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Wednesday 13 April 2022
Harrison County Man Sentenced to 30 Months in Prison for Conspiring to Provide False Statements to MedicareRead the Press Release
Gulfport, Miss. – A Biloxi man was sentenced to serve 30 months in prison and pay restitution in the amount of $1,537,326.14 for providing false statements in connection with the delivery of payments for health care benefits to Medicare beneficiaries.
U.S. Attorney Darren J. LaMarca, Special Agent in Charge Tamala Miles of the Department of Health and Human Services, Office of Inspector General, and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration made the announcement.
According to court documents, Douglas Christopher Gorman, 41, conspired with others between January 2016 through March 11, 2019, to provide fraudulent statements to Medicare for reimbursements of claims for patient treatment and prescriptions. Gorman was also ordered to pay $1,537,326.14 in restitution. Gorman held himself out as a licensed physician and treated patients, ordered diagnostic testing, ordered laboratory work, and prescribed medications while employed at Coast Neurology in Biloxi, Mississippi. Gorman was not licensed to practice medicine in Mississippi or any other state in the United States. Gorman, through his co-conspirators, submitted documents seeking reimbursement for the provided services under another co-conspirator’s Medicare identification number. Medicare reimbursed for the services and prescriptions believing the services were provided by a licensed physician.
Gorman pled guilty on December 20, 2021.
The Drug Enforcement Administration and HHS OIG investigated the case.
Assistant U.S. Attorney Kathlyn R. Van Buskirk prosecuted the case.
Great Falls construction company official sentenced to 14 months in prison for embezzling from clientRead the Press Release
GREAT FALLS — The finance manager of William Tempel Construction in Great Falls was sentenced on April 12 to 14 months in prison, to be followed by three years of supervised released, for embezzling, as alleged by the government, more than $500,000 from a client who had hired the company to build her multi-million-dollar dream home, U.S. Attorney Leif M. Johnson said.
Lynn Bapp Tempel, 60, pleaded guilty in October 2021 to wire fraud.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris also ordered restitution and set a subsequent hearing to determine the full amount. A plea agreement calls for Tempel to be responsible for complete restitution, which the government estimated is $519,524. Chief Judge Morris allowed Tempel to self-report to prison.
In court documents, the government alleged that Tempel managed the finances of William Tempel Construction, which the victim trusted, hired and paid $4.41 million to build a dream home. Instead, Lynn Tempel stole money from the victim from 2013 to 2016. When caught, Lynn Tempel did not admit her fraud, rather she falsified 153 subcontractor invoices to cover up her scheme. Lynn Tempel provided to the victim invoices in which she had fraudulently inflated the amount of payment required. Lynn Tempel also withdrew $566,848 in cash from the company’s business account during the period of the fraud. The government further alleged at sentencing that Lynn Tempel falsified IRS form 1099s for a family member, which underreported income for that family member by $399,525. Such an underreport then allowed the family member to illegally receive Medicaid.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the FBI and the Great Falls Police Department.
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Frank James Charged in Brooklyn Mass Shooting on New York SubwayRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Frank James with conducting a violent attack on a mass transportation vehicle in violation of 18 U.S.C. §§ 1992(a)(7) and (b)(1). The charge, terrorist attacks or other violence against a mass transportation system, relates to the April 12, 2022, mass shooting on the New York City subway in Sunset Park, Brooklyn. James was arrested earlier today by New York City police officers in Manhattan and will make his initial appearance tomorrow before United States Magistrate Judge Roanne L. Mann.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), John DeVito, Special Agent-in-Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, New York (ATF) and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrest and charge.
“As alleged, the defendant committed a heinous and premeditated attack on ordinary New Yorkers during their morning subway commute,” stated United States Attorney Peace. “All New Yorkers have the right to expect that they will be safe as they travel throughout our great city and use our vital transportation systems. I am grateful to our law enforcement partners, the first responders and the everyday New Yorkers who stepped up during this crisis and showed the best of our city. And, we continue to pray for the victims and their loved ones as they recover from this traumatic event, both physically and emotionally.”
