Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 4 May 2022
Harrisburg Man Charged with Failing to Pay over $700,000 Employment TaxesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Sam Duong, age 48, of Harrisburg, Pennsylvania, was charged in a criminal information with failing to withhold and pay employment taxes.
According to United States Attorney John C. Gurganus, the information alleges that between March 2015 and June 2018, Duong failed to pay approximately $784,475 in employment taxes for his company ETS, Inc. The company was located in Harrisburg and provided temporary staffing.
The case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
If convicted, the maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Grant County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Austin Blake Conrad, of Petersburg, West Virginia, has admitted to a methamphetamine charge, United States Attorney William Ihlenfeld announced.
Conrad, 23, pleaded guilty today to one count of “Distribution of Methamphetamine.” Conrad admitted to selling methamphetamine in August 2021 in Grant County.
Conrad faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Fulton County Man Pleads Guilty to Stealing Mail in AlbanyRead the Press Release
ALBANY, NEW YORK – Otilio Millan III, age 33, of Broadalbin, New York, pled guilty today to stealing gift cards and cash from mailed packages while employed as a clerk for the United States Postal Service (USPS).
The announcement was made by United States Attorney Carla B. Freedman and Matthew Modafferi, Special Agent in Charge of the Northeast Area for the USPS Office of the Inspector General.
In pleading guilty, Millan admitted that from December 2020 to November 2021, he opened mailed packages in order to steal gift cards and cash, while working at several Post Offices in Albany, including the Terminal Street Station and the Stuyvesant Plaza Station.
Millan, who pled guilty to mail theft, faces up to 5 years in prison when Senior United States District Judge Lawrence E. Kahn sentences him on September 8, 2022. 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. Millan has also agreed to pay restitution.
This case was investigated by the USPS Office of the Inspector General and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Fugitive Wanted in the District of Oregon Returned to the U.S. After Two Decades on the RunRead the Press Release
PORTLAND, Ore.—An international fugitive and former resident of San Diego who is wanted in the District of Oregon for perpetrating a real estate scam was apprehended in and returned to the U.S. from Costa Rica after more than two decades on the run.
Robin James McPherson, who faces charges of wire fraud and money laundering in the District of Oregon, made a federal court appearance this week in Houston en route to the Southern District of California where he will soon be sentenced for tax crimes.
According to a criminal complaint unsealed today in Oregon, in early August 2019, the FBI began investigating McPherson after several individuals reported being the victims of a real estate scheme operating out of Springfield, Oregon and Costa Rica. McPherson is alleged to have used a variety of marketing techniques, including cold calls, promotional websites, and Facebook advertisements, to find potential investors in an alleged Costa Rican real estate development opportunity called the Carara Parque Resort Corporation. After victims showed interest in the faux investment opportunity, McPherson would conduct sales calls, from Costa Rica, to explain the project.
Over a period of months, McPherson directed victims to wire investment funds to a bank account in Oregon. He then transferred the funds to Costa Rica. Between December 2015 and August 2019, approximately $1.2 million dollars were transmitted to the Oregon bank account. McPherson used many different excuses to explain to his investors why no resort villas had been constructed. McPherson did not disclose to investors that their contracts had not been honored and no villas were slated for construction. McPherson used investors’ funds to pay for various personal expenses including his own mortgage.
In December 2000, McPherson and two co-conspirators were found guilty at trial in the Southern District of California of conspiring to defraud the IRS and tax evasion. Prior to being sentenced in March 2001, McPherson fled the U.S.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of the Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Fugitive Deported to the United States for Sentencing After More Than 21 YearsRead the Press Release
A former California man made a court appearance earlier this week after being apprehended and deported from Costa Rica, so that he could be sentenced by a federal judge on his U.S. conviction for tax crimes.
In December 2000, Robin J. McPherson, formerly of San Diego, and two co-conspirators were found guilty at trial of conspiring to defraud the IRS and tax evasion. According to evidence presented at trial, McPherson was the President, Chief Operating Officer and co-owner of Continental Wireless Cable Inc., a telemarketing company that sold more than $30 million in purported partnership interests in wireless cable systems before being shut down by the Securities and Exchange Commission. McPherson and his co-conspirators took steps to evade paying taxes on profits earned by Continental Wireless Cable Inc., causing a tax loss to the IRS of more than $1 million in taxes.
Following McPherson’s trial conviction in 2000, the district court ordered him and his co-defendants to appear for sentencing in March 2001. Instead, McPherson fled the United States and did not return for the sentencing hearing.
“It is fitting that Robin McPherson was arrested and returned to the United States to be sentenced on his tax crime convictions,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “While honest Americans are paying their fair share this filing season, they will be reminded that the department and IRS will ensure that those who have defrauded the IRSs are held fully accountable, no matter how long it takes.”
“This defendant dodged both his taxes and his sentencing hearing,” said U.S. Attorney Randy S. Grossman for the Southern District of California. “Thanks to the FBI and Costa Rican authorities, he’ll now be held responsible for both.”
“The defendant was convicted for his role in a complex financial fraud scheme in 2000 and fled the U.S. before he was sentenced,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “This international arrest and deportation, more than two decades later, should serve as notice to FBI fugitives worldwide - neither time nor distance will deter the FBI from tracking down wanted fugitives and holding them accountable in U.S. courts. The FBI is proud to work alongside IRS-Criminal Investigation, and I specifically want to thank the FBI’s Legal Attaché Office in Panama City for their outstanding work in coordinating with local authorities in Costa Rica to locate and arrest the defendant.”
“It has been more than 20 years since the defendant was convicted in federal court for tax crimes,” said Special Agent in Charge Ryan L. Korner of IRS-Criminal Investigation. “After eluding the authorities as a fugitive, McPherson was finally caught and is now being brought back to the United States to face his crimes. Criminals may think that they can run and evade justice, but we as a law enforcement agency will continue to hold them accountable.”
McPherson is scheduled to be sentenced at a later date. McPherson faces a maximum penalty of five years in prison on each of the conspiracy and tax evasion counts. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
McPherson is also wanted to stand trial in the District of Oregon for fraud and money laundering charges. In October 2020, McPherson was charged by criminal complaint in the District of Oregon for his role in a fraud scheme in which he allegedly solicited $1.2 million in investments from victims in a fake Costa Rican real estate development opportunity. McPherson allegedly used investor funds to pay for various personal expenses including his own mortgage.
The United States is grateful to the Government of Costa Rica for its cooperation and support in apprehending McPherson, as well as the Justice Department’s Office of International Affairs, the U.S. Marshals Service and the FBI Legat Panama City.
IRS-Criminal Investigation conducted the investigation. The U.S. Attorney’s Office for the Southern District of California provided significant assistance.
Former Tax Division trial attorneys Danny N. Roetzel and Lori A. Hendrickson prosecuted the case.
A criminal complaint is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four Defendants Sentenced for Involvement in Conspiracy to Distribute Methamphetamine in Monroe, LouisianaRead the Press Release
MONROE, La. – John Henry Butler, Jr., 44, of Providence Village, Texas, has been sentenced in the Western District of Louisiana on drug conspiracy charges, announced United States Attorney Brandon B. Brown. United States District Judge Terry A. Doughty sentenced Butler to 240 months (20 years) in prison, followed by 5 years of supervised release. Butler pleaded guilty December 16, 2021 to conspiracy to possess with intent to distribute methamphetamine.
Butler, along with three others, were indicted by a federal grand jury in April 2021 and charged with a methamphetamine conspiracy in connection with their drug trafficking activities in the Monroe, Louisiana area. Evidence presented in court established that from February through November of 2019, agents conducted controlled purchases of methamphetamine from one of Butler’s co-defendants. In November 2019, agents were able to obtain approval from the court to monitor calls on the phone of Darryl Andrea Williams, one of Butler’s co-defendants. Agents were able to intercept phone calls between Williams and Butler concerning the distribution of methamphetamine, along with calls between Williams and the other co-defendants. The other defendants charged in this case and their sentences are as follows:
Darryl Andrea Williams, 60, of Monroe, Louisiana, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 144 months (12 years) in prison, followed by 5 years of supervised release.
Travis Dishun Little, 36, of Monroe, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 144 months (12 years) in prison, followed by 5 years of supervised release.
Jeremy Michael Davis, 37, of Monroe, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 196 months (16 years, 4 months) in prison, followed by 5 years of supervised release.
The case was investigated by the DEA and Ouachita Parish Sheriff’s Office and was prosecuted by Assistant U.S. Attorneys Brian C. Flanagan and J. Aaron Crawford.
This effort is part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
# # #
Former Mercyhealth Executive Sentenced to 3 1/2 Years for Kickback SchemeRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Barbara Bortner, 57, Milton, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 3 ½ years in prison for wire fraud and tax evasion. Bortner, the former Vice President of Marketing and Public Relations at Mercyhealth in Janesville, pleaded guilty to these charges on October 14, 2021.
The government’s investigation revealed that between 2015 and 2020, Bortner and co-defendant Ryan Weckerly engaged in a kickback scheme in which Weckerly submitted inflated invoices to Bortner for his marketing work for Mercyhealth. Once Bortner approved his marketing invoices, Weckerly received payments from Mercyhealth and provided money to Bortner using either cash or checks. In return for the payments, Bortner agreed to use Weckerly’s business, Morningstar Media Group, as the primary marketing agency for Mercyhealth.
In order to disguise the true nature of the kickback payments, Bortner created a fictitious company named WeInspire LLC. During the timeframe of the kickback scheme, Weckerly wrote over 103 checks to WeInspire LLC from one of his business accounts. The cumulative total of these checks was $2,051,975. In addition, bank records show that Weckerly provided Bortner with over $1,000,000 in cash kickback payments. Based on the government’s financial analysis of Weckerly’s accounting and bank records, the total monetary amount of the fraud was $3,136,200.72.
The Internal Revenue Service initiated an audit of Bortner’s individual tax returns in May 2019. During the audit, Bortner represented to an IRS Revenue Agent during an interview that WeInspire was a legitimate company that performed marketing work for one of Weckerly’s businesses. In the months following the interview with the IRS Revenue Agent, Bortner continued to receive kickback payments from Weckerly.
At the sentencing hearing, Judge Conley stated that the kickback scheme was a “very substantial crime” that was motivated entirely by Bortner’s greed. Judge Conley also stated that Bortner earned a very generous salary at Mercyhealth and had no pressing need for the money she stole. Judge Conley also noted that rather than stop the scheme after she became aware of the IRS investigation, Bortner essentially “doubled down” and continued to receive payments from Weckerly.
Weckerly pleaded guilty on November 4, 2021 to wire fraud and aiding and assisting in the filing of a false tax return and will be sentenced by Judge Conley on May 17, 2022. Judge Conley also scheduled a restitution hearing for Bortner and Weckerly on July 21, 2022.
The charges against Bortner were a result of an investigation conducted by IRS Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Former Buffalo Public School Teacher Going to Prison for Selling Marijuana and Possessing Firearms in Furtherance of His Drug Trafficking ActivitiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Michael Masecchia, 57, of Williamsville, NY, who was convicted of possession with intent to distribute marijuana, and possession of firearms in furtherance of drug trafficking crimes, was sentenced to serve 84 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorneys Joseph M. Tripi and Brendan T. Cullinane, who handled the case, stated that since at least 1999 through his arrest on August 23, 2019, Masecchia was involved in the sale of marijuana in the Buffalo and its surrounding suburbs. Masecchia and others also participated in marijuana grow operations in Ellicottville and Franklinville, in Cattaraugus County, NY. The marijuana grown at those operations was harvested and distributed to resellers and users. In addition, the defendant possessed firearms to protect himself, his proceeds, and property where he stored marijuana and currency.
