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25 May 2022
Former Long Island Resident Indicted for Massive Fraud Scheme Involving Sports BettingRead the Press Release
A two-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Cory Zeidman with conspiracy to commit wire fraud, mail fraud and money laundering conspiracy in connection with a sports betting fraud scheme he operated from Long Island and Florida. The defendant was arrested this morning and Florida and will make his initial appearance at the federal courthouse in Miami.
Breon Peace, United States Attorney for the Eastern District of New York, Ricky Patel, Acting Special Agent-in-Charge, Homeland Security Investigations (HSI), New York, Patrick Ryder, Commissioner, Nassau County Police Department, and Daniel Brubaker, United States Postal Inspector in Charge, announced the charges.
“As alleged, Zeidman defrauded his victims, stole their life savings and persuaded them to drain their retirement accounts to invest in his bogus sports betting group, all so he could spend it on international vacations, a multi-million dollar residence and poker tournaments,” stated United States Attorney Breon Peace. “Today’s indictment serves as a reminder to all of us to be wary of so-called investment opportunities that purport to have inside information, as they are really a gamble not worth taking.”
“As alleged, Zeidman preyed on individuals who were led to believe he had inside information that would lead them to easy money. In reality, he was selling nothing but lies and misinformation— bilking millions from victims along the way, leaving their lives in financial ruin and their bank accounts empty,” said HSI New York Acting Special Agent in Charge Ricky J. Patel. “HSI will continue to work together with our partners to follow the money and tackle complex financial investigations to bring to justice fraudsters like Zeidman, who finance their lavish lifestyles by concocting ways to bamboozle the innocent when their only real goal is lining their pockets with ill-gotten cash.”
“Mr. Zeidman took advantage of the public’s interest to “get in on the ground floor” of his sports betting organization. He devised a criminal scheme to fatten his pockets using nothing more than people’s love for sports and his clever words wrapped around a fraud. Postal Inspectors remind investors to thoroughly review all investment offers to ensure they are not left with a line of empty promises and a drained bank account,” said Inspector in Charge Brubaker.
The defendant was the leader of an organization that placed national radio advertisements to lure victims to retain the organization for sports betting advice. The victims were led to believe that the organization had privileged information that made betting on sporting events a no risk proposition. Victims were required to pay a fee to obtain this information which, unbeknownst to them, was either fictitious or obtained from an internet search by defendant and his co-conspirators. Many victims lost their life savings.
The defendant used the following aliases: Richard Barnes, Walter Barr, Mr. Carlyle, Ray Palmer, Rick Cash, Elliot Stern, Gordon Howard, David Coates, Simon Coates, Paul Knox, Mark Lewis, Joel Orenstein and Steve Nash. Some of the company names used by defendant’s scheme were Gordon Howard Global, Ray Palmer Group and Grant Sports International.
Any individuals who believe they may have been the victim of the alleged crimes perpetrated in connection with this release can contact HSI at 1-866-347-2423.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Anthony Bagnuola, Charles P. Kelly and Diane Beckmann.
The Defendant:
CORY ZEIDMAN
Age: 61
Boca Raton, FloridaE.D.N.Y. Docket No. 22-CR-228 (JS)
Former Bookkeeper Charged with Embezzling over $3 Million from Law Firm Former EmployerRead the Press Release
NEWARK, N.J. – A Florida woman was charged with wire fraud after she stole over $3 million from the law firm where she worked as a bookkeeper, U.S. Attorney Philip R. Sellinger announced today.
Janet Lee Blissitt, 66, of Margate, Florida, is charged by complaint with one count of wire fraud. Blissitt was arrested earlier this morning and made her initial appearance before U.S. Magistrate Judge Patrick M. Hunt in Fort Lauderdale, Florida, federal court. She was released on $150,000 bond.
According to documents filed in this case and statements made in court:
Blissitt worked as a bookkeeper and assistant at a law firm in Boca Raton, Florida. She had access to several of the firm’s business bank accounts, including the firm’s client trust accounts. Starting in October 2021 and continuing through March 2022, Blissitt transferred money from several of the law firm’s business accounts to her personal account and other business bank accounts in New Jersey and Ohio. Blissitt would sometimes falsely note that the purpose of the transfers was to pay fees. Blissitt embezzled an estimated $3 million from the law firm.
The wire fraud charge has a maximum term of 20 years, and a maximum fine of $250,000 or twice the pecuniary gain to the defendant or loss to the victim, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark and Special Agent in Charge Eric B. Smith in Cleveland, Ohio, with the investigation leading to the charges. He also thanked the Boca Raton Police Services Department for their assistance.
The government is represented by Assistant U.S. Attorney Jamie L. Hoxie of the Cybercrime Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Fomer Creola Police Officer Pleads Guilty to Depriving Arrestee of Civil Rights by Use of Unreasonable ForceRead the Press Release
MOBILE, AL – A former City of Creola police officer pleaded guilty today to depriving a man of his right to be free from the use of unreasonable force while in custody.
According to court documents filed in connection with his guilty plea, on April 21, 2021, Gary Lynn Davis, 54, of Creola, while acting as a City of Creola police officer, struck an arrestee in the face with his knee while the arrestee, identified by his initials J.B., was on his knees with shackles on his wrists and ankles. The blow knocked out one of J.B.’s teeth and caused vision issues. At the time of the incident, J.B. had been held on traffic violations for about four days and had become loud and unruly in the city jail. J.B. had money in his bank account to make bond but could not arrange for someone outside the jail to access his account. Davis threatened to put J.B. in a straitjacket, which the department had, but instead belly-chained J.B.’s wrists to his waist and shackled his ankles. J.B. complied with Davis’s demands to get into position so that Davis could shackle him. There was also another officer who was available to assist Davis in getting J.B. under control but Davis did not call him. When J.B. continued to be unruly Davis went next door to the city fire department and borrowed a rope. Davis then unsuccessfully attempted to hog tie J.B. J.B. resisted and the two wrestled on the floor. Davis also attempted unsuccessfully to choke J.B. to try to render him unconscious. A surveillance camera captured the struggle. Then Davis stood up in the cell doorway for a few seconds as J.B. knelt before him. The surveillance camera then captured Davis deliver a forceful blow to J.B.’s face with his knee. Davis’s blow sent J.B. careening backwards and he writhed in pain on the floor. When the police chief and another officer found out about the incident, the officer took J.B. to an ATM and allowed him to withdraw money to make bail. The officer then took J.B. to a city magistrate and he made bail.
The Alabama Law Enforcement Agency (ALEA) conducted an investigation of the incident, which then referred it to FBI Mobile for further investigation and consideration for federal prosecution. Davis faces state charges of Assault, Second Degree, and Attempted Murder, arising from the incident.Davis pleaded guilty to depriving J.B. of the right to be free of the deprivation of liberty without due process of law, which includes the right to be free from the use of unreasonable force by a law enforcement officer. He is scheduled to be sentenced on August 29, 2022, and faces 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Sean P. Costello of the Southern District of Alabama and the FBI made the announcement.
Assistant U.S. Attorney Alex Lankford is prosecuting the case on behalf of the United States.
Florida Felon Sentenced to More Than Four Years in Prison for Illegally Possessing Firearm During High-Speed Chase in Baldwin CountyRead the Press Release
MOBILE, AL – A Florida man was sentenced today to 51 months in prison for being a convicted felon in possession of a firearm.
According to court documents, Mark Allen Snellgrove, 29, of Crestview, Florida, was arrested on February 24, 2021, after he led police on a high speed chase that resulted in injuries to two officers. That morning, officers had responded to a report of a suspicious truck loitering at a gas station in Bay Minette, Alabama. Upon arrival at the station, officers spoke with Snellgrove, the truck’s driver. Snellgrove gave officers a false name and failed to produce a valid identification.
While officers spoke with him, Snellgrove started his truck and floored the gas pedal, forcing an officer who was standing nearby to hang onto the steering wheel of the truck while it accelerated toward a light pole. Snellgrove’s truck hit another officer’s parked car and slammed into the pole, the impact of which caused serious injuries to the officer who was clinging to the truck’s steering wheel. That officer tased Snellgrove, who snatched the taser leads out of his chest and sped his truck in reverse into oncoming traffic the wrong way down Hand Avenue, a busy four-lane thoroughfare.
During the twenty-minute chase that ensued, Snellgrove forced many bystander cars off the road, attempted to ram a police vehicle head-on; drove through numerous stop signs and lighted intersections; drove through residential yards; crashed through a mailbox; and sped through a ditch to avoid a spike strip. At times during the pursuit, Snellgrove reached speeds of more than 100 miles per hour.
Officers eventually ended the chase in a wooded driveway of a private residence by ramming into Snellgrove’s truck and pinning it in place. Snellgrove refused verbal commands to get out of the truck and had to be taken down by a tracking dog. A passenger in the truck, codefendant Rodger Anthony Manning, also refused to get out and bit an officer on the finger as he resisted arrest.
Along the pursuit route, officers found a stolen 9mm pistol that had been thrown from the passenger side of Snellgrove’s truck during the chase. Officers also seized a stolen .45-caliber pistol from the truck near where Manning had been sitting in the backseat. Forensic analysis of the guns revealed Snellgrove’s DNA on the 9mm pistol and Manning’s DNA on the .45-caliber pistol. At the time Snellgrove possessed the pistol, he knew he had been convicted of felony drug offenses in Okaloosa County, Florida in 2019. Snellgrove’s felony convictions rendered his possession of the pistol illegal under federal law.
Senior United States District Judge Callie V.S. Granade ordered Snellgrove to serve a three-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge Granade ordered Snellgrove to pay $100 in special assessments.
Snellgrove faces several pending state criminal charges in Baldwin County, Alabama, including first-degree assault, attempting to elude police, reckless endangerment, and resisting arrest. Judge Granade ordered a portion of Snellgrove’s federal sentence to run consecutively to any punishment he may receive in the related state cases. A defendant is presumed innocent until and unless he is proven guilty at trial.
In April 2022, Manning pleaded guilty to illegally possessing the stolen .45-caliber pistol found in Snellgrove’s truck. Manning is scheduled to be sentenced by Judge Granade on July 13, 2022.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Federal Bureau of Investigation, the Bay Minette Police Department, and the Baldwin County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Federal Jury Finds Tennessee Man Guilty of Child Pornography CrimesRead the Press Release
HUNTINGTON, W.Va. – After a one-day trial, a federal jury convicted Matthew Corban Hagy, 51, of Memphis, Tennessee, of production and possession of child pornography.
Evidence at trial revealed Hagy traveled from Tennessee to Putnam County, West Virginia, as the caretaker for a man visiting family in Poca during the week of Christmas 2020. While there, Hagy took nude photographs of a 5-year-old boy and produced a graphic video of the boy. A search of Hagy’s phone revealed more than 700 additional images and videos of child pornography. In a statement given to police, Hagy admitted that he took a picture of the boy, but denied doing anything inappropriate. The jury found Hagy guilty on both counts of the indictment.
Hagy is scheduled to be sentenced on September 6, 2022. He faces at least 15 years and up to 50 years in prison, and a term of supervised release of at least five years and up to life. Hagy will also be required to register as a sex offender.
“That this individual preyed upon a minor child during the holidays makes his awful crimes all the more heinous,” said United States Attorney Will Thompson. “I thank the U.S. Department of Homeland Security – Homeland Security Investigations (HSI), the Putnam County Sheriff’s Department, the South Charleston Police Department, and the Secret Service for their excellent investigative work in this case. I also commend Assistant United States Attorneys Julie White and Greg McVey and the trial team for prosecuting the case and securing guilty verdicts on all counts.”
United States District Judge Robert C. Chambers presided over the trial. This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-99.
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Federal Jury Convicts High-Level ISIS Member of Providing Material Support to a Foreign Terrorist Organization, Including Two Counts Resulting in DeathRead the Press Release
A New York man was found guilty by a federal jury in Brooklyn, following a three-week trial before U.S. District Judge Nicholas G. Garaufis, of one count of conspiracy to provide material support to the Islamic State of Iraq and al-Sham (ISIS), and five substantive counts of providing material support to ISIS.
According to court documents and evidence presented at trial, Mirsad Kandic, 40, of Brooklyn, New York, and Kosovo, Bosnia and Herzegovina, was a high-ranking member of ISIS, a designated foreign terrorist organization. He had multiple responsibilities within the global terrorist organization, including recruiting foreign fighters, trafficking foreign fighters from the West through Turkey and into Syria, and obtaining weapons, military equipment, maps, money, and false identifications for ISIS fighters. In carrying out these responsibilities, the defendant worked directly with ISIS emirs and battlefield commanders, including Bajro Ikanovic, who commanded an ISIS training camp in Syria beginning in or around 2014. Ikanovic, in turn, reported to Omar Shishani, then the top military commander for ISIS, and a key advisor to Abu Bakr al-Baghdadi, who was, at the time, the leader of ISIS and the self-declared Caliph of the Islamic State.
According to the testimony of 36 witnesses and evidence drawn from six continents, Kandic attempted to leave the United States to fight jihad as early as the summer of 2012. He was denied boarding at the United States point of departure and notified that he was on the no-fly list. In January 2013, Kandic attempted to fly from Toronto, Canada, to Istanbul, Turkey, on a direct flight. He was again denied boarding. The defendant then took a two-day Greyhound bus ride from New York City to Monterrey, Mexico, in November 2013, and flew through Panama, Brazil, Portugal, Germany, Kosovo, and Turkey before arriving in Syria at the end of 2013. In Syria, Kandic joined ISIS and became a fighter for the group in Haritan, an ISIS stronghold in the outskirts of Aleppo, wielding Russian-made PK machine guns and AK-47 assault rifles.
ISIS leadership then directed Kandic to Turkey to take up the role of smuggling foreign fighters and weapons into Syria from abroad, and to serve as an emir for ISIS media. Kandic disseminated ISIS recruitment messages and gruesome propaganda using more than 120 Twitter accounts. For example, Kandic sent out an ISIS-produced “documentary” titled the “Flames of War.” This video celebrated ISIS conquests and macabre executions of ISIS captives, including instances where victims were forced to dig their own graves before being summarily executed by gunshot. The defendant tweeted that this video was the “best thing ever seen on screen.”
Kandic was also a dedicated and prolific recruiter of foreign fighters for ISIS. He sent thousands of radicalized ISIS volunteer fighters from Western countries into ISIS-controlled territories in Syria and elsewhere in the Middle East. This included a fellow New Yorker who became an ISIS sniper and sniper trainer, and another individual who became an emir for ISIS safehouses in the Idlib province of Syria.
One foreign fighter recruited by the defendant was Jake Bilardi of Australia. Bilardi contacted the defendant in June 2014 for assistance in traveling to Syria to join ISIS. Kandic provided Bilardi – who had just turned 18 years old and had never traveled internationally before – with instructions and guidance for reaching Istanbul, Turkey. Kandic then arranged for Bilardi to be picked up at the airport in Istanbul and smuggled him into Syria. Kandic maintained contact with Bilardi as he became an ISIS fighter and ISIS suicide bomber. Bilardi went on to commit a suicide truck attack with fellow ISIS members on March 11, 2015, in Ramadi, Iraq, killing himself, more than 30 Iraqi soldiers, and an Iraqi policeman. Prior to the attack, the defendant wished Bilardi well and stated, “May Allah make [their] inner organs implode.” After the attack, Kandic praised Bilardi, both on Twitter and to a co-conspirator. In audio recordings referencing similar suicide attacks, the defendant praised the killing of more than 90 people as “good.”