Mr. Peace praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies.
“Yesterday, as everyday New Yorkers commuted through Brooklyn on our subway system, Frank James – as alleged – committed a horrific act that resulted in an around-the-clock effort by the FBI's Joint Terrorism Task Force in New York, the NYPD, and the ATF to find him and bring him to justice. Thanks to the incredible work by all involved to identify James and get the proper information out to the public, he's in federal custody and New Yorkers can breathe a little easier in our city today,” stated FBI Assistant Director-in-Charge Driscoll.
“Today’s arrest of Frank James was in large part due to the vigilance and a concerted effort by New Yorkers to aid law enforcement in the apprehension of violent criminals. We at ATF applaud the public’s engagement and participation in providing vital information to apprehend James, and we hope for a speedy recovery for all victims. ATF will continue to utilize our nationwide Crime Gun Intelligence capabilities to support our partners in the continued investigation of Tuesday’s horrific attack on the NYC subway,” stated ATF Special Agent-in-Charge DeVito.
“Today, after nearly 30 hours of dogged police work, Frank James was arrested by the NYPD without incident,” stated NYPD Commissioner Sewell. “From the moment Mr. James committed this appalling crime, the police began shrinking his world until he had nowhere to turn – and the people of our city were working right alongside us. So together with our law enforcement partners at the FBI, the ATF, the U.S. Marshals Service, and the U.S. Attorney’s Office for the Eastern District of New York, I want to thank New Yorkers for their vigilance and their help in taking this violent criminal off our streets.”
As set forth in the complaint, during rush hour on the morning of April 12, 2022, James used a Glock 17 pistol he purchased in Ohio to conduct a mass shooting on an N subway train in Brooklyn. James, dressed in an orange reflective jacket, yellow hard hat, and surgical mask, set off a smoke-emitting device in one of the train cars before firing at subway riders. James had arrived in New York earlier that day in a rental van driven from Pennsylvania. He parked the van on Kings Highway, approximately two blocks from the entrance to an N-train station, near where the shooting took place. After the attack, James abandoned a bag containing, among other items, fireworks, a plastic container containing gasoline, and a torch.
In videos he posted publicly on YouTube before the attack, James made various statements about the New York City subway system. Among other things, James addressed statements to New York City’s mayor: “What are you doing, brother? What’s happening with this homeless situation?” and “Every car I went to wa[s] loaded with homeless people. It was so bad, I couldn’t even stand.” James also made statements, in sum and substance, about various conspiracy theories, including that: “And so the message to me is: I should have gotten a gun, and just started shooting motherf---ers.”
Following the attack, members of law enforcement executed court-authorized search warrants for properties associated with James in Pennsylvania. Agents recovered, among other items: 9mm ammunition; a threaded 9mm pistol barrel, which allows for a silencer or suppresser to be attached;.223 caliber ammunition, which is used with an AR-15 semi-automatic rifle; a taser; a high-capacity rifle magazine; and a blue smoke canister.
If convicted the defendant faces a maximum sentence of life imprisonment.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty.
Anyone with information about Mr. James or this incident is asked to call the FBI at 1-800-CALLFBI. Digital tips may also be submitted by visiting www.fbi.gov/brooklynshooting.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Douglas M. Pravda, Alexander A. Solomon, Craig R. Heeren, David K. Kessler, Ian C. Richardson, Artie McConnell, Alexander Mindlin, Sara Winik, Ellen Sise, and Meredith A. Arfa, and Paralegal Specialists Wayne Colon and Benjamin Richmond, handled the investigation, with assistance provided by Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.
The Defendant:
FRANK JAMES
Age: 62
Milwaukee, WisconsinE.D.N.Y. Docket No. 22-MJ-429
Four Individuals Charged with Conspiring to Launder Money Obtained from Romance ScamsRead the Press Release
NEWARK, N.J. – Four individuals were charged with conspiring to launder money taken from victims across the United States, many of whom were elderly, as a part of a series of romance scams, U.S. Attorney Philip R. Sellinger announced today.
