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Newest first across public DOJ and U.S. Attorney press releases.
1 June 2022
Armed Career Criminal Sentenced to 188 Months in Federal Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
TALLAHASSEE, FLORIDA – Eddie D. Starks, 41, of Tallahassee, Florida, was sentenced to 188 months in federal prison after pleading guilty to possessing a firearm and ammunition as a convicted felon. Jason R. Coody, United States Attorney, for the Northern District of Florida announced the sentence.
“Our law enforcement partnerships play such a vital role in fighting violent crime and protecting the public,” said U.S. Attorney Coody. “This sentencing is another example that working jointly with our partners is making our communities safer.”
Law enforcement responded to Starks’ apartment because of a 911 call alleging that he had a firearm and was threatening to kill his wife. When Tallahassee Police Department officers arrived, they heard screaming and yelling coming from inside the apartment. Starks’ wife answered the door and told officers that he was armed inside and had threatened to kill her with the gun. Officers arrested Starks and located where he had hidden a firearm in a backpack inside the apartment. As officers removed the backpack containing the firearm from the residence, Starks admitted that they would find a quarter pound of marijuana and a firearm in the backpack.
“We are pleased to see another violent felon brought to justice and taken off our community’s streets,” said Deputy Chief Jason Laursen. “Our officers and detectives work tirelessly every day to enhance the safety of citizens. Ensuring felons do not have access to a firearm is crucial in this continued effort to protect the community we serve.”
Starks was prohibited from possessing firearms or ammunition because he was a convicted felon. Starks had 12 prior felony convictions and qualified for enhanced sentencing as an Armed Career Criminal because he had three or more convictions for violent felonies and/or serious drug offenses committed on separate occasions. He had been released from federal prison approximately three months before this arrest and remained on supervised release out of the Middle District of Georgia.
“ATF prioritizes investigations of armed and violent felons to disrupt the cycle of violence and make our communities safer,” said ATF Special Agent in Charge, Craig W. Saier. “Collaboration with our law enforcement partners in this investigation and prosecution demonstrates armed felons, recently released from prison, and committing alleged acts of domestic violence, will be prosecuted to the fullest extent of the law.”
Following his 188-month prison sentence, Starks will be on federal supervised release for five years. This sentencing resulted from the collaborative work of the Tallahassee Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney James A. McCain.
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 works 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.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Another indicted in nationwide fraudulent car buyer paper tag schemeRead the Press Release
HOUSTON – More charges have been filed in the fraudulent paper license plate scheme involving fake car dealerships who issued more than 700,000 illegitimate paper tags, announced U.S. Attorney Jennifer Lowery.
Law enforcement arrested Daniel Rocky Christine-Tani, 33, Sugar Land, today. He is expected to make his initial appearance at 10 a.m. tomorrow before U.S. Magistrate Judge Sam Sheldon.
A federal grand jury in Houston returned the 22-count superseding indictment May 11 charging Christine-Tani aka Daniel Rocky Christine-Tahi, Ruben Gonzalez, Rocky Keys and Daniel Christine with conspiracy and various counts of wire fraud. The indictment also adds more charges against known fugitive Emmanuel Padilla Reyes aka Christian Hernandez Bonilla or Noel Rivera, 32, last known of Houston. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
Co-conspirators Leidy Areli Hernandez Lopez, 40, Houston, and Octavian Ocasio, 50, New York, were previously charged and arrested in the same scheme.
The indictment alleges all four participated in a scheme involving the use of fictitious car dealerships to issue and sell hundreds of thousands of Texas temporary buyer tags without selling cars. They also allegedly used email accounts and text messaging to communicate and deliver the fraudulent tags to purchasers throughout the United States. The four received and shared proceeds from the fraudulent sale of Texas buyer tags, according to the charges.
In Texas, used car dealerships must have an independent GDN license to buy, sell or exchange used vehicles. To obtain a license applicants must apply. Once an applicant obtains a GDN license, they can buy, sell or exchange used cars and create temporary buyer tags for the transaction through the Texas Department of Motor Vehicle’s online eTag portal. The portal is web-based and password protected, and only licensed GDN holders can access it. However, the GDN holder can create other users on their account to allow access to the portal to create and issue buyer tags.
The co-conspirators allegedly provided false information such as fake identities, drivers licenses, lease agreements and business signs in the online application portal to obtain GDN licenses for fictitious car dealerships. The indictment further alleges they advertised the sale of Texas buyer tags via Facebook and Instagram.
According to the charges, the illegal tags pose a danger to the public and law enforcement because purchasers use them to avoid obtaining registration, safety inspections and liability insurance. They can also allegedly be used to hide identities from law enforcement.
If convicted, each faces up to 20 years in prison and a possible $250,000 maximum fine.
The FBI conducted the investigation with assistance from Travis County Precinct 3 Constables Office, Houston Police Department, Texas Department of Public Safety, sheriff’s offices in Harris and Ft. Bend Counties, Texas Department of Motor Vehicles, New York State Police and New York City Police Department. Assistant U.S. Attorneys Belinda Beek and Adam Goldman are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Allentown Business Owner and Drug Dealer Sentenced to over Eight Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Brian David Cortes, a/k/a “Bambi”, 36, of Allentown, PA, was sentenced to eight years and one month in prison, and five years of supervised release by United States District Court Judge Jeffrey L. Schmehl for the distribution of the dangerous narcotic fentanyl.
In February 2022, the defendant pleaded guilty to distributing 40 grams or more of a mixture and substance containing heroin and fentanyl. The charges stemmed from a 2021 investigation into drug-trafficking activities occurring at the defendant’s barbershop on Tilghman Street and his garage on North 4th Street, both in Allentown. Law enforcement conducted multiple controlled buys of fentanyl from the defendant and other individuals during the investigation and in June 2021 executed numerous search warrants at residences and the two businesses, leading to the seizure of over 1,000 grams of fentanyl and $100,000.
“Fentanyl is one of the deadliest narcotics flooding the streets of our country, and this defendant made sure there was a steady supply of it right here in eastern Pennsylvania,” said U.S. Attorney Williams. “Cortes operated two successful, legitimate businesses, but that wasn’t enough. So he let his greed corrupt those enterprises, turning them into drug trafficking locations. Our Office is doing everything it can to uncover and disrupt these dangerous operations.”
"Illicit fentanyl is a dangerous street drug that has had a devastating and deadly impact across the Commonwealth and the nation at large," said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration's (DEA) Philadelphia Field Division. "That Cortes distributed significant amounts of fentanyl out of his legitimate businesses is all the more troubling."
This case is part of Project Safe Neighborhoods (PSN), a program bringing "Illicit fentanyl is a dangerous street drug that has had a devastating and deadly impact across the Commonwealth and the nation at large," said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration's (DEA) Philadelphia Field Division. "That Cortes distributed significant amounts of fentanyl out of his legitimate businesses is all the more troubling." all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Drug Enforcement Administration – Allentown Residence Office, and is being prosecuted by Assistant United States Attorney Charles J. Volkert, Jr.
Albany Felon Pleads Guilty to Escaping Halfway HouseRead the Press Release
ALBANY, NEW YORK – Glyn Frink, age 51, of Albany, pled guilty today to escaping from the Horizon House Residential Reentry Center in September 2021.
The announcement was made by United States Attorney Carla B. Freedman and United States Marshal David L. McNulty.
As part of the plea, Frink admitted that he was placed by the federal Bureau of Prisons at the Horizon House, and that he signed out to go to work on September 25, 2021 and failed to return at 6 pm as required. Frink remained in the community without approval until March 7, 2022, when he was arrested at a fast food restaurant in Albany.
Frink is scheduled to be sentenced on September 29, 2022 before Senior United States District Judge Lawrence E. Kahn. He faces a sentence of up to 5 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
This case was investigated by the United States Marshals Service and is being prosecuted by Assistant United States Attorney Benjamin S. Clark.
18-wheeler driver convicted of smuggling 73 people from six countriesRead the Press Release
CORPUS CHRISTI, Texas – A 24-year-old Mission man has pleaded guilty to illegally transporting non-U.S. citizens within the United States, announced U.S. Attorney Jennifer B. Lowery.
Leonardo Davila Jr. admitted to smuggling 73 people while driving an 18-wheeler.
On Feb. 8, Davila drove a tractor trailer into the Border Patrol (BP) checkpoint near Falfurrias. There, a K-9 soon alerted authorities to the presence of concealed humans. Upon a search of the trailer, law enforcement discovered dozens of undocumented individuals.
In the trailer were nationals of Ecuador, Guatemala, Honduras, Peru, Mexico and El Salvador. All were later determined to be present in the country illegally.
U.S. District Judge Drew B. Tipton will impose sentencing Aug. 24. At that time, Davila faces up to five years in federal prison and a possible $250,000 maximum fine.
He will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney Patrick Overman is prosecuting the case.
13 Individuals Charged with Possession and Distribution of OpioidsRead the Press Release
SAN JUAN, Puerto Rico – On May 24, 2022, a federal grand jury in the District of Puerto Rico returned an indictment charging seven women and six men from the municipality of Ponce with conspiracy to possess with intent to distribute controlled substances, and a former doctor in medicine, defendant Julia Torres-Ortiz, with health care fraud, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA) is in charge of the investigation with the collaboration of the U.S. Department of Health & Human Services Office of Inspector General.
The indictment alleges that from January 2017, and continuing through April 2021, the defendants knowingly and intentionally conspired to possess with intent to distribute Oxycodone (commonly known as Percocet) and Alprozolam (commonly known as Xanax). Defendant Romualdo Matos-Rodríguez distributed the narcotics from his residence in Ponce, PR, and other places nearby, all for significant financial gain and profit.
Co-conspirators would buy pills at pharmacies and return them to defendant Romualdo Matos-Rodríguez for further distribution at his house and other nearby places.
The defendants are:
Leximara Santiago-Martínez
Edna Caridad Cruz-Vélez
Solmarie Gautier-Díaz
Ramón Costa-Pérez
David Santos-Soto
José Manuel Santos-Bodon, a/k/a “Manuel”
Gloria Elena Mercado-Millán
José Alberto Ortiz-Flores, a/k/a “Berto”
Jessenia Díaz-Torres
Edgardo Iván García-Santiago, a/k/a “Meru”
Naomi Rosario-López
Regina Santiago-Martínez, a/k/a “Gina”
Defendant Romualdo Matos-Rodríguez is facing a forfeiture allegation of his property, a residence located at Urb. Villa Dos Ríos, Yagüez Street, in Ponce, PR.
Defendant Julia Torres-Ortiz is facing two counts of health care fraud for prescribing medications, which were then paid by Triple-S Advantage, a medical insurance plan, using her expired DEA Certificate of Registration, Medical License, and Controlled Substance License. Defendant Torres-Ortiz had a National Provider Identifier (NPI), which Triple-S Advantage used to transmit payment for medication prescribed by her, despite lacking legal authority to do so.
Triple-S Advantage is a Medicare Advantage (MA) Plan. MA plans pay for claims submitted by providers for services provided to Medicare beneficiaries. The NPI is a Health Insurance Portability and Accountability Act (HIPAA) standard. It is a unique umber issued by the Centers for Medicare and Medicaid Services to identify a specific individual health care provider, including a specific physician, like defendant Torres-Ortiz.
“Prescribing and distributing opioids without regard to the potentially lethal consequences simply cannot be tolerated,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “We will continue to work with our law enforcement partners to hold accountable criminals who scheme to profit from prescribing medically unnecessary drugs.”