In addition, Kandic provided battlefield intelligence and maps to ISIS battlefield commanders and fighters on the ground, including Ikanovic. Kandic also conspired with Ikanovic and other ISIS members in Syria to dig tunnels under the Turkey-Syria border to move 800-1000 fighters into ISIS at a time. Kandic also shaped the information environment in which ISIS operated by enforcing ISIS media and publicity discipline. For example, the defendant directed other ISIS supporters to refrain from posting any information about the success (or failure) of ISIS recruitment efforts as well as to minimize any reporting about ISIS military action. Kandic also managed money for ISIS fighters in Syria, including two ISIS fighters who gave the defendant their bank cards, from which bank records showed more than $40,000 was transacted. Kandic smuggled weapons to ISIS in Syria, including a rifle scope for an ISIS sniper. Kandic operated a private market via Telegram – called “Khilafah (Caliphate) Market” – for which the defendant was the group administrator with authority to restrict access to the group. Members frequently posted firearms and military equipment for sale, including mortars, suicide belts, assault rifles, and other firearms. Among the members of the defendant’s private Telegram market was Abu Luqman, who, at the time, was the ISIS governor for the Raqqa province, ISIS’s de facto capital in Syria.
Kandic was arrested in Sarajevo, Bosnia and Herzegovina. He was convicted of one count of conspiracy to provide material support to ISIS and five substantive counts of providing material support to ISIS in the forms of personnel, including himself, Bilardi, and others, as well as services, weapons, property, and equipment, and false documentation and identification. At sentencing, he faces a maximum sentence of life imprisonment on the two counts resulting in death, and 20 years’ imprisonment on each of the other four charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Saritha Komatireddy, J. Matthew Haggans, and Josh Hafetz for the Eastern District of New York are prosecuting the case, with valuable assistance provided by Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section and paralegals Matt Wulf and Huda Abouchaer.
The Justice Department’s Office of International Affairs, the FBI’s Legal Attachés abroad, and foreign authorities in multiple countries on three continents provided critical assistance in this case. The Department of State’s Regional Security Office in Sarajevo provided critical assistance in this case. In addition, the Bosnian and Herzegovina State Investigation and Protection Agency, the Bosnian and Herzegovina State Intelligence and Security Agency, the Bosnian and Herzegovina Foreigners’ Affairs Service, the Bosnian and Herzegovina State Prosecutor’s Office, the Ministry of Justice of Bosnia and Herzegovina, the Australian Federal Police, the Victoria Police (Australia), the Australian Border Force, the Australian Department of Foreign Affairs and Trade, the Australian Attorney-General’s Department, the Prosecutor General’s Office of the Republic of Kazakhstan, the Iraqi Ministry of Defense, Joint Operations Command in Iraq, and the FBI Legal Attaché Offices in Sarajevo, Canberra, Nur-Sultan, and Baghdad, provided extraordinary assistance in the investigation and prosecution. The Ministry of Justice for the Republic of Finland, and Federal Office of Justice in the Federal Republic of Germany, the Department of Justice & Constitutional Development in the Republic of South Africa, and the central authorities responsible for mutual legal assistance in Albania, North Macedonia, Montenegro, and Ukraine; and the FBI’s Legal Attaché Offices in those countries provided valuable support in the investigation.
The department also thanks the Ministry of Justice for the Republic of Finland, the Stuttgart Police Department and Federal Office of Justice in the Federal Republic of Germany, the Department of Justice & Constitutional Development in the Republic of South Africa, and the central authorities responsible for mutual legal assistance in Albania, North Macedonia, Montenegro, and Ukraine, as well as FBI’s Legal Attaché Offices in those countries for their assistance in the investigation.
Federal Jury Convicts High Level ISIS Member of Six Counts of Material Support to a Foreign Terrorist Organization, Including Two Counts Resulting in DeathRead the Press Release
A federal jury in Brooklyn returned a guilty verdict yesterday against Mirsad Kandic on one count of conspiracy to provide material support to the Islamic State of Iraq and al-Sham (ISIS), and five substantive counts of providing material support to ISIS in the form of personnel, including himself, Australian citizen Jake Bilardi, and others, as well as services, weapons, property, equipment, false documentation and identification, all between January 2013 and June 2017, when the defendant was arrested in Sarajevo, Bosnia and Herzegovina. The verdict followed a three-week trial before United States District Judge Nicholas G. Garaufis. When sentenced, Kandic faces a maximum sentence of life imprisonment on the two counts of the indictment resulting in death, and 20 years’ imprisonment on each of the other four charges.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew Olsen, Assistant Attorney General of the Justice Department’s National Security Division, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Ricky J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the verdict.
“Kandic was a high-ranking member of ISIS who recruited countless fanatics, helping them travel to Syria and other territories to become ISIS fighters. In addition to fueling the front lines of the ISIS army, the defendant aided the extremist group in many other ways, including by providing weapons and spreading its violent propaganda across the globe, to further its bloody and brutal terrorist campaign. Kandic’s actions were directly linked to attacks and significant loss of life,” stated United States Attorney Peace. “With today’s verdict, Kandic has been held accountable for his barbaric crimes. This Office and our law enforcement partners will never rest in our mission to protect the United States from those who threaten its safety and security.”
“Kandic helped to build a secret supply chain of willing fighters for ISIS, recruiting them over social media and ensuring their illegal transit into Syria so they could wage war. He played a vital role in the terrorist group's communications network allowing ISIS to maintain its stranglehold on territory within Syria, and propagating ISIS fighters around the world to plot attacks. Although the threat posed by ISIS has evolved, we must continue our pursuit and punishment of those who support the terrorist organization,” stated Assistant Director-in-Charge Driscoll.
“Kandic’s blind loyalty and dedication to engage in jihad was evident in his determination to join and then support the horrific actions of ISIS, whose terror campaigns have resulted in countless deaths around the world. For years, Kandic was deeply entrenched, orchestrating the movement of personnel and materiel and even helping to shape the messaging and image of ISIS in an effort to recruit and radicalize new followers,” said Homeland Security Investigations (HSI) New York Acting Special Agent in Charge Ricky J. Patel. “The verdict returned today is the result of years of multi-jurisdictional cooperation between international and domestic partners. HSI will continue to work alongside our partners to ensure the safety of individuals around the world from the actions of radical terrorists and bring those who seek to engage in terrorist acts to justice.”
As proven at trial, the evidence and testimony established that the defendant was a high-ranking member of ISIS—the deadliest terrorist organization in the world. He had multiple responsibilities within the global terrorist organization, including recruiting foreign fighters, trafficking foreign fighters from the West through Turkey and into Syria, and obtaining weapons, military equipment, maps, money, and false identifications for ISIS fighters. In carrying out these responsibilities, the defendant worked directly with ISIS emirs and battlefield commanders, including Bajro Ikanovic, who commanded an ISIS training camp in Syria beginning in or around 2014. Ikanovic, in turn, reported to Omar Shishani, then the top military commander for ISIS, and a key advisor to Abu Bakr al-Baghdadi, at the time the leader of ISIS and the self-declared Caliph of the Islamic State.
The witness testimony—which included 36 witnesses and evidence drawn from six continents—established the following: Kandic attempted to leave the United States to fight jihad as early as the summer of 2012. He was denied boarding and notified that he was on the No-Fly List. In January 2013, Kandic attempted to fly from Toronto, Canada to Istanbul, Turkey on a direct flight. He was again denied boarding. The defendant then took a two-day Greyhound bus ride from New York City to Monterrey, Mexico, in November 2013, and flew through Panama, Brazil, Portugal, Germany, Kosovo, and Turkey before arriving in Syria at the end of 2013. In Syria, Kandic joined ISIS and became a fighter for the group in Haritan, an ISIS stronghold in the outskirts of Aleppo, wielding Russian-made PK machine guns and AK-47 assault rifles.
ISIS leadership then directed Kandic to Turkey to take up the role of smuggling foreign fighters and weapons into Syria from abroad, and to serve as an emir for ISIS media. Kandic disseminated ISIS recruitment messages and gruesome propaganda using more than 120 Twitter accounts. For example, Kandic sent out an ISIS-produced “documentary” titled the “Flames of War.” This video celebrated ISIS conquests and macabre executions of ISIS captives, including instances where victims were forced to dig their own graves before being summarily executed by gunshot. The defendant tweeted that this video was the “best thing ever seen on screen.”
Kandic was also a dedicated and prolific recruiter of foreign fighters for ISIS. He sent thousands of radicalized ISIS volunteer fighters from Western countries into ISIS-controlled territories in Syria and elsewhere in the Middle East. This included a fellow New Yorker who became an ISIS sniper and sniper trainer, and another individual who became an emir for ISIS safehouses in the Idlib province of Syria.
One foreign fighter recruited by the defendant was Jake Bilardi of Australia. Bilardi contacted the defendant in June 2014 for assistance in traveling to Syria to join ISIS. Kandic provided Bilardi—who had just turned 18 years old and had never traveled internationally before—with instructions and guidance for reaching Istanbul, Turkey. Kandic then arranged for Bilardi to be picked up at the airport in Istanbul and smuggled him into Syria. Kandic maintained contact with Bilardi as he became an ISIS fighter and ISIS suicide bomber. Bilardi went on to commit a suicide truck attack with fellow ISIS members on March 11, 2015, in Ramadi, Iraq, killing himself, more than 30 Iraqi soldiers, and an Iraqi policeman. Prior to the attack, the defendant wished Bilardi well and stated, “May Allah make there inner organs implode.” After the attack, Kandic praised Bilardi, both on Twitter and to a co-conspirator. In audio recordings referencing similar suicide attacks, the defendant praised the killing of more than 90 people as “good.”
In addition, Kandic provided battlefield intelligence and maps to ISIS battlefield commanders and fighters on the ground, including Ikanovic. Kandic also conspired with Ikanovic and other ISIS members in Syria to dig tunnels under the Turkey-Syria border to move 800-1000 fighters into ISIS at a time. Kandic also shaped the information environment in which ISIS operated by enforcing ISIS media and publicity discipline. For example, the defendant directed other ISIS supporters to refrain from posting any information about the success (or failure) of ISIS recruitment efforts as well as to minimize any reporting about ISIS military action. Kandic also managed money for ISIS fighters in Syria, including two ISIS fighters who gave the defendant their bank cards, from which bank records showed more than $40,000 in transactions. Kandic smuggled weapons to ISIS in Syria, including a rifle scope for an ISIS sniper. Kandic operated a private market via Telegram—called “Khilafah (Caliphate) Market”—for which the defendant was the group administrator with authority to restrict access to the group. Members frequently posted firearms and military equipment for sale, including mortars, suicide belts, assault rifles, and other firearms. Among the members of the defendant’s private Telegram market was Abu Luqman, who, at the time, was the ISIS governor for the Raqqa province, ISIS’s de facto capital in Syria.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Saritha Komatireddy, J. Matthew Haggans, and Josh Hafetz are in charge of the prosecution, with assistance from Trial Attorney Jennifer Levy of the Counterterrorism Section of the National Security Division of the Department of Justice and Office Paralegals Matt Wulf and Huda Abouchaer.
The Justice Department’s Office of International Affairs, the FBI’s Legal Attachés abroad, and foreign authorities in multiple countries on three continents provided critical assistance in this case. The Office extends its appreciation to the Bosnian State Investigation and Protection Agency, the Bosnian State Intelligence and Security Agency, the Bosnian Foreigner’s Affairs Service, Ministry of Justice of Bosnia and Herzegovina, the Bosnian State Prosecutor’s Office, the Australian Federal Police, the Victoria Police (Australia), the Australian Border Force, the Australian Department of Foreign Affairs and Trade, the Australian Attorney-General’s Department, the Prosecutor General’s Office of the Republic of Kazakhstan, the Iraqi Ministry of Defense, Joint Operations Command in Iraq, and the FBI Legal Attaché Offices in Sarajevo, Canberra, Nur-Sultan, and Baghdad, for their extraordinary assistance in the investigation and prosecution. The Office also thanks the Ministry of Justice for the Republic of Finland, the Stuttgart Police Department and Federal Office of Justice in the Federal Republic of Germany, the Department of Justice & Constitutional Development in the Republic of South Africa, and the central authorities responsible for mutual legal assistance in Albania, North Macedonia, Montenegro, and Ukraine, as well as the FBI’s Legal Attaché Offices in those countries for their assistance in the investigation.
The Defendant:
MIRSAD KANDIC
Age: 40
Brooklyn, New York; KosovoE.D.N.Y. Docket No. 17-CR-449 (NGG)
Federal Jury Convicts Claremore Man of 4 Counts of Aggravated Sexual Abuse of a Minor by Force and Threat in Indian CountryRead the Press Release
A federal jury today convicted a man for sexually abusing a 13-year-old minor in his Claremore home in 2014 and 2015, announced U.S. Attorney Clint Johnson.
Gary Dumont Riggs, 77, was found guilty of four counts of aggravated sexual abuse of a minor by force and threat in Indian County.
“Today, a federal jury sent Gary Riggs and other child predators a message that victims will be heard and the sexual abuse of children will not be tolerated within our communities,” said U.S. Attorney Clint Johnson. “As in so many of these cases, this victim, now a young adult, bravely faced her abuser in federal court and told her story. She is a survivor.”
"One of the most important missions of the FBI is to keep our children safe from predators like Mr. Riggs," said Special Agent in Charge Edward Gray of the FBI Oklahoma City Field Office. "Today's conviction is a step in the right direction in the pursuit of justice for the victim of his predatory crimes."
According to the indictment, Riggs raped and otherwise sexually assaulted the victim at least three times between May 1, 2014, and Sept. 1, 2014, and at least one other time from Dec. 1, 2014, to Jan. 31, 2015. At the time of the abuse, Riggs was 70 years old. In May 2015, the victim revealed the abuse to a classmate who then reported the crimes to authorities. When speaking to an investigator, the girl revealed the assaults along with several other abusive incidents that began when she was 12.
When interviewed by law enforcement in May 2015, Riggs eventually admitted to several incidents where he inappropriately touched the victim’s genitals and admitted that he made her touch his genitals and perform sex acts on him. He told the investigator that he had to fight temptation every day. He then stated that he absolutely committed the sexual assaults of his own free will.
In 2022, the victim also disclosed further incidents of abuse. She described how Riggs would touch her any chance he could. During her testimony at trial, she said that she did not initially disclose all of the abuse out of self-preservation, explaining that at the time of initial disclosure, she felt if she revealed even half of the sexual abuse that occurred that no one would believe her. She also described how she began cutting herself as a way to cope with the trauma she had endured. She explained that she hoped the physical pain would detract from the emotional pain she felt. The victim then described how she has since learned healthy ways to cope with the trauma and has moved forward in a positive direction.
In closing, the defense argued that the victim's recollection of the events was inconsistent and allowed for reasonable doubt. The defense further claimed that investigators rushed to judgement and asked Riggs leading questions, which he simply repeated when answering them in 2015. Federal prosecutors countered stating that law enforcement used well established investigative techniques when interviewing the defendant and cited examples of Riggs providing independent details of the abuse to investigators that were not stated in their questions.