As part of his plea agreement, Masecchia admitted that he received sensitive law enforcement information from his co-defendant Joseph Bongiovanni, who worked as a Special Agent of the United States Drug Enforcement Administration in Buffalo. The information included the names of potential cooperators and whether or not Masecchia and others were under federal investigation, and such information helped Masecchia and others to continue selling marijuana undetected by other members of law enforcement.
On August 23, 2019, a search warrant was executed at the Masecchia’s Main Street residence and seized $27,950.00 in U.S. currency; Two rifles, five shotguns, and a pistol; ammunition; marijuana and suspected cocaine; steroids; hypodermic needles; THC edibles; cannabis syrup; drug paraphernalia; and four cell phones.
Charges remain pending against co-defendant Joseph Bongiovanni.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Erie County Sheriff's Office, under the direction of Sheriff John Garcia; the Niagara County Sheriff's Office, under the direction of Sheriff Michael Filicetti; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of John B. Devito.
# # # #
Former Bank Branch Manager Sentenced to Prison for Tech Support Fraud Scheme That Exploited the ElderlyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that defendant ARIFUL HAQUE was sentenced to one year and one day in prison for participating in a technical support fraud scheme. This conspiracy exploited victims, including elderly victims, by remotely accessing their computers and convincing victims to pay for computer support services that they did not need, and which were never actually provided. As part of this scheme, HAQUE registered a purported technical support company, which defrauded more than 100 victims located across the United States and Canada. HAQUE previously pled guilty before U.S. District Judge Paul A. Crotty, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Ariful Haque participated in a conspiracy that caused pop-up windows to appear on victims’ computers—pop-up windows that claimed, falsely, that a virus had infected the victim’s computer. Through this and other misrepresentations, this fraud scheme deceived scores of victims across the country into paying hundreds or thousands of dollars to the perpetrators for computer support services they did not need. Thanks to our partners at Homeland Security Investigations, this scheme has been dismantled and another participant has been sentenced to prison.”
According to the allegations contained in the Superseding Information, court filings, and statements made in court:
From approximately November 2017 through June 2019, HAQUE was a member of a criminal fraud ring (the “Fraud Ring”) based in the United States and India that committed a technical support fraud scheme that exploited score of victims located across the United States and Canada, including in the Southern District of New York. The Fraud Ring’s primary objective was to trick victims into believing that their computers were infected with malware, in order to deceive them into paying hundreds or thousands of dollars for phony computer repair services.
The scheme generally worked as follows. First, the Fraud Ring caused pop-up windows to appear on victims’ computers. The pop-up windows claimed, falsely, that a virus had infected the victim’s computer. The pop-up window directed the victim to call a particular telephone number to obtain technical support. In at least some instances, the pop-up window threatened victims that, if they restarted or shut down their computer, it could “cause serious damage to the system,” including “complete data loss.” In an attempt to give the false appearance of legitimacy, in some instances the pop-up window included, without authorization, the corporate logo of a well-known, legitimate technology company. In fact, no virus had infected victims’ computers, and the technical support phone numbers were not associated with the legitimate technology company. Rather, these representations were false and were designed to trick victims into paying the Fraud Ring to “fix” a problem that did not exist. And while the purported “virus” was a hoax, the pop-up window itself did cause various victims’ computers to completely “freeze,” thereby preventing these victims from accessing the data and files in their computer—which caused some victims to call the phone number listed on the pop-up window. In exchange for victims’ payment of several hundred or thousand dollars (depending on the precise “service” victims purchased), the purported technician remotely accessed the victim’s computer and ran an anti-virus tool, which is free and available on the Internet. The Fraud Ring also re-victimized various victims, after they had made payments to purportedly “fix” their tech problems.
The Fraud Ring operated through at least 15 fraudulent entities. In November 2017, HAQUE registered one of these fraudulent entities in New York State. HAQUE’s entity defrauded more than approximately 100 victims as part of this scheme. As part of his involvement in the fraud, HAQUE opened U.S. bank accounts to receive funds from victims, deposited victim checks, received a victim complaint, and repeatedly provided a co-conspirator in India (“CC-1”) with authentication codes so that CC-1 could wire funds out of these bank accounts. HAQUE, a former bank branch manager in New York City, also tried to use his banking experience to further the scheme, including by advising CC-1 that it was “[n]ot a good idea to deposit” certain checks, some of which would risk the involvement of “the Feds.” Moreover, on occasion, HAQUE also assisted another co-conspirator (“CC-2”), who had registered a different fraudulent entity that was part of the Fraud Ring, as well. In total, as he admitted in his plea agreement, HAQUE is responsible for losses exceeding $600,000.
* * *
In addition to his prison term, HAQUE, 36, of Queens, New York, was sentenced to three years of supervised release, forfeiture of $38,886.32, and restitution of $470,672.16.
HAQUE’s co-defendant, Romana Leyva, was previously sentenced to 100 months in prison, three years of supervised release, forfeiture of $4,679,586.93, and restitution of $2,707,882.91.
Mr. Williams praised the New York Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”)’s El Dorado Task Force, Cyber Intrusion/Cyber Fraud Group for its outstanding work on the investigation. Mr. Williams also thanked the New York City Police Department for its assistance on this case.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Michael D. Neff and Jilan J. Kamal are in charge of the prosecution.
Felon in Mansfield Found Guilty of Illegal Possession of a FirearmRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned a guilty verdict on Tuesday, May 3, 2022, against Defendant Terry A. Melton Jr., 31, of Mansfield, Ohio, following a two-day trial before Judge Solomon Oliver, Jr in Cleveland.
Melton was convicted of possession of a firearm as a felon.
According to court documents, on August 14, 2020, law enforcement investigators approached a vehicle and occupant suspected of having been involved in drug trafficking activity in the Mansfield area. Authorities detained the occupant as they believed the individual to have an active arrest warrant. Inside the vehicle, investigators observed a 9mm semiautomatic pistol on the driver-side floorboard. The firearm was loaded and bore an obliterated serial number.
Melton is prohibited from possessing a firearm due to previous convictions of distribution of cocaine and cocaine base, possession of a stolen firearm and possession of a firearm in furtherance of a drug trafficking offense, all in the United States District Court for the Northern District of Ohio.
Melton is scheduled to be sentenced on August 25, 2022, and faces a maximum possible sentence of life imprisonment.
This case was investigated by the Mansfield Police Department, Richland County METRICH Drug Unit and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case is being prosecuted by Assistant U.S. Attorney Peter E. Daly.
Felon Pleads Guilty to Possession of a Firearm After Being Shot in a Violent Interaction in BaltimoreRead the Press Release
Baltimore, Maryland – Tony Oliver, age 42, of Maryland, pleaded guilty yesterday to being a felon in possession of a firearm.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, on June 28, 2019, Oliver and Oliver’s friend (Victim 1) were shot on the 1400 block of Ward Street in Baltimore. Based on CCTV cameras, statements, and jail calls, investigators learned that two male suspects first approached Victim 1 and shot him in the head and chest on the 1400 block of Ward Street. As Oliver approached the area in his vehicle, the male suspects shot at Oliver, hitting him in his hand and arm. Investigators later recovered multiple pieces of evidence at the scene including a trail of blood, a 9mm firearm, and 9mm shell casings from inside Oliver’s car.
As part of the investigation, officers located the 9mm firearm under a bush at the scene. In a video viewed by law enforcement, officers saw Oliver near the bush in which the 9mm firearm was located. BPD homicide detectives subsequently recovered the firearm, tested the firearm for Oliver’s DNA, and discovered Oliver’s DNA on the firearm. Oliver knew that he had previously been convicted of a felony and was prohibited from possessing a firearm.
Additionally, as detailed in his guilty plea, the Baltimore Police Department (BPD) requested Oliver’s cellphone pending a search and seizure warrant. However, before giving the phone to the detectives, Oliver purposely threw it on the ground and broke it. Due to the damage to the phone, investigators were unable to retrieve information from the cellphone. The phone was believed to contain information regarding Victim 1’s murder.
Investigators subsequently captured several conversations between Oliver and an incarcerated individual (Individual 1) in which Oliver and Individual 1 discussed the shooting. For example, on July 11, 2019, in a conversation between Oliver and Individual 1, investigators believed that Oliver described the circumstances leading to the shooting, including how Oliver was driving the vehicle, parked next to a corner store, and tossed his firearm immediately after the shooting, and that Oliver believed that another individual recovered the firearm from the scene because an associate of Oliver’s could not locate the firearm when Oliver sent the associate to retrieve it. Based on the call, Oliver did not believe that law enforcement recovered the firearm.
Oliver faces a maximum of 10 years in federal prison followed by 3 years of supervised release for being a felon in possession of a firearm. U.S. District Judge George L. Russell III has scheduled sentencing for August 19, 2022, at 9:30 a.m.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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 ATF and BPD for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney LaRai Everett, who is 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.
# # #
Felon Pleads Guilty to Distributing Fentanyl and Heroin and Illegally Possessing Firearms and AmmunitionRead the Press Release
PITTBURGH, PA -- A resident of Rankin, Pennsylvania pleaded guilty in federal court to charges of violating federal firearm and narcotic laws, United States Attorney Cindy K. Chung announced today.
Royal Lee Griffin, age 32, pleaded guilty to three counts before United States District Judge William S. Stickman in connection with two instances.
In the first matter, the court was advised that on August 24, 2018, Griffin possessed two firearms and ammunition as a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition. Also on August 24, 2018, Griffin possessed with intent to distribute fentanyl and heroin. Those offenses were uncovered after a search of his person and the vehicle he occupied by the White Oak Police Department.
In the second matter, the Court was advised that Allegheny County Police detectives working on a violence suppression detail observed Griffin in the Mon View Heights housing complex concealing a firearm. When the detectives approached Griffin, they found the firearm on Griffin’s person. Griffin has multiple felony convictions, including Aggravated Assault, Robbery, Carrying Firearms Without a License, and escape, and he is therefore precluded from possessing firearms or ammunition under federal law.
Judge Stickman scheduled sentencing for September 15, 2022, at 10:30 a.m. The law provides for a term of imprisonment not more than ten years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Allegheny County Police, White Oak Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Griffin.
Federal Jury Finds Convicted Child Molester Guilty of Naturalization FraudRead the Press Release
CHARLOTTE, N.C. – A federal jury returned a guilty verdict late yesterday against Kheungkham Vongphakdy, 47, of Charlotte, for unlawful procurement of citizenship, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell presided over the trial.
U.S. Attorney King is joined in making today’s announcement by Jarvis McMillar, Acting Field Office Director of the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO).
Vongphakdy was a native and citizen of Laos, but on August 3, 2011, he became a naturalized U.S. Citizen. According to filed documents, evidence presented at trial, and witness testimony, Vongphakdy obtained his U.S. citizenship fraudulently, by providing materially false information on his citizenship application. Trial evidence established that, during the naturalization process, Vongphakdy lied about his criminal history, and failed to admit that, on numerous occasions in November 2008 and October 2009, he had committed criminal sexual acts with a child victim under the age of 13.
Specifically, on March 7, 2011, Vongphakdy submitted an Application for Naturalization (form N-400) to the United States Citizenship and Immigration Services (CIS). He answered “No” to Question 15, “Have you ever committed a crime or offense for which you were not arrested?” On August 3, 2011, Vongphakdy appeared in person at the CIS office in Charlotte and participated in a naturalization ceremony. He was granted U.S. citizenship and received a Certificate of Naturalization. This occurred approximately three years after he sexually molested a child victim. At the time Vongphakdy was going through the naturalization process immigration officials were not aware of his crimes. Vongphakdy admitted to this criminal conduct on April 4, 2014, when he pleaded guilty to two counts of second-degree sexual offense in the Superior Court of North Carolina in Mecklenburg County. He was ordered to serve 116 to 158 months in prison and to register as a sex offender.