William Kwabena Goeh, 47, of Somerset, New Jersey; Nana Yaw Marfo, 37, of Virginia; and Shannon Braxton, 45, and Chevon Braxton, 42, both of Maryland, are each charged by complaint with one count of money laundering conspiracy. Goeh was arrested this morning in New Jersey, had his initial appearance by videoconference before U.S. Magistrate Judge James B. Clark III, and was released on $100,000 unsecured bond.
Marfo was arrested this morning in Virginia and is scheduled to have his initial appearance this afternoon before the U.S. Magistrate Judge Ivan Davis in the Eastern District of Virginia. The Braxtons were both arrested this morning in Maryland and are scheduled to have their initial appearances before U.S. Magistrate Judge Gina L. Simms in the District of Maryland. Marfo and the Braxtons are scheduled to have their initial appearances in the District of New Jersey on.
According to documents filed in this case and statements made in court:
The defendants used bank accounts and accounts at credit unions to launder the proceeds of money obtained by victims of romance scams. Several victims throughout the United States fell victim to romance scams after meeting individuals online who they thought were interested in a romantic relationship. The victims, many of whom were elderly, sent thousands of dollars to accounts controlled by Goeh, Marfo, the Braxtons, and others, believing the money was being sent for the benefit of their online romantic interest. Goeh and Marfo opened up business bank accounts in the names of various entities to conceal the romance scam fraud proceeds. Goeh received at least $530,000; Marfo received at least $4.7 million; Shannon Braxton received at least $500,000; and Chevon Braxton received at least $1.3 million. The Braxtons withdrew a large portion of the fraud proceeds as cash, while Goeh and Marfo wired thousands of dollars overseas, including to accounts in China, the United Arab Emirates, Italy, Singapore, and Mauritius.
The money laundering conspiracy charge has a maximum term of 20 years in prison and a maximum fine of $500,000 or twice the value of the funds involved in the transfer, whichever is greater.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agents in Charge George M. Crouch Jr. in Newark and Eric B. Smith in Cleveland, Ohio; special agents of the U.S. Department of Labor’s Office of Inspector General, under the direction of Special Agent in Charge Irene Lindow in Chicago, Illinois, and the U.S. Secret Service, under the direction of Special Agent in Charge Paul Duran in San Antonio, Texas, with the investigation leading to the charges. U.S. Attorney Sellinger also thanks the U.S. Attorney’s Office for the Northern District of Ohio for its assistance.
The government is represented by Assistant U.S. Attorney Jamie L. Hoxie of the U.S. Attorney’s Office’s Cybercrime Unit in Newark.
The charges and allegations contained in the complaints are merely accusations and the defendants are considered innocent unless and until proven guilty.
Fort Stockton Man Pleads Guilty to Firearm and Drug ChargesRead the Press Release
ALPINE – A Fort Stockton man pleaded guilty today to being a felon in possession of a firearm and possessing methamphetamine.
According to court records, on December 5, 2021, Tristian William Zly, 27, was observed in a heated argument with a female inside his vehicle while parked outside a residence in Fort Stockton. Officers were called to de-escalate the situation. After confronting Zly, officers observed a 30-round firearm magazine sticking out of Zly’s pocket. On further search of the vehicle, officers found a 9mm firearm and a plastic bag containing 299.3 grams of pure methamphetamine.
Further investigation revealed that Zly had a previous felony conviction and possessed the firearm illegally.
Zly pleaded guilty to one count of possession with intent to distribute methamphetamine and one count of being a felon in possession of a firearm during a drug trafficking crime. A sentencing date has not been scheduled. Zly faces a mandatory minimum sentence of 10 years in prison on the narcotics charge and a five-year mandatory minimum sentence on the firearm charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and Drug Enforcement Administration (DEA) Special Agent in Charge Greg Millard, El Paso Division, made the announcement.
The Alpine DEA, with valuable assistance from the Texas Department of Public Safety and the Pecos County Sheriff’s Office, is investigating the case.