Prosecutors asserted that the defendant abused his position of trust and used his size and physical restraint when he sexually assaulted the victim repeatedly. In her final statement to the jury, Assistant U.S. Attorney Stacey Todd explained that in his own words, Riggs told law enforcement that “I wish it had never happened, but it did.” Todd then suggested that no one wished the abuse hadn’t happened more than the victim herself…but it did.
After two hours of deliberating, the jury returned guilty verdicts on all four counts.
The FBI and Verdigris Police Department conducted the investigation. Assistant U.S. Attorneys Stacey P. Todd and Niko A. Boulieris are prosecuting the case.
Federal Grand Jury Indicts Suburban Chicago Police Chief for Allegedly Corruptly Accepting Money from Local BusinessmanRead the Press Release
CHICAGO — The Chief of Police in the village of Summit, Ill., corruptly accepted money from a local businessman intending to be influenced and rewarded in connection with the transfer of a liquor license to another individual, according to a federal indictment.
The indictment returned Tuesday in U.S. District Court in Chicago alleges that Chief JOHN KOSMOWSKI conspired with a Summit building inspector to accept more than $5,000 from the businessman in 2017. The pair accepted the money intending to be influenced and rewarded in connection with the transfer of a liquor license to another person, the indictment states. Kosmowski allegedly received a cash payment from the businessman on March 23, 2017, and then gave the building inspector a portion of it.
The charges allege that Kosmowski met with the building inspector earlier this year and informed him of the federal investigation into the payment. During the meeting, Kosmowski allegedly sought to corruptly persuade the building inspector to mischaracterize the purpose of the payment from Kosmowski to the inspector by falsely suggesting that it was a loan, the indictment states.
The indictment charges Kosmowski, 54, of Lockport, Ill., with one count of bribery conspiracy, one count of bribery, and one count of obstruction of justice. The building inspector, WILLIAM MUNDY, 59, of Summit, Ill., is charged with one count of bribery conspiracy and one count of filing a false tax return. Arraignments in federal court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Tiffany Ardam and Jimmy L. Arce.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Exploiting Philippine minors through Facebook lands Texan in federal prisonRead the Press Release
BROWNSVILLE, Texas – A 47-year-old Harlingen man has been ordered to federal prison following his conviction of receiving child pornography, announced U.S. Attorney Jennifer B. Lowery.
Rico Giovanni Machietto pleaded guilty Oct. 5, 2021.
Today, U.S. District Judge Rolando Olvera Jr. sentenced Machietto to 80 months in federal prison. Machietto was further ordered to pay $5,000 special assessment and will serve 15 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Machietto will also be ordered to register as a sex offender.
At the time of his plea, Machietto admitted that from Dec. 1, 2017, to June 1, 2018, he used Facebook to communicate with minor girls located in the Philippines. He requested nude photos of them and sent money as compensation to their families. As a result of the investigation, law enforcement discovered Machietto possessed one video and 106 images of child pornography on his Apple computer.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations – Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Ana C. Cano is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Durham Attorney Sentenced to Prison for Fraud and Tax Charges, Ordered to Forfeit More than $2 Million in RestitutionRead the Press Release
RALEIGH, N.C. – Tiffany Dawn Russell was sentenced to 63 months today for her role in an extensive multi-year fraud conspiracy and was sentenced to 36 months for filing a false tax return. These sentences will be served concurrently. Earlier this year, Russell pled guilty to charges relating to her efforts to obtain more than $2.5 million from at least 12 financial institutions and the United States Small Business Administration. In addition to her prison sentences, Russell was ordered to forfeit more than $2 million in fraud proceeds.
“This defendant spent years defrauding banks and the federal government, and now she’ll be spending years behind bars,” said U.S. Attorney Michael Easley. “As Judge Dever noted at sentencing, this was more than a one-off mistake, it was a multitude of bad decisions by an attorney who knew better. This fraud scheme is even more egregious because the defendant falsely obtained more than $1 million in COVID-relief funds intended to help legitimate, hard-working business owners weather the pandemic. Money intended to keep businesses afloat was instead used to purchase beach homes and support the defendant’s personal interests. I commend the many law enforcement partners on our EDNC Covid Fraud Task Force who helped to ensure that attorney Tiffany Russell faced justice.”
Russell was originally indicted in November 2020 for conspiracy to commit bank fraud, bank fraud, access device fraud, and misuse of a social security number. According to the Indictment, Russell and her co-conspirators applied for loans and credit cards with social security numbers that were not issued to them by the Social Security Administration. By doing so, they created new credit profiles or synthetic identities for themselves to open financial accounts and make purchases from retailers without any intention of paying for the items and services obtained. Russell was charged with using a synthetic identity to purchase a BMW and to obtain a credit card which she used to pay for her 2016 butt augmentation surgery.
In addition to using synthetic identities, Russell also embarked on a scheme of credit washing to remove legitimate debt accounts from her credit history by falsely claiming she was the victim of identity theft and had not opened those accounts. Once the credit reporting agencies removed those accounts, her credit score improved, enabling her to obtain credit.
Russell also provided fabricated documents when applying for mortgages to purchase three properties, including an oceanfront residence in Nags Head, North Carolina. Russell gave doctored bank statements and inflated pay stubs to make it appear she had substantial liquid assets and the ability to pay the loans.
Finally, between March 30, 2020 and June 29, 2020, Russell and others fraudulently obtained more than $1 million in loans under the CARES Act, which was enacted by Congress to provide emergency financial assistance to millions of Americans suffering from the COVID-19 pandemic. The ten loan applications, including two for her law firm, contained false representations relating to the number of employees, monthly payroll, revenue, and expenses.
Russell used these illegally-obtained proceeds to make the down payment on her Nags Head property and purchase five other properties in North Carolina, Maryland and Alabama. Russell also used these ill-gotten gains to pay outstanding personal debt, unrelated to any business entity.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Federal Bureau of Investigation and the Internal Revenue Service investigated the case and Assistant U.S. Attorney Susan B. Menzer was the prosecutor.
On May 17, 2021, the United States 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. The Eastern District of North Carolina’s COVID Task Force is a part of this effort to coordinate fraud-related investigations and prosecutions in Eastern North Carolina. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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. 5:20-cr-00505-D-3.
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Deadwood Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Deadwood, South Dakota, man has been indicted by a federal grand jury for Receipt of Child Pornography, Obscene Visual Representations of the Sexual Abuse of Children, and Possession of Child Pornography.
Dean Russell Schallenkamp, age 60, was indicted on April 22, 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on May 20, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of five up to 20 years in federal prison and/or a $250,000 fine, mandatory minimum of five years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Schallenkamp was federally indicted following a Cybertip from the National Center of Missing and Exploited Children generated by Microsoft. The charges relate to Schallenkamp receiving and possessing child pornography between March 2011 and September 2021, at Deadwood. The charges are merely an accusation and Schallenkamp is presumed innocent until and unless proven guilty.
The investigation is a joint effort between the Internet Crimes Against Children Taskforce, Homeland Security Investigations, South Dakota Division of Criminal Investigation, Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Schallenkamp was released on conditions pending trial. A trial date has not been set.
Dayton businessman convicted of fraud at trial sentenced to 3 years in prisonRead the Press Release
DAYTON, Ohio – A Dayton businessman was sentenced in U.S. District Court today to 36 months in prison for crimes related to a fraudulent insurance claim.
Following a trial in January 2022, the jury found Brian Higgins, 50, guilty of three counts of mail fraud and two counts of tampering with a witness with intent to retaliate.
According to court documents and trial testimony, in 2014 and 2015, Higgins filed a fraudulent insurance claim in connection with water damage to the Meeker Residence, an 8,000 square-foot house in Dayton. Higgins received more than $100,000 in insurance claims that he used for his personal benefit rather than to repair water damage that occurred from a 600-gallon fish tank.
Higgins used money disbursed on the claim to pay for personal expenditures, such as funding a new restaurant space, paying telephone bills, spending money at a casino, and other personal expenses, rather than paying for bona fide repairs and restoration of the home.
The defendant submitted invoices and repair cost estimates from a construction vendor to the insurance company in order to obtain money. The vendor documents were false and misrepresented the status of repair work at the Meeker Residence.
Higgins then diverted the money to himself and paid for travel, hotels and dining out, among other personal expenses. Higgins had the company keep a small amount of the money to complete small, cosmetic repairs in an attempt to cover up his scheme.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed by Senior U.S. District Judge Thomas M. Rose. Deputy Criminal Chief Brent G. Tabacchi and Assistant United States Attorney Rob Painter are representing the United States in this case.
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Clayton Man Sentenced in Child Pornography CaseRead the Press Release
RALEIGH, N.C. – A Clayton man was sentenced today by Judge James C. Dever III to a total of 97 months for Receipt of Child Pornography. On September 30, 2021, John Camarda, 68, pled guilty to the charge.
According to court documents and other information presented in court, in early 2020, agents with Homeland Security Investigations became aware that a certain IP address within the Eastern District of North Carolina had visited two dark web websites dedicated to the distribution and trading of child pornography related to babies and toddlers. The officer discovered the IP addresses belonged to John Camarda who lived in Clayton, North Carolina.
On July 16, 2020, agents executed a search warrant at Camarda’s home. Camarda confessed to viewing child pornography on the dark web and said he had been engaged in such behavior since 2008. Camarda said he had looked at thousands of images and videos over the years but would not save them to his computer. He admitted to maintaining a document that contained a list of websites that contained child pornography that he liked.
Digital devices were seized from the residence and were forensically analyzed. There was substantial evidence of Camarda accessing websites dedicated to child pornography as well as specific images and videos of child pornography. In addition, Camarda had multiple videos on his computer depicting children engaging in sexual activity. Some of these videos depicted toddlers engaged in sexual activity and some depicted children engaged in sadistic and masochistic conduct. Agents found the document to which Camarda referred that was a list of over 30 pages of websites containing child pornography.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing by U.S. District Judge James C. Dever III. Homeland Security Investigations investigated the case with the assistance of the State Bureau of Investigation, Cary Police Department, Johnston County Sheriff’s Office and the United States Marshal’s Service. Assistant U.S. Attorney Charity Wilson prosecuted the case.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
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. 5:21-cr-00217-D.
Chicago Man Charged in Federal Court with Trafficking “Ghost Guns”Read the Press Release
CHICAGO — A Chicago man has been charged in federal court with trafficking individually manufactured “ghost guns” in the city this year.
DEVON DOW, 22, is charged with willfully dealing firearms without a license. He was arrested Tuesday afternoon. A detention hearing is set for Friday at 1:00 p.m. before U.S. Magistrate Judge Heather K. McShain.
The charge and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations; and David Brown, Superintendent of the Chicago Police Department. The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives provided valuable assistance. The government is represented by Assistant U.S. Attorney Thomas P. Peabody.
According to a criminal complaint filed in U.S. District Court in Chicago, Dow sold seven “ghost guns” on five different occasions in Chicago this year. The transactions allegedly occurred in a parking lot in the Grand Crossing neighborhood on the city’s South Side. The firearms were considered “ghost guns” because they contained no identifiable serial number and had been manufactured from parts collected from various sources. Unbeknownst to Dow, the individual to whom he sold the guns was an undercover law enforcement officer, the complaint states.
Disrupting illegal firearms trafficking is a centerpiece of the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence. As part of the Chicago firearms trafficking strike force, the U.S. Attorney’s Office collaborates with ATF, HSI, CPD, and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding illegal firearm possessors accountable through federal prosecution is also a focus of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the complaint is punishable by a maximum sentence of five years in federal prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Chesterfield County Man Sentenced for Production of Child PornographyRead the Press Release
RICHMOND, Va. – A Chesterfield County man was sentenced today to 30 years in prison and a lifetime of supervised release for producing child pornography.
According to court documents, beginning in December 2015 and continuing over several years, Joshua Clayton Brady, 36, made sexually explicit videos with multiple female victims between the ages of 14 and 16 using the internet application Skype. Brady met these victims on various dating websites, falsely representing himself as a member of one of two wealthy families in the United Kingdom and the United States. Brady sometimes threatened to expose the victims’ activities on those websites to their parents to coerce their participation in the sexual activity. Several years after recording one victim, Brady reapproached that victim when she was a college freshman. Brady then induced the victim to wire him money and allow him to use the victim’s credit cards by threatening to release the videos he had made previously. Brady engaged in similar conduct with adult women he had met on-line.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorney Michael C. Moore and Special Assistant U.S. Attorney Samuel E. Fishel prosecuted the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
In 2021, EDVA launched “UnMasked,” a community-based educational outreach and prevention program in Virginia dedicated to raising awareness and educating the community about the prevalence of online sexual exploitation involving children and young adults. UnMasked is a multi-disciplinary partnership of local, state, federal, and non-profit stakeholders. The core curriculum is provided by the National Center for Missing and Exploited Children’s (NCMEC) NetSmartz program. To report an incident involving online sexual exploitation, call 1-800-843-5678 or submit a report at report.cybertip.org. To request an UnMasked event at your school or organization, please contact EDVA’s Community Outreach Coordinator at [email protected].
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. 3:21-cr-17.
Charleston Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to four years in prison, to be followed by three years of supervised release, for distribution of cocaine.
According to court documents and statements made in court, Jason Edward D’Arco, 40, sold a total of almost three-quarters of a pound of cocaine to a confidential informant on four occasions in January and February 2020. The drug sales occurred at D’Arco’s residence and a sandwich shop he managed in downtown Charleston.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Charleston Police Department. The Drug Enforcement Administration (DEA) provided assistance during the investigation.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Nowles Heinrich prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-263.
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Canton Man Sentenced to 15 Years in Prison for Sex TraffickingRead the Press Release
First Assistant U.S. Attorney Michelle M. Baeppler announced that Larrien Brown-Austin, 37, of Canton, Ohio, was sentenced on Tuesday, May 24, 2022, by U.S. District Judge Pamela A. Barker to 15 years in prison, a lifetime of supervised release and ordered to pay a $5,000 special assessment fine and $1,885 in restitution to victims. Judge Barker pronounced the sentence after Brown-Austin pleaded guilty to participating in a sex trafficking conspiracy that forced victims to perform sex acts in exchange for money.
“This defendant targeted vulnerable victims and exploited their drug dependency all in an attempt to make money and feed his own heinous and selfish wants,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Human trafficking is an insidious crime, and law enforcement will use every means available to ensure that these traffickers face justice.”
“Identifying, investigating, and apprehending sex trafficking offenders is a critical part of our mission,” said Cleveland FBI Acting Special Agent in Charge Philip Frigm, Jr. “The sentence handed down today reflects the tireless effort of the FBI and our law enforcement partners to examine criminal enterprises operating within our communities and bring to justice those who endanger public health and safety. The FBI commends the work of our investigating and prosecuting partners to protect our neighborhoods for law-abiding citizens and remove these offenders from our communities who prey on vulnerable people.”
According to court documents, from June through August of 2018, Brown-Austin lived at a residence in Canton provided by his father that he used to facilitate commercial sex acts. In June of 2018, Brown-Austin met Victim #1 and Victim #2 and forced both victims to live at the residence, perform sex acts in exchange for money and provide him with the profits.