“DEA’s objective is clear, the DEA will bring all it has to bear to make our communities safer and healthier, and to reverse the devastating trends of drug-related violence and overdoses plaguing our communities,” said Renita Foster, Special Agent in Charge of the DEA, Caribbean Division. “We will not rest until we eradicate drug violence.”
Assistant U.S. Attorney (AUSA) and Deputy Chief of the Asset Recovery and Money Laundering Unit Myriam Y. Fernández-González, and AUSA Manuel Muñiz-Lorenzi are in charge of the prosecution of the case. If convicted on the conspiracy charge, the defendants face a sentence of up to 20 years in prison. If convicted of health care fraud, Julia Torres-Ortiz faces up to 10 years in prison.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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31 May 2022
Young Texan ordered to federal prison for smuggling cocaine on passenger busRead the Press Release
CORPUS CHRISTI, Texas - A 21-year-old Hidalgo County man has been sent to federal prison for possessing with the intent to distribute 4.5 kilograms of cocaine, announced U.S. Attorney Jennifer B. Lowery.
Matthew Ethan Joseph Castillo pleaded guilty Feb. 10.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Castillo to serve 36 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Castillo transported cocaine numerous times in the past, having delivered narcotics to Houston and Dallas as well as Atlanta, Georgia, and New York City. In handing down the sentence, the court noted the significant quantity of cocaine that Castillo was smuggling.
At the time of his plea, Castillo admitted he knowingly attempted to smuggle the narcotics past a U.S. Border Patrol (BP) checkpoint.
On Sept. 29, 2021, Castillo was traveling on a Tornado commercial passenger bus that entered the primary inspection area of the checkpoint near Falfurrias. There, a service canine alerted to a specific piece of luggage in the lower compartment of the bus. Authorities identified Castillo as the owner.
They searched the item and found two wooden tortilla presses, each containing two bundles of cocaine. They had been individually wrapped in carbon paper and coffee and sealed in plastic.
The drugs had an estimated street value of more than $300,000.
Castillo has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorney John Marck prosecuted the case.
West Roxbury Woman Sentenced for Wire FraudRead the Press Release
BOSTON – A West Roxbury woman was sentenced today in federal court in Boston in connection with a return fraud scheme.
Tamara Khatuntseva, 64, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 90 days in prison and three years of supervised release. Khatuntseva was also ordered to pay restitution of $85,499 and forfeiture of $83,806. On Aug. 5, 2021, Khatuntseva pleaded guilty to wire fraud.
In December 2018, law enforcement initiated an investigation into multiple individuals who were suspected of engaging in activities to defraud runway stores across Massachusetts. From December 2018 through August 2020, Khatuntseva engaged in a scheme to defraud a store through refunds of inferior merchandise including high-end and expensive jewelry, clothing, purses, handbags, luggage and shoes. Specifically, Khatuntseva purchased high-end retail goods from the store and fraudulently returned lower value items in their place for a full refund. Khatuntseva then sold the legitimate merchandise on eBay for hundreds of thousands of dollars in illegal profits. For example, Khatuntseva was captured on video surveillance purchasing a pink Gucci scarf for $399, which was then listed for sale on an eBay site associated with Khatuntseva. Several days later, video surveillance showed Khatuntseva returning a different scarf – with the same bar code – and receiving a full refund. To further her scheme, Khatuntseva used two different eBay accounts, opened credit cards in her daughter’s name and purchased the same red security tags used by the store in order to disguise fraudulent returns as legitimate merchandise. On Aug. 27, 2020, a search of Khatuntseva’s home uncovered 42 items she planned to sell on eBay or fraudulently return. It is estimated that the victim company lost between $40,000 and $150,000 as a result of the scheme.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Laura J. Kaplan of Rollins’ Criminal Division prosecuted the case.
WeLeakInfo.to and Related Domain Names SeizedRead the Press Release
WASHINGTON – The FBI and the U.S. Department of Justice announced today that they have seized the internet domain name weleakinfo.to and two related domain names, ipstress.in and ovh-booter.com, following an international investigation into websites allowing users to buy access to stolen personal information or to perform attacks on victim networks.
The announcement was made by U.S. Attorney Matthew M. Graves of the District of Columbia and Special Agent in Charge Wayne A. Jacobs of the FBI Washington Field Office’s Criminal and Cyber Division.
“Today, the FBI and the Department stopped two distressingly common threats: websites trafficking in stolen personal information and sites which attack and disrupt legitimate internet businesses,” said U.S. Attorney Graves. “Cyber crime often crosses national borders. Using strong working relationships with our international law enforcement partners, we will address crimes like these that threaten privacy, security, and commerce around the globe.”
“These seizures are prime examples of the ongoing actions the FBI and our international partners are undertaking to disrupt malicious cyber activity,” said Special Agent in Charge Jacobs. “Disrupting malicious DDoS operations and dismantling websites that facilitate the theft and sale of stolen personal information is a priority for the FBI.”
The WeLeakInfo.to website had claimed to provide its users a search engine to review and obtain the personal information illegally obtained in over 10,000 data breaches containing seven billion indexed records – including, for example, names, email addresses, usernames, phone numbers, and passwords for online accounts. The website sold subscriptions so that any user could access the results of these data breaches, with subscriptions providing unlimited searches and access during the subscription period (one day, one week, one month, three months, or lifetime). In January 2020, the FBI and the U.S. Department of Justice also announced that they had seized the internet domain name weleakinfo.com, shutting down a similar service then provided at that site.
The ipstress.in and ovh-booter.com domains were also seized. Those sites publicly offered to conduct “Distributed Denial of Service” attacks, or “DDoS” attacks for clients – specifically, a format called booter or stressor attacks. DDoS attacks are a type of network attack in which multiple internet-enabled devices are used to attack computers hosting a website – usually by flooding the site with internet traffic – for the purpose of rendering it inaccessible to legitimate users or unable to communicate with the internet.
With execution of the warrant, the seized domain names – weleakinfo.to and the related domains – are now in the custody of the federal government, effectively suspending the website’s operation. Visitors to the site will now find a seizure banner that notifies them that the domain name has been seized by federal authorities. The U.S. District Court for the District of Columbia issued the seizure warrant.
The seizures of these domains were part of a coordinated law enforcement action with the National Police Corps of the Netherlands and the Federal Police of Belgium. The actions executed by our international partners included the arrest of a main subject, searches of several locations, and seizures of the webserver’s infrastructure.
Any persons having information concerning weleakinfo.to or its owners and operators are encouraged to provide that information by filing a complaint (referencing #weleakinfo in the “Description of Incident” field) with the FBI’s Internet Crime Complaint Center (IC3) at https://www.ic3.gov/complaint/default.aspx.
These seizures are a part of a comprehensive law enforcement action taken by the FBI, the U.S. Attorney’s Office for the District of Columbia, and the Department of Justice’s Computer Crime and Intellectual Property Section, along with international law enforcement, including the Netherlands National Police Corps and the Belgium Federal Police.
Washington, D.C. man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Emmanuel Kwame West, of Washington, D.C., has admitted to selling heroin and fentanyl, United States Attorney William Ihlenfeld announced.
West also known as “Donte West,” 40, pleaded guilty today to one count of “Distribution of Heroin and Fentanyl Mixture.” West admitted to selling a mixture of fentanyl and heroin in March 2021 in Berkeley County.
West faces up to 20 years of incarceration and a fine of up to $1 million. 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Martinsburg Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Vancouver Man Sentenced to Federal Prison for Child Sex TraffickingRead the Press Release
PORTLAND, Ore.—A Vancouver, Washington man was sentenced to federal prison today for facilitating and benefitting from the sex trafficking of multiple children.
Keonte Desmond Scott, 24, was sentenced to 97 months in federal prison and five years’ supervised release.
According to court documents and trial testimony, in 2016, after he was released from prison, Scott met and befriended Johnl Jackson, 34, also of Vancouver. Jackson sold Scott cocaine and began coaching him in commercial sex trafficking. In late 2016, Scott met and began a relationship with another Vancouver resident, Diana Petrovic, 23. Jackson helped Scott traffic Petrovic and they began using her to recruit and traffic other minor females.
By early 2019, several minors reported to law enforcement that they had been trafficked by Scott and Petrovic. During the ensuing investigation, authorities learned of two teen girls, then 14- and 15-years-old, respectively, who together had run away from their homes in Lane County, Oregon and were introduced to Scott and Petrovic at a mall in Vancouver. Petrovic took the girls to a home the girls believed was Jackson’s and gave them drugs and alcohol. Scott and Petrovic told the girls they would take them to an upscale party, but, instead, took them to a location in Portland where they were sold for sex. Eventually, the girls separated themselves from Scott and Petrovic, spent the night elsewhere, and were driven back home by one of the girl’s mothers the next day.
Throughout the summer of 2018, after Scott had returned to prison, Petrovic worked closely with Jackson to traffic minors, including of the girls from Lane County.
On May 8, 2019, a federal grand jury in Portland returned a six-count indictment charging Scott, Petrovic, and a third accomplice, Evan Blake Barajas, 24, of Vancouver, Washington, with sex trafficking of children and transporting minors with intent to engage in sexual activity. On December 4, 2019, a fourth accomplice, Jamil Timpke-Rhoades, 23, of Vancouver, Washington, was added as a co-defendant by superseding indictment.
On December 9, 2021, Scott pleaded guilty to two counts of sex trafficking.
Barajas and Timpke-Rhoades are in custody pending a seven-day jury trial scheduled to begin on July 19, 2022.
On October 9, 2019, in a separate criminal case, a federal grand jury in Portland returned a three-count indictment charging Jackson and Petrovic with sex trafficking of a child by force, fraud, and coercion; sex trafficking of a child; and transportation of a minor with intent to engage in sexual activity. Later, on December 4, 2019, Jackson and Petrovic were charged by superseding indictment with conspiring to engage in sex trafficking of children; sex trafficking of a child; sex trafficking of a child by force, fraud, and coercion; and transporting a minor with intent to engage in sexual activity.
On July 22, 2020, Petrovic was charged by superseding criminal information with and pleaded guilty to distribution of controlled substances to persons under 21. She will be sentenced on April 3, 2023.
On March 11, 2022, Jackson was convicted at trial of one count of conspiracy to engage in sex trafficking; three counts of sex trafficking of a child; two counts of sex trafficking by force, fraud, and coercion; and three counts of transportation of a minor with intent to engage in sexual activity. He will be sentenced on July 25, 2022.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) with assistance from the Tigard Police Department and Portland Police Bureau. It was prosecuted by Assistant U.S. Attorneys Ashley Cadotte and Pamela Paaso with assistance from Assistant U.S. Attorneys Kelly Zusman, Suzanne Miles, and Thomas Ratcliffe, and Multnomah County Deputy District Attorney Glen Ujifusa.
The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
If you or someone you know is in danger, please call 911. If you are a human trafficking victim or have information about a potential human trafficking situation, please call the National Human Trafficking Resource Center at 1-888-373-7888 or by texting 233733. Calls and texts are answered 24 hours a day, seven days a week.
Human trafficking is a serious federal crime where individuals are compelled by force, fraud, or coercion to engage in commercial sex, labor, or domestic servitude against their will. Traffickers exploit and endanger some of the most vulnerable members of our society and cause unimaginable harm. In January 2022, Attorney General Merrick B. Garland launched a new national strategy to combat human trafficking that aims to prevent all forms of trafficking, prosecute trafficking cases, and support trafficking victims and survivors.
