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26 May 2022
District of Columbia Fire/EMS Employee Pleads Guilty to Bribery in Scheme Involving Undelivered GoodsRead the Press Release
WASHINGTON—Louis “Joey” Mitchell, a former employee of the District of Columbia Fire and Emergency Medical Services Department (FEMS), pleaded guilty today to a federal bribery charge for accepting more than $60,000 in payments from a District of Columbia contractor in exchange for directing purchase agreements and orders to the contractor and then falsely certifying that goods that FEMS had paid for had been delivered.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, and Daniel W. Lucas, Inspector General for the District of Columbia.
Mitchell, of Capitol Heights, Maryland, pleaded guilty in the U.S. District Court for the District of Columbia. He is to be sentenced on Sept. 16, 2022, by the Honorable Amit P. Mehta. As part of the plea agreement, Mitchell will be required to pay a $61,250 forfeiture money judgment.
Mitchell was a warehouse supply technician at FEMS. In that role, he was responsible for verifying deliveries of goods to the warehouse before the agency would issue payments to the relevant vendors. According to the plea documents, beginning in at least 2016 and continuing through in or about 2020, Mitchell and a FEMS contract administrator engaged in a bribery scheme with a contractor whose company was an approved vendor for supplies.
According to the documents, Mitchell and the contract administrator solicited and received bribes from the contractor on at least seven occasions. In exchange, they directed purchase agreements and purchase orders to the company and confirmed delivery of and payment for goods that the company did not deliver.
As a result of the bribery scheme, FEMS paid the company more than $150,000 for goods that never were delivered. Mitchell personally received at least $61,250 in bribes from the contractor.
Law enforcement opened an investigation into the conduct after FEMS officials discovered billing anomalies and referred the matter to the District of Columbia Office of the Inspector General and the FBI for investigation. Mitchell was arrested on Feb. 10, 2022.
This case is being investigated by FBI’s Washington Field Office and D.C. Office of Inspector General. The case is being prosecuted by the Assistant U.S. Attorneys Molly Gaston and Amanda Vaughn of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
District Man Pleads Guilty to Bias-Related Attack of Family in Northwest WashingtonRead the Press Release
WASHINGTON – A District of Columbia man pleaded guilty today to three counts of simple assault, including one with a hate-bias enhancement, for punching and pushing three adults of Chinese descent as they walked on a street in Northwest Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Patrick Trebat, 39, of Washington, D.C., pleaded guilty in the Superior Court of the District of Columbia. He was sentenced by the Honorable Michael O’Keefe to a total of 630 days in jail, with all but 210 days suspended, on the condition that he successfully complete three years of supervised probation.
But for the victims appearing to be from another country, and speaking a language unknown to Trebat, this attack would not have occurred. According to the government’s evidence, the attack took place at about 9:30 p.m. on Aug. 7, 2021. The victims – a man, woman, and their adult son – were walking near the intersection of Wisconsin Avenue NW and Fulton Street NW, speaking in a Chinese dialect. Trebat began shouting profanities. As the victims arrived in the 3700 block of Fulton Street NW, they attempted to cross the street to get away from Trebat. He shouted at them, saying, among other things, “You are not American,” and “Go back to your country.”
Trebat then ran up and attacked the older man from behind, punching him in the back of the head and then pushing him with enough force to cause him to fall to the ground. Trebat then pushed the woman to the ground from behind. The couple’s son attempted to stop the attack, and Trebat punched him in the face.
Officers with the Metropolitan Police Department responded to the scene and all three victims identified Trebat as their attacker. He was arrested.
As a result of the attack, the older man experienced pain in the back of his head and suffered a broken wrist. The woman experienced pain in her arm and had to undergo medical evaluation. Their son suffered a fractured finger. All also sustained cuts and bruises.
In announcing the plea, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Victim /Witness Advocate Christina Bloodworth.
Finally, they commended the work of Assistant U.S. Attorneys Robert K. Platt and Caroline P. Coates, who investigated and prosecuted the case.
Prosecuting bias-related crimes is critical to keeping our community safe. When one member of a group in the community is the victim of a bias-related crime, all members carry with them a fear that they, too, may be targeted because of who they are. The U.S. Attorney’s Office for the District of Columbia (USAO-DC) is committed to enforcing both federal and local hate and bias-related crime laws.
For more information:https://www.justice.gov/usao-dc/hatebias-related-crimes
Detroit Man Pleads Guilty to Fentanyl CrimeRead the Press Release
BECKLEY, W.Va. – A Detroit man pleaded guilty today to distribution of fentanyl.
According to court documents and statements made in court, Eddie E. Kellom, also known as “Ace,” 23, admitted to selling a quantity of fentanyl to a confidential informant near Coal City, Raleigh County, on May 21, 2021. Kellom also admitted to selling fentanyl on three other occasions. Each of these transactions also occurred in Raleigh County.
Kellom further admitted to possessing approximately 250 grams of fentanyl recovered during a January 11, 2022, traffic stop by law enforcement officers near Putnam County. Kellom admitted that he intended to distribute the fentanyl in and around the Southern District of West Virginia.
Kellom is scheduled to be sentenced on September 9, 2022, and faces up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million.
United States Attorney Will Thompson made the announcement and commended the Federal Bureau of Investigation (FBI), the Beckley/Raleigh County Drug and Violent Crime Unit (BRCDVCU), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for conducting the investigation.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Timothy D. Boggess is prosecuting the case.
The case is a result of a months-long investigation dubbed “Operation Wolverine Carousel,” an investigation into the wide-spread distribution of heroin and fentanyl in Raleigh and Fayette Counties.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-31.
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Detroit Man Pleads Guilty to Federal Methamphetamine CrimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man pleaded guilty today to possession with intent to distribute 50 grams or more of methamphetamine.
According to court documents and statements made in court, Devonte Jamer McItyer, 27, admitted to selling approximately 1 ounce of methamphetamine to a confidential informant in Huntington on October 2, 2019. Following the sale, a Cabell County sheriff’s deputy pulled over a vehicle in which McItyer was a passenger. The deputy found approximately 142 grams of methamphetamine under McItyer’s seat. McItyer admitted to placing the drugs there for later distribution. McItyer further admitted to possessing a loaded Smith & Wesson .40-caliber pistol that the deputy also found in the vehicle.
McItyer is scheduled to be sentenced on September 6, 2022, and faces a mandatory minimum of five years and up to 40 years in prison, as well as up to four years of supervised release and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Southern West Virginia TOC-West Task Force, and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-243.
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DeMasi-Lemon named to national forfeiture committeesRead the Press Release
WHEELING, WEST VIRGINIA – United States Attorney William Ihlenfeld announced today that Danae DeMasi-Lemon has been selected to aid in the development of asset forfeiture policies for federal prosecutors from throughout the country.
DeMasi-Lemon, an Assistant United States Attorney since 2015, has been named to two national asset forfeiture working groups that will develop best practices, review legislative proposals, and mentor new prosecutors.
“Danae is an expert in the field of asset forfeiture, and she has been helping to recover property for crime victims in West Virginia for many years,” said U.S. Attorney Ihlenfeld. “Her expertise was recognized by Department of Justice officials in Washington D.C. and led to her being invited to be a part of these prestigious groups.”
As part of the Asset Forfeiture Working Group, DeMasi-Lemon joins a team that provides guidance to the Department of Justice’s Money Laundering and Asset Recovery Section and the Executive Office for United States Attorneys. Group members aid in the development of new policies and the review of legislative changes, as well as provide instruction for young prosecutors.
With the Firearms Working Group, DeMasi-Lemon will help federal, state, and local agencies develop policies to aid in the forfeiture of firearms involved in federal crimes.
DeMasi-Lemon will continue to work in her home district where she serves as the Asset Forfeiture Coordinator, the Financial Crimes Review Team Coordinator, and represents the United States Attorney’s Office in the district’s Drug Court Program.
Darknet Vendor of Fentanyl-Laced Pills Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – A Tampa, Florida, man pleaded guilty today to distributing fentanyl on the darknet.
According to court documents, from August 2021 to February 2022, Akshay Ram Kancharla, 26, ran the darknet moniker OnlyTheFinest on darknet marketsToRRez and Dark0de Reborn. He advertised and sold nationwide pressed Oxycodone containing fentanyl, pressed Xanax, pressed Adderall, and THC resin. On ToRRez market, Kancharla sold over $73,096 in controlled substances and completed over 264 transactions by December 21, 2021, which included sales of 7,375 pressed Oxycodone pills. On Dark0de Reborn, which Kancharla joined after ToRRez market went down, he sold over $39,793 in controlled substances, which included rated orders for 3,975 pressed Oxycodone pills sold.
The darknet, also called TOR network or darkweb, is a portion of the Internet that hosts darkmarkets, or hidden commercial websites. A darkmarket operates as a black market, selling or brokering transactions involving legal products as well as drugs, weapons, counterfeit currency, stolen credit card details, forged documents, unlicensed pharmaceuticals, steroids, and other illicit goods.
Between October 2021 and February 2022, law enforcement made controlled purchases from OnlyTheFinest, which included 710 pressed Oxycodone pills containing fentanyl shipped to the Eastern District of Virginia. On February 17, 2022, a search warrant was executed at the defendant’s residence. Therein, agents found marijuana as well as a large quantity of pressed Oxycodone pills weighing approximately 2.38 kilograms resembling those obtained through controlled purchases that tested positive for fentanyl and pressed Xanax bars weighing approximately 437.5 grams. Law enforcement also seized $30,140 in U.S. currency and agents observed the defendant’s cryptocurrency Ethereum wallet on his laptop that contain approximately 2.444 in Bitcoin.
Kancharla is scheduled to be sentenced on August 4. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office, made the announcement after U.S. District Judge Michael S. Nachmanoff accepted the plea.
Assistant U.S. Attorney Bibeane Metsch is prosecuting the case.
This investigation was conducted by the FBI Washington Field Office’s Hi-Tech Opioid Task Force, which is composed of FBI agents and task force partners, including special agents and officers of the Food and Drug Administration’s Office of Criminal Investigations, DEA, U.S. Postal Inspection Service, and detectives from local assisting police agencies. The task force is charged with identifying and investigating the most egregious Dark Web marketplaces, and the vendors operating on the marketplaces who are engaged in the illegal acquisition and distribution of controlled substances, to include fentanyl, methamphetamine, and other opioids.
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-75.
Cruise Ship Employee from South Florida Charged with Sexually Exploiting Minor He Met on Alaskan VoyageRead the Press Release
Miami, Florida – Federal prosecutors in Fort Pierce, Florida have charged a 38-year-old cruise ship employee from Stuart, Florida with enticing an underage girl he met on the ship into having sex with him and with producing child pornography by recording their sexual interactions.
According to the allegations of the criminal complaint affidavit, Daniel Scott Crow met the victim while he was working aboard a cruise ship. The victim, a 16-year-old girl at the time, was a passenger on the ship, vacationing with her family. After the cruise, Crow remained in contact with the victim and used a messaging application to solicit lewd photographs from her, says the affidavit. It is also alleged that Crow arranged to and later met the victim (who was still under 18) at a hotel, where he engaged in sexual activity with her while recording it. Crow stored the conversations and videos involving the victim on his cellular telephone, according to the charging documents.
Yesterday, Crow made his initial appearance in federal court in Fort Pierce before U.S. Magistrate Judge Shaniek A. Maynard. A detention hearing is scheduled before Judge Maynard for 10:00 a.m. on May 27. If convicted, Crow faces up to life in prison.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, announced the charges.
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 U.S. 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.
If you have information regarding this case, or you believe you or a family member may have been a victim, please contact the HSI tip line at 1-866-347-2423.
HSI Miami’s Fort Pierce office investigated the case. Assistant United States Attorney Christopher Hudock is prosecuting it.
A criminal complaint is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-mj-00048.
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Covington Woman Sentenced for Theft of Social Security FundsRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that HAYDEE ARMAS SANTANA (“SANTANA”), age 58, of Covington, Louisiana, was sentenced today for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to documents filed in federal court, beginning in 2015, SANTANA filed for, and became eligible for, Social Security Supplemental Security Income (“SSI”) disability payments. SANTANA’s SSI application concealed an Iberia Bank account and her ownership in at least two additional pieces of real property, including one located in Miramar Beach, FL. In total, SANTANA fraudulently obtained over $31,000.00 in Social Security Administration SSI disability benefits.