Court records state that Brown-Austin supplied his victims with drugs in an attempt to foster an addiction and withdrawal dependency cycle that forced them to rely upon him for more drugs. Documents show that Brown-Austin used force, threats, acts of violence and leveraged the drug dependency of his victims to coerce them into performing additional commercial sex acts. Brown-Austin also kept a mobile tracking application on the cell phones of his victims in order to determine their whereabouts at all times.
Also charged in this matter as co-defendants are Shannon Marzano and Larry Brown-Austin both of Canton. Marazano and Larry Brown-Austin have both previously pleaded guilty and have been sentenced for their roles in the scheme.
This case was investigated by the Canton FBI, Canton Police Department and the Ohio Department of Rehabilitation and Correction. This case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik.
Canadian Man Pleads Guilty to Pseudoephedrine Importation ChargesRead the Press Release
A Canadian man who unlawfully imported pseudoephedrine from Canada into the United States and Australia during 2011 and 2012 pled guilty today in federal court in Cedar Rapids, Iowa.
Joseph Damgajian, age 42, from Laval, Quebec, Canada, was convicted of one count of using the United States and Canadian mail systems to distribute pseudoephedrine, one count of unlawfully importing pseudoephedrine into the United States, and one count of making false customs declarations to illegally import pseudoephedrine into the United States.
In a plea agreement, Damgajian admitted that, during 2011 and 2012, he was selling pseudoephedrine on the Internet. A methamphetamine lab search in July 2011 identified Damgajian as a source for pseudoephedrine, a chemical used to manufacture methamphetamine. Damgajian sold over 3 kilograms of pseudoephedrine through an online market. He hid the pseudoephedrine in vitamin bottles that he resealed in an effort to avoid the seizure of the substances by customs officials. Agents in the United States purchased pseudoephedrine from Damgajian and coordinated with the Royal Canadian Mounted Police, who seized additional packages of pseudoephedrine Damgajian was illegally sending from Canada to other countries, including the United States and Australia.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Damgajian remains in custody of the United States Marshal pending sentencing. Damgajian faces a possible maximum sentence of 16 years’ imprisonment, a $750,000 fine, and seven years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick J. Reinert and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the U.S. Department of Homeland Security Investigations, U.S. Postal Inspection Service, Royal Canadian Mounted Police, Canadian Postal Inspectors, Canadian Border Services Agency, Australian Customs and Border Protection Service, and the U.S. 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 12-CR-2035.
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California man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Victor L. Roebuck, II, of Long Beach, California, has admitted to a marijuana charge, United States Attorney William Ihlenfeld announced.
Roebuck, 34, pleaded guilty today to one count of “Possession with Intent to Distribute Marijuana.” Roebuck admitted to having marijuana in May 2021 in Ohio County.
Roebuck faces up to five years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Brownsville repeat criminal gets federal prison time for smuggling cocaineRead the Press Release
CORPUS CHRISTI, Texas – A 56-year-old man has been ordered to federal prison following his conviction of possession with intent to distribute 8.872 kilograms of cocaine, announced U.S. Attorney Jennifer B. Lowery.
Jose Antonio Garcia Jr. pleaded guilty Feb. 28.
Today, U.S. District Judge David S. Morales ordered Garcia to serve 130 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence regarding Garcia’s lengthy and varied criminal history. Dating back to 1985, he has nine burglary convictions, five thefts, eight drug or alcohol-related crimes and an alien smuggling attempt in 2014.
On Dec. 27, 2021, Garcia drove a white 2012 Freightliner semi-truck into an inspection lane at the Border Patrol (BP) checkpoint located near Falfurrias. During inspection, authorities conducted a search of the vehicle. Law enforcement then referred Garcia to secondary inspection. At that time, they discovered nine bundles in an empty cardboard Huggies diaper box found underneath a sleeper seat inside the truck.
The bundles were later determined to be 8.872 kilograms of cocaine with an estimated street value of $443,600.
Garcia has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney J. Parker Gochenour prosecuted the case.
Arizona meth conspiracy results in local federal convictionRead the Press Release
CORPUS CHRISTI, Texas - A 42-year-old Corpus Christi resident has pleaded guilty to conspiring to possess with intent to distribute meth, announced U.S. Attorney Jennifer B. Lowery.
Alfredo Delacruz admitted his role in the conspiracy which spanned from March 1 to Oct. 22, 2021.
The investigation began in September 2021. At that time, law enforcement had discovered Delacruz was receiving parcels containing meth from Phoenix, Arizona, to then be distributed in the Corpus Christi area.
On Oct. 21, 2021, authorities executed a search warrant at Delacruz’s residence. There, they discovered money, a ledger, approximately 16 grams of cocaine, several grams of marijuana, a Springfield Arms 9mm semiautomatic pistol, Taurus 9mm pistol, SAR Arms K2P Pistol, SCCY CPX-2 9mm semiautomatic pistol, Ruger .22 Caliber, semiautomatic pistol, Beretta .25 caliber pistol and an ammunition magazine.
Delacruz admitted he made an agreement with a supplier located in Arizona and had sold meth and cocaine for approximately six months. Delacruz received packages containing meth via UPS and sent cash proceeds from the sales to his supplier.
As part of his plea, he took responsibility for 10 to 12 packages, each containing up to five pounds of meth. The total amount of the narcotics exceeded approximately $300,000.
U.S. District Judge Nevla Gonzales Ramos will impose sentencing Aug. 24. At that time, Delacruz faces up to life in prison and a possible $10 million maximum fine.
Delacruz was permitted to remain on bond pending that hearing.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney J. Parker Gochenour is prosecuting the case.
Annapolis MS-13 Gang Member Sentenced to Life in Prison for Racketeering Conspiracy Involving Three Violent MurdersRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Juan Carlos Sandoval-Rodriguez, a/k/a “Picaro,” “El Pastor,” and “Gasper,” age 24, of Annapolis, Maryland, to life in federal prison for a racketeering conspiracy, racketeering, attempted murder, assault with a dangerous weapon, conspiracy to commit murder in aid or racketeering, as well as related violent crimes in aid of racketeering, including three murders, connected to his participation in La Mara Salvatrucha, a transnational criminal enterprise also known as MS-13.
On October 31, 2019, after a nine-day trial, a federal jury convicted Sandoval-Rodriguez of murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering, in connection with a murder that occurred on March 11, 2016.
On January 24, 2022, after a three-month trial, a federal jury convicted Sandoval-Rodriguez of racketeering charges, along with co-defendants Jose Joya Parada, a/k/a “Calmado,” age 21; Oscar Armando Sorto Romero, a/k/a “Lobo,” age 23; and Milton Portillo Rodriguez, a/k/a “Little Gangster,” a/k/a “Seco,” age 26. Sandoval-Rodriguez and Portillo-Rodriguez were also convicted of multiple counts of murder in aid of racketeering.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Acting Special Agent in Charge Selwyn Smith of Homeland Security Investigations, Baltimore Office; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Jason Lando of the Frederick City Police Department; Frederick County Sheriff Charles A. “Chuck” Jenkins; Frederick County State’s Attorney J. Charles Smith, III; Chief Amal E. Awad of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Chief Malik Aziz of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha Braveboy; Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. Sandoval Rodriguez, Portillo Rodriguez, and Joya Parada were members of the Fulton Locos Salvatruchas (“FLS”) clique. Co-defendant Oscar Sorto Romero was part of the Parque Vista Locos Salvatruchas (“PVLS”) clique.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations, and reputation, including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.” One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to promotion to a leadership position.
The evidence at both trials established that between 2015 and 2017, Sandoval-Rodriguez and his co-defendants engaged in a pattern of racketeering, drug trafficking, extortion, murder, and brutal acts of violence against suspected rivals of the gang in an effort to increase MS-13’s power in the Frederick County, Montgomery County, and Anne Arundel County areas of Maryland.
Evidence presented at the 2019 trial established that Sandoval-Rodriguez participated in the murder of a suspected rival gang member on March 11, 2016. During this murder, Sandoval Rodriguez lured the victim to Quiet Waters Park in Annapolis, Maryland, with the intention of killing him. Surveillance video from a nearby laundromat captured Sandoval-Rodriguez and the victim walking toward Quiet Waters Park on the evening of the murder. Once the victim arrived at the park, members of the gang struck him in the head with a branch or stick, and the assailants, including Sandoval-Rodriguez, repeatedly stabbed the victim with a knife, killing him. While Sandoval-Rodriguez and other members of the gang committed the murder, other MS-13 members and associates stood watch outside the park to ensure no one entered or left the park, and to watch for police, so that the gang could complete the murder. After the victim was killed, MS-13 members and associates buried him in a shallow grave inside the park, but Sandoval-Rodriguez did not bury the body because of the cut on his finger and fear that he would leave evidence at the scene. The body was not recovered until Aug. 28, 2017, when it was exhumed by law enforcement. After his arrest, Sandoval-Rodriguez’s writings about the murder as well as additional MS-13 paraphernalia was recovered among his personal belongings in jail. Sandoval-Rodriguez participated in the murder to raise his status in the gang and to assert the authority of MS-13 in Annapolis.
Trial evidence related to Sandoval-Rodriguez at his second trial focused on his participation in several murders, including a 17-year-old victim., who was believed to be a rival gang member. Specifically, the evidence showed that on March 31, 2017, the gang lured a 17-year-old from Annapolis to Wheaton Regional Park, where they stabbed him over 100 times, dismembered him, removed his heart, and buried him in a clandestine grave. Evidence was presented that Sandoval-Rodriguez and Portillo Rodriguez lured the victim out and along with other MS-13 members and associates, brought him from Annapolis to Wheaton Regional Park. Sandoval-Rodriguez, Portillo Rodriguez, and Joya Parada participated in the murder by stabbing, cutting, and dismembering the victim and Joya Parada also helped to dig the victim’s grave.
Trial evidence also demonstrated that Sandoval-Rodriguez participated in a murder that occurred on June 24, 2017. In that murder, the gang used a female associate to lure a 21-year-old woman into a car and then took her to a wooded area in Crownsville, where she was killed, her body was dismembered, and she was buried in a clandestine grave. Co-defendant Portillo-Rodriguez aided in the planning of the murder and helped lure the victim into a car. Sandoval-Rodriguez traveled to the wooded area earlier in the day to dig a hole for the victim’s grave. MS-13 members caused the victim to lose consciousness, removed her clothing, and decapitated the victim with a machete. Sandoval-Rodriguez and Portillo-Rodriguez participated in the murder by stabbing and slashing the victim’s body with a machete, dismembering the body, and burying the body in a wooded area. As a result of their participation in the murder, Sandoval-Rodriguez, Portillo-Rodriguez, and other gang members were promoted within MS-13.
More than 30 MS-13 gang members and associates have been convicted in these cases.
Co-defendants from Sandoval-Rodriguez’s first case, Marlon Cruz-Flores, age 25; Fermin Gomez-Jimenez, age 23; Moises Alexis Reyes-Canales; and Manuel Martinez-Aguilar, aka El Lunatic, aka Zomb, age 22, all of Annapolis, previously pleaded guilty to racketeering conspiracy and a firearms offense. Both Gomez-Jimenez and Cruz-Flores were sentenced to 38 years in prison, Reyes-Canales was sentenced to 35 years in prison, and Martinez-Aguilar was sentenced to 24 years in prison.
On April 20, 2022, Chief Judge Bredar sentenced Joya Parada to 50 years in federal prison, for a racketeering conspiracy, racketeering, and related violent crimes in aid of racketeering. Portillo Rodriguez and Sorto Romero were each sentenced to life in federal prison, for a racketeering conspiracy and for racketeering, as well as related violent crimes in aid of racketeering, including multiple murders.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
United States Attorney Erek L. Barron and Assistant Attorney General Kenneth A. Polite, Jr. commended the FBI; HSI; ATF, the Frederick Police Department; the Frederick County Sheriff’s Office; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in these investigations, and the Baltimore County Police Department for its assistance. Mr. Barron and Assistant Attorney General Polite thanked Assistant U.S. Attorney Zachary Stendig and Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section, who handled the first trial. Mr. Barron also thanked Assistant U.S. Attorneys Kenneth S. Clark, Zachary Stendig, and Anatoly Smolkin, who handled the second trial.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Abingdon Man Sentenced on Bankruptcy Fraud ChargeRead the Press Release
ABINGDON, Va. – An Abingdon man, who concealed bank accounts and other assets from a federal bankruptcy court during his Chapter 11 bankruptcy proceedings, was sentenced yesterday to 12 months in federal prison and ordered to pay a $4,000 fine.
Ronald Eugene Lefler, 67, pled guilty in March 2020 to one count of bankruptcy fraud when he knowingly and fraudulently failed to disclose and otherwise concealed assets from the United States Trustee and from creditors in a pending bankruptcy case before the United States Bankruptcy Court.
According to court documents, on September 20, 2015, Lefler filed for Chapter 11 bankruptcy in the Western District of Virginia and testified under oath that he had fully disclosed all known bank accounts within his control and that he had deposited all of his income into a “debtor-in-possession” bank account, a requirement under the bankruptcy proceedings. Lefler also disclaimed, under oath, to not owning any other assets not otherwise reported, including other vehicles and watercraft.
A subsequent investigation determined that Lefler not only concealed assets of value, including multiple livestock and a houseboat, but also maintained and actively used separate bank accounts at Eastman Credit Union. Records showed that Lefler opened these accounts under false names and used the money for his personal lifestyle expenses, including numerous large withdrawals at the Harrah’s Cherokee Casino Resort in North Carolina.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
Assistant U.S. Attorney Daniel J. Murphy prosecuted the case.
41 Members of a Violent Gang Charged with Drug Trafficking and Firearms Violations in San Juan, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On May 17, 2022, a federal grand jury in the District of Puerto Rico returned an indictment charging 41 violent gang members from the municipality of San Juan with conspiracy to possess with intent to distribute, possession and distribution of controlled substances, and firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI) and the Rico Police Bureau (PRPB), San Juan and Carolina Strike Forces were in charge of the investigation of the case, with the collaboration of the United States Marshals Service, the Drug Enforcement Administration (DEA), and Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI).
“Last year we arrested Carlos Manuel Cotto-Cruz, aka “Wasa”, the leader of this violent organization. We continued to work non-stop to put an end to the organization’s violence, and today we have dismantled its drug trafficking activities,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “This operation reflects the excellent collaboration between our state and federal law enforcement partners – coordinated through our OCDETF task force program.”
“It’s important to highlight that during today’s operation, we arrested various drug trafficking leaders in Puerto Rico,” said Joseph González, Special Agent in Charge of the FBI, San Juan Field Office. “We know this doesn’t mean our work is done, and what I want tom make clear is that we won’t stop.”
The indictment alleges that from 2016 to the date of the return of the indictment, the drug trafficking organization distributed heroin, cocaine base (commonly known as “crack”), cocaine, marihuana, Oxycodone (Percocet), Alprazolam (Xanax), and Buprenorphine (Suboxone) within 1,000 feet of the Vista Hermosa, Villa España, and Luis Lloréns Public Housing Projects, and other areas nearby. The object of the conspiracy was to operate a drug-trafficking organization to distribute controlled substances in many areas in the municipality of San Juan, and to ship narcotics to the Continental United States, for significant financial profit.