Vacaville Man Sentenced to 8 Years in Prison for Billion Dollar DC Solar Ponzi SchemeRead the Press Release
SACRAMENTO, Calif. — Alan Hansen, 51, of Vacaville, was sentenced today to eight years in prison and ordered to pay $619,415,950 in restitution for participating in a billion-dollar Ponzi scheme involving DC Solar, U.S. Attorney Phillip A. Talbert announced.
On July 23, 2020, Hansen pleaded guilty to conspiracy to commit an offense against the United States and aiding and abetting money laundering.
According to court documents, between 2011 and 2018, DC Solar manufactured mobile solar generator units (MSG), solar generators that were mounted on trailers. The company touted the versatility and environmental sustainability of the mobile solar generators and claimed that they were used to provide emergency power to cellphone towers and lighting at sporting and other events. Jeff Carpoff, 51, Paulette Carpoff, 51, both of Martinez, and their co-conspirators solicited investors by claiming that there were favorable federal tax benefits associated with investments in alternative energy. They sold solar generators that did not exist to investors, making it appear that solar generators existed in locations that they did not, creating false financial statements, and obtaining false lease contracts, among other efforts to conceal the fraud. In reality, at least half of the approximately 17,000 solar generators claimed to have been manufactured by DC Solar did not exist and DC Solar paid early investors with funds contributed by later investors.
According to court documents, Hansen was an employee of a telecom company with which DC Solar had done some limited business. In that role, Hansen accepted $1 million from co-conspirators at DC Solar to fraudulently sign a false contract reflecting a much greater amount of supposed business leasing MSGs. Hansen’s co‑conspirators used that false contract to induce substantial investments by victims in DC Solar. After signing the contract, Hansen took a job at DC Solar at a significant pay increase and left his former employment. Later, as a DC Solar executive, Hansen and a co-conspirator agreed to share $20,000 cash from Jeff Carpoff to sign a false agreement related to the earlier contract by forging the signature of a former telecom company employee. Hansen’s co-conspirators used the false contract and forged agreement to induce still further payments by victims for MSGs. Hansen was paid for signing the first false contract through a series of interstate wire transfers into an account he set up in the name of a consulting company. Hansen knew the money he received came from payments by DC Solar investors, and that DC Solar was deceiving them to induce those payments.
On Nov. 9, 2021, Jeff Carpoff was sentenced to 30 years in prison and ordered to pay $790.6 million in restitution for conspiracy to commit wire fraud and money laundering. His wife Paulette Carpoff has pleaded guilty to conspiracy to commit an offense against the United States and money laundering, and is scheduled to be sentenced on June 28, 2022.
On Nov. 16, 2021, Joseph W. Bayliss, 46, of Martinez, was sentenced to three years in prison and ordered to pay $481.3 million in restitution for securities fraud and conspiracy in connection with the DC Solar scheme. On April 12, 2022, DC Solar CFO Robert A. Karmann, 55, of Clayton, was sentenced to six years in prison and ordered to pay $624 million.
Other defendants have pleaded guilty to criminal offenses related to the fraud scheme and are scheduled for sentencing: Ronald J. Roach, 55, of Walnut Creek, is scheduled to be sentenced on June 28, 2022; and Ryan Guidry, 45, of Pleasant Hill, is scheduled to be sentenced on June 7, 2022.
This case is the product of an investigation by the Federal Bureau of Investigation, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorneys Christopher S. Hales and Kevin C. Khasigian are prosecuting the case.
Paulette Carpoff and Guidry face a maximum statutory penalty of 15 years in prison. Roach faces a maximum statutory penalty of 10 years prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
U.S. Attorney's Office and Fulton County District Attorney launch Summer Initiative to support youth as part of violence-prevention strategyRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia and the Fulton County District Attorney’s Office launched the second annual Project Safe Neighborhoods (PSN) Credible Messenger Youth Summer Violence Intervention (the “Summer Mentorship Program”) at the Atlanta Police Foundation’s At-Promise Center.
“Last summer’s intensive mentoring efforts yielded a success rate of nearly 90%,” said U.S. Attorney Ryan K. Buchanan. “This type of structured and deliberate engagement is proven to decrease recidivism and bolsters community safety. We are pleased to partner with community leaders, law enforcement and families to support these youth, get them connected to college and career resources, and keep them actively engaged for the summer.”
“Credible Messenger makes Fulton County safer. By matching at-risk youth with mentors who can help them avoid a life trapped in the criminal justice system, we save lives that would be lost to crime or to incarceration. Our partnership with the U.S. Attorney and the U.S Department of Justice to bring this program to Fulton County is a great example of what partnership and cooperation can do for the citizens we serve.”
“The successful transition of youth into their community is one of our top priorities,” said Tyrone Oliver, Commissioner of the Department of Juvenile Justice. “Our partnership with the Northern District of Georgia’s Project Safe Neighborhoods has demonstrated improved outcomes for justice-involved youth, including reducing recidivism.”
The Summer Mentorship Program will engage up to 25 youth between the ages of 14 and 17 who are on juvenile or adult probation, in a 10-week intensive mentorship initiative. Through 10 hours of mentor engagement per week, youth will participate in support forums, career readiness training, community engagement and evidenced-based, cognitive-behavioral, life-skills sessions utilizing the Forward Thinking and Project EGRESS Curriculum. Youth who satisfy the program’s requirements will receive a weekly stipend, made possible by a generous donation from CHRIS 180, formerly known as CHRIS Kids.
This initiative is being implemented by a team of Southeast Credible Messengers, in connection with the PSN Prevention and Reentry strategy of the U.S. Attorney’s Office. Southeast Credible Messengers are a Community-Based Collaboration between organizations and individuals working together to achieve common goals: positive youth and young adult mentorship, recidivism reduction, public safety, and family & community engagement. The Southeast Credible Messenger team for this initiative includes the Offender Alumni Association, Inc. (OAA), Freedom is a Choice, Inc., EGRESS Consultants & Services, LLC., and Mothers Against Gang Violence, Inc.
We would also like to thank leadership from the Georgia Department of Juvenile Justice, Office of Reentry Services, Fulton County Juvenile Court and the local business community for their continued partnership and support of the summer program.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two St. Joseph Men Plead Guilty to Heroin Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Two St. Joseph, Mo., men have pleaded guilty to their roles in a conspiracy to distribute heroin and to illegally possessing firearms.
Franklin T. Hicks Jr., also known as “Frankie,” 41, pleaded guilty today before U.S. District Judge Greg Kays to participating in a conspiracy to distribute one kilogram or more of heroin and to possessing firearms in furtherance of a drug-trafficking crime. Co-defendant Roderick A. Hughes, 48, pleaded guilty on Friday, May 27, to his role in the drug-trafficking conspiracy and to one count of possessing a firearm in furtherance of a drug-trafficking crime.
Hicks and Hughes admitted they participated in the heroin conspiracy from Sept. 1, 2019, to March 26, 2021.
Hicks was arrested outside of a hotel in St. Joseph on Jan. 22, 2021. He was in possession of 35.8 grams of heroin and $2,687 in cash. Officers also found a loaded Rock Island Armory .380-caliber handgun under the driver’s seat of his car and a Ruger 9mm handgun in the glovebox.
Law enforcement officers executed a search warrant at Hughes’s apartment on Feb. 23, 2021, with both Hicks and Hughes present. They found a silver revolver on the kitchen table. They also found a loaded Glock 9mm handgun on a nightstand in the bedroom, a Stoeger 9mm handgun and a Jennings Bryco 9mm handgun on a shelf in the bedroom, and a black safe under the bed that contained 23.4 grams of heroin and $4,703 in cash. Officers also searched the garage and found three plastic bags with a total of 96.3 grams of heroin hidden in the rafters.
Co-defendant Harvey E. Johnson, 48, of Kansas City, Mo., pleaded guilty on Aug. 4, 2021, to participating in the conspiracy to distribute heroin. Johnson, who was in possession of approximately 51 grams of heroin at the time of his arrest, admitted that the drug-trafficking conspiracy involved at least two kilograms of heroin.
This case is being prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the St. Joseph, Mo., Police Department, the Buchanan County, Mo., Sheriff’s Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Two Orange County Tax Preparers Charged in Long-Running Tax and Benefit Fraud Scheme Orchestrated by Corrupt Social WorkerRead the Press Release
SANTA ANA, California – Two Orange County tax preparers were arraigned today on federal charges alleging they participated in a scheme orchestrated by a corrupt social worker who stole his clients’ identities to fraudulently obtain tax refunds, welfare benefits and credit cards.
Anton Nguyen, 53, of Fountain Valley, and Rosemary Pham, 64, of Midway City, were summonsed to appear in United States District Court in Santa Ana, where this morning they pleaded not guilty to the criminal charges against them. A July 26 trial date has been scheduled for both defendants, who remain out of custody.
Nguyen and Pham were charged in separate indictments filed on May 11 with conspiracy to defraud the United States. Nguyen also is charged with three counts of making false claims against the United States for the payment of federal income tax refunds, and Pham additionally is charged with 10 counts of aiding and advising the filing of false tax returns.
Nguyen and Pham allegedly conspired with John Tran, who is believed to be either 56 or 60, of Fountain Valley, an Orange County Social Services Agency case worker from July 1994 to October 2018, who stole the Social Security numbers and other personal identifying information (PII) from his clients – many of them recent immigrants.
From August 2010 to June 2019, Tran and his co-conspirators used the stolen information to fraudulently obtain money from the federal government, the State of California, the County of Orange and financial institutions.
Nguyen, who owned and operated the Westminster-based Century Travel & Tax, and Pham, the owner and operator of Victory Tax Service in Westminster, allegedly used the stolen identities that Tran provided to create fraudulent Forms 1099-MISC purporting to show payments made to the identity theft victims by companies, including those controlled by Tran and other co-conspirators.
The defendants allegedly prepared and filed federal income tax returns using the Tran-provided stolen identities. Nguyen and Pham used the purported payments on the fraudulent Forms 1099 as income to the identify theft victims, making them appear to qualify for tax credits, including the Earned Income Tax Credit and the Child Tax Credit.
In turn, the reported payments to the identity theft victims were used by Nguyen’s and Pham’s clients to offset business revenues and reduce the taxes they owed by making it appear that the identity theft victims worked for them, according to the indictments. In exchange for the fabrication of the Forms 1099, Nguyen’s and Pham’s clients allegedly paid them a fee.
Tran and his co-conspirators filed 433 tax returns using PII belonging to other individuals, generating at least $973,153 in fraudulently obtained tax refund payments from the United States. Pham and Nguyen allegedly caused at least $1,378,092 and $4,054,802, respectively, in unpaid taxes to be incurred.
Pham also allegedly reported fraudulent Fuel Tax Credits for other taxpayers.
Indictments contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Nguyen would face a statutory maximum sentence of 10 years in federal prison and Pham would face a statutory maximum sentence of eight years in federal prison.
Prior to these indictments, federal prosecutors secured seven guilty pleas to criminal charges connected to this scheme.
Tran pleaded guilty in November 2019 to conspiracy to defraud the United States with respect to claims, mail fraud and aggravated identity theft. Tran is scheduled to be sentenced on July 25, at which time he will face a statutory maximum sentence of 72 years in federal prison and a mandatory minimum sentence of two years in federal prison.
Chau Nguyen, 68, of Garden Grove; Sophie Thuy Nguyen, 47, of Westminster; Kevin Le, 56, of Anaheim Hills; Van Quach, 42, of Monterey Park; and Peter Duc Nguyen, 62, of Garden Grove, each have pleaded guilty to evasion of assessment of taxes and are scheduled to be sentenced later this year, at which time they will each face a statutory maximum sentence of five years in federal prison.