U.S. District Judge Barry W. Ashe sentenced SANTANA to 5 years probation, Home Detention for 6 months, $31,060.61 in Restitution, and a $100.00 mandatory special assessment fee.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of Inspector General and the Louisiana State Police. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Convicted Felon Who Brandished Glock Pistol on Instagram Video Pleads Guilty to Possessing FirearmRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Devontae D. Hunter (25, Tampa) has pleaded guilty to possessing a firearm as a convicted felon. Hunter faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, Hunter brandished a Glock pistol in a video he had uploaded to his Instagram account on September 11, 2021. Two days later, during a traffic stop, Hunter fled from law enforcement officers on foot and dropped the same Glock pistol he had displayed in the Instagram video, which was configured with an extended magazine and loaded with 20 rounds of ammunition. Hunter had previously been convicted of several felony offenses, including a conviction for possession of a firearm as a convicted felon, robbery, and aggravated battery on a law enforcement officer, and is therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Tampa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys David W.A. Chee and Callan Albritton.
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.
Church Finance Manager Sentenced to 4+ Years for Embezzling $261,000Read the Press Release
A Christ the King finance manager who embezzled more than a quarter of a million dollars from the church was sentenced today to more than four years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Former Christ the King Cathedral Church Lubbock employee Nathan Allen Webb, 43, pleaded guilty in February to wire fraud. He was sentenced Thursday to 51 months in federal prison by U.S. District Judge James Wesley Hendrix, who ordered him to pay $261,440.20 in restitution.
According to plea papers, Mr. Webb – the only church employee with access to the church’s PayPal and Venmo accounts – admitted he transferred $261,440.20 in parishioner donations from the church to himself using those platforms. Over the course of 18 months, he made more than 230 unauthorized transfers. He then altered church bank statements to make PayPal and Venmo debits appear as credits, thus concealing his criminal activity from the church finance committee and diocese.
On February 23, 2021, Mr. Webb traveled to Colombia, South America, taking a church laptop with him. While in Colombia, on March 2, he transferred $2,914.07 from the Church’s PayPal account to his personal PayPal account and then to his bank account. The church discovered his fraud and confronted him the following day.
At his sentencing hearing, prosecutors told the judge that following the confrontation, Mr. Webb remained in Colombia, eventually overstaying his visa. The Colombian government ordered him to leave the country, so he purchased a ticket from Cartagena to Fort Lauderdale, where he knew FBI agents would be waiting for him. Instead of boarding the flight, however, he traveled more than 500 miles inland to Pereira. Colombian officials there located and detained him; they continued to hold him based upon an Interpol Red Notice until the U.S. government negotiated his release and returned him to Texas.
Given Mr. Webb’s calculated plot to evade law enforcement, the judge agreed an obstruction of justice enhancement was appropriate.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with substantial assistance from FBI agents stationed in Colombia. Assistant U.S. Attorney Ann Howey prosecuted the case.
Chesterfield Man Pleads Guilty to $1.3 Million Tax FraudRead the Press Release
RICHMOND, Va. – A Chesterfield man pleaded guilty today to failing to pay over to the Internal Revenue Service (IRS) payroll taxes that were deducted from his employees’ paychecks.
According to court documents, from at least 2014 to 2018, David Corey Warren, 47, failed to pay over to the IRS payroll taxes from three different companies owned by his family. Warren served as the Director of Operations for Transitional Adult Residential Center, Transitional Home Care, and Elkridge Gathering Center, companies providing group homes, home care nurses, and daycare center services for mentally disabled adults in Chesterfield and Richmond. As Director of Operations, Warren was responsible for withholding the required Medicare, Social Security, and federal income taxes from his employees’ wages, and paying that amount over to the IRS. Warren also had an obligation to file Form 941s, the Employer’s Quarterly Federal Tax Return, but failed to file accurate returns with respect to each of those businesses.
Warren used a third-party payroll company for various payroll services, including the preparation of Forms 941. Despite receiving accurate Forms 941 from the payroll company, Warren consistently evaded his responsibilities to the IRS by deliberately and significantly underreporting the true value of the employment taxes due by filing Forms 941s that were different than those prepared by the payroll company, not paying over any employment taxes in some quarters, paying over only some of the employment taxes due in some quarters, or failing to report the employment taxes via Form 941 altogether in other quarters.
Over the course of four years, Warren failed to pay over $1.3 million in taxes to the IRS.
Rather than paying the amounts his businesses owed to the IRS, Warren used those withheld monies to fund his and his family’s personal living expenses, which included travel to the Caribbean, golf club memberships, private basketball lessons, luxury clothing, and accessories.
Warren is scheduled to be sentenced on October 13. He faces a maximum penalty of 5 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Darrell J. Waldon, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Carla Jordan-Detamore and Thomas A. Garnett are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-059.
Charlottesville Methamphetamine Traffickers Plead GuiltyRead the Press Release
CHARLOTTESVILLE, Va. – Four drug traffickers pled guilty recently to conspiring to distribute more than 500 grams of methamphetamine throughout the Charlottesville area.
Santo Hidalgo Siguenza, a.k.a. “Chila,” 40, from El Salvador, Francisco Rocha Uribe, 31, from Mexico, Rafael Vasquez Navarette, 26, from El Salvador, and Luis Guillermo Melendez-Henrique, 31, from El Salvador, all pled guilty to their roles in a drug conspiracy to possess and distribute 500 grams or more of methamphetamine. In addition to the drug charge, Siguenza also pled guilty to possession of a firearm in furtherance of a drug trafficking crime.
On September 19, 2020, members of the Jefferson Area Drug Enforcement Task Force (JADE) executed a search warrant at a residence on Chapel Hill Road in Charlottesville and encountered Siguenza in the middle of a drug deal along with a .38 caliber revolver, over a kilogram of virtually pure methamphetamine, and $6,000 in cash. Lab analysis of the methamphetamine found it to be over 98% in purity. While law enforcement was searching the residence, Melendez-Henrique and Navarette arrived in a vehicle which was then searched and found to contain additional methamphetamine. Melendez-Henrique admitted to police that he had picked up a kilogram of methamphetamine from their source in Atlanta, Georgia and brought it back to the Chapel Hill Road residence for redistribution.
At sentencing, Siguenza, Uribe, and Melendez-Henrique face a mandatory minimum of 10 years and up to a maximum of life in prison for the drug charges, including a maximum fine of up to $10,000,000, while co-conspirator Navarette faces up to 20 years in prison and up to a $1,000,000 fine.
United States Attorney Christopher R. Kavanaugh made the announcement.
The Jefferson Area Drug Enforcement Task Force, the Albemarle County Police Department, the Drug Enforcement Administration, the Waynesboro Police Department, Homeland Security Investigations, the Virginia State Police, and the Skyline Drug Trask Force investigated the case.
Assistant U.S. Attorneys Ronald M. Huber and Heather L. Carlton are prosecuting the case.
Cedar Rapids Drug Dealer Sentenced to Federal PrisonRead the Press Release
A Cedar Rapids drug dealer with 59 prior adult convictions was sentenced May 24, 2022, to more than 13 years in federal prison.
Kyle Anthony Doolin, age 61, from Cedar Rapids, Iowa, received the prison term after a March 26, 2021 guilty plea to one count of possession with intent to distribute a controlled substance near a protected location after having previously been convicted of a felony drug offense.
Information disclosed at sentencing showed that, on July 24, 2020, officers with the Cedar Rapids Police Department attempted to conduct a traffic stop on Doolin’s vehicle. As an officer attempted to initiate the traffic stop, Doolin drove away and a car chase ensued. Doolin turned into a driveway of a house, struck a wooden fence, and then fled on foot. After a short foot pursuit, Doolin was taken into custody with the assistance of a trained law enforcement K9. In the immediate area around where Doolin was taken into custody, law enforcement recovered several baggies containing a total of over 26 grams of ice methamphetamine. Officers also recovered methamphetamine and heroin from Doolin’s person. Prior to July 24, 2020, Doolin had previously been convicted 59 times, including a prior federal conviction for a drug-related offense.
Doolin was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Doolin was sentenced to 157 months’ imprisonment. He must also serve an eight-year term of supervised release after the prison term. There is no parole in the federal system.
Doolin is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Cedar Rapids Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-00088.
Follow us on Twitter @USAO_NDIA.
California resident charged in human smuggling schemeRead the Press Release
Seattle – A 48-year-old Elk Grove, California man was arrested May 24, 2022, in Lacey, Washington, and was charged by criminal complaint with running a human smuggling scheme over the northern border with Canada and into Washington State, announced U.S. Attorney Nick Brown. Rajinder Pal Singh, aka Jaspal Gill, has been detained since his arrest at the Federal Detention Center at SeaTac.
According to the criminal complaint in the case, Singh and his coconspirators used the ride share app Uber to transport people who had illegally crossed the border to the Seattle area. Those records detail how trips beginning near the border in the early hours of the morning, would be split between different rides. For example, one Uber trip would be from the border to Sea-Tac airport, and then minutes later the second Uber trip would be from a nearby airport hotel to an address in Lacey, Washington, owned by Singh’s spouse. The Lacey house served as a way station for those entering the U.S. illegally. In some instances, Singh arranged for rental cars to drive those who entered the U.S. illegally to destinations in the mid-west. More recently Singh purchased airline tickets so that his smuggling customers could be flown to other parts of the country.
The smuggling scheme has been underway since at least 2018. It slowed during the pandemic when Canada was not admitting non-citizens. However as pandemic restrictions were lifted, the smuggling scheme became active again. In all, the investigation estimates that between July 2018, and April 2022, the 17 Uber accounts tied to this smuggling ring ran up more than $75,000 in charges. The Uber accounts were loaded onto pre-paid telephones to further hide who was running the scheme.
According to the complaint, Singh charged as much as $11,500 per person for his part of the smuggling services. Surveillance video captured Singh purchasing large numbers of Uber gift cards in northern California. Some of the gift cards were later used in connection with Uber trips that originated near the Canadian border.
In addition to the arrest in Lacey, law enforcement searched Singh’s Elk Grove, California, home. They found about $30,000 in cash as well as counterfeit identity documents.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Conspiracy to transport and harbor illegal aliens for profit is punishable by up to ten years in prison and a $250,000 fine.
The investigation is being led by Homeland Security Investigations.
The case is being prosecuted by Assistant United States Attorney Joe Silvio.
gill_complaint.pdfCalifornia Real Estate Developer Faces Federal Charges for Using Stolen Identities to Obtain COVID-Relief Program FundsRead the Press Release
PORTLAND, Ore.—A federal indictment was unsealed today charging a California real estate developer with using stolen identities to fraudulently obtain more than $1.5 million in loans intended to help small businesses during the COVID-19 pandemic.
Alfred E. Nevis, 52, of Arroyo Grande, California has been charged with wire fraud, aggravated identity theft, and money laundering.
According to court documents, from April 1, 2020, through at least August 6, 2020, Nevis is alleged to have used the identities of multiple individuals known to him—including current and former employees, business associates, and their spouses—to illegally obtain Economic Injury Disaster Loans (EIDLs) administered by the Small Business Administration (SBA). The EIDL program was one of several economic relief programs originally authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES). It enabled SBA to issue low-interest loans to small businesses adversely impacted by the pandemic and associated mitigation measures.
To facilitate his scheme, Nevis used the stolen identities to register straw corporations, obtain Employer Identification Numbers (EINs) from the IRS, and submit loan applications to SBA on behalf of the newly-registered corporations. In one instance, Nevis claimed a straw corporation called Isley Farms, registered in Oregon, had 12 employees and generated more than $725,000 in revenue in a 12-month period ending in January 2020.
Between April 1, 2020 and July 23, 2020, Nevis submitted at least 12 EIDL applications using the identities of at least eight individuals without their knowledge or permission. Together, these applications generated nearly $1.4 million in fraudulent loan disbursements. SBA approved one final EIDL for $150,000 in August 2020, bringing Nevis’ total fraud proceeds to more than $1.5 million. Nevis is further alleged to have laundered at least $160,000 of his ill-gotten gains.
Nevis made his initial appearance in federal court today before U.S. Magistrate Judge Jolie A. Russo. He was arraigned, pleaded not guilty, and released pending a 3-day jury trial scheduled to begin on August 2.