Vongphakdy is currently in federal custody. The maximum penalties for the charge of unlawful procurement of citizenship are 10 years in prison and a $250,000 fine. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked ICE-ERO for their investigation of the case and credited Operation False Haven which led to Vongphakdy’s conviction. False Haven is an initiative by ICE-ERO to identify child molesters and other egregious individuals who fraudulently obtained U.S. citizenship.
Assistant U.S. Attorneys Kenneth Smith and Katherine Armstrong of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
Federal Grand Jury Returns Indictment for Possession of Handgun at Jefferson County Elementary SchoolRead the Press Release
LOUISVILLE, KY – A federal grand jury in Louisville, KY returned an indictment yesterday charging a Louisville man, Patrick Wesley, age 37, with the illegal possession of a firearm in a school zone.
According to court documents, Wesley was indicted for possessing a handgun at Greenwood Elementary School on March 18, 2021.
The defendant will soon be scheduled for an initial court appearance before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. If convicted, Wesley faces a maximum penalty of 5 years in prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge R. Shawn Morrow of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
The ATF and LMPD are investigating the case.
Assistant U.S. Attorney Joshua Porter is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Federal Grand Jury Charges Louisville Man in Fentanyl Trafficking ConspiracyRead the Press Release
LOUISVILLE, KY – A federal grand jury in Louisville returned an indictment yesterday charging a local man, Joshua Snodgrass, 27, with conspiring with others to traffic in fentanyl.
According to court documents, beginning in March of 2021 and continuing through February of 2022, Snodgrass conspired with others to attempt to possess, with the intent to distribute, more than four hundred grams of fentanyl.
Snodgrass will soon be scheduled for his initial court appearance before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, he faces a mandatory minimum penalty of 10 years in prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U. S. Attorney Michael A. Bennett of the Western District of Kentucky, and U. S. Postal Inspector in Charge Lesley Allison made the announcement.
The U. S. Postal Inspection Service is investigating the case.
Assistant U.S. Attorney Alicia P. Gomez is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Federal Grand Jury A Indictments Announced- May 2022Read the Press Release
United States Attorney Clint Johnson today announced the results of the May 2022 Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Harold Everett Bringinggood. First Degree Burglary in Indian Country. On June 17, 2020, Bringinggood, 34, of Quapaw, allegedly broke into a home while it was occupied to commit a crime. The FBI is the investigative agency. Assistant U.S. Attorney Kyle M. McWaters is prosecuting the case. 22-CR-125
Kellie Lee Crawford. First Degree Murder in Indian Country. Crawford, 54, of Grove, allegedly killed victim Richard Strade on Sept. 7, 2021. The FBI and Cherokee Nation Marshal Service are the investigative agencies. Assistant U.S. Attorney Stacey P. Todd is prosecuting the case. 22-CR-117
Ryan James Dunham. Obstructing, Delaying, and Affecting Commerce by Robbery; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence; Bank Robbery. Dunham, 25, of Tulsa, allegedly brandished a firearm and threatened an employee when he robbed a Tulsa Check N’ Go on March 23, 2021. Also, on March 31, 2021, Dunham used force and intimidation to rob an IBC Bank in Tulsa. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney John E. Brasher is prosecuting the case. 22-CR-120
Antonio Miguel Marquez. Felon in Possession of Firearms and Ammunition; Possession of Methamphetamine with Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Maintaining a Drug-Involved Premises. Marquez, 23, of Tulsa, is charged with being a felon in possession of a Glock .40 caliber semi-automatic pistol, a Mossberg 12-gauge pump action shot gun and 176 rounds of ammunition. He is also charged with knowingly possessing with intent to distribute methamphetamine and with possessing a firearm to further his drug trafficking crime. Finally, he is charged with maintaining a residence for the purpose of distributing the drug. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tulsa County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney David A. Nasar is prosecuting the case. 22-CR-121
Tyler Dean Lewis Ross Cody. Involuntary Manslaughter in Indian Country (superseding indictment). Cody, 21, of Nowata, was allegedly speeding and unlawfully passed another vehicle in a no passing zone. Cody’s vehicle struck one motorist’s vehicle as he attempted to pass it and then collided head-on with a second vehicle, killing the driver. The incident occurred on May 28, 2020, in Nowata County. The FBI and Oklahoma Highway Patrol are the investigative agencies. Assistant U.S. Attorney Brandon A. Skates is prosecuting the case. 22-CR-63
Teraneh Monique Sullivan. Assault with a Dangerous Weapon in Indian Country. Sullivan, 31, of Tulsa, is charged with assaulting a victim by swinging a pocketknife at the victim’s neck on Feb. 21, 2021. The Tulsa Police Department and FBI are the investigative agencies. Assistant U.S. Attorney Cheryl L. Baber is prosecuting the case. 22-CR-127
Jeremy Wayne Williams. Felon in Possession of a Firearm and Ammunition. Williams, 45, of Shawnee, is charged with being a felon in possession of a Ruger 9mm Luger caliber semi-automatic pistol. The FBI and Broken Arrow Police Department are the investigative agencies. Assistant U.S. Attorney Victor A.S. Régal is prosecuting the case. 22-CR-129
Federal Charges Filed Against Philadelphia Man Who Allegedly Shot PPD SWAT Officer in FebruaryRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Kristian Reyes, 35, of Philadelphia, PA, was arrested today by federal agents and charged by criminal complaint with firearms and drug offenses in connection with an incident earlier this year, during which a Philadelphia Police Department (PPD) officer was shot while executing a warrant for the arrest of the defendant.
The defendant is charged with using a firearm during a drug trafficking offense, illegally possessing a firearm as a previously convicted felon, and possession of controlled substances with intent to distribute. According to the publicly filed complaint, Reyes was the subject of an active arrest warrant for state probation and parole violations. On February 11, 2022, Philadelphia Police SWAT Officers went to arrest the defendant at a property on the 100 block of West Lehigh Avenue in the Fairhill section of the city. After announcing themselves and receiving no response, officers breached the front door and went up a narrow stairwell to attempt to enter the third-floor apartment. The officers once again announced themselves as they made their way up the stairs. While they waited for equipment to gain access to the apartment, the leader of the SWAT entry team heard multiple popping sounds from inside the apartment and then felt a stinging sensation in his chest. When he looked down, he realized he had been shot.
The PPD SWAT officer was rushed to the hospital for treatment of non-life-threatening injuries. Law enforcement officers later determined that the ceramic plate in the SWAT officer’s ballistics vest prevented more serious injury and likely saved his life.
Ultimately, the defendant was apprehended after attempting to escape by jumping from a third-floor window onto the roof, with a gun in his hand. Investigators recovered a Glock 9mm pistol from the roof. Ballistics comparison later confirmed that the gun was used in the shooting. Investigators also obtained a search warrant for the third-floor apartment and recovered fired cartridge casings, nearly 100 additional rounds of ammunition, and an enormous inventory of alleged narcotics including over 3,500 fentanyl pills, heroin, crack cocaine, methamphetamine, cocaine, and nearly $3,000 cash.
“As we have said many times since launching the All Hands On Deck initiative, our Office and our federal partners are doing everything we can to support the Philadelphia Police Department and prosecute cases federally when appropriate,” said U.S. Attorney Williams. “Here, as alleged in the complaint, the defendant brazenly and recklessly fired a weapon through a wall at law enforcement officers in the middle of the day in busy neighborhood; an offense that certainly meets the criteria for federal prosecution. We are committed to bringing the full might of the federal justice system to this battle against criminals in our city.”
If convicted, the defendant faces a maximum possible sentence of life in prison with a thirty-five year mandatory minimum sentence.
The case was investigated by Drug Enforcement Administration and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Ashley Martin.
This case is part of the DEA’s new initiative, Operation Overdrive, aimed at combatting the rising rates of drug-related violent crime and overdose deaths plauguing American communities. Operation Overdrive, which launched February 1, 2022, uses a data-driven, intelligence-led approach to identify and dismantle criminal drug networks operating in areas with the highest rates of violence and overdoses. DEA, working in partnership with its fellow federal, state, and local law enforcement agencies, has mapped the threats and initiated enforcement operations against those networks in 34 locations across 23 states.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Doctor Admits to Filing False Tax ReturnsRead the Press Release
ALBANY, NEW YORK – Ehab Kodsi, age 56, of Watervliet, New York, pled guilty today to filing a false tax return and admitted to deliberately underreporting his income from 2015 to 2018.
The announcement was made by United States Attorney Carla B. Freedman and Thomas Fattorusso, Special Agent in Charge, New York Field Office, Internal Revenue Service – Criminal Investigation (“IRS-CI”).
Kodsi, a medical doctor, is the sole owner of a pain management clinic located in Queensbury, New York. He is also a partner in a real estate company that owns several properties, including the office building in Queensbury that houses his pain management clinic.
In pleading guilty, Kodsi admitted that from 2015 to 2018, he underreported his businesses’ revenues to the IRS, and improperly deducted personal and business expenses. As a result, Kodsi failed to report a total of $822,069 in income and failed to pay $245,212 in taxes.
Kodsi did not report income received from third parties reimbursing services provided by his pain management clinic, deducted personal expenses as business expenses, deducted the same business expense multiple times, and overstated business expenses related to his and his family’s use of vehicles.
Kodsi faces up to 3 years in prison, and a maximum $250,000 fine, when Senior United District Judge Lawrence E. Kahn sentences him on September 8, 2022. He has also agreed to pay restitution to the IRS in the amount of $245,212. 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 was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Discovery of Cache of Drugs, Cash, and Weapons in Pacific Grove Apartment Leads to Federal Firearm and Drug Trafficking Charges Against Monterey County ResidentRead the Press Release
SAN JOSE – The Office of the United States Attorney has filed a federal criminal complaint charging Mario Jose Villagrana with federal drug distribution and firearms charges in connection with the discovery of a cache of drugs, cash, and weapons in a Pacific Grove, Calif., apartment, announced U.S. Attorney Stephanie M. Hinds and Drug Enforcement Administration (DEA) Special Agent in Charge Wade R. Shannon.
The criminal complaint, filed April 28, 2022, and unsealed late yesterday, describes the drugs, cash, and weapons law enforcement officers found on February 15, 2022, in Villagrana’s Pacific Grove apartment and a closet within. For example, among the weapons found were two AR-15-style and two AK-47-style rifles, four handguns, and a 30-round extended magazine. The complaint also describes additional items collected, including a duffle bag with various caliber magazines and ammunition; two milling machines and a Dremel tool, both commonly used to fabricate firearm component parts; various gun parts; a variety of drugs, and more than $20,000 in U.S. currency. The drugs found allegedly include over 13,000 counterfeit “M30” pills containing fentanyl (weighing more than 1.4 kilograms).
The complaint charges Villagrana, 27 of Monterey County, Calif,, with possession with intent to distribute 40 grams or more of a mixture or substance containing fentanyl, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B)(vi), and being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1). Villagrana faces a statutory mandatory minimum sentence of five years in prison, and a maximum sentence of 40 years in prison, for the drug charge, as well as a statutory maximum of 10 years in prison for the firearm charge. In addition, as part of any sentence, the court may order a maximum $5 million fine for the drug charge and a $250,000 fine for the firearm count, a term of supervised release, and forfeiture. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Villagrana made his initial court appearance in the Northern District of California before U.S. Magistrate Judge Nathanael Cousins on May 3, 2022, and is scheduled to return to court May 10, for a detention hearing.