Thomas Nguyen, 61, of Santa Ana, pleaded guilty in June 2021 to one count of tax evasion. He was fined $30,000 and ordered to pay $133,796 in restitution.
IRS Criminal Investigation, with assistance from the Orange County District Attorney’s Office, investigated this matter.
Assistant United States Attorneys Bradley E. Marrett and Daniel H. Ahn of the Santa Ana Branch Office are prosecuting these cases.
Three Indicted for Large-Scale Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Three defendants were indicted by a federal grand jury today for their roles in a conspiracy to distribute large amounts of methamphetamine in southwest Missouri after law enforcement officers seized approximately 29 pounds of methamphetamine.
Brian E. Hall, 44, of Aurora, Mo., and Jacqueline Aldrete Bojorquez, 28, and Jeffrey L. Hughley, 37, whose addresses are unknown, were charged in a six-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed on May 2.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers executed a search warrant at Hall’s residence on April 28, 2022, as part of an ongoing methamphetamine investigation. Officers seized seven pounds of methamphetamine, a Taurus 9mm semi-automatic pistol, approximately $57,000 in cash, and drug paraphernalia used for the packaging and sale of methamphetamine.
When Bojorquez and Hughley arrived at Hall’s residence later that night, they were taken into custody as well. Officers searched their vehicle and found approximately 22 pounds of methamphetamine in the trunk and a Taurus 9mm semi-automatic pistol in the floorboard of the front passenger seat.
Today’s indictment charges Hall, Bojorquez, and Hughley with participating in a conspiracy to distribute methamphetamine in Barry County and elsewhere from Jan. 1 to April 28, 2022.
In addition to the drug-trafficking conspiracy, Hall is charged with one count of possessing methamphetamine with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime, and one count of being a felon in possession of a firearm. Bojorquez and Hughley are charged together in one count of possessing methamphetamine with the intent to distribute and one count of possessing a firearm in furtherance of a drug-trafficking crime.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Missouri State Highway Patrol, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ozarks Drug Enforcement Team, the Barry County, Mo., Sheriff’s Office, and the Stone County, Mo., Sheriff’s Office.
Organized Crime and Drug Enforcement Task Force
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.
Tarentum Man Pleads Guilty in Cocaine Distribution ConspiracyRead the Press Release
PITTSBURGH, PA – A resident of Tarentum, PA, pleaded guilty in federal court to a violation of the federal narcotics laws, United States Attorney Cindy K. Chung announced today.
John William Montgomery, 33, of Tarentum, PA, pleaded guilty to an Indictment charging him, and 26 other codefendants, with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine before United States District Judge W. Scott Hardy.
In connection with the guilty plea, the Government advised the Court that the prosecution of Montgomery arose out of a two-year investigation into a drug trafficking organization whose members distributed kilograms of cocaine, sourced from Mexico, throughout the United States (in California, Arizona, Pennsylvania, and elsewhere). The Court was advised that co-conspirators obtained kilograms of cocaine in Los Angeles, California, and sent them to the Western District of Pennsylvania (and elsewhere) through the United States Postal Service. In connection with his guilty plea, Montgomery admitted that he received cocaine-laden parcels that were sent by co-conspirators from Los Angeles, California, to the Western District of Pennsylvania, and that he redistributed the kilograms of cocaine to co-conspirators and others. As part his plea, Montgomery admitted that the quantity of cocaine attributable to him, through his conduct and through the conduct of co-conspirators that was reasonably foreseeable to him, was at least 15 kilograms but less than 50 kilograms. The Court was advised that agents seized in excess of 100 kilograms of cocaine during its two-year investigation into the drug trafficking organization, of which Montgomery admitted to being a member.
Judge Hardy scheduled sentencing for October 5, 2022. The law provides for a total sentence of not less than 10 years and not more than life imprisonment, a fine of up to $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Drug Enforcement Administration (in Pittsburgh, PA) and the United States Postal Service – Office of Inspector General led the multi-agency investigation that included members of the Drug Enforcement Administration (in Los Angeles, CA; in Tucson, AZ; in New York, NY; in Nashville, TN; at the Special Operations Division; and in Mexico); the Pennsylvania Office of Attorney General; the Los Angeles Police Department; the Pittsburgh Bureau of Police; the Allegheny County Police Department; the New Castle Police Department; the Monessen Police Department; and the Pennsylvania State Police. This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Stockton Man Sentenced to over Six Years in Prison for Firearms Trafficking and Methamphetamine DistributionRead the Press Release
SACRAMENTO, Calif. — Vin Whealen Gaines Jr., 33, of Stockton, was sentenced today by U.S. District Judge John A. Mendez to six years and five months in prison for conspiracy to deal firearms without a license and distribution of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Oct. 10, 2019, and Oct. 22, 2020, Gaines and his co‑conspirators sold at least 13 firearms to a confidential source or an undercover agent on behalf of the Everybody Killa (EBK) street gang in Stockton. Many of the firearms were obtained out of state in Reno, Nevada, and some were obtained by a straw purchaser from federally licensed firearms dealers in Reno. Gaines also sold about an ounce of methamphetamine to a confidential source on Feb. 20, 2020.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; and the San Joaquin County Sheriff’s Office. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
Co-defendant Johnnie Earl Ross III, 21, of Stockton, was previously sentenced to six and a half years in prison for conspiracy to deal firearms without a license and possession of an unregistered machinegun.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
St. Paul Staffing Agency Owners Sentenced for Tax Evasion SchemeRead the Press Release
MINNEAPOLIS – The last of three defendants has been sentenced in connection with a multi-year tax evasion scheme in which the operators of two St. Paul employment agencies conspired to evade more than $1 million in federal employment taxes, announced U.S. Attorney Andrew M. Luger.
U.S. District Judge Patrick J. Schiltz sentenced Julian Xiong, 59, of Brooklyn Park, to a year of probation with six months in home detention and $409,340 in restitution to the Internal Revenue Service.
On May 24, 2022, Chong Xiong, 60, of Minneapolis, was sentenced to two years in prison followed by a year of supervised release and ordered $877,820 in restitution to the IRS. On June 17, 2021, Andrew Xiong, 59, of Ramsey, was sentenced to one year and one day in prison followed by a year of supervised release and restitution of $686,079 to the IRS. Andrew Xiong and Julian Xiong had previously pleaded guilty to tax evasion and Chong Xiong pleaded guilty to conspiracy to defraud the United States.
According to court documents, between 2012 and 2017, Chong Xiong operated a temporary staffing agency in St. Paul with his brothers Julian Xiong and Andrew Xiong. The Xiong brothers’ agency operated under the names Twinstar Solutions, Hope Solutions, and Step Staffing. The defendants contracted with local companies to supply workers. The agreement provided that the defendants’ business was the employer of the workers and responsible for compliance with tax laws relating to withholding, reporting, and payment of payroll taxes. Like all employers, the Xiong brothers’ staffing agency was required to withhold federal income taxes, social security, and Medicare taxes from workers’ pay and report the amounts and pay the withholdings over to the IRS. Instead of accurately withholding and paying over the correct taxes to the government, the defendants paid some of their employees in cash and kept the tax withholdings for themselves. They also submitted false payroll reports to the IRS, while paying only a fraction of the true employment taxes owed.
Chong Xiong and Julian Xiong committed the evasion while running the business under the Twinstar name until 2013 when Julian Xiong opened an employment agency in Roseville to serve one of Twinstar’s clients and continued a similar fraud. The original company was then renamed Hope Solutions and operated by Andrew Xiong and Chong Xiong. In 2016, Andrew Xiong left the conspiracy, and Chong Xiong renamed the business Step Staffing until the business closed a few months later.
In addition to falsely reporting and underpaying payroll taxes, the defendants caused the business to file false annual corporate tax returns and use multiple bank accounts to hide the scheme. The defendants essentially split the profits from the tax fraud by keeping cash for themselves. Chong Xiong admitted to purchasing a Mercedes-Benz with more than $28,000 in $100 bills.
In sentencing him to the lengthiest term, Judge Schiltz noted that Chong Xiong was the last to accept responsibility and plead guilty and was responsible for the greatest tax loss and was the longest participant and supervisor of the scheme.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigations Division.
Assistant U.S. Attorney Robert M. Lewis prosecuted the cases.
St. Paul Man Sentenced to 156 Months in Prison for Methamphetamine Trafficking, Firearms ViolationsRead the Press Release
ST. PAUL, Minn. – A St. Paul man was sentenced to 156 months in prison, followed by five years of supervised release, for methamphetamine trafficking and firearms violations, announced United States Attorney Andrew M. Luger.
According to court documents, in May 2020, law enforcement began investigating Chue Xiong, 39, and his co-defendant Matthew Hines, 37, of Brooklyn Center. As part of a drug trafficking conspiracy, Xiong and Hines coordinated and facilitated the distribution of methamphetamine, as well as collected drug proceeds to send back to their supplier. On May 11, 2020, law enforcement observed Xiong leave Hines’s residence with a brown bag in his hand. Law enforcement conducted a traffic stop of Xiong’s vehicle and found approximately 1.4 kilograms of methamphetamine inside the brown bag, 614 grams of methamphetamine in the driver’s side door pocket, and a 9mm handgun underneath the floor mat on the driver’s side. Xiong was also wearing a holster.
On November 19, 2020, law enforcement agents arrested Xiong outside his apartment building pursuant to a warrant. During a subsequent search of Xiong’s apartment, agents recovered an AR 223 caliber rifle, nine loaded 223 magazines, two loaded Glock model 19 semiautomatic handguns, $7,691.00 in cash, and 643.9 grams of methamphetamine.
Xiong was sentenced on May 26, 2022, in U.S. District Court before Senior Judge Donovan W. Frank. On March 30, 2021, Xiong pleaded guilty to conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession with intent to distribute methamphetamine. Hines pleaded guilty on May 6, 2021, and is scheduled to be sentenced on December 15, 2022.
This case was the result of an investigation conducted by the Drug Enforcement Administration, the Ramsey County Violent Crime Enforcement Team, and the Minnesota State Patrol.
Assistant U.S. Attorney Allen A. Slaughter is prosecuting the case.
St. Joseph Police Officer and His Wife Indicted for $99,000 Fraud Scheme Against Fraternal Order of PoliceRead the Press Release
KANSAS CITY, Mo. – A St. Joseph, Mo., police officer and his wife were indicted by a federal grand jury today for a $99,000 wire fraud scheme in which they used debit cards from a local lodge of the Fraternal Order of Police, where they served as officers, for spending on personal items.
Michael A. Hardin, 46, and his wife, Sarah J. Hardin, 42, were charged in a seven-count indictment returned by a federal grand jury in Kansas City, Mo.
Michael Hardin, an officer with the St. Joseph Police Department, was the president of the Fraternal Order of Police Northwest Missouri Lodge #3 for approximately 10 years. Sarah Hardin, formerly a deputy with the Buchanan County Sheriff’s Department, was the treasurer of the lodge for approximately 10 years. The lodge, headquartered in St. Joseph, is a fraternity of approximately 300 law enforcement officers from police departments in nine northwest Missouri counties.
Today’s indictment alleges the Hardins used debit cards linked to the bank accounts of the Fraternal Order of Police Northwest Missouri Lodge #3 to make $99,000 in purchases for their own personal gain over a four-year period from December 2015 to December 2019.