Assistant United States Attorneys Lance L. Kennedy and Matthew H. Ellis are prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Former San Pedro Train Engineer Sentenced to 3 Years in Prison for Intentionally Derailing Locomotive Near U.S. Navy Hospital ShipRead the Press Release
LOS ANGELES – A former train engineer at the Port of Los Angeles was sentenced today to 36 months in federal prison for intentionally running a locomotive at full speed off the end of railroad tracks near a United States Navy hospital ship that was deployed to provide medical relief during the early months of the COVID-19 pandemic.
Eduardo Moreno, 46, of San Pedro, was sentenced by United States District Judge Philip S. Gutierrez, who also ordered him to pay $755,880 in restitution.
Moreno pleaded guilty in December 2021 to one count of committing a terrorist attack and other violence against railroad carriers and mass transportation systems.
On March 31, 2020, Moreno drove a train at high speed, did not slow down near the end of the railroad track, and intentionally derailed the train off the tracks near the United States Naval Ship Mercy – a hospital ship then docked in the Port of Los Angeles.
No one was injured in the incident, and the Mercy was not harmed or damaged. The incident resulted in the train leaking a substantial amount – approximately 2,000 gallons – of diesel fuel, which required clean up by fire and other hazardous materials personnel. Clean-up crews recovered approximately 400 gallons of fuel from the fuel tank and the ground adjacent to the derailment, according to court documents.
Moreno caused $755,880 in damage because of the derailment.
In his first interview with the Los Angeles Port Police, Moreno acknowledged that he “did it,” saying that he was suspicious of the Mercy and believed it had an alternate purpose related to COVID-19 or a government takeover, according to an affidavit filed with a criminal complaint in this case. Moreno stated that he acted alone and had not pre-planned the attempted attack. While admitting to intentionally derailing and crashing the train, he said he knew it would bring media attention and “people could see for themselves,” referring to the Mercy, according to the affidavit.
In a second interview with FBI agents, Moreno stated that “he did it out of the desire to ‘wake people up,’” the affidavit states. “Moreno stated that he thought that the Mercy was suspicious and did not believe ‘the ship is what they say it’s for.’”
“[Moreno’s] offense was extraordinarily serious, and he used his unique access as a licensed train conductor to derail a multi-ton train toward a government hospital ship whose purpose was to treat vulnerable patients in the midst of a global pandemic,” prosecutors wrote in a sentencing memorandum.
The FBI’s Joint Terrorism Task Force and the Port of Los Angeles Police investigated this matter.
Assistant United States Attorneys Reema M. El-Amamy and Christine M. Ro of the Terrorism and Export Crimes Section, along with Trial Attorney Taryn Meeks of the Justice Department’s National Security Section’s Counterterrorism Section prosecuted this case.
Former Member of New Bedford Latin Kings Sentenced to over Eight Years in Prison for Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced today on racketeering charges.
Luis Mendez, a/k/a “King Primo,” 41, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 100 months in prison, with credit for time served in related state cases, and three years of supervised release. On Nov. 3, 2021, Mendez pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Mendez was a member of the New Bedford Chapter of the Latin Kings and as such he participated in the drug distribution activities that were based in multi-unit apartment buildings, known as “trap houses” that the Latin Kings controlled in the northern section of New Bedford. Multiple search warrants executed by the New Bedford Police Department targeted locations where Mendez resided, and drug were seized as a result. Mendez was also present during a December 2018 group assault in a garage, where co-defendant Michael Cotto, a/k/a “King Gordo,” was captured participating in a group assault of another individual and observed striking the victim with a baseball bat.