Nevis faces a maximum sentence of 32 years in prison, fines of up to $500,000, and 3 years’ supervised release.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, the FDIC Office of Inspector General, and the FBI. Assistant U.S. Attorney Ryan W. Bounds is prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law, enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
California Man Sentenced After Pleading Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – STEPHEN LUONG, age 62, a resident of Oakland, California, was sentenced on May 25, 2022 by U.S. District Judge Jane Triche Milazzo to one-hundred twenty (120) months imprisonment, five (5) years of supervised release, and $200.00 in mandatory special assessment fees after pleading guilty to two (2) counts of a twenty-four count superseding indictment that charged him with Conspiracy to Distribute and Possess with Intent to Distribute One Thousand Kilograms or More of Marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(A), and 846, and Possession with Intent to Distribute One Hundred Kilograms or More of Marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(B), announced U.S. Attorney Duane A. Evans.
According to court documents, in July 2019, a Jefferson Parish Sheriff’s Office Narcotics Division Agent received information regarding a large-scale marijuana distribution ring in the metro area. Additional investigation by agents revealed that on July 26, 2019, LUONG rented a storage facility in Metairie, Louisiana which he used to store marijuana and proceeds from the sale of marijuana. In September of 2019, agents conducting surveillance at the facility observed LUONG deposit a bag in one of the storage units. A subsequent traffic stop of LUONG after he exited the facility resulted in the seizure of $395,101.00 in cash. In a post-arrest statement, LUONG admitted that he traveled by air to various states to transport money. As agents continued their investigation, they learned that between June 2019 and August 2019, LUONG routinely shipped hundreds of pounds of marijuana from Oakland, California to the Eastern District of Louisiana, then traveled to New Orleans to obtain the proceeds of the sold marijuana and return to Oakland.
This prosecution was part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Office of Homeland Security Investigations and the Jefferson Parish Sheriff’s Office. The prosecution was handled by former Assistant United States Attorney Mobayonle Osundare and Assistant United States Attorney André Jones.
California Couple Charged with Defrauding Paycheck Protection ProgramRead the Press Release
HONOLULU – A federal grand jury returned a four-count indictment today against Christopher A. Mazzei, age 44, and Erin V. Mazzei, age 41, of Arroyo Grande, California. The indictment charges the defendants with wire fraud, money laundering, and conspiracy in connection with a scheme to defraud the government of forgivable Paycheck Protection Program (PPP) loan funds intended for COVID-19-related relief.
The indictment alleges that the Christopher and Erin Mazzei, husband and wife, submitted applications for PPP funds to a Hawaii financial institution and two other financial institutions on behalf of three purported businesses, each time utilizing interstate wires. For each application, the Mazzeis allegedly created false Internal Revenue Service (IRS) tax returns and payroll records, which they presented as authentic and submitted to the banks to support their claims for PPP loan funds. According to the indictment, as a result of the false and fraudulent applications, the Mazzeis received $1,365,000 in PPP loan funds, which they then used for personal purposes, such as to purchase multiple sport utility vehicles and a home in Kapolei, Hawaii, among other things.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
“Our entire community suffers when federal funds appropriated to provide critical pandemic relief are illegally diverted for personal gain,” said U.S. Attorney Clare E. Connors. “We will pursue and prosecute those who defraud programs that provide a financial lifeline to struggling small businesses in Hawaii and across the United States during the COVID-19 pandemic.”
“As the country continues to battle the effects of the COVID-19 pandemic, these indictments are an unfortunate reminder that there are always those who will stoop low to unjustly enrich themselves, even at the cost of those suffering around them,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Financial fraud against government assistance programs is not victimless, as it directly steals resources from those who truly need it. Today’s court actions serve notice that IRS:CI will continue to protect our communities by investigating those who choose to commit these crimes.”
“The allegations described in this indictment represent significant abuse of the Paycheck Protection Program that was created to assist small businesses that were suffering the economic hardships caused by the pandemic," said Special Agent in Charge Jeffrey D. Pittano, of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). “The FDIC OIG will continue to work with our law enforcement partners in the District of Hawaii, and elsewhere throughout the country, to investigate those who seek to take advantage of Federal relief programs and threaten to undermine the integrity of our Nation's financial institutions.”
“Today’s indictment sends a clear message that those who exploit and defraud financial institutions and the government’s pandemic relief funds will be brought to justice,” said Cory Nootnagel, Acting Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection.
A federal indictment is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted jointly by IRS Criminal Investigation, the FDIC Office of Inspector General, and the Office of Inspector General for the Board of Governors of the Federal Reserve System, with assistance from the Small Business Administration Office of Inspector General and the U.S. Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Gregg Paris Yates is handling the prosecution.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Concord Man Pleads Guilty to Sexual Exploitation of a MinorRead the Press Release
CONCORD - Jerry S. Roberts, Jr., 37, of Concord, pleaded guilty in federal court on Wednesday to sexual exploitation of a minor, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on July 15, 2019, the Concord Police arrested Roberts, a convicted sex offender, following his assault of another individual. The victim of the assault, advised that Roberts and a minor (Child Victim A) had left their personal property in the victim’s apartment. Pursuant to a search warrant, detectives searched the bags and recovered assorted electronic media, including a digital camera. Detectives obtained additional search warrants for the electronic media. From the digital camera, detectives identified two videos that Roberts filmed depicting Child Victim A engaging in sexually explicit conduct.
Roberts is scheduled to be sentenced on August 30, 2022.
“It is a paramount obligation of law enforcement to protect children from sexual exploitation crimes,” said U.S. Attorney Young. “Thus, my office is committed to working closely with our law enforcement partners to identify and prosecute the criminals who prey on young children.”
This matter was investigated by the Concord Police Department, with assistance from Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Cam T. Le.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Brooklyn Park Felon Indicted for Possessing a Firearm, Glock SwitchRead the Press Release
MINNEAPOLIS – A Brooklyn Park man has been indicted for possessing a firearm as a felon and possessing an auto sear, announced U.S. Attorney Andrew M. Luger.
According to court documents, on March 15, 2022, officers with the Robbinsdale Police Department initiated a traffic stop of a black Chevrolet Suburban. The driver, later identified as Markyse Maurice Wells, 24, ran from the officers after being asked to step out of the vehicle. After a foot chase and a search of the area, officers found Wells hiding in the bathroom of a nearby gas station and was taken into custody. Inside the center console of Wells’s vehicle, officers found a Glock model 27 pistol with an extended magazine and an auto sear, commonly referred to as a “switch.” An auto sear is a device used to convert a semi-automatic firearm into a fully automatic firearm and is considered a machinegun under federal law.
Wells is charged with illegal possession of a machinegun and possession of a firearm as a felon. Because he has prior felony convictions in Hennepin County, Wells is prohibited from possessing firearms or ammunition at any time.
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 case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Robbinsdale Police Department.
Assistant U.S. Attorney Thomas Calhoun-Lopez is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Sentenced to Eight Years in Prison for Heroin, Fentanyl and Gun OffensesRead the Press Release
BOSTON – A Boston man was sentenced yesterday in connection with heroin and fentanyl distribution and unlawful possession of firearms and ammunition.
Anthony Howard, 34, was sentenced by U.S. District Court Judge Denise J. Casper to eight years in prison and three years of supervised release. On Feb. 2, 2022, Howard pleaded guilty to one count of possession with intent to distribute and distribution of heroin, one count of possession with intent to distribute fentanyl and one count of being a felon in possession of a firearm and ammunition.
This case arose from a series of controlled purchases of heroin and fentanyl from Howard by a cooperating witness. On July 20, 2021, Howard sold a cooperating witness over 32 grams of heroin. A search of Howard’s apartment on Aug. 5, 2021, resulted in the seizure of approximately 24.52 grams of fentanyl, drug distribution paraphernalia and several firearms, including a Glock 9mm handgun loaded with a drum magazine capable of 50 round capacity and containing 15 rounds of 9mm ammunition.
Federal law prohibits Howard from possessing a firearm or ammunition due to prior felony convictions. Additionally, at the time of the offenses, Howard was on state pre-trial release for a 2014 indictment for murder, armed assault to murder and illegal firearm possession, amongst other charges, in connection with a shooting of multiple victims. On Nov. 15, 2021, Howard was convicted on several charges in this matter and sentenced to 18 to 20 years in state prison.
First United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Valuable assistance was provided by the Suffolk County District Attorney’s Office. Assistant U.S. Attorney John Dawley of the Organized Crime and Gang Unit prosecuted the case.
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.
Birmingham Man Indicted on Gun ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal grand yesterday indicted a Birmingham man on gun charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Mickey French.
A two-count indictment filed in U.S. District Court charges Fredrick Leonard Temple, Jr., 32, with possession of a machine gun and receipt of an unregistered firearm.
According to the indictment, in January 2022, Temple illegally possessed a Glock 9mm pistol equipped with a “Glock switch” – an after-market device which is designed to illegally convert a semiautomatic Glock pistol into a fully automatic machine gun.
The maximum penalty for possession of a machine gun is 10 years in prison.
The maximum penalty for receipt or possession of an unregistered firearm is 10 years in prison.
ATF investigated the case, along with the Shelby County Drug Enforcement Task Force. Assistant U.S. Attorney Kristy Peoples is prosecuting the case.
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.
The Birmingham Police Department began seeing these small illegal devices about a year ago. ATF confirms the frequency has picked up in the Southeast over the last three months. The conversion of the semiautomatic Glock pistol to a fully automatic machine gun causes the firearm to become inaccurate, spraying bullets everywhere, and increasing danger to innocent bystanders. If you know someone who has a Glock switch, you are asked to call law enforcement. Information about Glock switches can be reported to ATF at 1-888-ATF-TIPS or 1-888-283-8477.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Bank Ceo Convicted for Taking Bribes in Connection with Loans Guaranteed by the Small Business AdministrationRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the conviction of EDWARD SHIN, then-CEO of a Pennsylvania-based bank (the “Bank”), for taking bribes in connection with the Bank’s issuance of loans that were guaranteed by the United States Small Business Administration (“SBA”). SHIN was arrested in May of 2019 and charged with taking bribes by siphoning off a portion of commissions on SBA-guaranteed loans and causing the Bank to issue SBA-guaranteed and commercial loans to companies in which SHIN had a secret interest. The charges are the culmination of a joint investigation by the Federal Deposit Insurance Corporation – Office of Inspector General (“FDIC-OIG”), Homeland Security Investigations (“HSI”), the SBA Office of the Inspector General (“SBA-OIG”), and the Office of the Special Inspector General for the Troubled Asset Relief Program (“SIGTARP”). SHIN was convicted on all counts of the indictment in Manhattan federal court before U.S. District Judge John P. Cronan.
According to the allegations in the Criminal Complaint, Indictment, and statements made during trial in Manhattan federal:
The SBA helps Americans start, build, and grow businesses by guaranteeing certain loans made by banks to help those businesses succeed. Between 2009 and 2013, the Bank offered a range of financial products, including SBA-guaranteed loans to small businesses in the New York-New Jersey area, which the Bank could extend only on the condition that all aspects of those loans complied with SBA regulations and SBA’s standard operating procedures. In particular, SBA regulations and procedures prohibited bank officers, including SHIN, from receiving any payments in connection with SBA-backed loans and prohibited banks from extending such loans to any institution in which a bank officer held an interest.
Notwithstanding these regulations, SHIN, then the CEO of the Bank, secretly solicited and received bribe payments in connection with SBA-guaranteed loans issued by the Bank and caused the Bank to extend SBA-guaranteed and commercial loans to companies in which SHIN had secret ownership interests. Specifically, when the Bank issued business loans that did not involve the use of any actual broker, SHIN nonetheless arranged to have his longtime friend, a real estate and loan broker (the “Broker”), inserted unnecessarily into the transaction solely to generate a broker fee that could be shared with SHIN; in fact, the Broker did no actual work to earn a commission on those transactions, but split the “broker’s fee” with SHIN as an illegal kickback.
SHIN also arranged for the Bank to issue SBA-guaranteed loans to businesses in which he secretly retained an ownership interest, in violation of SBA regulations and procedures. For example, in or about June 2010, the Bank issued an SBA-guaranteed loan for approximately $950,000 to a business in New York, New York. Although documents submitted to the Bank for purposes of securing the loan did not mention SHIN’s financial interest, the business was secretly operated as a partnership between SHIN, the Broker, and another individual. The loan ultimately went into default status, ultimately resulting in a loss to the Bank of approximately $591,278.60.
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SHIN, 58, of Ambler, Pennsylvania, was convicted of one count of conspiracy to commit bank fraud and wire fraud affecting a financial institution, which carries a maximum potential sentence of 30 years in prison, one count of conspiracy to commit bank bribery, which carries a maximum potential sentence of five years in prison, one count of conspiracy to commit loan fraud, which carries a maximum potential sentence of five years in prison, another count of conspiracy to commit bank fraud, which carries a maximum potential sentence of 30 years in prison, and one count each of bank bribery, and theft of funds by a bank officer, each of which carries a maximum potential sentence of 30 years in prison. The maximum potential sentences in this case are prescribed by Congress and are 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 FDIC-OIG, HSI, SBA-OIG, and SIGTARP.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Tara La Morte, Anden Chow, Jessica Greenwood, and Daniel M. Tracer are in charge of the prosecution.