According to the indictment, Sarah Hardin used two debit cards to make purchases at Walmart, Menards, Party City, HyVee, and other businesses for personal items and expenses. Michael Hardin allegedly used one debit card to make purchases from various merchants, including Hampton Inn, for personal items and expenses.
The Hardins did not provide information about the fraudulent spending to the members of the lodge, the indictment says, nor did they seek approval to use lodge funds for personal items.
Today’s indictment charges Sarah Hardin with four counts of wire fraud and Michael Hardin with three counts of wire fraud.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Courtney R. Pratten. It was investigated by the FBI.
St. Francis Man Sentenced for Voluntary ManslaughterRead the Press Release
United States Attorney Alison Ramsdell announced that a St. Francis, South Dakota, man convicted of Voluntary Manslaughter was sentenced on May 27, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Tanyan Wakita Iron, a/k/a Sonny Iron, age 20, was sentenced to 84 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Iron was indicted by a federal grand jury on September 9, 2020. He pled guilty on January 27, 2022.
The conviction stemmed from an incident that occurred on August 9, 2020, in St. Francis. Iron was at the victim’s home visiting, when he produced a handgun and attempted to get the victim to join him in a round of “Russian roulette” which the victim declined. A short time later, Iron shot the victim in the head, causing her death.
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.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Iron was immediately turned over to the custody of the U.S. Marshals Service.
Springfield Man Pleads Guilty to Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man who was identified when his photo was broadcast by local TV stations pleaded guilty in federal court today to bank robbery.
Charles Edgar King Jr., 57, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of bank robbery.
By pleading guilty today, King admitted that he used a note to steal $8,815 from Guaranty Bank, 2109 N. Glenstone Ave., in Springfield, on July 10, 2021.
King entered the bank at about 10:30 a.m. and went straight to a teller counter, where he handed the teller a handwritten note that read, “I have a gun this is a robbery.” The teller handed over cash and King left the bank and walked away through a parking lot.
Surveillance cameras in the bank captured good quality video, which show King, who was not wearing a mask, and images of his bare hands that show a tattoo of a cross on the back of his right middle finger. On the same day as the robbery, July 10, 2021, the FBI released one of the surveillance images to the media and requested assistance from the public in identifying the bank robber. King’s former probation officer saw the media coverage and contacted the FBI the same day and identified King.
On July 19, 2021, an anonymous source contacted law enforcement with a tip that King was staying at the Springfield Inn near Kearney and North Glenstone in Springfield. Springfield police detectives and FBI agents conducted surveillance on the hotel and saw King leave the hotel driving a purple Scion Cube with no license plate. Springfield police officers conducted a car stop and detained King on an investigative arrest for robbery.
King told an FBI agent that he used the stolen money to buy the used Scion Cube for $2,400, and that he gave some of the money away and spent the rest.
Under federal statutes, King is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Springfield, Mo., Police Department and the FBI.
Southwest Virginia Man Sentenced to 57 Months for Role in Massive Pandemic Unemployment Fraud SchemeRead the Press Release
ABINGDON, Va. – A Southwest Virginia man who conspired with at least thirty others in a scheme to defraud the government of more than $499,000 in pandemic unemployment benefits was sentenced today to nearly five years in federal prison.
Wesley William Hickman, 25, of Big Stone Gap, was convicted along with co-defendant Marissa Kiser, 28, of Castlewood, following a jury trial in March 2022. The jury found each guilty of conspiracy to defraud the United States, fraud in connection with emergency benefits, conspiracy to commit mail fraud, mail fraud in connection with emergency benefits, and aggravated identity theft.
According to court documents and evidence presented at trial, Hickman and Kiser conspired with Leelynn Danielle Chytka, Gregory Marcus Elmer Tackett, Jeffery Ryan Tackett, and others to commit fraud against the United States in connection with the filing of fraudulent claims for pandemic unemployment benefits. At the time of his involvement in the scheme, Hickman was incarcerated at the Southwest Virginia Regional Jail and was not entitled to pandemic unemployment assistance. However, Hickman and other jail inmates provided their personal information to Jeffrey Tackett for the purpose of filing fraudulent claims. Kiser provided her personal information to her friend Chytka, the ringleader of this widespread conspiracy, for the purpose of filing a fraudulent claim on her behalf.
Over the course of nine months, members of the conspiracy filed fraudulent claims with the Virginia Employment Commission on behalf of at least 37 individuals, with a total actual loss to the United States of at least $499,000.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia, Syreeta Scott, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General, and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service- Criminal Investigation, Washington D.C. made the announcement.
The Department of Labor - Office of the Inspector General, the Internal Revenue Service – Criminal Investigation Washington, D.C., Field Office, the Norton Police Department, and the Russell County Sheriff’s Office investigated the case.
Assistant United States Attorneys Daniel J. Murphy and Michael Baudinet prosecuted the case.
Slidell Man Charged with Possession of Files Depicting the Sexual Victimization of ChildrenRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BROCK TAYLOR GUILLOT, age 24, a resident of Slidell, Louisiana, was charged on Thursday, May 26, 2022, by a federal grand jury sitting in the Eastern District of Louisiana in a one-count indictment with possession of images and videos depicting the sexual exploitation of children under the age of twelve years old, in violation of 18 U.S.C. ' 2252(a)(4)(B).
GUILLOT faces a maximum term of imprisonment of twenty (20) years. GUILLOT also faces up to a lifetime of supervised release, up to a $250,000 fine, a mandatory $100 special assessment fee, and he can be required to register as a sex offender.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Sixth Defendant in $3 Million COVID-19 Fraud Ring Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – A Falls Church man pleaded guilty today to conspiring to commit wire fraud, bank fraud and to make false statements on loan applications in connection with COVID-relief loans.
According to court documents, Fouzi Darakhshan, 36, conspired with his brothers and their friends to submit falsified loan applications in order to obtain Paycheck Protection Program (PPP) loans through banks and Economic Injury Disaster Loans (EIDL) through the Small Business Administration. Altogether, the defendants wrongfully obtained over $3 million in loan proceeds. They submitted at least 63 loan applications, of which 17 were approved.
The defendants used multiple shell entities they controlled to apply for PPPs and EIDLs and falsified IRS tax forms submitted to lenders. They engaged in a group WhatsApp chat devoted to executing the fraud scheme, openly discussing falsifying documents and inflating the numbers of employees, company revenues, and payroll figures in order to induce lenders to make the loans.
Foad Darakhshan, 46, of McLean; Haleh Farshi, 44, of Ashburn; Farough Darakhshan, 39, of Great Falls; Shoughi Darakhshan, 30, of McLean; and Marcus Gharib, 29, of Tysons all previously pleaded guilty for their involvement in the conspiracy.
The defendants are scheduled to be sentenced beginning in July and concluding in September. They face up to 5 years in prison, full restitution, and forfeiture. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Amaleka McCall-Brathwaite, Eastern Region Special Agent in Charge for the Small Business Administration, Office of Inspector General, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted today’s plea.
Assistant U.S. Attorney Russell L. Carlberg is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-22.
Selling child pornography lands local in prisonRead the Press Release
McALLEN, Texas – A 33-year-old south Texan has been sent to prison for possessing child pornography with the intent to sell it on the internet, announced U.S. Attorney Jennifer B. Lowery.
Astro Rey De Leon pleaded guilty Dec. 17, 2021.
Today, U.S. District Judge Randy Crane sentenced him 210 months in federal prison. At the hearing, the court heard additional information including chats De Leon had with other individuals regarding the trade and sale of child sexual abuse material. The court also considered descriptions of the videos De Leon possessed as well as victim impact statements.
In handing down the prison term, the court noted that De Leon’s crimes were particularly heinous due to the ages of the victims, the number of videos involved and because he retained and sold videos to tailor his collection to his own desires. Judge Crane also reiterated that the material was recorded sexual abuse of children and should be addressed as such.
De Leon was further ordered to pay a total of $15,000 in restitution to five victims and will serve the rest of his life on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
Authorities had learned a computer was receiving child pornography. They were able to trace it to De Leon at his residence. He admitted he was actively involved in speaking with individuals who were interested in buying child pornography via applications on his cell phone.
A search of his phone revealed he had recently tried to sell child pornography. De Leon further admitted he had bought it himself only two months prior to law enforcement’s arrival at his residence.
De Leon has been and will remain in custody pending transfer to a U.S. Bureau of Prisons Facility to be determined in the near future.
Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Eliza Carmen Rodriguez is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Post Falls Woman Sentenced to 30 Months in Federal Prison after Cyberstalking Ex-Boyfriend and Setting his Home on FireRead the Press Release
Spokane, Washington – Senior United States District Judge Rosanna Malouf Peterson sentenced Kimberly Ann Brischle, 56, of Post Falls, Idaho, to 30 months in federal prison for stalking an ex-boyfriend across state lines via the Internet. Judge Peterson also ordered Brischle to pay more than $175,000 in restitution for the damages arising from a fire she started in her ex-boyfriend’s home. Brischle will also serve three years of federal supervised release after she gets out of prison. Brischle pleaded guilty in May 2022 and has been in federal custody since July 2021.
According to court documents, Brischle began sending her ex-boyfriend a series of threatening text messages in April 2021. The next day, Brischle broke into her ex-boyfriend’s home in Spokane, while her ex-boyfriend was away on business. Brischle damaged property in the home and started a fire in a bedroom closet. The Spokane Fire Department responded to extinguish the fire, and investigators determined that the fire had been set intentionally. For the next several months, Brischle used online applications to obscure her identity while she continued to send her ex-boyfriend threatening and harassing texts and emails. In one message, she claimed to have paid another person to torture and mutilate him and to kill his dog.
“In the information age, Internet stalking has become a significant problem that crosses state and international boundaries and subjects innocent people to serious harassment,” said Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. “As this case demonstrates, the line between online activity and real-world consequences can become blurry for some—and frankly, it is a miracle and a relief that no one was hurt by the fire in this case. Fortunately, through the collaborative work of ATF, the Spokane Police Department, the Spokane Fire Department, and the Kalispel Tribal authorities, law enforcement was able to hold the defendant accountable and prevent her from causing further damage and harassment. The United States Attorney’s Office is committed to protecting our communities from cybercrime and physical violence to keep Eastern Washington safe and strong.”
“Arson is a heinous crime that has broad impacts, not only on those who are directly affected, but because of the risk it presents to the community as a whole,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “This sentence should deter anyone who contemplates engaging in the destructive, cowardly act of setting someone’s home on fire.”
This case was investigated by Spokane Resident Office of the ATF, with significant assistance from the Spokane Fire Department Special Investigations Unit, the Spokane Police Department, and the Kalispel Tribal Police. The case was prosecuted by Timothy J. Ohms, Assistant United States Attorney for the Eastern District of Washington.
Portland Man on Pretrial Release in Child Sex Abuse Case Indicted for Possessing and Distributing Child PornographyRead the Press Release
PORTLAND, Ore.—A federal indictment was unsealed today charging a Portland man with committing child pornography offenses while awaiting trial in a state child sex abuse case.
Raphael Alberto Whitfield, 33, has been charged with possession and distribution of child pornography.
According to court documents, on February 8, 2021, Whitfield was arrested after being indicted in Clackamas County Circuit Court on five counts of first-degree sexual abuse for allegedly abusing a child under the age of eight. Whitfield posted bail and was released the next day. Shortly thereafter, law enforcement in Oregon began investigating Whitfield’s use of Discord, an online instant messaging application, to send and receive child pornography. Search warrant returns showed that Whitfield had used the platform to distribute images depicting child sexual abuse as early as September 2020.
