to engage in kidnapping; Conspiracy to distribute controlled substances.
Faces a mandatory minimum of 10 years on July 29, 2022
Abdullah Abdow Sayf
Conspiracy to commit kidnapping in aid of racketeering activity; Use and carry of a firearm during and in relation to a drug trafficking crime.
Sentenced to 180 months
Fahad Abdulkadir
Conspiracy to commit kidnapping in aid of racketeering activity; Possession with the intent to distribute 50 kilograms or less of marijuana; Use and carry of a firearm during and in relation to a drug trafficking crime.
Sentenced to 192 months
David Thai Hoang Nguyen
Conspiracy to distribute controlled substances
Sentenced to 171 months
Kyu Wa Hong
Conspiracy to distribute controlled substances
Sentenced to 216 months
Sang Thanh Huynh
Conspiracy to participate in the affairs of an
enterprise engaged in a pattern of racketeering activity; Conspiracy to distribute controlled substances; Money laundering; Felon in possession of a firearm.
Scheduled to be sentenced on July 22, 2022
Soung Park
Conspiracy to distribute controlled substances
Sentenced to 132 months
Tasneef Amhed Chowdhury
Conspiracy to distribute controlled substances
Sentenced to 121 months
Joshua Andrew Miliaresis
Conspiracy to distribute controlled substances
Faces a mandatory minimum of 10 years at a future sentencing hearing
Tyler Thang Le
Conspiracy to distribute controlled substances
Sentenced to 135 months
Dane Nicholas Hughes
Conspiracy to distribute controlled substances
Faces a mandatory minimum of 5 years at a future sentencing hearing
Bradley Sullivan
Conspiracy to distribute controlled substances
Faces a mandatory minimum of 5 years at a future sentencing hearing
Richard Pak
Conspiracy to distribute controlled substances; Distribution of cocaine; Use and carry of a firearm during and in relation to a drug trafficking crime.
Faces a mandatory minimum of 10 years at a future sentencing hearing
Spencer Pak
Conspiracy to distribute controlled substances; Distribution of cocaine; Use and carry of a firearm during and in relation to a drug trafficking crime.
Sentenced to 120 months
Tyler Pranompi Sonesamay
Conspiracy to distribute controlled substances
Sentenced to 120 months
Khalil Yasin
Conspiracy to distribute controlled substances
Sentenced to 97 months
Anthony Nguyen Thanh Le
Conspiracy to distribute controlled substances and distribution of cocaine
Sentenced to 92 months
Angel Hoang Le
Maintaining a drug-involved premises
Sentenced to 42 months
Zu Hun Chang
Possession with the intent to distribute cocaine
Sentenced to 42 months
Brandon Sobotta
Distribution of cocaine
Sentenced to time served (about 7 months)
* convicted today
This was a multi-jurisdictional OCDETF case involving the FBI Washington Field Office, ATF, HSI, IRS, U.S. Postal Service, U.S. Marshals Service, Fairfax County Police Department, Prince William County Police Department, City of Richmond Police, Montgomery County (MD) Police, Loudoun County Sheriff’s Office, Falls Church Police, City of Alexandria Sheriff’s Office, Richmond County Sheriff’s Office, Fairfax County Sheriff’s Office, Fairfax County Fire Marshal, Prince William County Fire Marshal, Stafford County Fire Marshal, City of Monterey Park (CA) Police, Garden Grove (CA) Police, Anaheim (CA) Police; Trinity County (CA) Sheriff’s Office, California Highway Patrol, DEA San Francisco Division – Reading Office, California Department of Forestry and Fire Protection, California Department of Food & Agriculture, California Department of Consumer Affairs Bureau of Cannabis Control, U.S. Attorney’s Office Eastern District of California – Sacramento Office, U.S. Attorney’s Office Central District of California – Santa Ana and Riverside Offices, and the FBI’s Field Offices in Richmond, Los Angeles, and Sacramento.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after U.S. District Judge Liam O’Grady accepted the verdict.
Assistant U.S. Attorneys James L. Trump, Carina A. Cuellar, and Ryan Bredemeier prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-57.
Iraqi Citizen Sentenced for Lying to U.S. Immigration Officials About His Membership in Middle Eastern Paramilitary GroupRead the Press Release
SYRACUSE, NEW YORK - Chasib Hafedh Saadoon Al Fawadi, age 36, an Iraqi citizen residing in Geddes, New York, was sentenced today to serve 48 months in federal prison for his convictions for making false statements in a U.S. immigration application for permanent residence, and making false statements to U.S. Immigration officials during an oral interview for permanent residency, announced 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 Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York Field Office. The sentence imposed today included a stipulation for a court order for Al Fawadi’s removal from the United States without further immigration proceedings following his release from federal prison.
As part of his guilty plea, Al Fawadi admitted that in a written application mailed to United States Citizenship and Immigration Services in Syracuse, New York, on June 8, 2017, he falsely denied being a member of any group engaged in violent activities. Al Fawadi’s statement was false because since after his 26th birthday, while living in Iraq, he was a member of and affiliated with As’ib Ahl al-Haq (AAH), an Iranian-backed Shiite militia and paramilitary organization. Also, as part of his guilty plea, Al Fawadi admitted that he falsely reaffirmed his previous written statements during an in-person oral interview with United States Citizenship and Immigration Services in Syracuse on April 9, 2019.