Atlantic County Man Sentenced to 30 Years in Prison for Heroin Trafficking, Unlawful Possession of Firearm and Witness TamperingRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced today to 360 months in prison for heroin trafficking, firearms and witness tampering charges, U.S. Attorney Philip R. Sellinger announced.
Sean Figaro, aka “Carlito,” aka “Carlito the don,” 35, was convicted in July 2019 of distribution of heroin, possession of a firearm in furtherance of his heroin distribution, witness tampering, conspiracy to commit witness tampering, and unlawful possession of a firearm by a convicted felon. Figaro was convicted following a one-week trial before U.S. District Judge Renée Marie Bumb, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
On Jan. 10, 2017, law enforcement officers from the Atlantic City Child Exploitation Task Force executed a state search warrant on Figaro’s hotel room at the Econo Lodge on Pacific Avenue in Atlantic City, where Figaro had been staying off and on for at least a year. Officers recovered Figaro’s cell phone and a safe, containing a Jennings .22 caliber pistol loaded with five rounds, including one in the chamber, 119 individually packaged bags of heroin and various items used for packaging drugs for distribution, including additional bags, a digital scale, razor blades and a straw.
Officers obtained a separate search warrant for Figaro’s phone, which contained additional evidence of Figaro’s drug trafficking and firearm possession, including text messages offering heroin for sale, and also describing how he earned his living: “my occupation is drug dealership;” and “I’m a dealer, not a pimp, not law, a street hustler.”
In order to dissuade a witness from testifying against him, Figaro sent and caused to be sent messages to a potential witness, including labeling the witness as a “rat” and a “snitch” on Facebook, and later attempting to persuade the witness not to testify against him by feigning affection and promising to love and care for the witness.
In addition to the prison term, Judge Bumb sentenced Figaro to five years of supervised release.
U.S. Attorney Sellinger credited special agents from the FBI, Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Cary Shill; the Atlantic County Sheriff’s Office, under the direction of Sheriff Eric Scheffler; and the New Jersey Human Services Police, under the direction of Commissioner Sarah Adelman, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Kristen M. Harberg.
Armed Felon Sentenced to 42 Months in Federal PrisonRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Anthony Brooks, 30, Middleton, Wisconsin pleaded guilty and was sentenced today by Chief U.S. District Judge James D. Peterson to 42 months in federal prison for possessing a firearm as a felon.
On July 19, 2021, in a hotel parking lot in Madison, Brooks grabbed a gun from his car, pointed it at two hotel security officers and threatened to shoot them. Brooks, who was intoxicated, then fled the scene and was arrested nearby in possession of a loaded firearm. Brooks was previously convicted of being a felon in possession of a firearm in Dane County in 2017.
In sentencing Brooks, Judge Peterson highlighted the serious nature of the offense and risk the defendant posed to the public. He further stressed the defendant’s significant criminal history and noncompliance with previous terms of supervision. Lastly, Judge Peterson noted that a significant prison term was warranted to protect the public from Brooks’ aggravated and violent behavior.
The charge against Brooks was the result of an investigation conducted by Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney David J. Reinhard prosecuted this case.
14 Arrested after Federal, State and Local Investigation into Waterbury Drug TraffickingRead the Press Release
United States Attorney Vanessa Roberts Avery, Special Agent in Charge Brian D. Boyle of the Drug Enforcement Administration for New England and Waterbury Police Chief Fernando C. Spagnolo today announced that the following 14 individuals were arrested yesterday on federal narcotics trafficking charges related to the distribution of fentanyl, heroin, cocaine, crack cocaine and oxycodone in and around Waterbury:
JAVIER GONZALEZ, a.k.a. “Jay” and “The Crazy One,” 50, of Waterbury
FRANCISCO GONZALEZ, a.k.a. “Sisco,” 51, of Waterbury
CHRISTOPHER CAMMILLETTI, 30, of Southington
JOHN STEFERAK, a.k.a. “Jack,” 43, of Milford
JOSE DUPREY, a.k.a. “Red” and “Colorado,” 51, of Waterbury
WANDA LORA, a.k.a. “Wanda Lopez,” 47, of Waterbury
ROBERT AMATRUDA, a.k.a. “Bubba” and “Spanky,” 38, of Bristol
VICTOR DURAN-BARRERA, a.k.a. “Mexico,” 41, of Bridgeport
GARRY GEBEAU, 56, of Ansonia
THOMAS SANTOS, a.k.a. “White Boy,” 33, of Waterbury
JOSE RAMOS, 40, of Waterbury
ARMANDO VARELA-PLAZA, 40, of New York
BIANCA RODRIGUEZ-CANCEL, 36, of New York
MICHELE CRUZ, 36, of WaterburyAs alleged in court documents and statements made in court, the DEA New Haven Task Force, Waterbury Police Department and other law enforcement agencies have been conducting a long-term investigation into drug trafficking in and around the city of Waterbury by Javier Gonzalez and his associates, and by Jose Duprey and his associates. The investigation has included court-authorized wiretaps on multiple phones, physical surveillance, controlled purchases of narcotics, and motor vehicle stops that resulted in the seizure of drugs and cash proceeds.
In association with yesterday’s arrests, investigators executed 11 search warrants and seized more than 18 kilograms of narcotics, approximately $290,000 in cash, and approximately $400,000 in jewelry. Specifically, a search of a business location on Straits Turnpike in Middlebury, which, as alleged, Duprey used as a stash location for narcotics and other items, revealed approximately 12 kilograms of a mixture containing suspected fentanyl, one kilogram of suspected heroin, one kilogram of suspected black tar heroin, and $40,000 in cash. A search of Francisco Gonzalez’s residence on Geddes Terrace in Waterbury revealed approximately two kilograms of a mixture of suspected cocaine and fentanyl, two kilograms of suspected heroin, and $200,000 in cash. A search of Javier Gonzalez’s residence on Enoch Street in Waterbury revealed approximately one kilogram of marijuana, $30,000 in cash, and $400,000 in jewelry. Quantities of cocaine and heroin, and approximately $20,000 in cash, were seized from other locations.
Each defendant is charged by criminal complaint with conspiracy to distribute, and to possess with intent to distribute, narcotics, an offense that carries a maximum term of imprisonment of 20 years. Certain defendants face stronger penalties, including mandatory minimum terms of imprisonment, based on the type and quantity of drug attributable to them. Javier Gonzalez and his brother, Francisco Gonzalez, are also charged with bulk cash smuggling, an offense that carries a maximum term of imprisonment of five years.
“As too many Connecticut residents continue to lose their battle with drug addiction, and too many families and communities are impacted by the resulting trauma that addiction causes, we in the U.S. Attorney’s Office and our law enforcement partners are steadfast in our commitment to stop the flow of these deadly drugs into and around our state, and we will prosecute those involved to the full extent of federal law,” said U.S. Attorney Avery. “I thank the DEA and their task force members, notably the Waterbury Police, for their work in identifying and apprehending these individuals, and seizing such a significant quantity of narcotics and drug proceeds. Their efforts have unquestionably saved lives.”
“Fentanyl, heroin and cocaine are causing great damage to our communities and DEA’s top priority is to aggressively pursue anyone who distributes this poison in order to profit and destroy lives,” said DEA Special Agent in Charge Brian D. Boyle. “Let these arrests and seizures be a warning to those traffickers who are distributing drugs to the people of Connecticut. The DEA and its local, state and federal partners will do everything in our power to bring you to justice.”
“We are thankful that our ongoing work with the DEA and the U.S. Attorney’s Office continues to thwart drug trafficking in Waterbury and remove those involved from our community,” said Chief Spagnolo. “We look forward to continuing this important work with our federal partners.”
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department, with the assistance of DEA offices in Connecticut, New York and New Jersey; the Federal Bureau of Investigation; Bureau of Alcohol Tobacco, Firearms and Explosives; U.S. Marshals Service; U.S. Postal Inspection Service; Connecticut State Police; Connecticut Department of Correction; Connecticut State Parole; and the Naugatuck, Ansonia, West Haven, Meriden and East Haven Police Departments.
U.S. Attorney Avery thanked the Waterbury State’s Attorney’s Office for its cooperation in the investigation and prosecution of this matter.
The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and Brendan Keefe through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
"Long Time Coming" Update: Chicago Man Sentenced to Prison for Role in Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Chicago man was sentenced today to nine years in prison, to be followed by three years of supervised release, for his role in a multi-state conspiracy responsible for distributing methamphetamine, cocaine, marijuana, and other controlled substances in the Parkersburg area.
According to court documents and statements made in court, Carlo Lee Ramsey, 56, supplied co-defendants Era Dawn Corder and Ambera Roberts with methamphetamine that they re-distributed between June and September 2021. Ramsey was supplied with methamphetamine by Robert Sanders, Jr., and was supplied with cocaine, marijuana, and other controlled substances by Floyd Dermonta Ramsey. Carlo Ramsey supplied all these substances to several customers in the Parkersburg area for several months.
Carlo Ramsey previously pleaded guilty to conspiracy to distribute methamphetamine. Co-defendants Corder, Roberts, Sanders, Floyd Ramsey, and Matthew Edward Depew previously pleaded guilty to felony charges in United States District Court for the Southern District of West Virginia as a result of a nearly year-long investigation dubbed “Long Time Coming.” Depew was sentenced to five years in prison, Floyd Ramsey and Corder were each sentenced to three years in prison, and Roberts was sentenced to one year and six months in prison. Sanders is awaiting sentencing. The investigation also resulted in more than a dozen arrests on state criminal complaints in Wood County.
United States Attorney Will Thompson made the announcement and commended the excellent investigative work of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Parkersburg Narcotics Task Force (PNTF), the Parkersburg Police Department, the West Virginia State Police, the United States Postal Inspection Service, the Vienna Police Department, the Williamstown Police Department, the Wood County Sheriff’s Office, the Cabell County Sheriff’s Department, the Boyd County, Kentucky, Sheriff’s Department, the Russell, Kentucky, Police Department and the Raceland, Kentucky, Police Department
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-163.
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25 May 2022
Winter Park Man Sentenced to 25 Years in Federal Prison for Producing and Distributing Sexually Explicit Photos of Young ChildrenRead the Press Release
Orlando, FL – U.S. District Judge Wendy Berger today sentenced Kelly Brown (41, Winter Park) to 25 years in federal prison for producing sexually explicit images of children and distributing these images over the internet. The court also ordered Brown to serve a life term of supervised release, register as a sex offender, and forfeit electronic devices that were used to commit his criminal offenses. Brown had pleaded guilty on October 19, 2021.
According to court documents, between June and July 2021, Brown produced several sexually explicit images depicting two young children. On July 19, 2021, Brown distributed some of these images over the internet using a web-based chat application. The next day, FBI agents approached Brown near his residence. During an interview with agents, Brown admitted that he had taken the contraband images of the two children using his smart phone at his residence during June and July 2021, and further, that he distributed them over the internet. Subsequent forensic analysis of Brown’s smart phone and data card revealed that it contained 151 videos and 67 images depicting the sexual abuse of children, including infants.
This case was investigated by the FBI. It was prosecuted by Assistant United States Attorney Amanda Daniels.
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.
Winner Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Winner, South Dakota, man has been indicted by a federal grand jury for three counts of Failure to Register as a Sex Offender.
Glenford Old Lodge, a/k/a Glenford Old Lodge, Jr., age 32, was indicted on March 8, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 19, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to ten years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Old Lodge, a person required to register as a sex offender by reason of conviction under federal law, knowingly failed to register and update his registration. The allegations include various dates beginning on or about April 22, 2021, and ending on or about September 5, 2021, while living in the District of South Dakota.
The charges are merely accusations and Old Lodge is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
Old Lodge was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Wilmington Man Sentenced to 15 Years for Distributing Methamphetamine, Fentanyl, and Heroin While Armed with Multiple FirearmsRead the Press Release
RALEIGH, N.C. – A Wilmington man was sentenced today to 180 months in prison for conspiracy to distribute over 500 grams of methamphetamine, over 40 grams of fentanyl, and over 100 grams of heroin, all while using firearms to protect his drug dealing. On November 16, 2021, Edward Neal Huffman plead guilty to the charges.