A criminal complaint merely alleges that a crime has been committed, and, as with all defendants, Villagrana is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Christoffer Lee is prosecuting the case with the assistance of Lynette Dixon. This prosecution is the result of an investigation by the DEA, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Monterey County Sheriff’s Office.
Dearborn Resident Sentenced in Investment Fraud SchemeRead the Press Release
DETROIT - Dearborn resident Ali Rameh Bazzi was sentenced to 33 months of imprisonment today on charges of wire fraud and money laundering arising out of an approximately $500,000 investment fraud scheme, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Special Agent in Charge James A. Tarasca of the Federal Bureau of Investigation and Sarah Kull, Special Agent in Charge of the Detroit Office of the Internal Revenue Service Office of Criminal Investigation.
Bazzi, 27, pleaded guilty in August 2021 to one count of wire fraud arising from a scheme to defraud approximately 30 individuals by using their investments to fund his personal lifestyle and expenses. Bazzi also pleaded guilty to one count of money laundering, the result of financial transactions he engaged in with the fraudulently obtained funds.
United States Attorney Ison stated “This defendant lived lavishly on funds that he stole from those who entrusted him with their investments. His lies and deceit were costly to his victims and to the community as a whole. Today’s sentence was wholly warranted and I hope it will deter anyone seeking to enrich themselves by defrauding innocent investors.”
According to Court documents, Ali Rameh Bazzi held himself out to the public as an investment manager who used a unique trading model to generate high rates of return for investors. Between March of 2018 and March of 2020, Bazzi, operating through a supposed investment management company that he formed, obtained approximately $540,000 from nearly thirty investors. Bazzi told these investors that he would be investing their funds in commodities and foreign exchange markets and would generate substantial profits for his clients. To corroborate those claims, he provided his investors with individualized account statements at regular intervals, which purported to show trading activity and the growth in the value of their investments.
In fact, according to court documents, Bazzi diverted the great bulk of the money he obtained to his own personal uses and expenses. The account statements were fictitious, as were Bazzi’s many other representations to his investors about how and where their funds would be invested. Because of Bazzi’s misrepresentations, most of his victims were left with no return on their investments.
Bazzi spent investor funds leasing exotic sports cars, acquiring jewelry, and funding the day-to-day living expenses of a comfortable lifestyle. Of the approximately $540,000 that Bazzi obtained over the course of the scheme, Bazzi returned approximately $99,000 to investors. The reminder of the funds – some $441,231 – Bazzi illegally converted to his own use.
In addition to the 33 months of imprisonment, Bazzi was ordered to pay $441,231 in restitution to his victims.
The case was prosecuted by Assistant United States Attorney John K. Neal. The investigation was conducted jointly by the FBI and the IRS-Criminal Investigations Division. The Commodity Futures Trading Commission provided valuable assistance.
Correctional Officer Charged with Providing Contraband to InmatesRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a four-count indictment charging Milton Williams, 27, of Austintown, Ohio, with participating in a conspiracy that sold contraband to inmates at a Federal Correctional Institute in Elkton, Ohio (FCI-Elkton).
According to the indictment, from March 2020 to January 2021, the defendant worked as a Correctional Officer at FCI-Elkton. The indictment states that during this time, Williams and others participated in a conspiracy that smuggled tobacco and cell phones into the prison and sold them to inmates. The indictment alleges that inmates made payments through a mobile phone application.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it is the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the FBI and the Department of Justice Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorney Bryson N. Gillard.
Clark County Woman Sentenced to 5 Years for Trafficking MethamphetamineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Samantha K. Fristoe, 30, Owen, Wisconsin was sentenced yesterday by U.S. District Judge William M. Conley to 5 years in federal prison for distributing 50 grams or more of methamphetamine. This prison term will be followed by 4 years of supervised release. Fristoe pleaded guilty to this charge on February 4, 2022.
On June 7, 2021, West Central Drug Task Force officers purchased 55.9 grams of methamphetamine from Fristoe and co-defendant, Saige Marten, through a confidential informant in Clark County, Wisconsin.
At the time of this offense, Fristoe was on state probation for forgery and had been released on criminal bond for cases involving methamphetamine trafficking and bail jumping. Fristoe subsequently was sentenced in her state cases on August 23, 2021 to a total of 3 years and 6 months in state prison followed by 3 years and 6 months of extended supervision. Judge Conley ordered this federal sentence to run concurrently with the remainder of the state prison sentence.
At sentencing, Judge Conley highlighted the fact that Fristoe was on state supervision at the time she committed this offense.
Co-defendant Saige Marten pleaded guilty to distributing 50 grams or more of methamphetamine and was sentenced to 8 years in federal prison by Judge Conley on March 23, 2022.
The charge against Fristoe was the result of an investigation conducted by the West Central Drug Task Force; Eau Claire Police Department; Chippewa, Clark, and Rusk County Sheriffs’ Offices, and the Drug Enforcement Administration. The Clark County District Attorney’s Office also provided assistance in the case. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
Citizen of Dominican Republic Admits Role as Leader of International Money Laundering OrganizationRead the Press Release
NEWARK, N.J. – The leader of an international money laundering organization in the Dominican Republic today admitted his role in a conspiracy to commit money laundering, U.S. Attorney Philip R. Sellinger announced.
Luis Velazquez-Cordero, aka El Pequeño, 37, a citizen of the Dominican Republic, pleaded guilty before U.S. District Judge Brian R. Martinotti to Count One of an indictment charging him with conspiring to commit money laundering. Velazquez-Cordero was extradited to the United States after his arrest the Dominican Republic on July 28, 2020.
According to documents filed in this case and statements made in court:
Velazquez-Cordero was the leader of a money laundering organization that used the United States banking system to convert over $80 million in cash from illegal drug sales into cashier’s checks and then deposit the checks into United States bank accounts so that the money could be transferred back to international drug trafficking organizations in the Dominican Republic and other countries. Velazquez-Cordero directed conspirators in New Jersey, New York, and Florida to pick up cash drug proceeds and exchange the cash for cashier’s checks at United States banks. Velazquez-Cordero provided the amount of each check, the payee, and the bank accounts into which the checks should be deposited. The checks were then deposited into the payee accounts, many of which were controlled by shell corporations and used as a means to facilitate laundering illegal drug proceeds. The cashier’s check scheme was designed to conceal the nature, source, ownership, and control of the illegal drug proceeds in order to avoid scrutiny by law enforcement and banking institutions.
As part of his plea, Velazquez-Cordero also agreed to forfeit $1.4 million in United States currency seized during the investigation, as well as five properties in the Dominican Republic and 10 vehicles, including a Ferrari.
The money laundering count to which Velazquez-Cordero pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater. Sentencing is scheduled for Sept. 14, 2022.
U.S. Attorney Sellinger credited special agents of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; the DEA Special Operations Division and the Santo Domingo Country Office, under the supervision of Special Agent in Charge Renita D. Foster; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; officers of U.S. Customs and Border Protection, New York Field Office, under the direction of Director of Field Operations Frank Russo; the Morristown, New Jersey, Police Department, under the direction of Chief Darnell Richardson; the Clifton, New Jersey, Police Department, under the direction of Chief Tom Rinaldi; the Passaic, New Jersey, Police Department, under the direction of Chief Luis A. Guzman; the New York City Police Department, under the direction of Commissioner Keechant L. Sewell; the New York City Office of the Special Narcotics Prosecutor, under the direction of Special Narcotics Prosecutor Bridget G. Brennan; the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes; the Bergen County Prosecutor’s Office under the direction of Bergen County Prosecutor Mark Musella; the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; the New Jersey Office of the Attorney General, under the direction of Acting Attorney General Matthew J. Platkin, with the investigation leading to today’s guilty plea. The Justice Department’s Office of International Affairs provided valuable assistance in securing Velazquez-Cordero arrest and extradition. U.S. Attorney Sellinger thanked officials in the Dominican Republic for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the National Security Unit in Newark.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Charlestown Man Sentenced to 30 Months in Prison for Identity Theft and Fraud Related to Unemployment BenefitsRead the Press Release
BOSTON – A Charlestown man living under a false identity was sentenced today in federal court in Boston on charges arising from his use of the name and Social Security number of a U.S. citizen.
An individual referred to as “John Doe” was sentenced by U.S. District Court Judge Denise J. Casper to 30 months in prison and three years of supervised release. On Dec. 22, 2021, Doe pleaded guilty to one count of false statements on a United States passport application, one count of false representation of a Social Security number, three counts of wire fraud and one count of aggravated identity theft.
On or about March 31, 2020, Doe used the name and personally identifiable information (PII) of a Puerto Rican resident to apply for Unemployment Insurance (UI) with the Massachusetts Department of Unemployment Assistance (MA DUA). On April 1, 2020, MA DUA approved the claim and began issuing benefits to Doe via a prepaid debit card, which he used for cash withdrawals at ATM machines and for the purchase of goods and services. As a result, from April through September 2020, Doe fraudulently received over $15,000 in UI benefits under the stolen identity.
In 2017, Doe used the victim’s Social Security number to apply for a duplicate driver’s license with the Massachusetts Registry of Motor Vehicles and, in 2010, used the victim’s name and PII to apply for a United States passport. Further investigation revealed that Doe had been using the victim’s name and personal identifiers since at least 2000 and, since 1992, he had provided at least four other names when he was arrested by police and to apply for and receive driver’s licenses.
United States Attorney Rachael S. Rollins; Jonathan Davidson, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, Labor Racketeering and Fraud made the announcement today. Assistant U.S. Attorneys Alathea Porter, Benjamin Saltzman and James Herbert of Rollins’ Criminal Division prosecuted the case.
This investigation was conducted by the U.S. Department of State's Diplomatic Security Service together with Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
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.
California Man Sentenced to Federal Prison for AssaultRead the Press Release
PHOENIX, Ariz. – Jesse Michael James, 40, of Santa Maria, California, was sentenced on Monday by U.S. District Judge Michael T. Liburdi to 37 months in prison, followed by three years of supervised release. James previously pleaded guilty to assault with a dangerous weapon.
On December 7, 2020, James assaulted the victim with a hammer, causing the victim to sustain serious bodily injury. James is a member of the Choctaw Nation of Oklahoma and the assault occurred on the Colorado River Indian Tribes (“CRIT”) Indian Reservation.
The FBI and the CRIT PD conducted the investigation in this case. Assistant U.S. Attorney Christina J. Reid-Moore, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00549-PHX-MTL
RELEASE NUMBER: 2022- 059_James# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Brooklyn-Based Manager of Money Laundering Operation Pleads Guilty in Connection with $5 Million Online Vehicle Sale ScamRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ricky Patel, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today that NATALIA KORZHA pled guilty today in Manhattan federal court to conspiracy to commit bank fraud in connection with a scheme to launder money derived from an online vehicle sale scam that generated at least $5.3 million from dozens of defrauded consumers. KORZHA pled guilty before U.S. District Judge Analisa Torres.
U.S. Attorney Damian Williams said: “As she admitted today, Natalia Korzha managed a group of co-conspirators who opened bank accounts that were used to launder millions of dollars in criminal proceeds from an online vehicle sale scam. Without her money laundering operation, online fraudsters would not be able to profit from their illegal schemes. Korzha will now face a term of imprisonment and be required to forfeit her ill-gotten gains.”
As alleged in the Complaint and the Indictments, and based on statements made in court:
From at least March 2019 through approximately March 2021, KORZHA managed a money laundering operation based in Brooklyn that included co-defendants VLADISLAV NECEAEV, ANASHON KAMALOV, KAROL KAMINSKI, STANISLAV TUNKEVIC, and SVETLANA VAIDOTIENE, among others. With KORZHA as coordinator, NECEAEV, KAMALOV, KAMINSKI, TUNKEVIC, VAIDOTIENE, and other co-conspirators opened numerous bank accounts in the name of shell companies for the purpose of laundering money stolen from consumers who were trying to buy vehicles online. In exchange, the defendants received a cut of the victims’ money.