During the course of the investigation, members of the conspiracy received shipments of narcotics at the coastlines of Puerto Rico from vessels that had traveled from Venezuela and Dominican Republic. Members of the organization transported and distributed kilogram quantities of cocaine from Puerto Rico into the continental United States.
As part of the conspiracy, the co-conspirators used abandoned apartments in the Public Housing Projects to prepare the drugs for distribution at the drug points. They would also rent different properties or locations using home rental applications like AirBnb, in order to use them as stash places to store kilogram quantities of heroin, cocaine, crack, marihuana, U.S. currency, firearms, and ammunition in order to avoid detection from law enforcement.
The defendants acted in different roles in order to further the goals of their organization, to wit: leaders/suppliers, enforcers, runners, sellers, lookouts, and facilitators. The members of the gang used force, violence, and intimidation to maintain control of the areas in which they operated. They held meetings to discuss the operations of the drug-trafficking organization and to plan violent acts against members of their own gang or members of a rival gang. Twenty-six defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime:
Carlos Manuel Cotto-Cruz, a/k/a “Wasa/Zion/Loco/Alto Rango/Ministro”
Héctor Luis Santiago-Medina, a/k/a “Gordo Casco/El Incorregible”
Luis Daniel García-Hernández, a/k/a “Luisda/Ele-D/El Enano”
Jermaine Calderón-Echevarría, a/k/a “Jey/Jeso/Pupi”
Victor Isaac Del Valle-Rivera
José Luis Castro-Vázquez, a/k/a “Manota”
Fabián Nieves-Rosales, a/k/a “Chino”
Karem Lynette Varcárcel-Cruz, a/k/a “La Prieta”
Pedro Alejandro Ocasio-Hernández, a/k/a “Chino”
Giovanni Andrés Reyes-Cruz, a/k/a “Koala/Ken Y/El Animal/Koa”
Luis Manuel Vega-Quiles, a/k/a “Luisma/Sangre”
Gabriel Casanova-Yales, a/k/a “Gaby Luchy”
Fernando Ian Canino-Ortiz, a/k/a “Ian”
Carlos J. Santos-Díaz, a/k/a “Mambiche”
Luis Miguel Muñóz-López, a/k/a “Chino/Chino Grillo”
Luis Alberto Cintrón-Collazo, a/k/a “Pacho/El Negro”
Pablo De La Cruz-Arias, a/k/a “Pablo El Diablo”
Pedro Victor Nieves-Hernández, a/k/a “Pedrito”
Mario Alexander Rivera
Carlos A. Benítez-Rolón, a/k/a “Charlie/Charlie El Negro”
Jesús David Maldonado-Morales, a/k/a “Chu/Chuito”
Arsenio Laborde-Figueroa
Juan Francisco Torres-Huertas, a/k/a “Cano/Canito/Jonathan”
Julio Ángel Galarza-Rosado
Alex Darnel Rodríguez-Huertas, a/k/a “Darnel”
Lino Acosta-López
The other defendants are:
Luis Manuel Ortiz-Romero, a/k/a “Yiyo”
Luis Nike Santiago-Medina
Juan Ruiz-Díaz, a/k/a “Pra Pra”
Rubén Figueroa-Rodríguez, a/k/a “Rubén el Gordo”
Yan Carlos De Jesús-Ortíz a/k/a “Cepi/Cepi El Escudo”
Omar Quiles-Arce a/k/a “Tibu”
Kevin Jomar Maldonado-Rosa
Kristian Damián Martínez-Cruz
Ángel Rafael Torres-Reyes, a/k/a “Mickey Wood”
Orlando José Rodríguez-Lara, a/k/a “Trippy”
Kibanielle Ichael Colón-Muñíz, a/k/a “Kiba/Kiva”
Chris Anthony Jiménez-Ortiz
Kenny J. Rodríguez-Rodríguez, a/k/a “Kencho/Kenny Kencho/Ian”
Keyshla Michelle Rodríguez-Acevedo
Kelvin Joel Torres-Flores
Defendants Héctor Luis Santiago-Medina and Keyshla Michelle Rodríguez-Acevedo are facing one count of conspiracy to commit money laundering. According to court documents, the object of the conspiracy was to conduct financial transactions with the proceeds of drug trafficking to conceal and disguise the nature, location, source, ownership, and control of the proceeds. For example, they used the proceeds from the sale of the narcotics to purchase vehicles. At times they submitted false financial documents and made false statements to financial institutions to receive loans to purchase automobiles and paid the loans with the narcotics proceeds. They also registered the vehicles in the names of co-conspirators, but the vehicles were used by other individuals from the organization.
Assistant U.S. Attorney (AUSA) and Chief of the Gang Section Alberto López-Rocafort, Deputy Chief of the Gang Section, AUSA Teresa Zapata-Valladares, AUSAs Corinne Cordero-Romo and Pedro Casablanca, and Special AUSA R. Vance Eaton are in charge of the prosecution of the case. If convicted on the drug charges, the defendants face a minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges, the defendants face a minimum sentence of 15 years, and up to life in prison. All defendants are facing a narcotics forfeiture allegation of $58,151,800.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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"Long Time Coming" Update: Parkersburg Woman Sentenced to Prison for Role in Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Parkersburg woman was sentenced today to three years in prison, to be followed by three years of supervised release, for her role in a multi-state conspiracy responsible for distributing methamphetamine and other controlled substances in the Parkersburg area.
According to court documents and statements made in court, Era Dawn Corder, 47, of Parkersburg, admitted to obtaining and re-distributing several ounces of methamphetamine in the Parkersburg area between June and September 2021. Corder obtained this methamphetamine from Carlo Ramsey, at times on consignment with the understanding that she would pay Ramsey back later with the proceeds. Corder and Ramsey would coordinate over the phone when Corder needed additional methamphetamine.
Corder pleaded guilty to conspiracy to distribute methamphetamine. In total, Corder was responsible for over 325 grams of methamphetamine during the course of the conspiracy.
Carlo Ramsey, Floyd Dermonta Ramsey, Ambera Roberts, Matthew Edward Depew, and Robert Sanders, Jr., previously pleaded guilty to felony charges in United States District Court for the Southern District of West Virginia, as a result of a nearly year-long investigation dubbed “Long Time Coming.” Roberts was sentenced to one year and six months in prison, Depew was sentenced to five years in prison, and Floyd Ramsey was sentenced to three years in prison. All other defendants are awaiting sentencing. The investigation also resulted in more than a dozen arrests on state criminal complaints in Wood County.
United States Attorney Will Thompson made the announcement and commended the excellent investigative work of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Parkersburg Narcotics Task Force (PNTF), the Parkersburg Police Department, the West Virginia State Police, the United States Postal Inspection Service, the Vienna Police Department, the Williamstown Police Department, the Wood County Sheriff’s 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. presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe handled the prosecution.
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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24 May 2022
Zebulon Man Sentenced to 10 Years for Firearm Offense After Shooting at Officer During High-Speed ChaseRead the Press Release
RALEIGH, N.C. – A Zebulon man who fired at a Wendell Police Department (WPD) officer during a high-speed chase was sentenced today to 120 months in prison for possession of a firearm by a convicted felon. Cedrick Tyler Armstrong, 37, was previously convicted on November 18, 2021, following a two-day jury trial before United States District Judge James C. Dever, III.
Michael Easley, Jr., the U.S. Attorney for the Eastern District of North Carolina, commented: “Today, Mr. Armstrong received a well-deserved sentence. His conduct endangered innocent members of our community and directly threatened the lives of those brave law enforcement officers who have sworn to protect us. My office will not tolerate those who threaten the safety and security of our district.”
According to court documents, on October 12, 2018, an Investigator with the Wendell Police Department conducted a traffic stop of a vehicle where Armstrong was the front seat passenger. After a baggie from the glove box field-tested positive for cocaine, police tried to remove the driver and Armstrong from the vehicle. The Investigator was able to secure one handcuff to the driver’s left arm before a struggle ensued and the driver fled the stop in the vehicle, dragging the Investigator approximately 25 feet. The Investigator sustained injuries but was able to pursue the vehicle along with other Wendell Police Officers. The driver led law enforcement on a high-speed chase through multiple counties reaching speeds in excess of 100 miles per hour. Several minutes into the chase, approximately nine shots were fired from the passenger side of the vehicle at a pursuing Wendell PD officer, and the chase was terminated shortly thereafter for public and officer safety. A search of the area where the shots were fired located a spent 9mm shell casing.
Armstrong and the driver avoided law enforcement for several hours but were found and arrested later that night at a residence on Beauty Avenue in Raleigh, NC. A search of the residence found a 9mm handgun with an extended magazine hidden in the reservoir of the toilet. Forensic examination of the gun and a shell casing recovered from the area where the shots were fired confirmed that the gun found at the residence on Beauty Avenue fired that casing. The handcuffs, a handcuff key, drugs, and the vehicle keys were also recovered from the residence on Beauty Avenue where the driver and Armstrong were apprehended. Additionally, Investigators executed a search warrant on the vehicle after it was recovered and found another 9mm round matching the same make and caliber of the ammunition found with the gun at Beauty Avenue and the shell casing recovered from the scene of the shooting. A review of Armstrong’s phone also recovered text messages in which he admitted to shooting at law enforcement. Armstrong also faces a number of pending state charges for the incident.
Michael Easley, Jr. U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Wendell Police Department investigated the case with the assistance of the Wake County Sherriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), the Raleigh Police Department, and the Zebulon Police Department. Former Assistant U.S. Attorney Dave Fitzgerald and Assistant U.S. Attorney Bryan Stephany 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. 5:19-CR-00450-D.
Yakima Woman Indicted for COVID-19 Relief Fraud as part of U.S. Attorney’s COVID-19 Fraud Strike ForceRead the Press Release
Yakima, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, has announced that Karla Padilla, age 48, of Yakima, Washington, was indicted this week on seven counts of fraudulently obtaining COVID-19 relief funding. This Indictment is the most recent set of charges resulting from the COVID-19 Relief Fraud Strike Force launched by the U.S. Attorney’s Office earlier this year.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided government-backed loans to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
“COVID-19 relief programs were designed to lift up our community during crisis, and due to the number of people and businesses that requested funding, some deserving small businesses were not able to obtain funding to keep their businesses in operation,” said U.S. Attorney Waldref. “We created the COVID-19 Fraud Strike Force because combatting pandemic-related fraud and holding those accountable who abused these programs is critical to the strength and safety of our community in Eastern Washington. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations, U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments, criminal prosecutions, and civil penalties.
The Indictment announced today charges seven counts of fraud arising from one EIDL and two PPP loans obtained by Padilla in 2020 and 2021 on behalf of her supposed collectible car business identified as Queen B Collectibles. The Indictment alleges that Queen B Collectibles was not a legitimate business, had no employees, receipts or business operations, and was not eligible for any EIDL or PPP funding, and that Padilla submitted false information in order to fraudulently obtain over $59,000 in EIDL and PPP funding. The Indictment also alleges that Padilla unsuccessfully and fraudulently attempted to obtain four additional EIDLs for Queen B Collectibles, which SBA did not fund.
“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by SBA OIG and TIGTA,” said U.S. Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding, and to strengthen our communities by protecting our small and local businesses.”
This case was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force, with SBA OIG and TIGTA as the lead investigative agencies. This case is being prosecuted by Assistant United States Attorney Tyler H.L. Tornabene, Assistant United States Attorney Dan Fruchter, and Special Assistant United States Attorney Frieda K. Zimmerman.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Waipahu Man Arrested for Threats to Injure Others and Bomb Buildings in UtahRead the Press Release
HONOLULU – Bryan Melvin Brandenburg, 63, of Waipahu, made his initial appearance today in United States District Court in Honolulu on charges filed in a criminal complaint that he transmitted threats to injure another person and false threats to kill, injure and intimidate an individual, and to damage and destroy a building and other real property, by means of an explosive. The appearance followed Brandenburg’s arrest yesterday at his Waipahu residence. United States Magistrate Judge Wes Reber Porter ordered him detained pending a detention hearing on May 27.
According to court documents, while in Hawaii, on May 4, 2022, Brandenburg, who had pending divorce proceedings in a Utah state court, sent email communications to court personnel in Utah threatening to bomb the 3rd District Courthouse in Salt Lake City, the mayor’s office, the state capitol, every Ivy League school, and the federal courthouse in San Diego. Multiple media persons in Utah also received email communications from Brandenburg on May 4 and May 6 threatening to bomb the Salt Lake City courthouse, “Hall Labs,” and the University of Utah (identified as “U of U”) Center for Medical Innovation.
“Sending threats to kill people or destroy property is a serious matter that we will investigate and prosecute,” said Clare E. Connors, United States Attorney for the District of Hawaii. “It does not matter if the threats are false or made to people and places outside of Hawaii. This conduct causes harm and is unlawful.”
“This arrest confirms the FBI’s commitment in investigating threats of violence by means of an explosive to the fullest extent of the law,” said FBI Special Agent in Charge Steven Merrill. “Whether you threaten someone in Hawaii or elsewhere, the FBI will do whatever is necessary to protect the public to ensure their safety. We ask the public to be vigilant and report things that may seem suspicious or threatening to the FBI to (808) 566-4300 or tips.fbi.gov.”
Brandenburg is charged in the criminal complaint with one count of transmitting in interstate a communication containing a threat to injure the person of another and one count of conveying false threats through interstate commerce to kill, injure, or intimidate an individual or damage or destroy a building or other real property by means of an explosive. If indicted and convicted on those charges, Brandenburg faces maximum terms of imprisonment of five years on the count threatening injury and ten years the six false bomb threat charge.
A criminal complaint is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Darren Ching is handling the prosecution.
Wagener Man Indicted on 15 Counts of Firearm Possession and Narcotics DistributionRead the Press Release
Columbia, South Carolina — A federal grand jury in Columbia returned a 15-count indictment charging Anthony Tyrone Whitfield, 44, of Wagener, for possessing firearms and ammunition as a prohibited felon, for distribution of methamphetamine, fentanyl, cocaine, crack cocaine, and marijuana, and for possessing and using firearms in connection with his drug distribution activities.
The indictment alleges that on nine occasions between December 2018 and September 2021 Whitfield distributed, attempted to distribute, or was in possession with intent to distribute, methamphetamine, fentanyl, cocaine, crack cocaine, and marijuana, including at least 50 grams of methamphetamine on two occasions. The indictment also alleges that he was in possession of six firearms and various rounds of ammunition on three different dates, and that he possessed or used firearms in connection with his drug trafficking activity also on three occasions.
The indictment also alleges that Whitfield is subject to an enhanced sentence by virtue of a conviction for a serious drug felony offense in South Carolina state court in 2017.
Whitfield faces a maximum penalty of life imprisonment on numerous charges, and a mandatory five years consecutive to any other term of imprisonment on charges related to the possession of a firearm in connection with drug trafficking. Whitfield is currently detained on state charges and his arraignment in federal court is scheduled for May 31, 2022, before U.S. Magistrate Judge Paige J. Gossett.