Law enforcement continued investigating Whitfield throughout much of 2021. These investigative efforts culminated in an October 2021 search of Whitfield’s person, car, and residence. Investigators seized two mobile phones, one of which was later found to contain more than 1,000 images depicting child sexual abuse. Many of these images were collected and saved while Whitfield was awaiting trial in Clackamas County.
On May 17, 2022, a federal grand jury in Portland indicted Whitfield and an arrest warrant was issued. On May 27, 2022, with the assistance of the Portland Police Bureau’s Special Emergency Reaction Team (SERT), the FBI executed the arrest warrant at Whitfield’s residence. When agents and SERT members knocked and announced their presence, Whitfield barricaded himself in the residence and attempted to take his own life by cutting his throat and wrist with a knife. Whitfield eventually exited the residence and was arrested and transported to a local hospital with non-life-threatening injuries.
Whitfield made his initial appearance in federal court today before U.S. Magistrate Judge Stacie F. Beckerman. He was arraigned, pleaded not guilty, and ordered detained pending a three-day jury trial scheduled to begin on August 2, 2022.
Possession and distribution of child pornography are each punishable by up to 20 years in federal prison, a life term of supervised release, and a $250,000 fine. Additionally, distribution of child pornography carries a 5-year mandatory minimum prison sentence.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF). The Portland Police Bureau assisted with Mr. Whitfield’s arrest. Assistant U.S. Attorney Mira Chernick is prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. Child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document victims’ exploitation and abuse, but when shared across the internet, child victims suffer re-victimization each time the image of their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children’s website at www.missingkids.org.
The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pittsfield Nurse Pleads Guilty to Stealing Fentanyl from Critical Care PatientRead the Press Release
BOSTON – A Pittsfield woman pleaded guilty today in federal court in Springfield to stealing fentanyl being administered to a patient in the critical care unit.
Jessica Lotto, 36, pleaded guilty to one count of acquiring a controlled substance by fraud, deceit or subterfuge. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 25, 2023. Lotto was charged in November 2021.
In February 2019, while working as a nurse at Berkshire Medical Center, Lotto entered a patient’s room in the critical care unit where she used a syringe to steal fentanyl being administered to the patient through an IV line. Lotto later admitted to taking the drug from the patient.
The charge of obtaining a controlled substance by fraud, deceit or subterfuge provides for a sentence of up to four years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Brian McClune, Acting Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Margret R. Cooke, Commissioner of the Massachusetts Department of Public Health, made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla, Chief of Rollins’ Springfield Branch Office, is prosecuting the case.
Pharmacist Convicted of Unlawfully Distributing Controlled SubstancesRead the Press Release
A federal jury in the Southern District of Texas convicted a Texas pharmacist on May 27 for unlawfully distributing controlled substances from a now-shuttered Houston pharmacy.
According to court documents and evidence presented at trial, Hieu “Tom” Truong, 58, of Houston, was the pharmacist-in-charge of S&S Pharmacy in Houston. In just 18 months, Truong and his co-conspirators unlawfully distributed over 750,000 doses of controlled substances, including over 500,000 oxycodone and hydrocodone pills. Trial evidence showed that S&S Pharmacy unlawfully dispensed controlled substances in bulk for cash, based on forged or stolen prescriptions brought in by street-level drug dealers.
Truong was convicted of three counts of unlawfully distributing and dispensing controlled substances. He faces a maximum penalty of up to 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing is scheduled for Oct. 3.
To date, seven other co-conspirators, including the owner and manager of the pharmacy, have pleaded guilty to unlawfully distributing controlled substances.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jennifer Lowery for the Southern District of Texas; and Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration’s (DEA) Houston Division made the announcement.
DEA Houston investigated the case, with assistance from the Conroe Police Department, Houston Police Department, and Harris County Constables Office.
Trial Attorneys Devon Helfmeyer, Courtney Chester, and Andrew Tamayo of the Criminal Division’s Fraud Section are prosecuting the case, and Assistant U.S. Attorney Kristine Rollinson for the Southern District of Texas is handling forfeiture.
Pascagoula Man Pleads Guilty to being a Convicted Felon in Possession of a FirearmRead the Press Release
Gulfport, Miss. -- A Pascagoula man pled guilty to being a convicted felon in possession of a firearm, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Johnny Elliott Washington a/k/a Johnnie Elliot Washington, 54, sold two firearms to an individual at a residence in Moss Point, Mississippi on July 13, 2020. Washington was previously convicted on drug charges in Harrison County and is prohibited from possessing a firearm.
Washington is scheduled to be sentenced on August 31, 2022, at 10:00 a.m., in Gulfport. He faces a maximum penalty of not more than 10 years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Mississippi Metro Enforcement Team.
The case was being prosecuted by Assistant U.S. Attorney Andrea Jones.
Newton Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Newton man pled guilty to possession of a firearm by a convicted felon, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, William Eric Chapman, 41, was found in possession of a firearm by officers of the Meridian Police Department on January 30, 2020, during an investigation into an alleged assault. Chapman had a .556 caliber rifle and a sawed-off shotgun in his motel room. Chapman has four prior felony convictions. As a convicted felon, it is contrary to federal law for Chapman to possess any firearm.
Chapman pleaded guilty to a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) which criminalize the possession of firearms by convicted felons. He is scheduled to be sentenced on September 1, 2022 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Meridian Police Department and the ATF are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
New Yorker Sentenced in East Texas for National Fraud ConspiracyRead the Press Release
SHERMAN, Texas – A Queens, New York man has been sentenced to prison in the Eastern District of Texas for federal violations, announced U.S. Attorney Brit Featherston today.
Anthony Terrell Lloyde, 33, pleaded guilty on July 29, 2021 to conspiracy to commit bank fraud and was sentenced to 121 months in federal prison today by U.S. District Judge Amos L. Mazzant. Lloyde was also ordered to pay restitution in the amount of $1,339,025.37.
According to information presented in court, beginning in January 2013, Lloyde conspired with others in a scheme to use the stolen identities of unsuspecting victims to illegally purchase material goods and services, most often high-value electronics, such as iPhones and iPads, hotel rooms and vehicle rentals. Though based in New York, participants traveled throughout the United States to cities associated with the victims’ identities to avoid detection of the fraud. Lloyde was the organizer and leader of the scheme. He purchased victims’ identifying information via the internet and directed the use of device-making equipment to manufacture fraudulent state identification documents and credit cards. He recruited conspirators, to whom he provided the fraudulent documents, and directed them to travel to various cities throughout the United States, including cities located in the Eastern District of Texas such as Frisco and Plano. Once they arrived at their target location, they used the victims’ stolen identification information and forged identification documents to open fraudulent instant credit accounts at retail stores, such as Apple Store and Best Buy, to purchase merchandise. These stores utilize the credit services of federally insured banks such as Citibank, Barclays Bank Delaware and Synchrony. Thus, by materially misrepresenting their identities to the retail stores, Lloyde and his coconspirators were able to defraud the banks.
Lloyde typically organized the trips by determining the target cities and stores and by booking and/or purchasing airline tickets on behalf of his coconspirators. Lloyde and coconspirators typically traveled under their true identities and would often mail the fraudulent identification documents and credit cards to one another in order to avoid traveling with them in their possession. Conspirators used fraudulently obtained credit cards and forged identification documents to rent vehicles to travel during their commission of the offense, and those fraudulently obtained vehicles were often sold to third parties on the black market. As such, the offense involved an organized plan to steal or receive stolen vehicles. Once conspirators arrived at the target stores, Lloyde and others would actively participate via phone calls and text messages, directing which victims’ identities were to be used and which products were to be purchased. Victims’ identities were often chosen based upon their proximity to the target city and store, making it less likely the fraud would be detected since it was occurring close to where the victims lived. Some conspirators used victims’ identification and phone numbers to obtain duplicate cell phone subscriber identity modules (SIM cards). Those conspirators would then use the duplicate SIM cards to divert fraud alerts to their own cell phones, which allowed the conspirators to further their criminal conduct by authorizing the fraudulent transactions. After purchasing items, conspirators shipped the illegally obtained goods to Lloyde in New York, and Lloyde would resell those products. Lloyde parlayed some of the proceeds generated by the criminal enterprise to purchase airline tickets for himself and other conspirators, to pay for hotel accommodations for himself and other conspirators, and to provide money for incidental expenses assumed by conspirators. In all, the scheme targeted retail stores that provided instant lines of credit the conspirators could exploit to immediately purchase goods. The credit accounts were funded by banks, and those banks, rather than the retail stores, suffered the financial losses. The primary pecuniary victims of the offense include Citibank, Barclays Bank Delaware, Nordstrom, and Synchrony. Citibank suffered an actual loss of $1,045,406.71. Barclays Bank Delaware reported an actual loss of $154,731.91. Nordstrom reported an actual loss of $71,016.01. Synchrony reported an actual loss of $67,870.74. As such, the total actual known loss committed by Lloyde and his coconspirators is $1,339,025.37.
This case was investigated by the Department of Homeland Security HSI Dallas, along with HSI Long Island, HSI Atlanta and HSI Salt Lake City field offices; Dallas-Ft. Worth International Airport Department of Public Safety; Plano, Texas Police Department; Port of Portland Police Department; New York State Police; New York Police Department; Massachusetts State Police; Cincinnati-Northern Kentucky Airport Police Department; Orange County, Texas, Sheriff's Office; Aurora, Colorado Police Department; Broomfield, Colorado, Police Department. This case was prosecuted by Assistant U.S. Attorney Matthew Johnson.
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New York Attorney Charged with Transportation and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – An Eastchester, New York, man has been charged with the transportation and possession of child pornography, U.S. Attorney Philip R. Sellinger announced today.
Androsky Lugo, 52, is charged by criminal complaint with one count of transportation of child pornography and one count of possession of child pornography. He is scheduled to make his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Leda Dunn Wettre.
According to documents filed in this case and statements made in court:
From August 2019 to September 2021, Lugo stored multiple electronic devices with a coworker at the New Jersey office where he worked. One of the devices was subsequently discovered to contain a voluminous collection of images and videos depicting child sexual abuse. The investigation also revealed that Lugo transported child pornography, on a different electronic device, from New York into New Jersey on multiple dates in July 2020.
The charge of possession of child pornography carries a maximum penalty of 10 years in prison and fine of $250,000. The charge of transportation of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and fine of $250,000.
U.S. Attorney Sellinger credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to the charges. He also thanked the Westchester County, New York, District Attorney's Office for its assistance.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Manhattan Man Pleads Guilty to Defrauding Victims of Millions of Dollars Through Offering Fictional Investment OpportunitiesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that EPHRAIM JOSEPH ULLMANN pled guilty to conspiracy to commit wire fraud in connection with a scheme to defraud victims by telling them that they could obtain large loans or letters of credit if they provided up-front investments as collateral for the loans. In reality, there were no loans available and the victims were defrauded of more than $3 million that they invested in reliance on ULLMANN’s false statements. ULLMANN pled guilty before U.S. District Judge Richard M. Berman.
U.S. Attorney Damian Williams said: “Ephraim Ullmann admitted to participating in a scheme to defraud victims of millions of dollars by making false statements about fictional opportunities to obtain loans and letters of credit. As a result of his guilty plea, Ullmann will now face a term of imprisonment. Our Office will continue to work with our law enforcement partners to investigate and prosecute those who defraud investors with false promises and lies.”