Other members of the conspiracy, pretending to represent car dealerships, advertised vehicles that they did not own and were not authorized to sell on fake websites with domain names that sounded like legitimate car dealerships, or through online marketplaces like Craigslist and eBay. Victims who responded to those advertisements and negotiated a purchase price were instructed by the purported sellers to wire payment to accounts that NECEAEV, KAMALOV, KAMINSKI, TUNKEVIC, VAIDOTIENE, and other co-conspirators opened. Once the payments cleared, the defendants quickly withdrew the funds before the victims realized they had been defrauded. The victims never received the vehicles they thought they had bought or any refunds from the fake sellers. In total, dozens of victims were defrauded of a total of at least $5.3 million.
* * *
KORZHA, 49, of Brooklyn, New York, pled guilty to one count of conspiracy to commit bank fraud and agreed to forfeiture of $5,386,538 and restitution of $5,386,538. KORZHA is scheduled to be sentenced by U.S. District Judge Analisa Torres on September 7, 2022.
NECEAEV, 28, of Brooklyn, New York, pled guilty to one count of conspiracy to commit bank fraud on March 14, 2022, before Magistrate Judge Robert W. Lehrburger. He has agreed to forfeit $526,000. NECEAEV is scheduled to be sentenced by Judge Torres on June 8, 2022.
TUNKEVIC, 47, was extradited to the United States from Lithuania on March 25, 2022, and presented in Manhattan federal court before United States Magistrate Judge Sarah L. Cave on March 28, 2022.
KAMINSKI, 32, was extradited to the United States from Lithuania on April 4, 2022, and presented in Manhattan federal court before United States Magistrate Judge Jennifer E. Willis on April 5, 2022.
VAIDOTIENE, 54, was extradited to the United States from Lithuania on April 8, 2022, and presented in Manhattan federal court before United States Magistrate Judge Ona T. Wang on April 11, 2022.
TUNKEVIC, KAMINSKI, and VAIDOTIENE are each charged with one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering. The charges against each of them are pending. They have been ordered detained pending trial.
The offense of conspiracy to commit bank fraud carries a maximum sentence of 30 years in prison and a maximum fine of $1,000,000. The crime of conspiracy to commit money laundering carries a maximum sentence of 20 years in prison and a maximum fine of $500,000 or twice the value of the property involved in the transaction.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations and the New York Police Department. He also thanked the U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division, the United States Marshals Service, the Prosecutor General’s Office of the Republic of Lithuania, and the Lithuanian Criminal Police Bureau for their assistance in this investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Sarah Lai is in charge of the prosecution.
Belgrade woman admits embezzling from employerRead the Press Release
MISSOULA — A Belgrade woman on May 3 admitted to allegations that she embezzled what the government calculated to be more than $800,000 from her employer while working as an accountant and controller, U.S. Attorney Leif M. Johnson said today.
Renae Swanson, 59, pleaded guilty to wire fraud. Swanson faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Aug. 23 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. Swanson was released pending further proceedings.
The government alleged in court documents that Swanson was an accountant and controller for Williams Plumbing & Heating. Swanson’s duties included uploading electronic payroll files to the bank for funding and processing payroll transactions to the company’s employees. From about December 2012 until May 2019, Swanson fraudulently altered that process, resulting in her increasing the amount of money she received from Williams Plumbing & Heating, none of which was authorized. The government calculated that Swanson embezzled approximately $805,013.
Assistant U.S. Attorney Ryan G. Weldon is prosecuting the case, which was investigated by the FBI.
XXX
Battery Manufacturer Ordered to Pay Civil Penalties for Alleged Violations of “Made in USA” Labeling Rule and Federal Trade Commission ActRead the Press Release
The Department of Justice, together with the Federal Trade Commission (FTC), announced today that the government will collect $105,319.56 in civil penalties from Lithionics Battery LLC and its general manager, Steven Tartaglia (together, Lithionics), as part of a settlement to resolve allegations that Lithionics violated the FTC’s “Made in USA” Labeling Rule and the FTC Act in connection with marketing its battery products.
In a complaint filed in the U.S. District Court for the Middle District of Florida, the government alleged that Lithionics violated the rule by improperly labeling and advertising batteries, battery modules and battery management systems as “Made in USA,” even though key components of the products — including the lithium ion cells that powered the batteries — were imported. This is the first action under the FTC’s new “Made in USA” rule.
“The Department of Justice will not tolerate companies who deceive customers by falsely claiming that their products were made in the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to protecting consumers from the deceptive practices of companies who hope to gain an unfair advantage through dishonesty.”
“As our country works to onshore production of lithium ion batteries, it’s critical that honest businesses have a chance to compete, and that consumers can buy American,” said Director Sam Levine of the FTC’s Bureau of Consumer Protection. “Falsely labeling batteries as made in the United States is against the law, and the FTC is using its new Made in USA rule to make sure this misconduct comes with a price.”
In addition to the civil penalties, the stipulated order entered by the court today prohibits Lithionics from making “Made in USA” and other unsubstantiated origin misrepresentations in the future. The stipulated order also requires Lithionics to notify affected customers and to submit compliance reports to the FTC for over a decade.
This matter is being handled by Trial Attorneys Deborah Sohn and Zachary Cowan of the Civil Division’s Consumer Protection Branch. Julia Ensor represented the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.
Baltimore Career Offender Pleads Guilty to Federal Charge for Possession with Intent to Distribute CocaineRead the Press Release
Baltimore, Maryland – Khary Owens, age 43, of Baltimore, Maryland, pleaded guilty today to possession with intent to distribute cocaine.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, during September and October 2020, detectives from the Baltimore Police Department conducted covert surveillance on a residence in the 500 block of Sheridan Avenue in Baltimore, after receiving information that the residence was being used for drug trafficking. Detectives saw Owens engage in hand-to-hand drug transactions on the porch and on the sidewalk outside of the residence.
Detectives obtained a search warrant for the residence and for Owens’ person, which was executed on October 7, 2020. Owens was seen walking to the house, wearing a vest and a backpack, which he hung up on the front porch of the home. When Owens saw the detectives approaching the residence, he ran through the front door and up the stairs, where he threw a package containing 58 vials of cocaine out of the second story window and into the back yard. Detectives staged in the back yard saw the package come out the window and recovered it. Subsequent laboratory analysis revealed that the vials contained cocaine.
Owens was arrested and the backpack he left on the front porch was searched. From the backpack, detectives recovered a medicine bottle filled with a suspected cutting agent, red zip tie baggies, and a .45-caliber pistol loaded with eleven cartridges of .45-caliber ammunition.
Owens and the government have agreed that, if the Court accepts the plea agreement, Owens will be sentenced to between eight and 10 years in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 20, 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. 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 ATF and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Special Assistant U.S. Attorney Charles R. Gamper, who is 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.
# # #
Artesia man sentenced to four years in prison for bank robberyRead the Press Release
ALBUQUERQUE, N.M. – Roman Andrew Poulsen, 40, of Artesia, New Mexico, was sentenced in federal court today to four years and three months in prison for bank robbery. Poulsen pleaded guilty on Jan. 7.
According to the plea agreement and other court records, on July l5, 2021, Poulsen robbed the Washington Federal Bank in Artesia. Poulsen entered the bank and provided a demand note to one of the tellers. The teller placed the money into a bank envelope and gave it to Poulsen, who immediately fled the bank. Following the robbery, Artesia Police officers located Poulsen's vehicle at a Fenn's Country Market. Officers found Poulsen and Lori Crapo, 41, of Sprinville, Utah, at the store and arrested them.
Officers observed video surveillance from the store that showed Crapo putting something onto one of the shelves on a store aisle before she was apprehended. Officers then searched that area of the store and located cash from the robbery hidden behind a box of ice cream cones.
Crapo pleaded guilty on Jan. 4 to misprision of a felony. On April 26 she was sentenced to 18 months in prison.
Upon his release from prison, Poulsen will be subject to three years of supervised release.
The Roswell Resident Agency of the FBI Albuquerque Field Office and the Artesia Police Department investigated this case. Assistant U.S. Attorneys Randy M. Castellano and Aaron O. Joran prosecuted this case.
# # #
Armed drug dealer who sold drugs with child in house sent to prisonRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Corpus Christi man has been sentenced for conspiring to possess with intent to distribute meth and carrying a firearm in relation to a drug trafficking crime, announced U.S. Attorney Jennifer B. Lowery.
Alec Michael Garcia pleaded guilty Feb. 9.
Today, U.S. District Judge David S Morales ordered Garcia to serve 195 months in federal prison to be immediately followed by five years of supervised release.
“Removing armed drug dealers from our streets has an immediate impact on the safety of our communities,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “ATF is absolutely committed to working with our law enforcement partners to ensure that those who bring dangerous drugs and firearms into our neighborhoods are held accountable for their actions.”
Authorities executed a search warrant at a residence in Corpus Christi in August 2021. At that time, they arrested Garcia and his co-conspirators, Jesus and Anna Sustaita. During the search, they found over 50 grams of meth; nearly two kilograms of pills containing fentanyl, alprazolam and meth; LSD; approximately two kilograms of marijuana as well as numerous THC products, nine loaded firearms, hundreds of rounds of ammunition, body armor and U.S. currency.
At the time of search, authorities found that Anna Sustaita’s 8-year-old son was also living at the residence, which was located across the street from an elementary school.
Jesus, 26, and Anna Sustaita, 24, also of Corpus Christi, were both sentenced earlier this year to 135 months in federal prison.
Garcia will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration conducted the investigation with the assistance of the Corpus Christi Police Department’s Gang Unit. Assistant U.S. Attorney Barbara J. De Peña prosecuted the case.
Arkansas Prisoner Guilty of Threatening Federal Judges, ProsecutorRead the Press Release
LITTLE ROCK, Arkansas – An Arkansas inmate has pleaded guilty to federal violations, announced Eastern District of Texas U.S. Attorney Brit Featherston today.
Jeffrey Scott Williams pleaded guilty to mailing threatening communications today before U.S. District Judge Kristine G. Baker.
According to information presented in court, in June 2017, Williams was convicted of mailing threatening communications and was sentenced to 10 years in prison based on a letter he wrote in which he threatened to kill a United States judge. After that conviction, in March 2018, Williams mailed a letter to the federal courthouse in Memphis, Tennessee, in which he threatened to kill a United States judge. Then in May 2018, February 2019, and March 2020, Williams mailed letters to the federal courthouse in Little Rock in which he threatened two United States judges and an Assistant U.S. Attorney.
Williams was indicted by a federal grand jury on June 4, 2020. He faces up to 10 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. Postal Inspection Service and prosecuted by Eastern District of Texas Assistant U.S. Attorney Jonathan R. Hornok.
###
Alien smuggler faces up to life for three deathsRead the Press Release
LAREDO, Texas – A 23-year-old Laredo resident has pleaded guilty to conspiracy to transport undocumented aliens resulting in death, announced U.S. Attorney Jennifer B. Lowery.
Abraham J. Ahumada admitted to leaving the victims behind after a car accident.
On Nov. 13, 2021, Ahumada drove a black Nissan Murano down U.S. Highway 83. Law enforcement attempted to pull him over, but he proceeded to flee. He did not yield and instead accelerated above the speed limit.
Ahumada disregarded a red light during the pursuit along U.S. 83 and collided with a passenger vehicle crossing the intersection with the right of way. The collision resulted in three deaths.
Two individuals in Ahumada’s vehicle were pronounced dead on the scene as well as a woman who was traveling in the struck vehicle with children. The three children suffered major bodily injuries and were taken to a local hospital for treatment.