Edward Huffman, 39, sold methamphetamine and heroin to a confidential source on five separate occasions in 2020. For each buy, multiple firearms were present and visible while the drug deal occurred. Ultimately, law enforcement executed a search warrant for a Wilmington hotel room that Huffman was staying in and seized 146 grams of methamphetamine, 80 grams of fentanyl, materials for distributing drugs, and a loaded handgun that was stolen. A subsequent search of Huffman’s residence led to the seizure of additional drugs and 8 more firearms.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Drug Enforcement Administration and New Hanover County Sheriff’s Office investigated the case and Assistant U.S. Attorney Tyler Lemons prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-cr-00099-BO.
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West Warwick Man Sentenced for Trafficking Thousands of Fentanyl PillsRead the Press Release
PROVIDENCE, R.I. – A West Warwick man who arranged for the sale of substantial quantities of fentanyl-laced counterfeit OxyContin to an undercover member of the Rhode Island DEA Drug Task Force was sentenced today to four years in federal prison, announced United States Attorney Zachary A. Cunha.
Richard Delsanto, 29, pleaded guilty in February to distributing 40 grams or more of fentanyl and possession with intent to distribute 400 grams or more of fentanyl.
According to the court documents, in April and May 2021, a member of the Rhode Island DEA Drug Task Force engaged in a series of text messages with Richard Delsanto, 29, to arrange for the purchase of 1,000 counterfeit OxyContin pills known to contain fentanyl. Delsanto delivered the pills on May 4, in exchange for $5,000. Nine days later, the undercover DEA Task Force officer arranged for a second delivery. As Delsanto arrived at an agreed-upon meeting location, members of the DEA Drug Task Force stopped Delsanto’s vehicle and seized approximately 3,000 pills containing fentanyl. Additionally, 700 fentanyl additional pills were seized from Delsanto’s residence during a court-authorized search that followed his arrest.
Delsanto pleaded guilty on February 16, 2022, to distributing 40 grams or more of fentanyl and possession with intent to distribute 400 grams or more of fentanyl. He was sentenced today by U.S. District Court Judge Mary S. McElroy to 48 months in federal prison to be followed by 5 years of federal supervised release.
The case was prosecuted by Assistant U.S. Attorney G. Michael Seaman.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; United States Postal Service Office of Inspector General; Rhode Island Attorney General’s Office Bureau of Criminal Identification and Investigation; Rhode Island State Police; the East Providence, Cranston, Coventry, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick, and Woonsocket Police Departments; and Amtrak Police Department.
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Vermont Man Sentenced to 46 Months for Traveling to New York to Engage in Sexual Activity with a MinorRead the Press Release
ALBANY, NEW YORK – Robert McAdam, age 49, of Rutland, Vermont, was sentenced today to 46 months in prison for traveling to engage in illicit sexual conduct with a minor, announced United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his previously entered guilty plea, McAdam admitted that, between February 7, 2019 and June 16, 2020, he exchanged text messages with someone he believed to be the adult father of a 15-year-old girl. In these exchanges, McAdam discussed his interest in having sex with the girl. Then, McAdam traveled to New York in early June 2020 to meet with the person he believed to be the father of the girl. After this in-person meeting, McAdam arranged to have sex with the minor in a hotel room in Queensbury, New York, to take place on June 16, 2020. On this date, McAdam traveled from Vermont to a hotel room in Queensbury, where he was encountered by law enforcement and arrested. McAdam brought alcohol that he intended to supply to the minor, as well as condoms.
United States District Judge Mae A. D’Agostino also imposed a 15-year term of supervised release, which will start after McAdam is released from prison. As a result of his conviction, McAdam will be required to register as a sex offender upon his release from incarceration.
This case was investigated by the FBI and its Child Exploitation Task Force, including investigators with the New York State Police, and was prosecuted by Assistant United States Attorney Rachel Williams.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc/.
Valley resident sentenced for smuggling cocaine worth $2MRead the Press Release
CORPUS CHRISTI, Texas – A 29-year-old man residing in Mission has been ordered to federal prison following his conviction of possession with the intent to distribute drugs, announced U.S. Attorney Jennifer B. Lowery.
Reynaldo Perez Jr. pleaded guilty Oct. 5, 2021.
Today, U.S. District Judge Drew B. Tipton ordered Perez Jr. to serve 120 months in federal prison to be immediately followed by 5 years of supervised release. At the hearing, the court heard additional evidence that detailed two prior successful narcotic smuggling attempts made by Perez.
On June 26, 2021, Perez was a passenger on a Tornado Bus that arrived at the Falfurrias Border Patrol (BP) checkpoint. There, a K-9 alerted authorities to Perez’s luggage located in the cargo area of the bus.
Authorities conducted a search and discovered 21 bundles of a white-powdery substance concealed inside the luggage. It was later determined to be 21 kilograms of cocaine with an estimated street value of $2 million.
Perez 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. Assistant U.S. Attorney Roland Swanson prosecuted the case.
United States Attorney Chris Kavanaugh Announces $3,000,000 Settlement in False Claims Act Case Against HEYtex USARead the Press Release
ROANOKE, Va. HEYtex USA, located in Pulaski, Virginia, has agreed to pay $3 million to resolve allegations that it violated the False Claims Act between January 1, 2013, and December 31, 2018 when it knowingly sold fabrics to the United States military that failed to meet certain required specifications. HEYtex has also entered into an agreement with the Defense Logistics Agency (DLA) to ensure that HEYtex remains in compliance with testing requirements going forward.
HEYtex USA is a worldwide manufacturer of various technical textiles and materials, and its North American headquarters in Southwest Virginia specializes in fabrics and materials produced for the United States military.
In the settlement, the United States alleged HEYtex caused false claims to be submitted in connection with fabrics manufactured for military and personal equipment. Specifically, an employee of HEYtex USA, who later came forward as a whistleblower, brought information regarding falsified test results to the attention of former company management, but the whistleblower was initially ignored.
The employee alleged that on over 100 separate occasions, HEYtex falsely certified that its military-grade fabrics met all requisite performance specifications set by the military when, in fact, the fabrics failed those tests.
“We applaud the courageous efforts of whistleblowers, who put their livelihood on the line to do what is right. Whistleblowers are essential to combatting fraud against the government and we aggressively investigate all such allegations,” United States Attorney Chris Kavanaugh said today. “We commend our citizen partners and encourage all who know, or have reason to know, of fraud against the government to come forward and report it.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act against HEYtex USA. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The qui tam case is captioned U.S. ex rel. Altizer v. Heytex USA, Inc., Civil Action No. 7:20-cv-00170 (W.D.Va.).
The resolutions obtained in this matter were the result of a coordinated effort among the United States Attorney’s Office for the Western District of Virginia, the Defense Criminal Investigative Service (DCIS), and the United States Army Criminal Investigations Division (Army CID).
Assistant U.S. Attorney Justin Lugar and the Affirmative Civil Enforcement team for the Western District of Virginia investigated the matter in conjunction with Special Agent in Charge, Christopher W. Dillard of the Department of Defense, Office of Inspector General, DCIS, and Army CID Special Agent Joshua T. Kimrey.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Union County Man Sentenced to Seven Years in Prison for Gun Trafficking OffensesRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 84 months in prison for gun trafficking offenses, U.S. Attorney Philip R. Sellinger announced.
Mark Hernandez, aka “Skrap,” 26, of Rahway, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to a three-count information charging him with conspiracy to unlawfully deal in firearms, unlawfully dealing in firearms, and possession of firearms and ammunition by a convicted felon. Judge Cecchi imposed the sentence in Newark federal court.
According to documents filed in this case and statements made in court:
From December 2019 through June 2020, Hernandez and his conspirators, Clifford Behler, 43, and Francis Zyla, 56, unlawfully distributed more than two dozen firearms – including shotguns, rifles, and firearms capable of accepting large-capacity magazines – in and around Elizabeth, New Jersey. Hernandez unlawfully obtained several of those guns and supplied them to his conspirators for redistribution. Hernandez was previously convicted of unlawful possession of a handgun in New Jersey Superior Court and is prohibited from possessing firearms and ammunition under federal law.
In addition to the prison term, Judge Cecchi sentenced Hernandez to three years of supervised release.
Behler previously pleaded guilty to a three-count information charging him with narcotics and firearms offenses, and was sentenced to a 60-month term of imprisonment in December 2021. The case against Zyla is still pending. The charges against him are merely accusations, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; special agents of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; the Union County Prosecutor’s Office, under the direction of William A. Daniel; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.
In July 2021 the U.S. Department of Justice launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C. According to gun trace data, a significant number of firearms recovered in the New York/northern New Jersey area originate from outside the area. The new strike force will help ensure sustained and focused coordination between law enforcement and prosecutors in the New York/northern New Jersey area with their counterparts in those other locations.
The government is represented by Assistant U.S. Attorneys Samantha C. Fasanello and Robert Frazer U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
U.S. Attorney’s Office and FBI Recognize National Missing Children’s Day and Provide Summer Safety Tips for ChildrenRead the Press Release
BIRMINGHAM, Ala. – On National Missing Children’s Day, U.S. Attorney Prim Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr. share tips on how to keep children safe both in the online and offline worlds. President Ronald Reagan proclaimed May 25, 1983, the first National Missing Children’s Day in memory of Etan Patz, a 6-year-old boy who disappeared from a New York City street corner on May 25, 1979. National Missing Children’s Day is dedicated to encouraging parents, guardians, caregivers, and others concerned with the well-being of children to make child safety a priority.
“As a parent of young children, I am concerned about providing a safe environment for children. As the U.S. Attorney, I also realize that there are predators who work overtime to take advantage of children’s vulnerabilities,” U.S. Attorney Escalona said. “The U.S. Attorney’s Office will do our part to prosecute those who victimize our children, and we urge parents and caregivers to do their part through education and awareness.”
“It’s an unfortunate reality that every year, thousands of children become victims of crime, whether through kidnappings, violent attacks, sexual abuse, or online predators,” SAC Sharp said. “While I want to encourage parents to stay vigilant in protecting their children, the citizens of North Alabama can rest assured knowing that the FBI and our law enforcement partners will continue to aggressively pursue those who would take advantage of our most vulnerable population.”
As the school year draws to a close, many parents are planning for their children’s summer activities. Whether a child is spending the summer at home with parents, or away from home at a summer program, the following safety tips will help ensure that children are being cared for under the watchful eyes of trusted and vetted adults.
- Know your childcare providers. Choose babysitters, nannies, and tutors with care. Obtain references from family, friends, and neighbors. Observe the interaction with your children and ask your children how they feel about your childcare provider. Do background screening and reference checks.
- Check out camps and summer programs before enrolling your children. Ask if a background screening check is completed on the individuals working with the children. Talk to your children about safety and encourage them to tell you or another trusted adult if anyone or anything makes them feel sad, scared, or confused. Teach them it is okay to tell you what happened, and they will not be “tattletales” for telling.
Another thing to be mindful of is online safety. During the summer, children will have an increased online presence. The following safety tips will help educate parents and prevent children from becoming victims of child predators and sexual exploitation.
The most important advice for parents is to have open and ongoing conversations about safe and appropriate online behavior. Other advice to consider:
- Educate yourself about the websites, software, games, and apps that your children use.
- Check their social media and gaming profiles and posts. Make sure they use privacy settings to restrict access to their online profiles.
- Monitor your children’s use of the Internet; keep electronic devices in an open, common room of the house.
- Explain to your kids that once images or comments are posted online, they can be shared with anyone and never truly disappear.
- Make sure children know that anyone who asks a child to engage in sexually explicit activity online should be reported to a parent, guardian, or other trusted adult and law enforcement.
- Make it a rule with your kids that they can’t arrange to meet up with someone they met online without your knowledge and supervision.
- The FBI has seen a huge increase in the number of cases involving children and teens being threatened and coerced by adults into sending explicit images online—a crime called sextortion. For more information visit https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/sextortion.
Child Exploitation is a serious federal crime, carrying severe federal penalties. Some cases carry a maximum sentence of life in prison. The U.S. Attorney’s Office has prosecuted and continues to prosecute child exploitation cases in the Northern District of Alabama.
To help in child abduction recoveries, the FBI has developed the Child ID app, which provides an effective way for parents and guardians to keep their child’s pictures and information on hand in case he or she goes missing. The app also includes safety tips for parents to help keep their kids out of harm’s way. The app is free, and, in the event a child goes missing, parents and guardians can quickly e-mail the photos and information to authorities. No information about you or your child will be collected or stored by the FBI. To download the Child ID app, go to iTunes Apps Store on your iPhone or Play Store on your Android phone.