According to the Indictment, public court filings, and statements made in court:
From at least in or about November 2014 through at least in or about 2020, ULLMANN participated in a scheme to defraud investors by falsely telling them that they could obtain letters of credit or loans if they provided initial funds as collateral for the loans. ULLMANN told one group of victims who had started a home building company that he had been hired by an American Indian tribe to use tribal bonds as collateral to obtain large loans for companies seeking financing. ULLMANN told these victims to send hundreds of thousands of dollars to a bank account he provided them, which he described as “seed capital” to obtain the tribal bond-backed loan. In reality, ULLMANN had not been hired by the tribe and there was no loan available for the victims. ULLMANN also sent multiple forged bank documents to the victims to deceive them into thinking that the promised financing was being provided.
In addition to the tribal bond scheme, ULLMANN told a separate group of victims who were involved with starting a new oil company that he could obtain a multi-million dollar letter of credit for the company if the victims provided initial funding. In reality, there was no letter of credit available, and the victims were fraudulently induced to wire millions of dollars to bank accounts identified by ULLMANN and his co-conspirators.
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ULLMANN, 58, of New York, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum term of 20 years in prison, and agreed to restitution of $3,032,000.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorney Thane Rehn is in charge of the prosecution.
Manchester Man Sentenced to 60 Months for Trafficking Fentanyl and MethamphetamineRead the Press Release
CONCORD - Justin Stilson, 38, of Manchester, was sentenced to 60 months in federal prison for possessing fentanyl and methamphetamine with intent to distribute, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on September 25, 2019, Hooksett police officers were at a local motel to arrest a woman. Stilson was located in the bathroom of the motel room. Based on evidence obtained during the incident, officers applied for a search warrant for the motel room. During the execution of the warrant, a backpack belonging to Stilson was located. The backpack contained 122 grams of fentanyl and 102 grams of methamphetamine, as well as other evidence of drug distribution.
“Fentanyl and methamphetamine are drugs that have decimated thousands of lives in communities across our state,” said U.S. Attorney Young. “To protect our communities, we are working closely with our law enforcement partners to identify and prosecute the drug traffickers who flood our state with these deadly substances. This federal prison sentence not only holds Mr. Stilson accountable for his conduct but also sends a message that there are substantial penalties for drug dealing in the Granite State.”
This matter was investigated by the Hooksett Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Long Island MS-13 Gang Member Pleads Guilty to Two Murders, an Attempted Murder, and Drug Conspiracy ChargesRead the Press Release
Earlier today, in federal court in Central Islip, Jonathan Hernandez, a member of the Sailors Locos Salvatruchas Westside (Sailors) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to racketeering charges in connection with his participation in the January 28, 2016 murder of Michael Johnson, the April 29, 2016 murder of Oscar Acosta, an attempted murder on August 10, 2016, and a conspiracy to distribute cocaine and marijuana. The proceeding was held before United States Magistrate Judge Anne Y. Shields.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.
“In service to a violent gang and without regard for human life, the defendant and his MS-13 cohorts murdered two people, attempted to murder a third victim, and distributed dangerous narcotics,” stated United States Attorney Peace. “With today’s guilty plea, this Office and our law enforcement partners continue to dismantle MS-13, gang member by gang member, bringing them to justice for their horrendous crimes and we will not rest until our communities are safe from gang violence. Furthermore, it is our hope that the families of the victims find some consolation that Hernandez has been held to account for his crimes.”
“It is evident by these incomprehensible crimes, that MS-13 members have zero regard for human life and their violence has no limits,” Suffolk County Police Commissioner Harrison said. “We will continue to work with our law enforcement partners to decimate this transnational gang and I thank those involved in this case for their tireless efforts to hold this individual accountable for his heinous actions.”
According to prior court filings and statements by the defendant at the guilty plea proceeding, on January 28, 2016, a Sailors clique leader and other MS-13 members and associates were present at the Jocorena Deli in Brentwood, where they saw 29-year-old Michael Johnson, and claimed to recognize him as a member of the rival Bloods street gang. At that point, Johnson was marked as their “food,” meaning they were going to kill him. After receiving the requisite approval from the New York leader of the Sailors clique to commit this murder, Hernandez and several other MS-13 members were contacted, informed of the plan to kill Johnson, and instructed to bring weapons, including a machete and a baseball bat, to a wooded area near Second Avenue in Brentwood. Johnson was lured to the secluded meeting location where MS-13 members and associates, including Hernandez, struck Johnson with the baseball bat, stabbed him with a knife, and took turns hacking him with a machete. Johnson’s body was recovered by the SCPD on February 2, 2016.
In early 2016, Hernandez and his fellow Sailors clique members decided to kill 19-year-old Oscar Acosta because they suspected that he was associating with the rival 18th Street gang. The Sailors clique leader assigned roles as to which members would take the lead in planning and carrying out the murder. On April 29, 2016, several MS-13 members encountered Acosta in a wooded area near an elementary school in Brentwood, where he had been lured under the guise of smoking marijuana. They beat Acosta with tree limbs, knocking him unconscious. They then bound Acosta’s hands and feet, wrapped an article of clothing around his mouth to prevent him from making noise, and summoned other MS-13 members, including Hernandez. The MS-13 members loaded Acosta into the trunk of a car and drove to a more secluded area in Brentwood, near an abandoned psychiatric hospital. They took Acosta, who was still alive, out of the car and carried him into the woods, where they all took turns hacking him to death with a machete. The MS-13 members then buried Acosta’s body in a shallow grave. Acosta’s body was discovered by law enforcement on September 16, 2016.
On August 10, 2016, Hernandez and other MS-13 members attempted to kill suspected rival gang members in Brentwood. Hernandez and another MS-13 member, both armed with handguns, approached a house on Lukens Avenue, where the suspected rival gang members were standing outside, and fired numerous shots in their direction. No one was struck, but a stray bullet entered a neighbor’s house and struck the headboard of a bed in which the neighbor was sleeping. Hernandez also pleaded guilty to participating in a drug distribution conspiracy, admitting that between April 2016 and October 2017, he and other members of the Sailors clique conspired to distribute cocaine and marijuana for the financial benefit of the MS-13.
When sentenced, Hernandez faces a maximum term of life in prison.
Today’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution.
The Defendant:JONATHAN HERNANDEZ (also known as “Travieso,” and “Kraken”)
Age: 24
Brentwood, New YorkE.D.N.Y. Docket No. 16-CR-403 (GRB)
Lee County Man Sentenced to 90 Months for Methamphetamine, Gun CrimesRead the Press Release
ABINGDON, Va. – A Jonesville, Virginia man, who was twice arrested in Lee County for possessing methamphetamine with the intent to distribute, was sentenced last week to 7 ½ years in federal prison on federal drug distribution and weapons charges.
Aaron Matthew Mosley, 40, pleaded guilty in February 2022 to two counts of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, on August 12, 2021, a Virginia State Trooper discovered Mosley slumped over in the driver’s seat of his pickup truck on the side of the road with the engine running. In the course of conducting a well-being check, the trooper observed marijuana in the center console and a 9mm pistol within arm’s reach of Mosley.
A K-9 unit was called to the scene and subsequently alerted to the side of his truck bed where a .223 rifle, brass knuckles, a magnetic case with various pills and controlled substances, digital scales, $660 in U.S. currency, and approximately 23 grams of 99% pure methamphetamine were recovered.
A check of Mosley’s records showed he had been recently arrested in Lee County for possession of approximately 15 grams of 99% pure methamphetamine but was released on bond while wearing an electronic monitoring bracelet. In addition, court documents revealed that cooperating informants had made several purchases of methamphetamine from Mosley in the months preceding his initial arrest.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia, Charlie J. Patterson, Special Agent in Charge of ATF’s Washington Field Division, and Colonel Gary T. Settle, Superintendent of the Virginia State Police made the announcement today.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police, and the Lee County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Daniel J. Murphy prosecuted the case.
Lawrence Man Pleads Guilty to Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man has pleaded guilty in federal court in Boston to fentanyl trafficking.
Saury Rodriguez-Ruiz, 33, pleaded guilty on May 26, 2022 to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one count of distribution and possession with intent to distribute 400 grams or more of fentanyl. U.S. District Court Chief Judge F. Denis Saylor IV scheduled sentencing for Sept. 9, 2022. Rodriguez-Ruiz was indicted along with his co-conspirator, Danybelkis Vasquez-Rodrigue, in January 2021. Vasquez-Rodrigue has pleaded not guilty and is awaiting trial.
In November 2020, law enforcement began an investigation into Rodriguez-Ruiz, who had been identified as a Lawrence-based drug supplier. On Nov. 24, 2020, Rodriguez-Ruiz distributed nearly one kilogram of fentanyl to a cooperating witness. In exchange for the fentanyl, the cooperating witness made two payments to Rodriguez-Ruiz’s associates in December 2020. The first payment of $10,000 was to an associate of Rodriguez-Ruiz and the second payment of $32,000 was allegedly to Rodriguez-Ruiz’salleged co-conspirator, Vasquez-Rodrigue.
The charges of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl and distribution of and possession with intent to distribute 400 grams or more of fentanyl each carry a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement. The case was investigated by the FBI’s Strike Force including the Norfolk County Sherriff’s Office. Assistant U.S. Attorney Alathea Porter of Rollin’s Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lackawanna County Man Indicted for Firearms and Drug Trafficking OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Yasin Abdul-Mattin, age 50, of Scranton, Pennsylvania, was indicted by a federal grand jury for firearms and drug trafficking offenses.
According to United States Attorney John C. Gurganus, the indictment alleges that on January 20, 2022, in Lackawanna County, Abdul-Mattin possessed a loaded 12-gauge shotgun and ammunition and also possessed methamphetamine for further distribution. It is also alleged that Abdul-Mattin is a previously convicted felon and is prohibited from possessing firearms or ammunition.
The charges against the defendant resulted from an investigation conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF) and the Scranton Police Department. Assistant United States Attorney Robert J. O’Hara and Special Assistant United States Attorney Brian Gallagher are prosecuting 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.
Under federal law, for the firearms charge, Abdul-Mattin faces a maximum sentence of ten years, a term of supervised release and a fine. For the drug charges, Abdul-Mattin faces a maximum sentence of twenty years, a term of supervised release 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.
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Justice Department Sues to Shut Down Texas Return PreparersRead the Press Release
The United States filed a civil injunction suit to permanently bar Jason Elias Briley; Roxann Ladawn Johnson fka Roxann Ladawn Ellis; Alexander McKenzie; Courtney Jones; Derek Brooks; Deanna McKenzie; Erbia Lewis; Patrick McKenzie and JRC Elite Tax Solutions LLC dba Elite Tax Solutions from preparing federal income tax returns for others. The complaint also requests that the court require the defendants to disgorge the fees they obtained by preparing false and fraudulent tax returns.
The complaint, filed in the U.S. District Court for the Eastern District of Texas, alleges that these tax return preparers prepared more than 1,300 returns in 2021 and over 3,100 returns in 2022. According to the complaint, Briley and the others prepared returns that falsely claimed over $53 million in credits and refunds intended to provide COVID-19 related relief for self-employed individuals.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a checklist of things to remember when filing income tax returns in 2022.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $73,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Secures Settlement with McDonald’s Franchisee to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it has reached a settlement agreement with Sutherland Management Company d/b/a McDonald’s, a California-based franchisee operating four McDonald’s locations in the San Diego area. The settlement resolves claims that the company discriminated against non-U.S. citizens when checking their permission to work in the United States.