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the South Carolina Law Enforcement Division (SLED), the Lexington County Sheriff’s Office, the Aiken County Sheriff’s Office, and the Salley Police Department, with assistance from the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Elliott B. Daniels is prosecuting the case.
U.S. Attorney Corey F. Ellis stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Virginia Man with Multiple Prior Felony Convictions Sentenced to over Three Years in Firearms CaseRead the Press Release
MOBILE, AL – A Virginia man was sentenced today to three years and a month in prison for being a felon in possession of a firearm.
According to court documents, Michael Gray Golding, 34, was arrested by Foley Police Department (FPD) officers on May 5, 2021. On that day, FDP responded to a 911 call reporting that Golding was at a hotel in Foley, Alabama with an active arrest warrant out of Virginia and likely armed. FPD encountered Golding in his vehicle in the hotel parking lot. FPD verified that Golding had an extraditable warrant for his arrest out of Virginia for contempt of court in a felony case where he failed to appear for sentencing. FPD secured the area where Golding was parked and ordered Golding to exit the vehicle. After approximately one hour of ordering Golding to exit the vehicle, Golding got out and was taken into custody without incident.
FPD officers searched Golding’s vehicle and found a Glock, Model 23, .40-caliber pistol, a sawed-off Remington Model 870 shotgun, and ammunition. Brass knuckles, drug paraphernalia, and drugs for personal use were also found in the vehicle.Prior to possessing these two guns, Golding had been convicted of multiple felonies, including possession of a controlled substance, eluding law enforcement, and possession of a drug with intent to distribute. Golding failed to appear for his sentencing for his possession with intent to distribute case in Virginia, which led to his active arrest warrant. Under federal law, Golding is prohibiting from possessing firearms or ammunition because of his felony convictions.
Senior United States District Court Judge William H. Steele ordered Golding to serve a three-year term of supervised release upon his release from prison, during which time he may participate in substance abuse treatment. The court did not impose a fine, but Judge Steele ordered Golding to pay $100 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Federal Bureau of Investigation and the Foley Police Department investigated the case.Assistant U.S. Attorney Justin Kopf prosecuted the case on behalf of the United States.
United States enters into settlement agreement with Mason methadone clinicRead the Press Release
CINCINNATI –A Mason, Ohio, methadone clinic has agreed to pay the government $37,500 following a DEA inspection of the clinic.
“This settlement shows that companies operating methadone clinics have a duty to do so with diligence,” said U.S. Attorney Kenneth L. Parker. “While it is important work, sloppiness in this area can lead to the improper diversion of drugs onto the streets, which would defeat the very purpose of these clinics’ existence: to provide those with opioid addictions a safe way to heal and recover. The U.S. Attorney’s Office will continue to ensure clinics operate appropriately; no one is above the law.”
The Craig and Frances Lindner Center of HOPE operated a methadone clinic in Mason, Ohio, known as HOPE Center North. Methadone is a Schedule II controlled substance.
According to the settlement, the DEA conducted an inspection of HOPE Center North on July 15, 2020. The inspection included a review of the methadone clinic’s physical and operational security measures, required controlled substance recordkeeping, records of receipt and dispensation of methadone, and a recordkeeping accountability audit of methadone.
The settlement details that the DEA noted seven potential recordkeeping violations at HOPE Center North.
For example, the DEA noted that the clinic failed to provide the DEA with a biennial inventory of its controlled substances and did not keep complete and accurate inventory records. HOPE Center North also failed to keep accurate DEA forms evidencing the shipment and disposal of methadone from the facility.
As part of the settlement, HOPE Center North agrees to comply with all controlled substance recordkeeping standards as required by law.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Kent Kleinschmidt, Acting Special Agent in Charge, Drug Enforcement Administration (DEA) announced the settlement. Deputy Civil Chief Brandi Stewart is representing the United States in this matter.
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U.S. Attorney’s Office Collects More Than $330k in Restitution from Defendant in Mortgage Fraud SchemeRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that the Financial Litigation Program (FLP) of the U.S. Attorney’s Office for the Northern District of Ohio collected $333,549.82 in restitution from a defendant convicted of participating in a $40 million mortgage fraud scheme.
According to court records, a notice of judgment satisfaction was approved for Defendant John J. Dubay on Monday, May 23, 2022. In 2014, Dubay was convicted by a jury of bank fraud and conspiracy to commit bank fraud. Dubay and others were part of a mortgage fraud conspiracy involving dozens of properties along Florida’s Gulf Coast. As part of the scheme, Dubay and others acted as straw buyers who made false statements, misrepresentations and other omissions in the mortgage loan application process.
As a result of the scheme, Dubay and others obtained numerous home mortgage loans under false and fraudulent pretenses with a total face value of approximately $40 million, many of which ended up in default and foreclosure.
Dubay was sentenced to prison in September 2015 and ordered to pay $333,549.82 in restitution for his role in the conspiracy.
This case was investigated by the FBI. The financial litigation was handled by Assistant U.S. Attorney Suzana K. Koch. This case was criminally prosecuted by Assistant U.S. Attorneys Robert J. Patton and Om Kakani.
The U.S. Attorney’s Office is responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.
While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Two Maryland Residents Found Guilty by Jury of Federal Charges Related to Sex Trafficking of MinorsRead the Press Release
WASHINGTON – Willis Lewis, 48, and Brittany Jones, 32, have been found guilty by a jury of federal charges, including sex trafficking by force, fraud, and coercion, sex trafficking of minors, and related offenses, in connection with their trafficking of a 15-year-old girl and a 17-year-old girl between April and May of 2019.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
The verdict was returned May 23, 2022, following a trial in the U.S. District Court for the District of Columbia. Lewis, of Oxon Hill, Maryland, and Jones, of Suitland, Maryland, remain in custody. The Honorable Royce C. Lamberth scheduled sentencing for Sept. 2, 2022.
According to the government’s evidence, Jones, working with two co-conspirators who since pleaded guilty, brought the two victims to Lewis for the purposes of trafficking them. After they were in Lewis’s custody, Lewis, along with another co-conspirator, set up “dates” for the two girls each day for almost two weeks and Lewis pocketed the money that the two girls made from these dates. Lewis used a loyalty contract, a firearm, and acts of violence committed against the co-conspirator in front of the victims to coerce the victims into performing commercial sex for his profit. Law enforcement became involved in this investigation after the two victims ran away from a residential facility in Virginia and the facility filed a missing person’s report.
At trial, the co-conspirators testified against Lewis and Jones and were corroborated by independent evidence, including material from the digital devices and cell phone location data.
Both defendants were arrested on July 30, 2019.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia, including the Metropolitan Police Department. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
This case was brought as part of the Department of Justice’s Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. 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.projectsafechildhoodgov
In announcing the verdict, U.S. Attorney Graves, Special Agent in Charge Jacobs, and Chief Contee commended the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force, as well as the MPD’s Human Trafficking Unit. They also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office and Justice Department, including Paralegal Specialists Genevieve De Guzman, Karla Nunez, and Irina Tchernoskoutova, and Victim/Witness Advocate Yvonne Bryant.
Finally, they commended the work of Trial Attorney Elizabeth Hutson of the Justice Department Criminal Division’s Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Janani Iyengar, who investigated and prosecuted the matter.
Two Charged with Sex Trafficking Adult Women in Pennsylvania, Florida and TexasRead the Press Release
PITTSBURGH, PA – A man from Pittsburgh, Pennsylvania, and a woman from Kensington, Maryland, have been indicted by a federal grand jury in Pittsburgh on charges related to sex trafficking, United States Attorney Cindy K. Chung announced today.
The five-count Indictment, returned on May 19 and unsealed today, named Philip Walker, a/k/a Phillip Walker, a/k/a Sean, a/k/a Sean Santana, a/k/a Money, 36, and Anjali Lindsey, 22, as defendants.
According to the Indictment, from in and around November 2019 to April 2022, Walker and Lindsey conspired to commit sex trafficking by force, threats of force, fraud or coercion, on adult females, known to the Grand Jury, causing these adult females to engage in commercial sex acts. The conspiracy charges that their conduct occurred in Pennsylvania, Florida, and Texas. Walker and Lindsey are also charged with interstate travel or transmission, using the internet and cell phones, in aid of the prostitution business.
Further, Walker is separately charged with two counts of sex trafficking two different adult females, known to the Grand Jury, using force, threats of force, fraud or coercion to cause them to engage in commercial sex acts. He is also charged with inducing and enticing of one of these adult females to travel from Ohio to Pennsylvania with the intent that the adult female engage in prostitution.
The law provides for a maximum total sentence, as to Walker, of not less than 15 years to life in prison, a fine not to exceed $250,000.00 or both. As to Lindsey, the law provides for a maximum total sentence of up to life in prison, a fine not to exceed $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, with the assistance of the Pittsburgh Bureau of Police Narcotics Division, conducted the investigation leading to the Indictment in this case.
The sex trafficking charges in the indictment concern specific victims. Additional members of the public who may have information about Walker and Lindsey’s involvement in sex trafficking are encouraged to call the FBI’s Pittsburgh Field Office at (412) 432-4000.
This prosecution is part of Operation T.E.N. (Trafficking Ends Now). Operation T.E.N. serves as an umbrella coalition for law enforcement, community, and non-profit partners in the 25 counties in the Western District of Pennsylvania. This coordinated effort aims to end human trafficking through education and improved cooperation across agencies and service providers, thereby enhancing the office’s ability to empower victims of human trafficking to become thriving survivors.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Texas Man Guilty of Lewd Acts on Flight from Seattle to PhoenixRead the Press Release
PHOENIX, Ariz. – Antonio Sherrodd McGarity, 34, of Arlington, Texas, pleaded guilty last week to Lewd, Indecent, or Obscene Acts While on an Aircraft and was sentenced by U.S. Magistrate Judge Deborah M. Fine to 48 days in prison, followed by one year of probation. McGarity is also prohibited from flying commercially in the United States while on probation. A conviction for this offense carries a maximum penalty of 90 days in jail.
On April 2, 2022, during a Southwest Airlines flight from Seattle to Phoenix, McGarity exposed himself while other passengers sat next to him in the emergency exit row. McGarity also masturbated several times. The passenger sitting beside McGarity reported the incident to a flight attendant who then informed Phoenix Police and FBI agents on the ground. Immediately upon landing, McGarity was arrested and charged with committing a lewd, indecent, or obscene act while on an aircraft. In addition to this offense, McGarity has several prior state and local convictions for lewd and lascivious conduct.
The Phoenix Police Department and FBI conducted the investigation in this case. Assistant U.S. Attorneys Kevin Hakala and Tim Courchaine, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: 22-03085MJ-PHX-MTM
RELEASE NUMBER: 2022-081_McGarity# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Telluride Man Charged with Making Threats to Law EnforcementRead the Press Release
Telluride – The United States Attorney’s Office for the District of Colorado announces that Bryan Randolph Cornwell, age 39, of Norwood, has been arrested and charged by criminal complaint with making threats by means of explosives.
According to the arrest affidavit, Cornwell was contacted during an investigation of a fentanyl overdose. As a result of Cornwell’s interaction with the San Miguel County Sheriff’s Office, law enforcement observed and reported that Cornwell became increasingly agitated. He then allegedly sent threatening text messages to one of the investigators.
Cornwall made his appearance in federal court in Grand Junction on May 23, 2022, where he was apprised of the charges pending against him. The Detention hearing is scheduled for May 25, 2022 at 2:00 p.m. before Magistrate Judge Gordon Gallagher. The preliminary hearing is scheduled for June 6, 2022 at 12:30 p.m. before Magistrate Judge J. Candelaria.
If convicted, Cornwell faces no more than ten years in prison, three years of supervised release and a $250,000 fine.
The FBI is working with the San Miguel County Sheriff’s Office on this investigation. Assistant United States Attorneys Jeffrey Graves and R. Josh Player are handling the prosecution.
The charges contained in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
Case number: 22-mj-91.
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Tallahassee Man Manufacturing “Ghost Guns” Sentenced to 87 Months in Federal PrisonRead the Press Release
TALLAHASSEE, FLORIDA – Carlos A. Urena, 38, of Tallahassee, Florida, was sentenced to 87 months in federal prison after pleading guilty to possessing firearms and ammunition as a convicted felon and possessing an unregistered short-barreled rifle. Jason R. Coody, United States Attorney, for the Northern District of Florida announced the sentence.
“Removing ‘ghost guns’ from the hands of convicted felons is essential in fighting violent crime and protecting the public,” said U.S. Attorney Coody. “This investigation and the resulting sentence demonstrate that cooperation between law abiding citizens and law enforcement makes our communities safer.”
After receiving a tip that Carlos Urena was illegally in possession of a large number of firearms, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Tallahassee Police Department (TPD), began a joint investigation. Financial documents revealed that Urena had spent approximately $8000 at various websites which sell firearm parts and part-kits between June 17, 2021, and July 7, 2021. On July 22, 2021, ATF and TPD executed federal search warrants at Urena’s home and business. They recovered eight AR-15 style firearms, a Mossberg 12-gauge shotgun, three polymer-80 Glock-style pistols, a Springfield Armory 9-millimeter pistol, an ATA Arms 12-gauge shotgun, thousands of rounds of ammunition in various calibers, firearm parts including high-capacity magazines and AR-style firearm receivers, and tools related to assembling firearms. Most of the firearms recovered were privately made firearms, commonly called “ghost guns” because they do not have serial numbers and are difficult to trace, which Urena had assembled himself from parts ordered from the internet.
“ATF continues to work vigorously with our law enforcement partners to ensure the safety and protection of the communities that we serve,” said ATF Special Agent in Charge, Craig W. Saier, “and to make sure the felons in possession of firearms are prosecuted to the fullest extent of the law.”
Urena was prohibited from possessing firearms or ammunition because he was a convicted felon. Urena had nine prior felony convictions. Less than a month before the search warrants, he had been placed on state probation for child abuse and for possession of ammunition by a convicted felon.
“Our officers and detectives work diligently to rid our community of illegal guns and reduce the likelihood of those guns ending up in the wrong hands,” said Deputy Chief Jason Laursen of the Tallahassee Police Department. “This conviction is a testament to the vital role the judicial system plays in holding those accountable who aide individuals in the illegal possession of firearms that could be used in violent crimes against the citizens of Tallahassee.”
Following his 87-month prison sentence, Urena will be on federal supervised release for three years. The Court also imposed a $50,000 fine. This sentencing resulted from the collaborative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Tallahassee Police Department. The case was prosecuted by Assistant United States Attorney James A. McCain.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Sugar Creek Man Indicted for Stealing 36 Firearms from Gun StoreRead the Press Release
KANSAS CITY, Mo. – A Sugar Creek, Mo., man has been indicted by a federal grand jury for stealing 36 firearms in the burglary of a Lone Jack, Mo., gun store.
Edward A. Robinson, Jr., 22, was charged in a two-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, May 18. That indictment was unsealed and made public today upon Robinson’s arrest and initial court appearance.
Deputies with the Jackson County, Mo., Sheriff’s Department responded to an alarm at MTC Gun, a federally licensed firearms dealer in Lone Jack, at 5:16 a.m. on Feb. 7, 2022. Deputies found evidence of forced entry at the building and began searching the area. A short time later, they found Robinson in a nearby field. Robinson was standing next to a motorcycle, with a large black bag slung over his shoulder. Deputies found the stolen firearms inside the bag and arrested Robinson.