For more information on the FBI’s guidance on child exploitation and protecting your kids visit https://www.fbi.gov/scams-and-safety/protecting-your-kids.
If you suspect or become aware of possible sexual exploitation of a child, please contact law enforcement. To alert the FBI Birmingham Office, call 205-326-6166. Reports can also be filed with the National Center for Missing & Exploited Children (NCMEC) or online at www.cybertipline.org.
U.S. Attorney Ellis Announces Enhanced Federal Violent Crime StrategyRead the Press Release
COLUMBIA, SOUTH CAROLINA — U.S. Attorney Corey F. Ellis announced today that the U.S. Attorney’s Office is enhancing its violent crime reduction efforts and strengthening its coordination with state and local partners to identify and disrupt the drivers of violent crime throughout South Carolina.
“Gun violence erupted across the state again last weekend, continuing an unwelcome upward trend of violent crime in South Carolina,” said U.S. Attorney Ellis. “Unfortunately, no place in our state is immune from this violence, whether it be a school, a shopping mall, or a kids’ baseball game. In response, we are adapting our already robust efforts to address violent crime in South Carolina. We will continue to work diligently with our state and local law enforcement agencies and with federal partners to identify and bring to justice those who commit violent acts.”
To that end, U.S. Attorney Ellis met yesterday with federal, state, and local law enforcement officials from 20 agencies throughout the Midlands. This was the first of what will be at least four meetings through June 14 in the Midlands, the Upstate, the Lowcountry, and the Pee Dee Regions. The U.S. Attorney’s Office and its federal partners are intensifying collaboration with state and local law enforcement, seeking to pinpoint and disrupt violent offenders in their respective communities.
As part of this effort, U.S. Attorney Ellis also announced that the Office is adapting its violent crime intake strategy to prioritize holding accountable those responsible for violence across the state. Specifically, the U.S. Attorney’s Office will focus its efforts on those offenders who
- have recent violent felony or domestic violence convictions;
- have recently been released from custody or were on state bond for a violent crime;
- have serious drug convictions;
- have ties to gang activity; or
- are engaged in trafficking firearms.
U.S. Attorney Ellis noted this is not an exhaustive list, and the Office will continue its ongoing work with law enforcement partners to focus on those who commit gun violence. The Office’s flurry of recent violent crime and gun-related prosecutions includes having indicted more than two dozen cases in the Pee Dee Region yesterday. In addition to those two dozen cases, the following cases were indicted, pled, or sentenced in the last 30 days alone:
Columbia Man Pleads Guilty to Selling Firearms and Drugs to ATF
St. Matthews Man With History of Violence Sentenced to More Than Six Years in Federal Prison for Firearm and Methamphetamine Possession
Wagener Man Indicted on 15 Counts of Firearm Possession and Narcotics Distribution
Columbia Man with Robbery and Drug Trafficking Record Pleads Guilty to Firearm Charge
North Charleston Man Pleads Guilty to Felon in Possession of a Firearm
Florence Man Sentenced to More Than 15 Years in Federal Prison for Narcotics and Firearms Crimes
Horry County Man Indicted for Possession of a Firearm by a Prohibited Person
Conway Man Indicted for Possession of a Firearm and Ammunition by a Prohibited Person
North Carolina Man Sentenced to More Than 20 Years in Federal Prison for Forcing Minors into Prostitution
Charleston Man Indicted for Felon in Possession of a Firearm
Rock Hill Man Pleads Guilty in Large Drug Trafficking Case
Charleston Man Indicted for Distributing Fentanyl Resulting in the Death, Detained After Contested Bond Hearing
Bennettsville Man Sentenced to More than 18 Years in Federal Prison for Firearms Crime
Spartanburg County Man Sentenced to Prison for Gun Charge
Federal Indictment Returned for Felon in Possession of Firearm
Columbia Man Sentenced to Nine Years in Federal Prison for Possession of Firearm
Georgetown Man Sentenced to Five Years in Federal Prison on Gun Charge
Orangeburg Man Indicted on Federal Gun Charges Detained After Contested Bond Hearing
Federal Indictment Returned for Columbia Man For Possessing a Firearm and Marijuana
Federal Indictment Returned for Columbia Man For Possessing a Firearm
Federal Indictment Returned for Columbia Man For Possessing a Firearm and Marijuana
Federal Indictment Returned for Columbia Man For Possessing a Firearm
Hartsville Man Sentenced to Nearly 8 Years in Federal Prison on Gun Charge
Florence Man Sentenced to Over 5 Years in Federal Prison on Gun Charge
Orangeburg and Columbia Men Who Shot Towards Police Sentenced to Federal Prison
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Members of federal, state, and local law enforcement agencies joined U.S. Attorney Corey F. Ellis to discuss how the U.S. Attorney’s Office can enhance its violent crime reduction efforts and identify and disrupt the drivers of violent crime throughout South Carolina.Two Sentenced for Issuing Fraudulent Asbestos Training CertificationsRead the Press Release
ASHEVILLE, N.C. – Today, U.S. Magistrate Judge W. Carleton Metcalf sentenced Ana Yorling Rugama Sanchez, 28, of Memphis, Tennessee, to two years of probation and a fine of $1,500, and Jose Carlos “Victor” Pena Lopez, 51, of Winston-Salem, North Carolina, to one year of probation and a fine of $1,000, for their roles in creating false asbestos training certifications, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Charles Carfagno, Special Agent in Charge of the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) joins U.S. Attorney King in making today’s announcement.
“Sanchez and Pena Lopez failed in their duty to ensure that workers handling asbestos receive proper training on how to safely and legally dispose of this toxic substance,” said U.S. Attorney King. “We will continue to work closely with the EPA to hold accountable those who skirt our environmental laws and jeopardize public health.”
“The failure to properly train asbestos workers and then to issue them false asbestos training certificates places the worker and the general public at an increased risk of asbestos exposure. Today’s sentencing demonstrates that anyone who intentionally violates the law and puts the public at risk will be held responsible for their actions,” said Special Agent in Charge Carfagno.
According to filed documents and court proceedings, the Toxic Substances Control Act regulates asbestos and other toxic substances, as well as the training and certification of professionals who handle such substances. Sanchez was employed with NovaCor Consulting Group, LLC (NovaCor) as an asbestos training coordinator at the company’s Concord, North Carolina location. Pena Lopez also worked for NovaCor as an asbestos abatement supervisor and an asbestos worker trainer accredited in the State of North Carolina. Court documents show that in June 2018, at Sanchez’s direction, Pena Lopez signed certificates of course completion for asbestos worker refresher training for individuals he did not instruct and that did not fulfill the required training. The certificates were submitted to regulators in obtaining asbestos worker licenses. Court documents also show that in July 2018, Sanchez also certified training for attendees at a course that did not meet the requirements for certification.
On March 14, 2022, both Pena Lopez and Sanchez entered their guilty pleas to violations of the Toxic Substances Control Act.
In making today’s announcement, U.S. Attorney King thanked the EPA-CID and the North Carolina Department of Health and Human Services, Health Hazards Control Unit, for their coordination and investigation of the case.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Two More Defendants Plead Guilty in a Nationwide Racketeering Conspiracy Targeting the ElderlyRead the Press Release
Assistant U. S. Attorney Oleksandra “Sasha” Johnson (619) 546-9769
NEWS RELEASE SUMMARY – May 25, 2022
SAN DIEGO – Two more members of a nationwide “grandparent scam” network have pleaded guilty to conspiracy charges under the Racketeer Influenced and Corrupt Organizations Act known as RICO.
Joaquin Lopez of Hollywood, Florida, pleaded guilty in federal court today; Anajah Gifford of North Hollywood, California, pleaded guilty on May 5, 2022. They are the third and fourth of eight defendants to plead guilty; two are pending trial and two are fugitives.
According to court documents, the defendants were members and associates of a criminal enterprise that engaged in extortion and fraud to swindle more than $2 million from 70-plus elderly victims across the nation. At least 10 elderly victims who resided in San Diego County lost over $300,000 to the fraud. From approximately November 1, 2019, until October 14, 2020, the members of the criminal enterprise targeted elderly Americans, contacting them by phone and feeding them phony stories that their grandchildren were in legal trouble and needed money to pay for bail, pay medical expenses for car accident victims, or prevent additional charges from being filed. Members and associates obtained money from victims through in-person cash pick-ups, by mail or commercial carriers, or via wire transfers. Conspirators laundered the proceeds by transferring the funds or converting from fiat currency to cryptocurrency.
According to defendant Joaquin Lopez’s plea agreement, Lopez used bank accounts under his control to funnel victim proceeds for codefendant Tracy Knowles. As part of the guilty plea, Lopez agreed to forfeit $62,700 in proceeds from the offense. Lopez will also be subject to an order of restitution to the victims of the offense in the amount of at least $136,500.
According to defendant Anajah Gifford’s plea agreement, Gifford conducted cash pick-ups from victims under codefendant Timothy Ingram’s direction, and helped Ingram pay unlawful proceeds to codefendant Knowles. She also recruited others to obtain additional bank accounts to receive money transfers from victims. As part of her guilty plea, Gifford agreed to forfeit $52,750 in proceeds she personally received from the offense and pay at least $1,235,406.93 to the victims in restitution.
“These defendants were part of a sophisticated criminal organization that exploited the tremendous love a grandparent has for a grandchild,” said U.S. Attorney Randy Grossman. “The victims were financially and emotionally devastated by callous people who thought only of enriching themselves. Because of the diligence of our prosecution team and law enforcement partners, these defendants have been brought to justice.”
“The FBI is proud to work with our local, state, and federal partners on San Diego’s Elder Justice Task Force to protect our elderly population with cases such as this,” said FBI Special Agent in Charge Stacey Moy. “Our senior citizens deserve better than to be targeted by these criminal organizations and we are committed to pursuing them regardless of where they are located.”
This case was investigated by the San Diego Elder Justice Task Force, which is a collaboration between the U.S. Attorney’s Office, the FBI, the District Attorney’s Office and all San Diego County law enforcement agencies. The Elder Justice Task Force was established in February 2021 and is believed to be the first comprehensive law enforcement effort for this purpose anywhere in the country. The case was prosecuted by the U.S. Attorney’s Office and the Department of Justice’s Consumer Protection Branch.
DEFENDANTS Case Number 21cr2216-CAB
Tracy Adrine Knowles 30 Orlando, Florida
Fugitive
Adonis Alexis Butler Wong 30 Northbay Village, Florida
Fugitive
Timothy Ingram, AKA Bleezy 29 North Hollywood, California
In custody. Sentencing set for July 29, 2022.
Anajah Gifford 23 North Hollywood, California
In custody. Sentencing set for August 26, 2022.
Lyda Harris 74 Laveen, Arizona
Released on bond. Pending trial.
Joaquin Lopez 46 Hollywood, Florida
Released on bond. Sentencing set for August 19, 2022.
Jack Owuor 25 Paramount, California
Released on bond. Sentencing set for July 15, 2022.
Tracy Glinton 35 Orlando, Florida
Released on bond. Pending trial.
SUMMARY OF CHARGES
Title 18, U.S.C., Sec. 1962(d) – Conspiracy to Conduct or Participate in an Enterprise
Through a Pattern of Racketeering Activity
Maximum penalty: Twenty years in prison and a fine of not more than the greater of twice the amount of gain or loss associated with the offense or $250,000
AGENCIES
Department of Justice’s Consumer Protection Branch
San Diego Elder Justice Task Force, which includes:
San Diego FBI
San Diego County District Attorney’s Office
San Diego Police Department
San Diego Sheriff’s Department
Carlsbad Police Department
Oceanside Police Department
Escondido Police Department
Chula Vista Police Department
El Cajon Police Department
La Mesa Police Department
National City Police Department
Coronado Police Department
Two Men Charged in Murder-for-Hire Conspiracy Resulting in DeathRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Serhat Gumrukcu, 39, of Los Angeles, California, and Berk Eratay, 35, of Las Vegas, Nevada, were arrested yesterday after having been charged by a federal grand jury in Vermont with conspiring to use interstate commerce facilities in the commission of murder-for-hire which resulted in the death of Gregory Davis, a resident of Danville, Vermont.
Gumrukcu is expected to appear later today in the United States District Court for the Central District of California. Eratay is expected to appear later today in the United States District Court for the District of Nevada.