Judge Marina Garcia Marmolejo will impose sentencing July 28. At that time, he faces a maximum sentence of life imprisonment.
He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with Customs and Border Protection and Texas Department of Public Safety. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Albuquerque man pleads guilty to carjacking, bank robbery and firearms chargesRead the Press Release
ALBUQUERQUE, N.M. – Lante Porcha, 30, of Albuquerque, pleaded guilty on May 3 in federal court to one count of carjacking, one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence, one count of attempted bank robbery with a dangerous weapon, and one count of being a felon in possession of a firearm and ammunition. Porcha will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury indicted Porcha and codefendant Chaz Estrada, 34, also of Albuquerque, on Feb. 7, 2019. According to the plea agreement and other court records, on Feb. 3, 2019, in the parking lot of Presbyterian Hospital in Albuquerque, Porcha approached a victim who was seated in his vehicle and asked the victim for a cigarette or a lighter. Porcha then pointed a handgun at the victim and threatened to shoot him if he did anything. Porcha entered the passenger seat and ordered the victim to drive to Estrada, who was waiting nearby. Porcha ordered the victim to get out of the vehicle, after which Estrada entered the driver seat and the two fled in the victim’s vehicle.
Later that day, Porcha approached another victim as she was at a drive-up ATM. Porcha pointed the handgun at the victim and demanded that she empty her bank account. The victim refused and pushed the gun downward. The gun discharged and the bullet passed between the victim’s legs. Porcha ran back to the stolen vehicle and fled with Estrada driving.
A short time later, law enforcement stopped the stolen vehicle. Porcha and Estrada attempted to flee on foot but were arrested. The handgun and ammunition were found in the vehicle.
On May 26, 2020, Estrada pleaded guilty to attempted bank robbery with a dangerous weapon, being an accessory after the fact, and being a felon in possession of a firearm and ammunition. On Sept. 15, 2020, Estrada was sentenced to eight years and one month in prison, to be followed by three years of supervised release.
By the terms of the plea agreement, Porcha faces 15 years and eight months in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Albuquerque Police Department. Assistant United States Attorney Timothy Trembley is prosecuting the case.
# # #
Albuquerque man charged with robbing a mail carrierRead the Press Release
ALBUQUERQUE, N.M. – Daniel Trujeque, 29, of Albuquerque, appeared in federal court today for a preliminary and detention hearing where he was charged with robbery against a U.S. Postal Service employee while the employee was carrying out official duties. Trujeque will remain in custody pending trial, which has not been scheduled.
According to a criminal complaint, on Jan. 11, Trujeque and two accomplices allegedly parked near a U.S. Postal Service letter carrier who was delivering parcels to a neighborhood box unit on the west side of Albuquerque. Trujeque allegedly got out of the vehicle and approached the letter carrier. He then allegedly pointed a handgun at the letter carrier and demanded the carrier’s mail keys. After the carrier handed over the keys, Trujeque allegedly demanded a parcel that had not been placed in a box yet. Trujeque took the keys and the parcel, returned to the vehicle and fled.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Trujeque faces up to 25 years in prison.
The U.S. Postal Inspection Service investigated this case with assistance from the Albuquerque Police Department and the Bernalillo County Sheriff’s Office. Assistant United States Attorney Niki Tapia-Brito is prosecuting the case.
# # #
Tuesday 3 May 2022
Woman Formerly of Bay Area Sentenced to Five Years in Prison for Fraud SchemeRead the Press Release
SAN JOSE – Amanda Christine Riley was sentenced in federal court today to 60 months in prison after pleading guilty to wire fraud in connection with a scheme to solicit donations from individuals to help her pay for cancer treatments she never needed nor received, announced United States Attorney Stephanie M. Hinds and Internal Revenue Service (IRS) Criminal Investigation, Special Agent in Charge Mark H. Pearson. The sentence was handed down by the Honorable Beth Labson Freeman, United States District Judge for the Northern District of California.
Beginning in 2012, Riley, who was then living in San Jose, began to falsely report that she had been diagnosed with Hodgkin’s lymphoma, a type of cancer. Although she was not actually ill, Riley carefully cultivated a social media presence, using Facebook, Instagram, Twitter, and a blog. She used her presence on these sites to “document” her nonexistent medical condition, and to aggressively solicit donations, supposedly to cover her medical expenses. In truth, Riley had no medical expenses. The donations she received were deposited into her personal bank accounts and used to pay her living expenses. In total, the government identified 349 individuals and entities who made contributions with a total value of $105,513 towards Riley’s fabricated medical expenses.
Information provided at the sentencing hearing showed that Riley went to great lengths to maintain her deception: she shaved her head to make it appear as if she were receiving chemotherapy; she falsified medical records; she forged physicians’ letters and medical certifications; she convinced family members to echo her false claims; she gave materially false testimony in several legal proceedings; and she attacked anyone who suggested she was malingering (going so far as to sue one of them). Riley’s scheme continued from 2012 until 2019, when it was uncovered by an investigation of the Internal Revenue Service, Criminal Investigation, and the San Jose Police Department.
Riley was charged by criminal complaint in July 2020 and pleaded guilty to an information charging one count of wire fraud in violation of 18 U.S.C. § 1343 on October 12, 2021. In addition to her 60-month prison sentence, Judge Freeman ordered that Riley pay restitution in the amount of $105,513. The sentence also included a three year period of supervision following her release from prison.
Assistant U.S. Attorneys Michael G. Pitman and Scott Simeon prosecuted the case with the assistance of Sahib Kaur. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation, and the San Jose Police Department.
Woman Awaiting Sentencing in Health Care Fraud Case again Charged with Committing Health Care FraudRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, today announced that NICOLE STEINER, formerly known as Nicole Balkas, 32, of Stratford, was arrested yesterday on a criminal complaint charging her with committing health care fraud after pleading guilty and while released on bond in another health care fraud case.
Following her arrest, Steiner appeared before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and was released on a $250,000 bond into home detention and under electronic monitoring.
According to court documents and statements made in court, on April 28, 2021, Steiner pleaded guilty to one count of health care fraud related to her operation of Helping Hands Academy, LLC, in Bridgeport, which provided applied behavior analysis services to children diagnosed with Autism Spectrum Disorder (ASD), and was enrolled as a participating provider in the Connecticut Medicaid Program (“Medicaid”). From December 2018 to October 2020, Steiner submitted and caused to be submitted fraudulent claims to Medicaid for applied behavior analysis services that were purportedly provided to Medicaid clients. She submitted claims for dates of service when no applied behavior analysis services of any kind had been provided to the Medicaid clients identified in the claims, and she inflated the number of hours for certain claims even when applied behavior analysis had been provided to the Medicaid clients identified in the claims. Steiner also submitted false Medicaid claims in 2020 using a former employee’s name and performing provider number.
After the Connecticut Department of Social Services (DSS), which administers the Medicaid program in Connecticut, terminated Helping Hands Academy as a provider, Steiner made several false statements and submitted an altered document to DSS in an effort to rescind the termination and to receive payment for previously submitted claims.
Medicaid suffered a loss of $551,311.85 as a result of Steiner’s admitted conduct.
After her guilty plea, Steiner was released on a $50,000 bond pending sentencing.
It is alleged that, while she was awaiting sentencing in her case, Steiner was a silent partner in another company that provided applied behavior analysis services to children diagnosed with ASD called New Beginnings Children’s Behavioral Health LLC. Steiner was responsible for billing claims to Medicaid, managing payroll, and recruiting and screening potential employees, and she and had access to and used her business partner’s email and other online accounts to operate the company. Steiner and the company engaged in health care fraud by billing Medicaid for thousands of dollars in services not rendered and, in particular, billing for services not rendered by Steiner.
If convicted of the new charge, Steiner faces a maximum term of imprisonment of 10 years, which must be imposed consecutively to the sentence she receives in her initial health care fraud case.
This investigation is being conducted by the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation.
U.S. Attorney Boyle acknowledged the valuable cooperation of the Connecticut Department of Social Services in the investigation.
This case is being prosecuted by Assistant U.S. Attorney David T. Huang.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
West Palm Beach Investment Fraudster Sentenced to 42 Months in Federal Prison After Losing Investor Millions in Wire Fraud SchemeRead the Press Release
Miami, Florida – Fifty-four-year-old West Palm Beach, Florida resident Salvatore Renaldi has been sentenced in South Florida federal district court to 42 months in federal prison for orchestrating and running two investment fraud schemes that led victims across the country to collectively lose over $3 million.
Renaldi was the founder and CEO of The Sanctum Group of Companies, Inc., Sanctum Publishing and Marketing, Ltd., and Sanctum Media Group, Inc. (the “Sanctum companies”). Renaldi and others used the Sanctum companies to solicit funds from victim investors. To induce people to invest, Renaldi lied to them, promising to use their money to build a profitable business and guaranteeing a solid return on their investment. In addition, Renaldi failed to tell investors that he had a history of violating federal securities laws and that he used most of their money to pay for his personal expenses, make cash withdrawals, pay prior investors, and pay undisclosed commissions and fees. From about 2011 to 2015, Renaldi defrauded approximately 14 Sanctum company investors out of almost $1.5 million.
Renaldi also was associated with Magnum Health Management, Magnum Media Management, and Magnum Media Mining (the “Magnum companies”). Renaldi admitted that he represented himself to the public as the Magnum companies’ CEO, owner and operator. When soliciting funds for the Magnum companies, Renaldi falsely told investors that he would use their money as working capital and to build diabetes clinics. Instead, Renaldi used almost all the money for his personal use and benefit. From about 2017 to 2019, Renaldi defrauded approximately 14 Magnum company investors out of more than $1.6 million.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and George L. Piro, FBI Miami, announced the sentence imposed by U.S. District Judge Roy K. Altman.
This case was prosecuted by Assistant U.S. Attorney Yisel Valdes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-80045.
###
Webster City Man to Federal Prison for 15 Years for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced April 28, 2022, to more than fifteen years in federal prison.
Jose Sandoval, 39, originally from Webster City, Iowa, received the prison term after a November 5, 2013, guilty plea to conspiring to distribute methamphetamine. After entering a guilty plea, Sandoval absconded from federal authorities and lived in Mexico for eight years to avoid the consequences of his criminal activity. In 2021, Sandoval turned himself in to federal law enforcement at the U.S.-Mexico border. Sandoval received an obstruction of justice sentencing enhancement for his flight from federal supervision.
At the plea and sentencing hearings, evidence showed that Sandoval was involved in a conspiracy distributing methamphetamine from about January 2012 through January 2013. Sandoval admitted to selling up to quarter pound quantities of methamphetamine every 1-2 weeks throughout 2012 up to January 9, 2013, throughout central Iowa. On January 9, 2013, officers executed a search warrant of Sandoval’s residence and seized various items of drug distribution paraphernalia, including digital scales and $3,000, as well as six firearms. Sandoval also admitted to purchasing the firearms with the expectation of selling them for profit.
Sandoval was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Sandoval was sentenced to 188 months’ imprisonment. Sandoval must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Sandoval 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 Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Webster City Police Department, Hamilton County Sheriff’s Office, Wright County Sheriff’s Office, Iowa State Patrol, and Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 13-3003. Follow us on Twitter @USAO_NDIA.
Violent Offenders Sentenced in April for Crimes in and Around Tuba CityRead the Press Release
PHOENIX, Ariz. – Several violent offenders, all enrolled members of the Navajo Nation Tribe, were sentenced to prison in April for crimes they committed in and around Tuba City, Arizona.