The federal indictment charges Robinson with one count of stealing 36 firearms from a federally licensed firearms dealer and one count of possessing 36 stolen firearms.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Stephanie Bradshaw. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jackson County, Mo., Sheriff’s Department.
Staten Island Man Sentenced for Distributing Heroin and FentanylRead the Press Release
Earlier today, in federal court in Brooklyn, Nalerton Charles, also known as “Lite,” was sentenced by United States District Judge I. Leo Glasser to 210 months’ imprisonment for distribution and possession with intent to distribute narcotics. Charles pleaded guilty to the charge in November 2021.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), and Kevin P. Bruen, Superintendent, New York State Police (NYSP), announced the sentence.
“Charles contributed to the terrible opioid epidemic in our district by selling heroin laced with fentanyl, and on occasion fentanyl alone, with flagrant disregard for the potentially deadly consequences of the drugs to users,” stated United States Attorney Peace. “The defendant’s conviction and today’s sentence are the result of the relentless efforts by this Office and our law enforcement partners to prosecute traffickers dealing lethal drugs for profit and bring justice for the victims and families devastated by the opioid scourge.”
“Fentanyl is responsible for nearly 80% of all drug-related overdose deaths in New York,” stated DEA Special Agent-in-Charge Tarentino. “It is cases like this that highlight the dangers of synthetic drugs and the consequences associated with illicit drug use and drug trafficking. I commend the members of the New York Drug Enforcement Task Force and the U.S. Attorney’s Office Eastern District of New York for their relentless work in keeping the communities safe.”
“As this case demonstrates, anyone who peddles this deadly poison in our city will be arrested and prosecuted to the fullest extent of the law,” stated NYPD Commissioner Sewell. “The callous disregard for human life displayed by this defendant is indicative of the reckless and negligent depravity of dealing illegal drugs. These criminals prey on some of our community’s most vulnerable people, and the NYPD will never cease in our efforts to bring them to justice. I want to thank the U.S. Attorney for the Eastern District, the DEA, and all of our investigators for their outstanding work on this case.”
“Mr. Charles sentencing illustrates the work of a strong law enforcement partnership that has resulted in a dangerous individual being taken off the streets. Drugs such as heroin and fentanyl destroy families, communities and put lives at risk. This sentencing sends a clear message that we will not tolerate the illegal drug activity and the deadly consequences associated with it. We will remain vigilant in pursuing and prosecuting criminals who threaten the safety of our neighborhoods,” stated NYSP Superintendent Bruen.
Between July 2018 and April 2019, Charles sold at least 40 grams of fentanyl and heroin laced with fentanyl. The investigation revealed that on September 9, 2018, a 43-year-old individual (John Doe-1) died of a drug-related overdose at his residence on Staten Island. Drug packaging found near John Doe -1’s body was consistent with the packaging that Charles used for the narcotics he sold, and a search of John Doe-1’s phone indicated that he had purchased narcotics from Charles the night before his death. On April 23, 2019, a 29-year-old individual (John Doe -2) died of a drug-related overdose at his residence on Staten Island. A search of John Doe -2’s phone revealed text messages between Charles and John Doe -2. On the morning of John Doe-2’s death, he texted Charles, “Is it mix w fentonal…Just wanna know to be careful”. Shortly before John Doe -2’s body was discovered, Charles texted Victim-2: “U good”. Autopsies performed on both victims revealed traces of heroin and fentanyl in their bodies. Additionally, Charles sold pure fentanyl to a confidential source and an undercover NYPD officer in doses that could have been lethal if consumed.
According to the Centers for Disease Control and Prevention (CDC) and the Department of Justice, in 2019, nearly 71,000 people died from drug overdoses, making it a leading cause of injury-related death in the United States. The increase in overdose deaths has been driven in large part by fentanyl – a drug that has been described as 50 to 100 times more potent than morphine. In 2019, over 14,000 people died in the United States from a drug overdose involving heroin. From 2013 to 2019, the synthetic opioid death rate increased by more than 1,000 percent. Of those deaths, over 70% involved a prescription or illicit opioid. Among New York State residents, the number of overdose deaths involving any opioid increased each year between 2010 and 2017, with an overall increase of 200.2 percent from 1,074 in 2010 to 3,224 in 2017, according to the New York State Health Department.
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.
The government’s case is being prosecuted by Department of Justice Trial Attorney Miriam L. Glaser Dauermann of the Criminal Division’s Fraud Section under the supervision of the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section.
The Defendant:
NALERTON CHARLES (also known as “Lite”)
Age: 38
Staten Island, New YorkE.D.N.Y. Docket No. 19-CR-293 (ILG)
St. Matthews Man with History of Violence Sentenced to More Than Six Years in Federal Prison for Firearm and Methamphetamine PossessionRead the Press Release
COLUMBIA, SOUTH CAROLINA — Jerry Jarell McKnight, Jr., 28, of St. Matthews, was sentenced to more than six years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition and possession with intent to distribute methamphetamine.
Evidence presented in court showed that on January 6, 2019, around 11:00 P.M., an officer with the Santee Police Department observed a vehicle travelling on US-15 in Santee speeding and committing various traffic violations. The officer conducted a traffic stop, and upon approaching the vehicle noticed the smell of marijuana emanating from the vehicle. The officer conducted a search and recovered from McKnight, a passenger in the vehicle, methamphetamine packaged in numerous types of packaging consistent with distribution, a digital scale, and a loaded Springfield Armory .40 caliber pistol. An analysis conducted by the South Carolina Law Enforcement Division (SLED) determined that McKnight’s DNA was on the firearm and its magazine, and McKnight appeared to make admissions related to the firearm and drug distribution on recorded jail calls.
Evidence presented also indicated that McKnight had numerous prior felony convictions, including two related to homicides and one related to an additional shooting, to include a 10-year sentence for assault and battery 1st degree (in which a person was shot in Orangeburg County), accessory after the fact of a felony (in which a person was shot and killed in Orangeburg County), and accessory after the fact of a felony (in which a person was shot and killed in Orangeburg County), as well as convictions related to drug possession, burglary, and shoplifting.
United States District Judge Mary Geiger Lewis sentenced McKnight to 77 months imprisonment to be followed by three years of court ordered supervision. There is no parole in the federal system. The Court revoked McKnight’s credit for acceptance of responsibility for conduct following his guilty plea, including numerous frivolous court filings and making claims inconsistent with acceptance of responsibility.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Santee Police Department, the Orangeburg County Sheriff’s Office, and SLED. Assistant U.S. Attorney Elliott B. Daniels prosecuted the case.
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St. Louis man sentenced to two years in prison for N-95 mask scam, PPP fraudRead the Press Release
ST. LOUIS – United States District Court Judge Ronnie L. White on Tuesday sentenced Prince Vamboi, 40, to two years in prison for $212,848 worth of frauds including a N-95 mask scam and a $18,750 fraudulent loan through the Paycheck Protection Program.
Vamboi opened multiple bank accounts in the St. Louis area in 2019 using aliases and counterfeit identification documents that he then used to facilitate a series of frauds, his plea agreement says.
In 2019, he deposited a $35,098 check that had been altered to replace the name of a Texas company with the name of one of Vamboi’s companies.
In 2020, a Vamboi co-conspirator convinced a Wisconsin company to send $159,000 to a Vamboi-controlled bank account to pay for N-95 masks. The company, Verona Safety Supply, never received the masks.
In 2021, Vamboi fraudulently obtained a $18,750 loan through the Paycheck Protection Program, which was intended to help companies avoid layoffs. He also deposited fraudulently-obtained unemployment insurance benefits from the state of Washington.
“The United States Postal Inspection Service and its law enforcement partners will aggressively investigate those who deal in checks stolen from the U.S. Mail as part of their fraud schemes,” said Inspector in Charge William Hedrick, head of the Inspection Service’s Chicago Division, which includes the St. Louis Field Office.
Vamboi pleaded guilty February 22 to three felony counts of conspiracy to commit wire fraud and one bank fraud count.
The case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Diane Klocke prosecuted the case.
Springfield Man Arrested for Fentanyl DistributionRead the Press Release
BOSTON – A Springfield man was arrested today on a drug offense involving fentanyl distribution.
Christian Camacho, 25, was indicted on one count of possession with intent to distribute 40 grams or more of fentanyl. Camacho was released on conditions following an initial appearance this afternoon in federal court in Springfield before U.S. District Court Magistrate Judge Katherine A. Robertson.
According to the indictment, in Hampden County on or about March 30, 2022, Camacho knowingly possessed 40 grams or more of fentanyl intended for distribution.
The charge of possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of up to 40 years in prison, four years of supervised release and a fine of $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; and Springfield Police Commissioner Cheryl Clapprood, made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Rollins’ Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Southwest Washington Man Indicted for Overdose Death of Portland TeenRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland has returned a superseding indictment charging a Vancouver, Washington man for his role in a fentanyl distribution scheme that led to the overdose death of a Portland teenager.
Manuel Antonio Souza Espinoza, 24, has been charged with conspiracy to distribute and possess with intent to distribute fentanyl, resulting in death; possession with intent to distribute fentanyl; and possession of a firearm in furtherance of a drug trafficking crime.
“Our community is flooded with counterfeit prescription pills that can take an innocent victim’s life in the blink of an eye. Sadly, taking a pill to get high does not have the same stigma or barrier to entry for many unwitting victims, leading to tragic results,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon. “We urge everyone, regardless of age, to talk with their friends and loved ones about the risks of taking pills not prescribed to them by a medical professional. Please help to protect those closest to you while we in law enforcement continue to battle this urgent public health and safety crisis.”
“HSI, along with our law enforcement partners, pursue those fueling the opioid epidemic in this region which is claiming the lives of so many young victims,” said Special Agent in Charge (SAC) Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in the Pacific Northwest. “This heartbreaking story is a constant reminder to the public that the only safe medications are ones prescribed by a trusted medical professional and dispensed by a licensed pharmacist.”
“All overdose cases are tragic, but this one involving a person so young was heartbreaking, and our sympathies are extended to his loved ones,” said Chief Chuck Lovell. “I’m grateful for the ongoing and important work of the members of PPB’s Narcotics and Organized Crime Unit, investigative assistance from the Clackamas County Interagency Task Force, and our federal partners. Any time an arrest like this is made, our city gets a little bit safer. However, addressing this issue is going to take more than law enforcement. We need the community to recognize this problem and help us promote awareness that these fentanyl pills and powder are lethal and are a significant threat to our community.”
According to court documents, the investigation that ultimately led to Espinoza’s arrest began after the tragic overdose death of a Portland teenager who, in March 2022, ingested a counterfeit “M30” Oxycodone pill manufactured with fentanyl. The investigation revealed that Espinoza—a known, high-volume Portland area drug dealer—was the third-level supplier of the counterfeit pills. On March 31, 2022, using a confidential informant, investigators arranged a controlled purchase of 1,000 pills from Espinoza. When Espinoza arrived at the agreed upon location, he was immediately arrested. Investigators located the 1,000 pills in his vehicle along with a loaded .40 caliber handgun with extended magazine.
On March 31, 2022, Espinoza was charged by criminal complaint with possession with intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime. Later, on April 21, 2022, a federal grand jury in Portland indicted him on the same charges.
Espinoza made his initial appearance in federal court today before U.S. Magistrate Judge Jolie A. Russo. He was arraigned, pleaded not guilty, and ordered detained pending further court proceedings.
If convicted, Espinoza faces a maximum sentence of life in federal prison.
U.S. Attorney Asphaug, Special Agent in Charge Hammer, and Chief Lovell made the announcement.
This case was investigated by Homeland Security Investigations, the Portland Police Bureau, and the Multnomah County District Attorney’s Office with assistance from the Clackamas County Inter-agency Task Force. Assistant U.S. Attorney Scott M. Kerin is prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Opioid abuse affects communities across the nation. Provisional data from the Centers for Disease Control and Prevention (CDC) indicate that there were more than 100,000 drug overdoses in the U.S. during the 12-month period ending April 2021, an increase of nearly 29% from the previous 12-month period. Synthetic opioids (primarily fentanyl) accounted for more than three quarters of these deaths. Drug overdose continues to be the leading cause of injury or death in the U.S.
Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 3-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male. The availability of illicit fentanyl in Oregon has caused a dramatic increase in overdose deaths throughout the state.
If you or someone you know is in immediate danger, please call 911.
If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm Pacific Time daily.
This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. 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.
South Bend Man Sentenced to 121 Months in Prison and Ordered to Pay $1,938,193.15 in RestitutionRead the Press Release
SOUTH BEND – Sven Eric Marshall, Jr., 64 years old, of South Bend, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio on his plea of guilty to mail fraud, securities fraud, and bank fraud, announced United States Attorney Clifford D. Johnson.
Marshall was sentenced to 121 months in prison, 2 years of supervised release, and ordered to pay $1,938,193.15 in restitution to the various victims of his offenses.
According to documents in this case, Marshall practiced law as an attorney in South Bend in the area of wills, trusts, estates, and other elder law matters. He also provided financial accounting services and sold investment securities. From approximately 2003 until its collapse in December 2017, Marshall’s investment business, Trust & Investment Advisory Services of Indiana, Inc., defrauded investors by paying their supposed investment returns with other investors’ money. He also used investors’ money for his personal expenses. Marshall stole more than $730,000 from 16 different investors over the course of his scheme. Many of Marshall’s victims invested their entire life savings and suffered substantial financial hardship after they lost their money.
In addition to defrauding investors, Marshall also embezzled more than $1.3 million from seven clients who had hired Marshall to prepare their wills and estates. Marshall did not distribute the victims’ money according to their directives, but instead, used the estates’ money for his own personal and business expenses. The beneficiaries of these wills never received the money the victims wanted to leave them. These beneficiaries included numerous local churches, schools, religious communities, and charitable organizations.
This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Luke N. Reilander and John M. Maciejczyk.
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Slidell Woman Charged with Misappropriating Veteran’s FundsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that SLOANE SIGNAL-DEBOSE, age 51, a resident of Slidell, was charged on May 23, 2022 with misappropriating funds from a veteran while SIGNAL was the veteran’s fiduciary.
The government filed a one-count bill of information that charged SIGNAL with misappropriation by a veteran’s fiduciary, in violation of Title 38, United States Code, Section 6101. According to the bill of information, from 2016 until 2018 SIGNAL was a fiduciary for a veteran who needed assistance with the management of his affairs, and she had control over the veteran’s finances and bank accounts. During that time, SIGNAL took over $100,000 from the veteran’s accounts and used it as the down payment on a home for SIGNAL that was only in SIGNAL’s name. SIGNAL also used additional funds from the veteran to pay contractors working on SIGNAL’s home. SIGNAL then submitted false records to the Department of Veteran’s Affairs to hide her misuse of the veteran’s funds.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, SIGNAL faces up to five years in prison. SIGNAL also faces up to three years of supervised release after release from prison, a fine of up to $250,000 or twice the gross gain to SIGNAL or the gross loss to any victims, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the Department of Veterans Affairs Office of Inspector General. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
Ship Owner and Operator Plead Guilty to Environmental and Safety CrimesRead the Press Release
Empire Bulkers Limited and Joanna Maritime Limited, related companies based in Greece, pleaded guilty today to knowing violations of the Act to Prevent Pollution from Ships and the Ports and Waterways Safety Act related to the Motor Vessel Joanna.