According to court records, Jerry Banks, 34, of Fort Garland, Colorado was previously arrested after having been charged with kidnapping Gregory Davis from his Danville home on January 6, 2018. On January 7, 2018, Davis was found dead in a snowbank several miles from his residence. Although Banks is not charged with Davis’s murder, the government has alleged that Banks murdered Davis. Also, Aron Lee Ethridge, 41, of Henderson, Nevada has been arrested on charges of conspiring to kidnap Davis, and Ethridge is alleged to have communicated with Banks before and after the kidnapping and murder.
The indictment charging Gumrukcu and Eratay contains accusations only, and the defendants are presumed innocent until and unless proven guilty. If convicted, Gumrukcu and Eratay face mandatory life in prison or the death penalty.
The prosecutors are Assistant United States Attorneys Paul Van de Graaf and Jonathan Ophardt. Counsel for Gumrukcu and Eratay have not yet been appointed or entered formal appearances.
U.S. Attorney Nikolas P. Kerest commended the efforts of the Federal Bureau of Investigation and the Vermont State Police in their collaborative investigation of Gumrukcu and Eratay.
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. https://www.justice.gov/psn
Twitter Agrees with DOJ and FTC to Pay $150 Million Civil Penalty and to Implement Comprehensive Compliance Program to Resolve Alleged Data Privacy ViolationsRead the Press Release
The Department of Justice, together with the Federal Trade Commission (FTC), announced a settlement that, if approved by a federal court, will require Twitter Inc. to pay $150 million in civil penalties and implement robust compliance measures to protect users’ data privacy. The settlement will resolve allegations that Twitter violated the FTC Act and an administrative order issued by the FTC in March 2011 by misrepresenting how it would make use of users’ nonpublic contact information.
In a complaint filed today in the U.S. District Court for the Northern District of California, the government alleges that Twitter violated the FTC Act and the 2011 order by deceiving users about the extent to which Twitter maintained and protected the security and privacy of users’ nonpublic contact information. Specifically, the complaint alleges that, from May 2013 to September 2019, Twitter told its users that it was collecting their telephone numbers and email addresses for account-security purposes, but failed to disclose that it also would use that information to help companies send targeted advertisements to consumers. The complaint further alleges that Twitter falsely claimed to comply with the European Union-U.S. and Swiss-U.S. Privacy Shield Frameworks, which prohibit companies from processing user information in ways that are not compatible with the purposes authorized by the users.
“The Department of Justice is committed to protecting the privacy of consumers’ sensitive data,” said Associate Attorney General Vanita Gupta. “The $150 million penalty reflects the seriousness of the allegations against Twitter, and the substantial new compliance measures to be imposed as a result of today’s proposed settlement will help prevent further misleading tactics that threaten users’ privacy.”
“As the complaint notes, Twitter obtained data from users on the pretext of harnessing it for security purposes but then ended up also using the data to target users with ads," said FTC Chair Lina M. Khan. “This practice affected more than 140 million Twitter users, while boosting Twitter’s primary source of revenue.”
“Consumers who share their private information have a right to know if that information is being used to help advertisers target customers,” said U.S. Attorney Stephanie M. Hinds for the Northern District of California. “Social media companies that are not honest with consumers about how their personal information is being used will be held accountable.”
Twitter has agreed to settle the government’s allegations by paying a $150 million civil penalty and implementing significant new compliance measures intended to ensure that Twitter improves its data privacy practices. For instance, Twitter will be required to develop and maintain a comprehensive privacy and information-security program, conduct a privacy review with a written report prior to implementing any new product or service that collects users’ private information, and conduct regular testing of its data privacy safeguards. Twitter also will be required to obtain regular assessments of its data privacy program from an independent assessor, provide annual certifications of compliance from a senior officer, provide reports after any data privacy incidents affecting 250 or more users, and comply with numerous other reporting and record-keeping requirements. The settlement also will require Twitter to notify all U.S. customers who joined Twitter before Sept. 17, 2019, about the settlement and to provide users with options for protecting their privacy and security. Under the settlement terms, the Department of Justice and FTC will each have responsibility for monitoring and enforcing Twitter’s compliance.
This matter is being handled by attorneys in the Civil Division’s Consumer Protection Branch, including Director Gustav W. Eyler, Assistant Director Lisa K. Hsiao and Trial Attorneys Zachary Cowan and Deborah Sohn; Assistant U.S. Attorney Emmet Ong of the U.S. Attorney’s Office for the Northern District of California; James Kohm, Reenah Kim and Laura Koss from the FTC’s Division of Enforcement; and Andrea Arias of the FTC’s Division of Privacy and Identity Protection.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.
Twitter Agrees with DOJ and FTC to Pay $150 Million Civil Penalty and to Implement Comprehensive Compliance Program to Resolve Alleged Data Privacy ViolationsRead the Press Release
SAN FRANCISCO – The Department of Justice, together with the Federal Trade Commission (FTC), announced a settlement that, if approved by a federal court, will require Twitter, Inc. to pay $150 million in civil penalties and implement robust compliance measures to protect users’ data privacy. The settlement will resolve allegations that Twitter violated the FTC Act and an administrative order issued by the FTC in March 2011 by misrepresenting how it would make use of users’ nonpublic contact information. The announcement was made by United States Attorney Stephanie M. Hinds for the Northern District of California; U.S. Department of Justice Associate Attorney General Vanita Gupta; and FTC Chair Lina M. Khan.
In a complaint filed today in the U.S. District Court for the Northern District of California, the government alleges that Twitter violated the FTC Act and the 2011 order by deceiving users about the extent to which Twitter maintained and protected the security and privacy of users’ nonpublic contact information. Specifically, the complaint alleges that, from May 2013 to September 2019, Twitter told its users that it was collecting their telephone numbers and email addresses for account-security purposes, but failed to disclose that it also would use that information to help companies send targeted advertisements to consumers. The complaint further alleges that Twitter falsely claimed to comply with the European Union-U.S. and Swiss-U.S. Privacy Shield Frameworks, which prohibit companies from processing user information in ways that are not compatible with the purposes authorized by the users.
“Consumers who share their private information have a right to know if that information is being used to help advertisers target customers,” said U.S. Attorney Hinds. “Social media companies that are not honest with consumers about how their personal information is being used will be held accountable.”
“The Department of Justice is committed to protecting the privacy of consumers’ sensitive data,” said Associate Attorney General Gupta. “The $150 million penalty reflects the seriousness of the allegations against Twitter, and the substantial new compliance measures to be imposed as a result of today’s proposed settlement will help prevent further misleading tactics that threaten users’ privacy.”
“As the complaint notes, Twitter obtained data from users on the pretext of harnessing it for security purposes but then ended up also using the data to target users with ads," said FTC Chair Khan. “This practice affected more than 140 million Twitter users, while boosting Twitter’s primary source of revenue.”
Twitter has agreed to settle the government’s allegations by paying a $150 million civil penalty and implementing significant new compliance measures intended to ensure that Twitter improves its data privacy practices. For instance, Twitter will be required to develop and maintain a comprehensive privacy and information-security program, conduct a privacy review with a written report prior to implementing any new product or service that collects users’ private information, and conduct regular testing of its data privacy safeguards. Twitter also will be required to obtain regular assessments of its data privacy program from an independent assessor, provide annual certifications of compliance from a senior officer, provide reports after any data privacy incidents affecting 250 or more users, and comply with numerous other reporting and record-keeping requirements. The settlement also will require Twitter to notify all U.S. customers who joined Twitter before Sept. 17, 2019, about the settlement and to provide users with options for protecting their privacy and security. Under the settlement terms, the Department of Justice and FTC will each have responsibility for monitoring and enforcing Twitter’s compliance.
This matter is being handled by Assistant U.S. Attorney Emmet Ong of the U.S. Attorney’s Office for the Northern District of California; attorneys in the Civil Division’s Consumer Protection Branch, including Director Gustav W. Eyler, Assistant Director Lisa K. Hsiao and Trial Attorneys Zachary Cowan and Deborah Sohn; James Kohm, Reenah Kim and Laura Koss from the FTC’s Division of Enforcement; and Andrea Arias of the FTC’s Division of Privacy and Identity Protection.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.
Toledo Man Sentenced to 15 Years in Prison and Ordered to Pay $119k in Restitution for Possession of Child PornographyRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that Terry Warejko, 63, of Toledo, Ohio, was sentenced on Monday, May 23, 2022, by U.S. District Judge James G. Carr to fifteen years in prison and ordered to pay $119,000 in restitution after Warejko pleaded guilty to an Information charging him with possession of child pornography.
According to court documents, in December 2014, law enforcement authorities executed a search warrant at Warejko’s Toledo-area residence after obtaining information of suspected file-sharing of child pornography at the address. During the search, authorities obtained several electronic devices, which were later confirmed to contain child pornography that depicted prepubescent minors.
Warejko spoke with authorities and admitted to viewing child pornography for the past 20 years and using file-sharing programs to download and share files. Warejko also admitted to visiting paid sites to view and record live-streaming naked women, some of whom displayed their nude minor children and engaged in sex acts.
This case was investigated by the Toledo FBI and was prosecuted by Assistant U.S. Attorney Tracey B. Tangeman.
Todd County Man Indicted for Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Todd County, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child.
Kevin Sharkey, age 45, was indicted on May 10, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 23, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $250,000 fine, five years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between on or about March 1, 2017, and August 31, 2017, in Todd County, Sharkey knowingly engaged in, and attempted to engage in, a sexual act with a child under the age of 12.
The charge is merely an accusation and Sharkey is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Sharkey was released on bond pending trial. A trial date has not been set.
Texas Man Charged in Rhode Island with Fraud, Money Laundering, SCAMS ActRead the Press Release
PROVIDENCE – A Texas man who allegedly participated in a conspiracy where one member posed as a high-ranking military officer stationed overseas while befriending and gaining the trust of seniors in at least ten states, including Rhode Island, has been charged in federal court in Rhode Island with bilking seniors out of nearly one million dollars, announced United States Attorney Zachary A. Cunha.
Fola Alabi, aka Folayemi Alabi, 51, was arrested at his Richmond, Texas, home on Tuesday, and charged by way of a federal criminal complaint filed in U.S. District Court in Providence with conspiracy to commit wire and mail fraud; wire fraud; mail fraud; conspiracy to commit money laundering; money laundering; Alabi was also charged under the Senior Citizens Against Marketing Scams Act of 1994, which provides for enhanced penalties for telemarketing fraud that targets or victimizes persons over age 55.
An investigation by the United States Postal Inspection Service, FBI, United States Secret Service, Homeland Security Investigations, and the United States Attorney’s Office determined that Alabi allegedly bilked seniors out of at least $915,301.
It is alleged in charging documents that one member of the conspiracy befriended unsuspecting seniors online, often posing as a General in the U.S. military serving overseas; or, as a family member offering an investment opportunity. It is alleged that this conspirator, feigning to have a personal, and sometimes romantic, interest in his victims, convinced his victims to send substantial sums of money, usually in the form of bank checks or cash, to addresses and companies in Texas controlled by Alabi or an individual associated with him. It is alleged that once received, the money was deposited into one of several bank accounts controlled by Alabi and quickly withdrawn or transferred to other accounts.
It is alleged that among Alabi’s victims is a 78-year-old Rhode Island widow who was persuaded by someone claiming to be “General Miller,” purportedly a four-star General currently overseas, to provide $60,000 to finance shipment of his personal belongings to the United States. At “General Miller’s” direction, a check was made payable to Full Circle Import Exports and mailed to a Texas address that was determined by investigators to be Alabi’s residence. It is further alleged that the victim was prepared to send a second, and significantly larger sum of money to “General Miller,” when it was determined by her bank and the Westerly Police Department that she was likely being defrauded.
The federal criminal complaint filed in this matter is merely an accusation. The defendant is presumed innocent unless and until proven guilty. In addition to the criminal charges announced today, the government has seized several bank accounts associated with the defendant’s alleged criminal activity and a 2010 Mercedes Benz registered to Alabi.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
United States Attorney Cunha thanks the Rhode Island Attorney General’s Elder Abuse Unit; the Westerly, RI, and Prescott Valley, AZ, Police Departments; Texas Department of Public Safety; West Virginia State Police; and the Santa Clara, CA, County District Attorney’s Office for their assistance in the investigation of this matter.
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Ten People Arrested in Drug Conspiracy Case, Accused of Conspiring to Distribute Fentanyl and CocaineRead the Press Release
WASHINGTON –Ten people were arrested today following their indictments on federal charges stemming from an ongoing investigation into a drug trafficking organization that distributed Fentanyl and cocaine in the Washington, D.C. metropolitan area. The organization primarily operated in areas near Seventh and O Streets NW and nearby neighborhoods.