On April 7, 2022, Joshua June, 40, of Tuba City, Arizona, was sentenced by U.S. District Judge John J. Tuchi to 54 months in prison, followed by 3 years of supervised release. June attacked an elderly victim with a metal chair and broke numerous bones in her body. He pleaded guilty to Assault with a Dangerous Weapon.
On April 13, 2022, Deon Manson, 45, of Page, Arizona, was sentenced by U.S. District Judge Susan M. Brnovich to 46 months in prison, followed by 3 years of supervised release. Manson attacked the victim with a shovel, causing several broken bones and two amputated fingers. He pleaded guilty to Assault with a Dangerous Weapon.
On April 18, 2022, Lisa Benally, 42, of Tuba City, Arizona, was sentenced by U.S. District Judge Steven P. Logan to 46 months in prison, followed by 3 years of supervised release. Benally recruited another person to shoot the victim in retaliation for minor property damage. She pleaded guilty to Aiding and Abetting Assault with a Dangerous Weapon.
On April 26, 2022, Zachary Smith, 27, of Shiprock, New Mexico, was sentenced by U.S. District Judge Douglas L. Rayes to 27 months in prison, followed by lifetime supervised release. Smith had repeated sexual contact with the minor victim. He pleaded guilty to Sexual Abuse of a Minor.
The Navajo Nation Division of Public Safety and the FBI conducted the investigations in these cases. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecutions.
CASE NUMBER: CR-20-8090-PCT-JJT (June)
CR-21-8037-PCT-SMB (Manson)
CR-21-8038-PCT-SPL-002 (Benally)
CR-20-8121-PCT-DLR (Smith)RELEASE NUMBER: 2022-058_Tuba City
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Vacaville Man Sentenced to over 8 Years in Prison for Being a Felon in Possession of AmmunitionRead the Press Release
SACRAMENTO, Calif. — Guy Joseph Bass, 30, of Vacaville, was sentenced today by U.S. District Judge John A. Mendez to eight years and 10 months in prison for being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between August 2020 and November 2020, Bass possessed three different loaded firearms. On Aug. 17, 2020, Bass’ acquaintance drove him to the hospital, where Bass falsely reported to law enforcement that he had been shot by an unknown assailant, before eventually admitting that he had shot himself by accident. Officers recovered a stolen Walther P22 semi-automatic pistol from the acquaintance’s vehicle. On Sept. 18, 2020, Bass was arrested for an outstanding warrant. During the arrest, Bass admitted to having a firearm on his person. The loaded firearm was a non-serialized, privately made firearm, also known as a “ghost gun.” Finally, on Nov. 18, 2020, law enforcement officers spotted Bass and another individual parked in Vacaville. After a police dog alerted to the presence of narcotics, Bass handed an officer a bag of methamphetamine. A search of the vehicle resulted in the discovery of a another loaded, privately made firearm. Bass is prohibited from possessing firearms or ammunition because he has been convicted of several felonies, including a prior state conviction for possessing a firearm as a felon.
This case was the product of an investigation by the Fairfield Police Department, the Vacaville Police Department, the Solano County District Attorney’s Office, the FBI’s Solano County Violent Crimes Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Files False Claims Act Lawsuit Against Maryland Contractor and OwnerRead the Press Release
The United States has filed a lawsuit against government contractor Intelligent Fiscal Optimal Solutions LLC (iFOS) and its owner, Tawanda M. Smith, both of Columbia, Maryland, alleging that they violated the False Claims Act by submitting false invoices to the Department of Homeland Security (DHS) in connection with a contract for staff augmentation services awarded by DHS to iFOS.
According to the United States’ complaint, iFOS and Smith coordinated with then DHS official Kenneth J. Buck, to steer a contract to iFOS. iFOS and Smith planned for Buck to enter into a subcontract with iFOS following his departure from DHS pursuant to which Buck would serve as the Strategic Advisor for the DHS contract, a role that would necessitate him communicating directly with his successor at DHS on behalf of iFOS. iFOS and Smith were allegedly aware of federal conflict-of-interest rules that limited Buck’s ability to communicate directly with DHS officials on behalf of iFOS during a mandatory “cooling off” period that applies to former government officials such as Buck, and they allegedly misled DHS contracting personnel by falsely representing that a different iFOS employee would serve as the Strategic Advisor and concealing their planned involvement of Buck. After the contract was awarded, iFOS and Smith allegedly submitted false invoices to DHS contracting personnel that concealed the extensive work performed by Buck on the contract, which allegedly included improper communications with his DHS successor that violated federal conflict-of-interest laws. The complaint further alleges that iFOS and Smith violated material contract requirements that mandated a background investigation be completed for all iFOS personnel, which Buck never completed. Earlier this month, Buck settled civil claims relating to his alleged role in the scheme.
“The government’s conflict-of-interest rules protect the integrity of the government’s procurement process,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This lawsuit demonstrates the Justice Department’s commitment to pursue those who make false statements that undermine the government’s ability to enforce these important safeguards, or who otherwise misrepresent their compliance with critical contractual requirements.
“The federal procurement system has strict policies to prevent corruption and contract manipulation,” said U.S. Attorney Erek L. Barron for the District of Maryland. “These ethics and conflict of interest policies must be enforced to ensure that government contract awards are beyond reproach. In partnership with our investigative partners, our office will continue to hold accountable those who weaken the integrity of our procurement system.”
“I appreciate the continued partnership between DHS OIG and the Justice Department, which helps ensure the integrity of DHS programs,” said Inspector General Joseph V. Cuffari of DHS Office of Inspector General (OIG). “This lawsuit should serve as a deterrent to individuals intent on defrauding the government.”
The lawsuit is captioned United States v. Intelligent Fiscal Optimal Solutions LLC, et al., No. 22- CV No. 1:22-cv-01053-JMC (D. Md.), and is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the District of Maryland.
DHS OIG is investigating.
Senior Trial Counsel Alicia J. Bentley of the Justice Department's Civil Division and Assistant U.S. Attorney Sarah Marquardt for the District of Maryland are handling the case.
The claims asserted in the United States’ complaint are allegations only, and there has been no determination of liability.
Uniontown Man Indicted on Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH - A resident of Uniontown, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of Production and Attempted Production of Material Depicting the Sexual Exploitation of a Minor and Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Cindy K. Chung announced today.
The 13-count Indictment named David Straitiff, age 48, as the sole defendant.
According to the Indictment, on April 4, 2010; July 5, 2010; January 3, 2011; January 21, 2011; January 25, 2011; February 2, 2011; February 3, 2011; February 15, 2011; June 12, 2012; June 29, 2012; and July 2, 2012, Straitiff persuaded and coerced Minor A, a minor female known to the grand jury, to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. The grand jury further alleges that on June 1, 2021, and December 17, 2021, Straitiff knowingly possessed visual depictions, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of not less than 15 years, nor more than 30 years in prison, a fine of $3,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Karen Gal-Or is prosecuting this case on behalf of the government.
Homeland Security Investigations (HSI) conducted the investigation leading to the Indictment in this 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 https://www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Uniontown Man Indicted on Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH - A resident of Uniontown, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of Production and Attempted Production of Material Depicting the Sexual Exploitation of a Minor and Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Cindy K. Chung announced today.
The 13-count Indictment named David Straitiff, age 48, as the sole defendant.
According to the Indictment, on April 4, 2010; July 5, 2010; January 3, 2011; January 21, 2011; January 25, 2011; February 2, 2011; February 3, 2011; February 15, 2011; June 12, 2012; June 29, 2012; and July 2, 2012, Straitiff persuaded and coerced Minor A, a minor female known to the grand jury, to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. The grand jury further alleges that on June 1, 2021, and December 17, 2021, Straitiff knowingly possessed visual depictions, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of not less than 15 years, nor more than 30 years in prison, a fine of $3,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Indicate relevant bond/detention information if known
Assistant United States Attorney Karen Gal-Or is prosecuting this case on behalf of the government.
Homeland Security Investigations (HSI) conducted the investigation leading to the Indictment in this 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 www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Announces New Federal Violent Crime StrategyRead the Press Release
MINNEAPOLIS – U.S. Attorney Andrew Luger, along with federal, state, and local law enforcement partners, today announced a new federal strategy to address violent crime in the Twin Cities metro area.
“Violent crime is at an all-time high in the Twin Cities. We have before us an urgent task. Every Minnesotan deserves the right to live safely and securely, without fear of shootings, car jackings, and violence,” said U.S. Attorney Luger. “This new strategy is designed to bring swift justice to our communities and to the victims of violent crimes. But it is also designed as a signal to violent offenders to stop. This violence cannot continue – it is causing far too much fear, too much pain and too much heartbreak for families and our community.”
The federal violent crime strategy announced today establishes expanded capacity within the U.S. Attorney’s Office to prosecute violent crime cases. Every federal prosecutor in the office will now take on violent crime cases. The U.S. Attorney’s Office will also be hiring additional prosecutors to assist in these efforts. With this expanded capacity, the office will prioritize the intake of all adult federal carjacking cases; cases involving the illegal possession of firearms and/or ammunition; firearms trafficking cases; straw purchasing cases; as well as cases involving the illegal possession of auto sears and ghost guns. Finally, U.S. Attorney Luger has created a new gang prosecution team that will work directly with law enforcement in addressing the gang violence that is plaguing the metro.
ATF Special Agent in Charge William J. McCrary stated, “I can say without a doubt that our agents are ready and enthused about working alongside U.S. Attorney Luger and his team on this violent crime initiative. We have already identified numerous violent offenders throughout the Twin Cities and other key areas in Minnesota. We are hot on the trails of many individuals who have done violence and those who arm them- who deal in the illegal firearms trade.”
“I commend U.S. Attorney Luger for his renewed focus and priority on violent crime. The FBI is specifically leveraging its Violent Crimes Task Force and its Safe Streets Task Force in the fight against violent crimes and criminal gang activity,” said FBI Special Agent in Charge Michael Paul. “To those who are committing these senseless act of violence, we will find you, we will take you off the street and you will be held accountable.”
“The Minnesota Bureau of Criminal Apprehension has implemented a targeted BCA team of special agents and analysts who are pursuing known suspects in homicides and gun-related crimes, carjackings, aggravated assaults, and felony warrants related to violent crimes. The BCA has also dedicated forensic laboratory resources to complete violent crime evidence testing faster. This brings the full weight of the BCA’s analytical and investigative toolset to data-driven investigations so that we can quickly find and apprehend suspects,” said BCA Deputy Superintendent of Investigations Scott Mueller. “We appreciate U.S. Attorney Luger’s leadership with this work and the partnership of many federal, state, and local law enforcement partners.”
U.S. Attorney Luger announced several recently unsealed cases:
- Dovyion Daquay Glass, 31, of Minneapolis, has been charged in a federal criminal complaint with possession of a firearm as a felon. According to court documents, on March 23, 2022, Glass was in possession of a Glock model 42 .380 caliber semiautomatic pistol. Because of his previous felony convictions, he is prohibited from possessing a firearm or ammunition at any time. According to a law enforcement affidavit, Glass was involved in a March 5, 2022, shooting outside a bar in St. Paul. Glass fired multiple rounds at people standing outside the bar. One of the bullets struck a man in the chest. This case is the result of an investigation conducted by the ATF and the St. Paul Police Department. ( glass_complaint.pdf )
- Nicholas James Bell, 23, of Minneapolis, has been charged in a federal criminal complaint with possession of a machine gun. According to court documents, on February 17, 2022, law enforcement agents intercepted a package sent from China that contained pieces of 21 Glock switches or auto sears. Agents also found that Bell had received four previous shipments from the same company in China over a two-month timeframe. Bell was later found in possession of a handgun outfitted with an auto sear, 70 rounds of ammunition, and seven additional auto sears. This case is the result of an investigation conducted by Homeland Security Investigations, CBP, ATF, and the Blaine Police Department. ( bell_complaint.pdf )
- Jay James Olson, 21, of Sauk Rapids, has been charged in a federal criminal complaint with manufacturing firearms without a license and possession of a machine gun. According to court documents, law enforcement learned that Olson was manufacturing and selling “ghost guns” as well as selling large quantities of other firearms throughout the Metro area. Throughout the investigation, law enforcement seized from Olson multiple ghost guns, high-capacity magazines, a silencer, several unserialized gun kits, and other firearms and accessories. This is the result of an investigation conducted by the ATF, the Hennepin County Sheriff’s Office, the Hennepin County Violent Offender Task Force, and the Stearns County Sheriff’s Office. ( olson_complaint.pdf )
Two Pittsburgh-Area Men Charged with Prison Contraband CrimesRead the Press Release
PITTSBURGH - Omari Patton and Dashawn Burley were indicted by a federal grand jury in Pittsburgh for prison contraband crimes, United States Attorney Cindy K. Chung announced today.