Al Fawadi’s participation in AAH—a group which since has been formally designated as a “foreign terrorist organization” by the United States Department of State—included travel to Syria in 2013. The purpose of the travel was apparently to engage in combat operations in support of the Syrian regime that, less than a month before Al Fawadi arrived, killed over 1,400 of its own citizens in the Ghouta chemical weapons attack. Al Fawadi concealed his travel to Syria, Iran, and Jordan when he applied for refugee classification and again in his application for permanent resident status.
United States Attorney Carla Freedman said, “Immigration applicants must disclose their ties to any group engaged in violent activities, and will be prosecuted when they fail to do so. Thanks to this prosecution and the diligent work of our law enforcement partners, a dangerous person has been removed from our community and will no longer be able to reside in the United States.”
Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI) said, “Mr. Al Fawadi lied to authorities to conceal his membership in a violent paramilitary group. The FBI’s top priority remains protecting our national security and we will continue to work with our law enforcement partners to ensure dangerous individuals do not have the opportunity to jeopardize the safety of Americans.”
“Due to the dedication of our special agents and law enforcement partners, Al Fawadi is no longer able to hide his affiliation with a violent paramilitary group,” said HSI Buffalo acting Special Agent in Charge Matt Scarpino. “HSI will continue to remain vigilant in its mission to protect the homeland and dismantle terrorist organizations that pose a threat to the United States.”
This case was investigated by the Federal Bureau of Investigation (FBI) and the United States Department of Homeland Security-Homeland Security Investigations (HSI), and was prosecuted by Assistant U.S. Attorney Steven D. Clymer, with assistance from the Onondaga County District Attorney’s Office, as well as the Counter Terrorism Section of the National Security Division of the Department of Justice [“DOJ”] and the Human Rights and Special Prosecutions Section of the Criminal Division of DOJ.
Iowa Man with Ties to Mexico-Based Drug Trafficking Organization Sent to Federal PrisonRead the Press Release
An Iowa man who conspired to distribute over 150 pounds of ice methamphetamine was sentenced to more than 21 years in federal prison.
Jeremey Aswegan, age 44, from Van Horne, Iowa, received the prison term after an October 7, 2021, guilty plea to one-count of conspiracy to distribute a controlled substance.
Evidence at sentencing showed that Aswegan was involved in a Mexico-based drug trafficking organization that delivered at least 150 pounds of ice methamphetamine to Iowa via rail car in the Summer and Fall of 2020. Aswegan then worked with others in the drug trafficking organization to distribute the methamphetamine in Iowa. Aswegan also participated in sending drug proceeds to Mexico at the request of the organization. A search warrant was conducted at Aswegan’s residence on October 30, 2020, and investigators recovered ice methamphetamine and a firearm.
Aswegan was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Aswegan was sentenced to 262 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Aswegan is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Tri-County Drug Enforcement Task Force, the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Black Hawk County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-02047.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on May 5 was:
Shaydel Alissa Spang, 25, of Lame Deer, on charges of strangulation. If convicted of the most serious crime, Spang faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Spang was detained pending further proceedings. The FBI investigated the case. PACER case reference. 22-49.
Appearing on May 2 was:
William Paul Jefferson, 36, of Lodge Grass, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Jefferson faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Jefferson was detained pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 22-42.
Charles Antonio Gray, 46, of Everett, Washington, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Gray faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Gray was detained pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 22-16.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Houston area man arrested for $1.2M nationwide telemarketing schemeRead the Press Release
HOUSTON – A 46-year-old man has been arrested for participating in a telemarketing scheme that scammed over 100 individuals and received over $1 million in fraudulently collected funds, announced U.S. Attorney Jennifer B. Lowery.
Law enforcement took Michael K. Laurendeau into custody this morning. Formerly of Pearland and now residing in Houston, he is expected to make his initial appearance before U.S. Magistrate Judge Sam S. Sheldon today at 2 p.m.
According to the 15-count indictment returned May 4 and unsealed today upon his arrest, Laurendeau is the owner of E-Business Financial LLC and Blue Star Hosting LLC.
From January 2015 to August 2019, Laurendeau and co-conspirators allegedly deceived over 134 victims by convincing them they were entitled to unclaimed money from prior investments in websites or webpage domains. Laurendeau and others told them they had to pay fees or taxes via certified checks or money orders to Laurendeau’s businesses to receive their money, according to the allegations.
Laurendeau and co-conspirators allegedly used aliases such as Richard Phelps, Ian Sharpe, Kelly Fisher and Mary Benson to victimize people who lived all over the country, many of whom were over the age of 55.
The indictment further alleges none of the victims ever received any funds from this scheme. Additionally, Laurendeau convinced many of the victims to send in additional checks after the victims did not receive any return on their first payments, according to the charges.
As a result of their scheme, Laurendeau and others allegedly received over $1.2 million. The indictment alleges the money was then spent on trips, dinners, a car and other goods.
Laurendeau is charged with conspiracy to commit mail fraud and 14 counts of mail fraud. If convicted, he faces up to 20 years in federal prison and a possible $250,000 maximum fine on each count.
The Pearland Police Department and the FBI conducted the investigation. Assistant U.S. Attorney John Wakefield is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.