“Under federal law, employers may not discriminate by asking workers for more documents than necessary, or specific documents, to prove their permission to work because of their citizenship status, immigration status or national origin,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “Employees have the right — U.S. citizens and non-U.S. citizens alike — to choose which valid, acceptable documentation they wish to present to prove their permission to work. The Civil Rights Division will continue to fight unlawful workplace discrimination on the basis of citizenship, immigration status and national origin. We look forward to working with Sutherland Management Company to secure compliance with this settlement and applicable federal law.”
The department’s investigation began after a non-U.S. citizen complained that Sutherland Management Company refused to accept his valid documentation proving his permission to work and demanded a different document from him. The department’s investigation revealed that the company routinely discriminated against non-U.S. citizens, primarily lawful permanent residents, by asking them to present specific, Department of Homeland Security-issued documents to prove their permission to work in the United States. The investigation also revealed that Sutherland Management Company refused to allow the worker who complained to begin working until he presented the unnecessary documentation. Under federal law, all employees have the right to choose which valid documentation they wish to present when demonstrating that they have permission to work in the United States.
The Immigration and Nationality Act’s (INA) anti-discrimination provision prohibits employers from asking for more documents than necessary — or specifying the type of documentation a worker should present — to prove their permission to work, because of a worker’s citizenship, immigration status or national origin.
Under the settlement, Sutherland Management Company will pay $40,000 in civil penalties to the United States, pay backpay for lost wages to the worker who complained, review and revise their employment policies to comply with the anti-discrimination provision of the INA, and train its employees who are responsible for verifying workers’ permission to work in the United States.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid citizenship status discrimination on IER’s website. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.
Jamaican National Charged with Illegal Re-Entry by an Aggravated FelonRead the Press Release
ST. THOMAS, USVI – United States Attorney Delia L. Smith announced today that Veron Venita Goulbourne, 60, a Jamaican national, has been charged with being present in the United States after removal and conviction for an aggravated felony. If convicted, Goulbourne faces a maximum penalty of 20 years in prison.
According to court documents, Goulbourne was previously removed from the United States in March 2000, after she was convicted of an aggravated felony. Court documents further show that on April 24, 2022, Goulbourne was a ticketed passenger on a flight from St. Thomas to Miami, FL. When Goulbourne presented herself at the U.S. Customs and Border Protection primary inspection point at Cyril E. King Airport, officers determined that she had no legal status in the United States having been previously removed.
Homeland Security Investigations is investigating, and Assistant U.S. Attorney Adam Sleeper is prosecuting the case. United States Attorney Smith reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Hagerstown residents admit to their roles in a firearms conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Hagerstown, Maryland residents have admitted to working together to illegally purchase firearms in Berkeley County, United States Attorney William Ihlenfeld announced.
Dwayne Anthony Battle, 37, pleaded guilty today to one count of “Conspiracy to Violate Gun Control Act.” Battle admitted to working with Antoinette Pauleen McKenzie, 33, to illegally purchase firearms in Berkeley County and transfer those firearms to an out-of-state resident, violating the Gun Control Act. The conspiracy took place in August and September 2021.
McKenzie pleaded guilty to one count of “False Statement During Purchase of Firearm.” McKenzie admitted to lying to the licensed gun dealer, saying she was the true purchaser of the firearm, when the 9mm pistol was meant for someone else in August 2021 in Berkeley County.
Battle and McKenzie are each facing up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Eleanor F. Hurney is prosecuting the case on behalf of the government. The ATF investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Four Individuals Plead Guilty to Participating in Methamphetamine Distribution ConspiracyRead the Press Release
CONCORD – Heather Dubeau, 38, of Enfield, Andrew Hutchins, 43, Lebanon, Eli Margolis, 40, of Grantham, and Gary Sewell, 40, of Enfield have pleaded guilty this month in federal court to conspiracy to distribute, and possess with intent to distribute, methamphetamine, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, the defendants were involved in a conspiracy to ship methamphetamine from Arizona to New Hampshire. In May of 2019, Drug Enforcement Administration agents were alerted to suspicious parcels sent from Sewell and Dubeau in Arizona to two different addresses in New Hampshire. Investigators obtained a warrant to open the packages and found that one contained over 336 grams of methamphetamine and the other contained over 665 grams of methamphetamine.
After obtaining an anticipatory search warrant for the New Hampshire addresses, investigators conducted controlled deliveries of each package with the drugs removed from the package. Investigators observed Margolis collect one package after it was delivered. Investigators learned that Hutchins provided co-defendants Sewell and Dubeau with an address to ship the methamphetamine. The methamphetamine was intended for further distribution.
Dubeau pleaded guilty on May 4, 2022, and is scheduled to be sentenced on October 20, 2022. Hutchins pleaded guilty on May 5, 2022, and is scheduled to be sentenced on August 30, 2022. Margolis pleaded guilty on May 27, 2022, and is scheduled to be sentenced on November 17, 2022. Sewell pleaded guilty on May 6, 2022, and is scheduled to be sentenced on October 24, 2022.
Two other co-defendants previously pleaded guilty. Dylan Miles pleaded guilty on February 15, 2022, and is scheduled to be sentenced on November 3, 2022. Chad Rombow pleaded guilty on January 26, 2022, and is scheduled to be sentenced on October 25, 2022.
This matter was investigated by the United States Postal Inspection Service and Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Four Individuals Indicted for Money Laundering ConspiracyRead the Press Release
CONCORD –Sunna Sepetu, 35, of Nashua, Nafis Quaye, 45, most recently of Shrewsbury, Massachusetts, Stella Osabutey, 36, of Worcester, Massachusetts and Samuel Ansah, 31, whose whereabouts are currently unknown, were indicted by a federal grand jury and charged with participating in a conspiracy to commit money laundering, United States Attorney Jane E. Young announced today. Ansah was also charged with five counts of wire fraud in the indictment.
Quaye and Sepetu were arraigned on Wednesday, May 25, 2022, and were released on personal recognizance. Osabutey waived arraignment and Ansah remains at large. Anyone with information about Ansah’s whereabouts is asked to contact their nearest Homeland Security Investigations field office or U.S. Embassy or consulate.
The indictment, which was unsealed on May 25, 2002, alleges that Ansah, and other unknown individuals, assumed false identities which were then used to establish relationships online with two victims. Through deceptive and false pretenses over many years, Ansah directed the victims to transfer large sums of United States currency to companies controlled by the other defendants who then conducted additional financial transactions designed to conceal the nature, location, source, ownership, and control of the proceeds. According to statements made in court, the victims in this case were victims of elder fraud.
The charges in the indictment are only allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by Homeland Security Investigations. The case is part of the Department of Justice’s Elder Justice Initiative, which supports and coordinates the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
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Former X-Ray Technologist Pleads Guilty to Distributing Child Sexual Abuse Videos over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that George Thomas Griffiths, Jr. (42, Ponte Vedra Beach) has pleaded guilty to distributing videos depicting young children being sexually abused. He faces a mandatory minimum penalty of 5 years, and up to, 20 years in federal prison, and a potential life term of supervised release. A sentencing date has not yet been set.
According to court documents, an FBI task force officer began an undercover online investigation using a particular social media application (app) to identify individuals attempting to sexually exploit children using the internet. From February 3, 2020, through February 20, 2020, an individual user named “ban_me_again,” who was subsequently identified as Griffiths, uploaded to a chat room on the app several videos that featured children, including an infant child, being sexually abused. Meanwhile, the St. Johns County Sheriff’s Office (SJSO) received information from the National Center for Missing and Exploited Children (NCMEC) that the same app had reported that this same user had uploaded videos depicting child sexual abuse materials during this same time period. Further investigation revealed that Griffiths had distributed these contraband videos over the internet from his residence in Ponte Vedra Beach and from his place of employment. At that time, Griffiths worked at a health care facility in Jacksonville as an x-ray technologist.
On November 19, 2020, SJSO detectives and agents from Homeland Security Investigations executed a search warrant at Griffiths’ residence and seized an Apple iPhone used by Griffiths. During an interview with law enforcement, Griffiths stated that he used the particular app to talk to people over the internet. He also stated that it was “possible” that he exchanged pictures and videos on the app, and that these materials “possibly” included “bestiality” involving both adults and children. When asked how many times he had distributed child sexual abuse materials, Griffiths first responded, “I don’t know” and then clarified, “more than one or two.”
Subsequent examination of Griffiths’ iPhone revealed that it contained at least 2,000 images and at least 10 videos depicting children being sexually abused, including infants and toddler-aged children.
This case was investigated by the St. Johns County Sheriff’s Office, the Federal Bureau of Investigation, and Homeland Security Investigations, with the assistance of the National Center for Missing and Exploited Children. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Vermont Man Pleads Guilty to Attempted Escape from CustodyRead the Press Release
CONCORD - Jaimour Anderson, 36, formerly of Vermont, pleaded guilty in federal court to one count of attempted escape from custody, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, Anderson was sentenced to 139 months on drug charges in November 2012 in the District of Vermont. On or about November 16, 2021, the Bureau of Prisons (BOP) transferred Anderson from a correctional facility in Louisiana to a half-way house located in Manchester, New Hampshire to start his pre-release programming in advance of his then-projected release date of May 9, 2022.
Following some infractions at the half-way house, the BOP decided to bring Anderson back into custody. On December 31, 2021, a deputy U.S. Marshal and two sheriffs arrived at the half-way house to take custody of Anderson. As Anderson came into the front desk area on the first floor, he proceeded to move quickly past the deputy marshal and out the front door. Anderson made it onto the street where he was then restrained by the deputy marshal and taken into custody.
Anderson is scheduled to be sentenced on September 18, 2022.
This matter was investigated by the United States Marshals Office. The case is being prosecuted by Assistant U.S. Attorney Charles Rombeau.
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Former Operations Manager Pleads Guilty to Embezzling $2.6 Million+ from Italian Shipping CompanyRead the Press Release
A Euless woman pleaded guilty on Friday to embezzling more than $2.6 million from her former employer, an international global logistics and freight forwarding company, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Vika Latai Moa, 36, was charged via felony information on March 17 and pleaded guilty to wire fraud before U.S. Magistrate Judge Irma Ramirez on March 27.
In court documents, Ms. Moa admitted that between June 2016 and October 2019, she was employed as an operations manager at Savino Del Bene USA, Inc. (Savino USA) in the Dallas area.
Savino USA, headquartered in New Jersey, is the American subsidiary of Savino Del Bene S.p.A., a global logistics and freight forwarding company based in Florence, Italy. Among other things, Savino USA provides transportation services to its customers in the United States by subcontracting local deliveries to third-party trucking companies.
In her role at Savino USA, Ms. Moa was responsible for selecting and paying these local subcontractors.
Between June 2016, and October 2019, Ms. Moa falsely represented to Savino USA employees that invoices for trucking services were owed, which caused Savino USA to pay more than $2.6 million to a bank account to which she had access.
For instance, as part of her scheme to misappropriate funds from Savino USA, Ms. Moa misrepresented to Savino USA employees that a fictitious business was an actual transportation company. She created fraudulent invoices for trucking services that the fictitious business purportedly provided to Savino USA.
Ms. Moa then directed Savino USA to pay the fictitious business based on these false invoices, knowing full well that the company did not perform any services for Savino USA, as it was not a real business and did not have any operations
Ms. Moa faces up to 20 years in federal prison. As part of the plea agreement, she also agreed to pay restitution in the amount of $2,623,888.44. Her sentencing is scheduled for September 22 before U.S. District Court Judge Karen Gren Scholer.
The Federal Bureau of Investigation’s Dallas Field office conducted the investigation. Assistant U.S. Attorney Fabio Leonardi is prosecuting the case.