The Indictment charges Patton, age 43, formerly of Pittsburgh, and Burley, age 23, of Monroeville, with multiple counts of providing, or attempting to provide, contraband to an inmate of a federal prison in September and October 2018. The Indictment also charges Patton with multiple counts of possessing, and attempting to obtain, contraband while in federal prison in September 2018. The Indictment states that the contraband was a Schedule I synthetic cannabinoid controlled substance.
The law provides for a maximum total sentence of up to 50 years in prison and a fine of up to $1,250,000. Under the Under States Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tupelo Man Sentenced to More Than 20 Years in Prison for Drug TraffickingRead the Press Release
Oxford, MS – A Tupelo man was sentenced today to 262 months in prison for conspiracy to distribute methamphetamine and marijuana and possession of firearms by a convicted felon.
According to court documents, Samuel Wilson, III, 32, was convicted following a trial in December of conspiring with members of a drug trafficking organization led by Jeremy Mairidith to sell and distribute methamphetamine and marijuana. Wilson was also convicted of being a convicted felon in possession of two firearms. On Tuesday morning, U.S. District Judge Michael P. Mills sentenced Wilson after hearing arguments and comments from Wilson, his counsel, and prosecutors from the U.S. Attorney’s Office.
Following the sentencing, U.S. Attorney Clay Joyner stated: “Today’s sentence has removed from the streets an individual who has supported himself by distributing illicit drugs in our community and elsewhere. I commend our local, state and federal partners who worked on this investigation for years to see that the individuals involved in the violent and illegal activities of this drug trafficking organization were finally brought to justice.”
“ATF is committed to the disruption of violent gun crime. As with this joint effort, we will continue to focus on violent offenders who possess a firearm in conjunction with narcotics violations,” said ATF Special Agent in Charge Kurt Thielhorn. “Reducing firearm related crimes and keeping our communities safe is the top priority for ATF.”
Wilson is one of nine defendants convicted for his role in the drug trafficking organization.
The Bureau of Alcohol Tobacco, Firearms and Explosives, and FBI Jackson Division’s Oxford Resident Agency investigated the case as part of the Organized Crime Drug Enforcement Task Force (OCDETF) and Project Safe Neighborhoods programs in partnership with state and local law enforcement. Multiple agencies played critical roles in the investigation, including the Tupelo Police Department, Lee County Sheriff’s Office, Mississippi Bureau of Narcotics, North Mississippi Narcotics Unit, DEA, Corinth Police Department, Alcorn County Sheriff’s Office, Mississippi Highway Patrol, United States Postal Inspection Service, Mississippi Department of Corrections and the United States Marshals Service.
Assistant U.S. Attorneys Chad M. Doleac, Jay Hale and Scott Leary prosecuted the case.
This operation was one of many parts of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Two Wayne County Employees Arrested and Charged with Embezzling over $1.7 Million in County FundsRead the Press Release
DETROIT - Two Wayne County Roads Division employees were charged with embezzling over $1.7 million in county funds in a federal criminal complaint, which was unsealed today, Wayne County Prosecutor Kym Worthy and United States Attorney Dawn N. Ison announced.
Worthy and Ison were joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, Wayne County Sheriff Raphael Washington, and Warren C. Evans, Wayne County Executive. Wayne County Executive Warren C. Evans and his administration have been assisting and cooperating with the ongoing investigation since they first learned of fraudulent activity within their organization.
Named in the criminal complaint were Kevin Gunn, 64, of West Bloomfield, and John L. Gibson, 54, of Detroit. Gunn manages the Bridge Unit of the Wayne County Roads Division and has been employed by Wayne County for 34 years. Gibson is a foreman within the Bridge Unit. Gibson has been employed by Wayne County for 20 years.
Gunn and Gibson are charged in the complaint with conspiring to commit and committing federal program theft, wire fraud, and money laundering. Wayne County receives over $20 million in federal funds each year to pay for road repair, construction, maintenance. Gibson and Gunn were arrested today by FBI agents, Wayne County Prosecutor’s Office Investigators, and Wayne County Sheriff’s Deputies.
According to the complaint, the Wayne County Sheriff’s Department began the investigation, and then solicited the assistance of the FBI to investigate the criminal actions of Gunn, Gibson, other employees of the Wayne County Roads Division, and vendors to Wayne County. At the beginning of the investigation, the Wayne County Prosecutor’s Office secured a search warrant which broke open the case and led to the uncovering of the embezzlement scheme. Investigators with the Wayne County Prosecutor’s Office have played an ongoing and important role in the investigation.
Gunn, Gibson, and others were engaged in a scheme to defraud Wayne County by using taxpayer dollars to make unauthorized purchases of generators and other power equipment from retailers in Southeast Michigan which they sold for personal profit.
As part of the scheme to defraud, between January 2019, and August 2021, Gunn solicited approved Wayne County vendors to purchase generators and other power equipment from local retailers on behalf of Wayne County. The vendors would then submit invoices for these items to Wayne County. In order to conceal the scheme to defraud, Gunn instructed the vendors to falsify the invoices they submitted to the Roads Division, and list items the vendors were authorized to sell to the county under their contracts, rather than the generators and power equipment they were unlawfully acquiring at Gunn’s request. Roads Division employees would then approve and pay each vendor’s invoice with taxpayer funds. After these fraudulent purchases were verified and approved by Roads Division employees, Gibson, and Gunn took possession of the equipment which was resold over the internet and social media for personal profit.
A review of invoices from Wayne County vendors revealed that between January 16, 2019, and August 3, 2021, Wayne County vendors purchased 596 generators, and a variety of other power equipment including lawnmowers, chainsaws, and backpack blowers. The purchase of these items was not authorized under any vendor contract with Wayne County nor were the items ever provided to or used by Wayne County. The total value of equipment purchased as part of the scheme was approximately $1.7 million in taxpayer funds.
Federal program theft carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000. Wire fraud carries a maximum sentence of up to 20 years’ imprisonment and a fine of up to $250,000. Money laundering carries a sentence of up to 20 years’ imprisonment and a fine of up to $500,000.
“The Wayne County Prosecutor’s Office has never and will never shy away from prosecuting corruption in any form, said Prosecutor Worthy. I am proud of the focus and dedication of all of the investigators, who have worked together with our Wayne County Prosecutor’s Detectives to expose the alleged theft and fraudulent conduct against the citizens of Wayne County. The support of U.S. Attorney Dawn N. Ison, CEO Evans, the Wayne County Sheriff’s Office, and the FBI resulted in the federal complaint against Gibson and Gunn.”
United States Attorney Dawn Ison said, “Today’s arrests reinforce our dedication to prosecuting corrupt public officials who elevate their own greed over the best interests of the public who rely on the safe administration and maintenance of public infrastructures like roads. We thank Wayne County Prosecutor Kym Worthy, and Wayne County Executive Warren C. Evans who have been instrumental in starting and moving this investigation forward.”
Wayne County Executive Warren Evans said: “I take public corruption very seriously which is why when we first learned of the fraudulent activities, my office immediately offered to cooperate and provide any needed assistance to the Wayne County Sheriff’s Office, Wayne County Prosecutor’s Office, Federal Bureau of Investigation (FBI), and the U.S. Attorney’s Office. It is unfortunate that a few individuals put their personal gain ahead of the work the county has done over the last 7 years to stabilize our fiscal outlook, continue improvements to our infrastructure and provide services to our residents throughout a global pandemic. These individuals have undoubtedly put a stain on the fabric of our system; however, they do not represent the hundreds of hardworking and dedicated Wayne County Employees who come to work every day to serve our residents with respect and integrity. I will continue to pursue every avenue to fully prosecute these employees and vendors.”
“The alleged actions of these individuals are nothing short of disgraceful,” said Sheriff Raphael Washington. “To brazenly steal from hardworking taxpayers and fraudulently line their own pockets while holding positions of public trust make these crimes all the more deplorable. Today’s charges are another example of our strong commitment to working together.”
“Today’s charges are an example of how government and law enforcement agencies work together to ensure public officials are using taxpayer money for its intended purpose — in this case the repair and maintenance of roads and bridges — and not for their personal benefit,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “I commend the Wayne County Prosecutor, Wayne County Executive, and the Wayne County Sheriff’s Office for their early work on this investigation and their continued cooperation.”
The investigation of this case was conducted by the Wayne County Prosecutor’s Office, the Wayne County Sheriff’s Department, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.
South Texas man sentenced for smuggling 17 kilos of methRead the Press Release
CORPUS CHRISTI, Texas – A 55-year-old Ennis resident has been ordered to federal prison following his conviction of possession with the intent to distribute kilograms of meth, announced U.S. Attorney Jennifer B. Lowery.
Enrique Perez pleaded guilty Feb. 8.
Today, U.S. District Judge Drew B. Tipton ordered Perez to serve 120 months in federal prison to be immediately followed by five years of supervised release.
On Dec. 1, 2021, Perez arrived at the Javier Vega Jr. Border Patrol (BP) checkpoint driving a maroon Chrysler sedan. Authorities believed he was carrying illegal narcotics and referred him to secondary inspection.
There, they discovered Zip-loc packages containing a crystal-like substance in the doors and trunk of the vehicle. It was later determined to be 17.659 kilograms of meth with an estimated street value of $529,770.
At the time of his plea, Perez admitted that he agreed to transport the drugs to Houston for $6,000.
Previously released on bond, Perez was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney J. Parker Gochenour prosecuted the case.
South Florida Towing Company Owner Pleads Guilty to Tax EvasionRead the Press Release
Miami, Florida – On Friday, Craig Goldstein, 60, of Boca Raton, Florida the owner of a Lauderdale Lakes towing company, pled guilty to three counts of Tax Evasion for underreporting income and failing to pay federal tax on money he received through a Personal Injury Protection (PIP) kickback scheme and other cash-based fraud. The sentencing has been set for August 16.
As part of his change of plea, Goldstein admitted the following: He was an owner of West Way Towing, a Lauderdale Lakes company that towed -- and stored at its yard -- disabled vehicles, including ones involved in accidents. Goldstein referred accident victims to certain attorneys and chiropractors who would then illegally charge insurance companies for unneeded services under Florida’s Personal Injury Protection Program. Goldstein charged a fee for each patient referral, which he collected in cash and failed to report to the IRS, according to the charges. Goldstein also failed to report cash he received from vehicle storage lien fees and from auctions of vehicles the sales prices of which were manipulated to falsely reflect that Goldstein made no profit, says the information.
Goldstein faces up to 15 years’ imprisonment and a fine up to $750,000.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Matthew D. Line, Special Agent in Charge, Internal Revenue Service (IRS), Miami Field Office, made the announcement.
IRS Miami Field Office investigated this matter. The case is being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Paul Schwartz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-60002.
###