The guilty pleas took place today in federal court in New Orleans, Louisiana, before U.S. District Court Judge Mary Ann Vial Lemmon. If the proposed plea agreement is approved by the court, the companies will be fined $2 million ($1 million each), and serve four years of probation subject to the terms of an environmental compliance plan that includes independent ship audits and supervision by a court appointed monitor.
“Deliberate violation of environmental and safety laws pose a serious threat to U.S. ports and waters, as well as to those working on ships,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “These corporations knowingly engaged in dangerous and deceitful misconduct that warrants robust enforcement of the law.”
“This prosecution sends a clear and deterrent message that those who cut corners and break the law will be vigorously prosecuted,” said U.S. Attorney Duane Evans for the Eastern District of Louisiana. “These companies will be under close supervision going forward.”
In pleading guilty, Empire Bulkers and Joanna Maritime admitted to knowingly falsifying the ship’s Oil Record Book, a required log, that concealed overboard discharges of oil contaminated waste made in violation of MARPOL, an international treaty to which the United States is a party. The criminal violation of the Act to Prevent Pollution from Ships was discovered by a U.S. Coast Guard inspector who noticed that a valve handle used to sample the oil content of overboard discharges was out of position during a March 2021 inspection in New Orleans, according to a joint factual statement filed in court. A metal piece found welded inside enabled overboard discharges to occur while the sample being evaluated by the Oil Content Monitor was being diluted with fresh water.
A Coast Guard advisory issued in 2008 as well as a notice from the manufacturer of the monitor warned about this exact method of tricking the oil content monitor. Overboard discharges are only permissible if they are processed through an oily water separator and measured by the oil content monitor to contain a concentration of oil less than 15 parts per million (ppm) without dilution. The entries made in the oil record book relating to overboard discharges and presented to the Coast Guard falsely indicated that discharges had occurred through 15 ppm equipment. The ship owner and operator also admitted that discharge entries in the oil record book had been co-signed by an engineer that did not have anything to do with the operations or have knowledge of their accuracy.
The Coast Guard discovered an unreported safety hazard during the same inspection. After Coast Guard was on the vessel, ship representatives sought permission to maneuver from the Bonnet Carre Anchorage to the CCI Buoys further upriver where cargo operations were scheduled to take place. Coast Guard inspectors travelling with the ship during the voyage noticed drops of oil in the engine room. They followed the trail of oil which led near the purifier room. When they looked inside, the purifier room, the Coast Guard discovered that the discharge line from the pressure relief valves had been disconnected and crimped closed thus disabling both pressure relief valves. The safety relief valves on the fuel oil heaters serve a critical safety function because they allow pressure to be released and oil diverted to a waste oil tank. In papers filed in court, the defendants admitted that the plugging of the relief valves and the large volume of oil leaking from the pressure relief valve presented hazardous conditions that had not been immediately reported to the Coast Guard in violation of the Ports and Waterways Safety Act. Had there been a fire or explosion in the purifier room, it could have been catastrophic and resulted in a loss of propulsion, loss of life, and pollution, according to the factual statement.
Ship Owner and Operator Plead Guilty to Environmental and Safety CrimesRead the Press Release
WASHINGTON – Empire Bulkers Limited and Joanna Maritime Limited, related companies based in Greece, pleaded guilty today to knowing violations of the Act to Prevent Pollution from Ships and the Ports and Waterways Safety Act related to the Motor Vessel Joanna.
The guilty pleas took place today in federal court in New Orleans, Louisiana, before U.S. District Court Judge Mary Ann Vial Lemmon. If the proposed plea agreement is approved by the Court, the companies will be fined $2 million ($1 million each), and serve four years of probation subject to the terms of an environmental compliance plan that includes independent ship audits and supervision by a Court Appointed Monitor.
“Deliberate violation of environmental and safety laws pose a serious threat to U.S. ports and waters, as well as to those working on ships,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “These corporations knowingly engaged in dangerous and deceitful misconduct that warrants robust enforcement of the law.”
“This prosecution sends a clear and deterrent message that those who cut corners and break the law will be vigorously prosecuted,” said U.S. Attorney Duane Evans for the Eastern District of Louisiana. “These companies will be under close supervision going forward.”
In pleading guilty, Empire Bulkers and Joanna Maritime admitted to knowingly falsifying the ship’s Oil Record Book, a required log, that concealed overboard discharges of oil contaminated waste made in violation of MARPOL, an international treaty to which the United States is a party. The criminal violation of the Act to Prevent Pollution from Ships was discovered by a U.S. Coast Guard inspector who noticed that a valve handle used to sample the oil content of overboard discharges was out of position during a March 2021 inspection in New Orleans, according to a joint factual statement filed in court. A metal piece found welded inside enabled overboard discharges to occur while the sample being evaluated by the Oil Content Monitor was being diluted with fresh water. A Coast Guard advisory issued in 2008 as well as a notice from the manufacturer of the monitor warned about this exact method of tricking the Oil Content Monitor. Overboard discharges are only permissible if they are processed through an Oily Water Separator and measured by the Oil Content Monitor to contain a concentration of oil less than 15 parts per million without dilution. The entries made in the Oil Record Book relating to overboard discharges and presented to the Coast Guard falsely indicated that discharges had occurred through 15 ppm equipment. The ship owner and operator also admitted that discharge entries in the Oil Record Book had been co-signed by an engineer that did not have anything to do with the operations or have knowledge of their accuracy.
The Coast Guard discovered an unreported safety hazard during the same inspection. After Coast Guard was on the vessel, ship representatives sought permission to maneuver from the Bonnet Carre Anchorage to the CCI Buoys further upriver where cargo operations were scheduled to take place. Coast Guard inspectors travelling with the ship during the voyage noticed drops of oil in the engine room. They followed the trail of oil which led near the purifier room. When they looked inside, ,the purifier room, the Coast Guard discovered that the discharge line from the pressure relief valves had been disconnected and crimped closed thus disabling both pressure relief valves. The safety relief valves on the fuel oil heaters serve a critical safety function because they allow pressure to be released and oil diverted to a waste oil tank. In papers filed in court, the defendants admitted that the plugging of the relief valves and the large volume of oil leaking from the pressure relief valve presented hazardous conditions that had not been immediately reported to the Coast Guard in violation of the Ports and Waterways Safety Act. Had there been a fire or explosion in the purifier room, it could have been catastrophic and resulted in a loss of propulsion, loss of life, and pollution, according to the factual statement.
San Francisco Physician to Pay More Than $1,000,000 to Settle Allegations of False Medicare ChargesRead the Press Release
SAN JOSE – Bay Area physician Dr. Roger Wang has agreed to pay $1,033,666.42 to resolve allegations that he violated the False Claims Act by charging Medicare for non-FDA-approved drugs and associated services, announced United States Attorney Stephanie M. Hinds; Special Agent in Charge, Office of Inspector General for the U.S. Department of Health and Human Services Steven J. Ryan; and Special Agent in Charge of the Food and Drug Administration (FDA), Office of Criminal Investigations, Los Angeles Field Office, Lisa L. Malinowski.
According to the settlement, viscosupplements, such as Synvisc, Synvisc One, and Orthovisc, are FDA-approved drugs injected for the treatment of osteoarthritis pain. The United States has alleged that Wang, a rheumatology specialist practicing in San Francisco, purchased and injected into his patients versions of Synvisc, Synvisc One, or Orthovisc that were not approved by the FDA for distribution in the United States and therefore were not covered by Medicare, and billed Medicare for the drugs and injections. The settlement agreement resolves claims the United States might have brought based upon these allegations.
“When Medicare pays for drugs and services, the government expects doctors to follow the rules in place to protect patient safety,” said U.S. Attorney Stephanie M. Hinds. “In this case, the rules require doctors seeking reimbursement from Medicare for injecting viscosupplements to use FDA-approved drugs. This office will hold accountable anyone who seeks to cut corners by defrauding American taxpayers and risking harm to patients by using unapproved medications.”
"Physicians who bill Medicare for ineligible medications and procedures defy basic requirements for their participation in the program and wrongfully attempt to collect taxpayer funds," stated HHS-OIG Special Agent in Charge Steven J. Ryan. "We will continue to work closely with our law enforcement partners to investigate bad actors that cheat federal health care programs and flout their safeguards meant to protect patients’ health and well-being.”
“Drugs and devices that are produced and distributed outside the FDA’s oversight present the prospect of harm to the public health,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations, Los Angeles Field Office. “We commend DOJ and HHS-OIG for their commitment to protecting American patients.”
According to the settlement, the United States alleged Wang knowingly submitted thousands of false claims for reimbursement for non-FDA-approved Synvisc and Orthovisc and related procedures. Specifically, the United States alleged that Wang used non-FDA-approved drugs that were packaged and labeled for use in foreign markets. At least some of the labeling, according to the settlement, was for additional uses not approved in the United States. In addition, the United States alleged that, from June 30, 2015, to December 1, 2019, Wang knowingly submitted claims to Medicare for reimbursement for non-FDA-approved Synvisc and Orthovisc, and for injection procedures, even though neither the non-FDA-approved drugs nor the injections of those drugs are covered by Medicare. Pursuant to the settlement, the United States agreed to resolve the government’s claims resulting from Wang’s conduct, including the government’s claims under the False Claims Act, codified at 31 U.S.C. §§ 3729-3733, and certain other related claims, for more than $1 million.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Assistant U.S. Attorney Michael Pyle is handling the matter. The settlement is the result of an investigation by the U.S. Attorney’s Office for the Northern District of California, the U.S. Department of Health and Human Services Office of Inspector General, and the Food and Drug Administration, Office of Criminal Investigations.
Rockland County Man Sentenced to 7 Years for Ponzi-Like Securities Fraud Scheme Targeting Local Haitian CommunityRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that RULESS PIERRE was sentenced to 84 months in prison yesterday in connection with his Ponzi-like securities fraud schemes that primarily targeted PIERRE’s own Haitian community in Rockland County, New York. PIERRE was convicted of securities fraud, wire fraud, and structuring offenses after a jury trial in May 2021 before U.S. District Judge Sidney Stein, who imposed the sentence.
U.S. Attorney Damian Williams said: “Ruless Pierre violated the trust of his closest friends and fellow community members. Pierre’s brazen lies caused many of his victims not only financial losses, but long-lasting emotional damage as well. This sentence achieves some measure of justice for Pierre’s victims and puts fraudsters on notice that we will protect investors from those that would violate their trust.”
According to the Complaint, the Indictment, and the evidence presented at trial:
Investment Promissory Fraud
From at least November 2016 through October 2019, PIERRE solicited money from investors in Ruless Pierre Consulting Group (“RPCG”) by falsely promising them that he would earn a 20% return on their initial investment every 60 days through stock trading (the “Promissory Note Fraud”). The investments were written down in documents known as “Investment Promissory Notes.” These investment contracts generally promised that the investor would be paid 20% interest every 60 days and that the investor could withdraw all funds from the investment with 30 days’ notice. Based on these documents and the false representations of PIERRE, the investors understood that their principal and interest were guaranteed.
During the course of the investment fraud scheme, PIERRE fraudulently obtained over $2 million from approximately 100 investors. After receiving money from investors, PIERRE deposited the money into one of his personal bank accounts or bank accounts of RPCG. PIERRE then transferred the money to trading accounts, where he engaged in unprofitable day trading. Despite his trading losses, PIERRE repeatedly and falsely represented to investors, including in investment statements containing fictitious balances, that the trading was profitable and that their investments were growing as promised. In addition to losing their money, PIERRE also used investors’ funds to pay for personal expenses, including luxury vehicles. Additionally, PIERRE further concealed the truth from investors by using money obtained from new investors to make redemption payments to previous investors, in Ponzi-like fashion.
The Franchise Investment Fraud
Beginning in or about November 2018, PIERRE began to offer investors, including some individuals who invested in his Promissory Note Fraud, the opportunity to purchase partnership interests in a partnership that would run three fast-food franchise locations (hereinafter, the “Franchise Investment Fraud”). At the time, PIERRE did not own any of the fast-food franchises, but he was in discussions regarding purchasing them. Each investment was memorialized in a document entitled “Silent Partnership Agreement.”
The Silent Partnership Agreements promised the investors a 5% monthly return on the investment, in addition to a 40% pro rata share of the quarterly gross operating profit. The minimum investment was $5,000.
The Silent Partnership Agreements further provided that PIERRE was the General Partner, and that he was responsible “for the complete management, control, and policies related to the operation and conduct of the business.”
PIERRE received financial statements for the franchise locations, which showed minimal profits. Nonetheless, PIERRE promised investors an unrealistic 5% monthly return on their investment.
In or about April 2019, PIERRE purchased one fast food franchise for approximately $50,000. Pierre did not purchase the other franchises.
PIERRE deposited the fast-food franchise investors’ money in various bank accounts, which commingled the funds from the Franchise Investment Fraud with the Promissory Note Fraud. In Ponzi-like fashion, PIERRE fraudulently misappropriated some of the fast-food franchise investors’ money to pay back investors in the Promissory Note Fraud.
In total, PIERRE raised at least $200,000 by selling the Silent Partnership Agreements to at least 18 investors. Some of the investors were paid their five percent monthly distribution, but the vast majority of the investors were not been made whole. The fast-food franchise went out of business in December 2019.
The Embezzlement Fraud Scheme and Structuring
In the another scheme, PIERRE embezzled money from his former employers. From approximately 2007 until February 2016, PIERRE was the director of finance for two different hotels, which were owned by the same company (“Company-1”). One hotel was located in the Palisades, New York (“Hotel-1”), while the other was located in Armonk, New York (“Hotel-2”) (collectively, “the Hotels”). As the director of finance, PIERRE was the signatory on several bank accounts held in the name of the management companies that managed the Hotels (“Management Companies”).
After August 2018, PIERRE no longer worked at either Hotel-1 or Hotel-2, but he regularly wrote himself checks payable to cash from the Management Companies’ bank accounts. Specifically, from September 2018 through March 2019, PIERRE wrote over 70 checks to “cash” or “petty cash” from one of the bank accounts for Hotel-1, for over $300,000.
In addition, from March 2017 through 2019, PIERRE deposited large amounts of cash into his personal bank accounts in amounts that were generally less than $10,000. The deposits were conducted at various bank locations and typically took place on the same day, consecutive days, or within a short period of time. For example, in just seven months, from June 2018 through December 2018, PIERRE deposited approximately $225,612, through 138 cash deposits all under $10,000, into a bank account in the name of RPCG.
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In addition to the prison term, PIERRE, 52, of Nanuet, New York, was sentenced to 3 years of supervised release and was ordered to pay forfeiture in the amount of $3,701,893.91 and restitution to victims in the amount of $2,030,337.32.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations and thanked the United States Postal Inspection Service, the United States Internal Revenue Service, the New York City Police Department, and the New York City Sherriff’s Office, which assisted in the investigation. Mr. Williams also thanked the Securities and Exchange Commission, which has brought and filed a civil enforcement action against the defendant.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Drew Skinner is in charge of the prosecution.