The arrests and indictment were announced by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, Robert J. Contee III, Chief of the Metropolitan Police Department (MPD), and Jarod Forget, Special Agent in Charge of the Washington Division Office of the U.S. Drug Enforcement Administration (DEA).
A total of 13 defendants are named in the indictment, which was returned earlier this month and unsealed today in the U.S. District Court for the District of Columbia. Two already were in custody, and one remains at large.
The federal drug conspiracy charges arose from a long-term investigation into drug trafficking and violence associated with a street crew at 7th and O Streets that operates in neighborhoods including Shaw, Truxton, and LeDroit Park in Northwest Washington. The indictment alleges that the organization has operated since at least July 1, 2021.
“This investigation reflects our focus on protecting our community both from the deadly consequences of using drugs like Fentanyl and the violence that such drug markets attract,” said U.S. Attorney Graves. “Along with our federal law enforcement partners and the MPD, we are committed to investigating, identifying, and prosecuting these networks.”
“The arrests of these individuals this morning represents the culmination of a nearly year-long investigation into a violent drug trafficking organization,” said Special Agent in Charge Jacobs. “This is yet another fine example of the commitment and resolve of the FBI and our partners at MPD’s Violence Reduction Unit and the DEA to remove these criminal elements from the communities we live and work in. The indictment alleges the charged individuals used illegal firearms and other weapons to commit violence while selling dangerous drugs and laundering the proceeds. The FBI will continue to stand with its partners in our work to make our city safer by bringing purveyors of drugs and violence to account for their egregious actions.”
“Communities deserve to thrive without the presence of illegal drug activity and violence, and our operation was successful in removing individuals engaged in these behaviors from District neighborhoods,” said Chief Contee. “While this operation highlights the thorough investigative efforts and effective partnerships between law enforcement, we are optimistic that continued collaboration will further impact our community.”
During the arrests and related searches today, law enforcement recovered eight firearms, as well as significant quantities of Fentanyl and crack cocaine.
Arrested today were Elliott Johnson, 42; Jeremy Young, 35; Daevon Narce, 29; William Proctor, 54; Andre Williams,32; Ako Handy, 48; Keith Gliss, 36; Manuel Brown, 41; Stanley Hood, 26, and Thomas Shelton, 37. Johnson is from Temple Hills, Maryland. The others are from the District of Columbia. Brian Rice, 34, and Tyrone Wade, 29, both of the District of Columbia, already were in custody, and one other defendant is still being sought.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
The prosecutions followed a joint investigation by the Violence Reduction Unit (VRU) of MPD’s Violent Crime Suppression Division, the FBI Washington Field Office’s Cross Border Safe Streets Task Force, and the Washington Division of the DEA. The Cross Border Safe Streets Task Force targets the most egregious and violent street crews operating in the District of Columbia.
This investigation is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
The case is being prosecuted by Assistant U.S. Attorneys Steven B. Wasserman and Solomon Eppel, of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by the U.S. Attorney’s Office for the District of Maryland.
Syracuse Man Pleads Guilty to Methamphetamine Conspiracy and DistributionRead the Press Release
SYRACUSE, NEW YORK – Eric F. Jackson, aka “The Mexican,” aka “Pops,” age 48, of Syracuse, pled guilty Wednesday to conspiring to distribute and possess with intent to distribute 50 grams or more of methamphetamine, and distribution of 50 grams or more methamphetamine.
The announcement was made by United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Jackson admitted that beginning no later than May 2020 through April 2021, he conspired with others to transport methamphetamine from California to locations in the Northern District of New York, including Syracuse, for distribution. Jackson admitted that in furtherance of the conspiracy, in December 2020, a coconspirator drove with approximately 4.6 kilograms of pure methamphetamine from California destined for Syracuse but was intercepted by police and arrested in Oklahoma City. Jackson also admitted that he arranged for methamphetamine to be shipped by a common carrier to addresses in the Syracuse area, which were provided by coconspirators. In addition to participating in the conspiracy, Jackson admitted that he personally distributed more than 50 grams of pure methamphetamine to another individual in Syracuse. Jackson further admitted that at the time of his arrest in April 2021, at a small convenience store on Park Street in Syracuse, New York, he possessed approximately $17,460 in drug proceeds, and more than 350 grams of pure methamphetamine, which he intended to distribute.
At sentencing, on each count, Jackson faces a maximum potential sentence of life imprisonment, a mandatory minimum term of ten years’ imprisonment, a maximum lifetime term of supervised release, a mandatory minimum term of five years’ supervised release, and a maximum fine of $10,000,000. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by DEA, U.S. Internal Revenue Service Criminal Investigation (IRS-CI), New York State Police-Violent Gang and Narcotics Enforcement Team (NYSP-VGNET), Onondaga County Sheriff’s Office, Onondaga County District Attorney’s Office, Syracuse Police Department, Oklahoma City Police Department, San Bernardino County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Matthew J. McCrobie.
Syracuse City School District Teachers Pay over $31,000 for Submitting False Timecards to Federally Funded High School Dropout Prevention ProgramRead the Press Release
SYRACUSE, NEW YORK – Syracuse City School District teachers Jason Cecile and Nichole Murray have agreed to pay the United States $31,872.90 to resolve allegations that they submitted false timecards in connection with the School District’s Twilight Program.
The announcement was made by United States Attorney Carla B. Freedman, New York State Comptroller Thomas P. DiNapoli, and Terry Harris, Special Agent in Charge, U.S. Department of Education Office of Inspector General (ED OIG), Eastern Region.
“The settlement announced today, as well as the related state prosecutions, hold Mr. Cecile and Ms. Murray accountable for stealing money from a federally funded program intended to benefit at-risk high schoolers,” said United States Attorney Carla B. Freedman. “We will not tolerate fraudulent conduct that could undermine an important safety net for struggling students.”
"These individuals shamelessly stole from the very students they were supposed to be helping. My thanks to U.S. Attorney Freedman, and our other partners in law enforcement, for their dedication to ensuring justice is served and that the stolen money is recouped” said Thomas DiNapoli, New York State Comptroller.
“Mr. Cecile and Ms. Murray not only abused their positions of trust for personal gain, but did so at the expense of the very ones they promised to serve – school children. That is unacceptable,” said Terry Harris, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office. “The OIG will continue to aggressively pursue those who misappropriate education funds for their own purposes. America’s students and taxpayers deserve nothing less.”
Beginning in the 2015-2016 school year, Syracuse City School District (SCSD) received federal grant funds administered by the U.S. Department of Education to operate a high school dropout-prevention program known as the Twilight Program. SCSD offered the Twilight Program at various high schools after regular school hours, from 3:00 p.m. until 7:00 p.m. Students enrolled in the Twilight Program were given the opportunity to make up classes to accumulate enough credits to earn their high school diplomas. SCSD teachers staffed the Twilight Program and received extra pay for teaching classes to Twilight Program participants.
Jason Cecile was the Twilight Program Coordinator at Henninger High School. Nichole Murray was a teacher in the Henninger Twilight Program. As the coordinator, Cecile controlled the Twilight teaching schedule. He instructed certain Twilight staff members to claim hours on their timecard based on the amount of money that was available in the Twilight budget, not on the number of hours they worked. Cecile admitted he habitually left Twilight early and submitted timecards that overreported the number of hours he worked. Murray admitted that she taught one Twilight class, and generally left Henninger at 5:00 p.m., but submitted timecards attesting that she worked until 6:00 p.m., 6:30 p.m., or 7:00 p.m. Both Murray and Cecile signed their timecards and submitted them for payment, falsely attesting to their accuracy.
As part of the settlement agreements, Cecile will pay $20,754.15. Murray will pay $11,118.75.
This investigation was triggered in part by a whistleblower lawsuit filed under the qui tam provision of the False Claims Act, which allows private persons, known as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case will receive $2,001.37 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 5:19-cv-1188 (DNH/TWD).
In a related case prosecuted by the Onondaga County District Attorney’s Office, Jason Cecile pled guilty to Corrupting the Government in the 3rd Degree, a felony, and Nichole Murray pled guilty to Disorderly Conduct. As part of their criminal plea agreements, Murray and Cecile agreed to resign from their employment at SCSD.
This investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the New York State Comptroller’s Office, the Onondaga County District Attorney’s Office and the ED OIG. The United States was represented by Assistant U.S. Attorney Christopher R. Moran.
St. Paul Man Pleads Guilty to Role in Armed Robberies of Twin Cities BusinessesRead the Press Release
MINNEAPOLIS – A St. Paul man has pleaded guilty to his role in two armed robberies of Twin Cities businesses, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 16, 2020, Devon Dwayne Reginald Glover, 22, and his co-defendant Marshawn Michael Davison, 21, committed an armed robbery at a restaurant in Bloomington. During the course of the robbery, Glover shot the restaurant owner with a pistol. Both Glover and Davison took cash from the register.
According to court documents, on June 23, 2020, Glover committed a second armed robbery at a liquor store in St. Paul. During the course of the robbery, Glover pointed a gun at an employee and stole cash from the register.
On May 25, 2022, Glover pleaded guilty to one count of discharging a firearm during and in relation to a crime of violence, and one crime of brandishing a firearm during and in relation to a crime of violence. Glover is scheduled to be sentenced on September 22, 2022. Davison pleaded guilty to one count of Hobbs Act robbery and was sentenced yesterday before Chief Judge John R. Tunheim to 72 months in prison followed by three years of supervised release.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the FBI, the Bloomington Police Department, and the St. Paul Police Department.
Assistant U.S. Attorney Thomas Calhoun-Lopez is prosecuting the case.
St. Paul Man Charged for Online Sextortion Scheme Targeting More Than 500 Minor VictimsRead the Press Release
MINNEAPOLIS – A St. Paul man has been charged in an extensive online sextortion scheme that victimized more than 500 minor girls across the country, announced U.S. Attorney Andrew M. Luger.
According to court documents, for approximately five years, Yue Vang, 31, created and used multiple Internet applications and social media services, including Kik, Snapchat, and Skype, to communicate with hundreds of minor girls throughout the United States and elsewhere. Vang created fake female personae to prey on vulnerable minor girls he met online in order to entice and coerce them to create sexually explicit images and videos to send to him. Vang also threatened to disseminate sexually explicit images of the minor victims to their family members, friends, and classmates, unless they created and sent him additional images and videos of themselves nude or engaging in sexually explicit conduct. For example, in June 2016, Vang contacted a 15-year-old girl and threatened to distribute sexually explicit pictures of her to her classmates and parents to “ruin her life” unless she complied with Vang’s demands to send additional sexually explicit images and videos.
To date, at least 500 minor females have been identified, although law enforcement is attempting to confirm the identity of many other victims. Anyone who believes they may have been a victim of Vang’s offenses or who has information about this matter is encouraged to visit www.fbi.gov/resources/victim-services/seeking-victim-information/seeking-victims-in-yue-vang-investigation or www.Justice.gov/usao-mn/child-sextortion-victim-information.
Vang is charged with two counts of production of child pornography, one count of possession of child pornography, and one count of interstate communications with intent to extort. If convicted, Vang faces a minimum statutory penalty of 15 years in prison. He will make his initial appearance in U.S. District Court before Judge Eric C. Tostrud at a later date.
This case is brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. Click on the “resources” tab for information about Internet safety education.
This case is the result of an investigation conducted by the FBI Minneapolis Field Office and multiple FBI Field Offices, the St. Paul Police Department, the Minnesota ICAC Task Force, the Chandler (Arizona) Police Department, the Delhi Township (Ohio) Police Department, and the Iowa Department of Criminal Investigation.
Assistant U.S. Attorneys Chelsea A. Walcker and Miranda E. Dugi are prosecuting the case.
The charges contained in the information are merely accusations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
St. Francis Man Charged with Possession of a Firearm by a Prohibited PersonRead the Press Release
United States Attorney Alison J. Ramsdell announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Justin Eagle Pipe, age 38, was indicted on April 12, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 23, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, followed by three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 1, 2022, in Todd County, South Dakota, Eagle Pipe, who had previously been convicted of crime punishable by imprisonment exceeding one year, and being an unlawful user of a controlled substance, knowingly possessed a firearm, which had been previously shipped and transported in interstate and foreign commerce.
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.
The charge is merely an accusation and Eagle Pipe is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan Dilges is prosecuting the case.
Eagle Pipe was released on bond pending trial. A trial date has not been set.