Mendez also participated in a shooting of two victims in May 2018. During that incident, multiple Latin Kings members chased the two victims to a vehicle, surrounded the vehicle, and slashed their tires. Another Latin Kings member then fired gunshots at the two victims striking them. Both victims fled in the vehicle and survived. Mendez admitted that these victims were targeted because one of the victims previously objected to Latin Kings members conducting drug transactions in the victim’s driveway. Following the shooting, Mendez discussed the incident on a court-authorized wiretap and advised the shooter that the victims would not be coming to court due to the efforts of the Latin Kings to intimidate them.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Mendez is the 50th defendant to be sentenced in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The United States Attorney’s Office for the District of Massachusetts; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Madison County Detention Center Captain Pleads Guilty to Assault of DetaineeRead the Press Release
Gregory Evans, 50, a former Captain with the Madison County Detention Center, in Richmond, Kentucky, pleaded guilty today to using unreasonable force against a detainee, thereby violating the detainee’s civil rights. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Carlton S. Shier IV made the announcement.
According to court documents and admissions made during the plea hearing, Evans was escorting the victim, E.B., down a hallway when Evans grabbed E.B. out of anger, strangled him, and repeatedly punched him. Evans’s assault caused E.B. to lose consciousness, and Evans then punched E.B. in the back and face while E.B. was unconscious. E.B. suffered a broken jaw as a result of the assault. Evans was aware that chokeholds were banned at Madison County Detention Center and that punching and strangling E.B. out of anger was an unreasonable use of force. Following the assault, Evans falsified an incident report and made false statements to the FBI. Specifically, Evans falsely claimed that he had ordered E.B. to turn around prior to the assault, that E.B. ignored his commands, and he deliberately omitted the fact that he had strangled E.B.
“The defendant is being held accountable for using excessive force to assault and strangle a man out of anger,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will continue to investigate and prosecute law enforcement officials who deprive individuals of their Constitutional rights.”
“When members of law enforcement engage in excessive force, they not only victimize an individual but do grave disservice to the dedicated work of so many others who honorably serve the public,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “Investigating and prosecuting this conduct is critically important, both to the victims and the Constitutional rights of all individuals.”
“Corrections officers have extremely difficult jobs; however, our community demands these officers conduct themselves professionally,” said Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office. “Today’s guilty plea is a reminder that the FBI and the Department of Justice will aggressively investigate and prosecute public officials found to have abused those they have been sworn to protect.”
The crime Evans pleaded guilty to carries a maximum sentence of 10 years imprisonment and a $250,000 fine. Evans is scheduled to be sentenced on July 29.
This case was investigated by the FBI’s Lexington RA, and is being prosecuted by Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky and Trial Attorney Andrew Manns of the Justice Department’s Civil Rights Division.
Former Bank Employee Admits Role in Fraud SchemeRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that DAYQUAN FITZGERALD-WILLIAMS, 26, formerly of Connecticut and currently residing in North Carolina, waived his right to be indicted and pleaded guilty today via videoconference before U.S. District Judge Victor A. Bolden to conspiracy to commit bank fraud.
According to court documents and statements made in court today, Fitzgerald-Williams used his position as a bank employee, first at Citizens Bank and then at Santander Bank, to access customer information and provide that information to others who obtained funds from the accounts through unauthorized transactions. Between late 2018 and early 2020, as a mortgage development officer at Santander Bank, Fitzgerald-Williams searched bank records for older customers who had at least $100,000 in their accounts. He then passed along customer identifying and account information to others who used that information to cause approximately 70 fraudulent checks totaling approximately $1.6 million to be issued and more than $2 million in ACH transactions to be made or attempted. Not all of the fraudulent checks or ACH transactions ultimately cleared customers’ accounts.
During the conspiracy, Fitzgerald-Williams also attempted to negotiate a fraudulent check in the amount of $34,700 made payable to him.
At sentencing, which is not scheduled, Fitzgerald-Williams faces a maximum term of imprisonment of 30 years.
Fitzgerald-Williams is released pending sentencing.
This matter is being investigated by the U.S. Secret Service and prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
Former Analyst Sentenced to 33 Months in Prison for Committing Insider Trading Through Front-RunningRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that SERGEI POLEVIKOV, a former quantitative analyst, was sentenced late yesterday to 33 months in prison by United States District Judge Lewis J. Liman. POLEVIKOV pled guilty on December 15, 2021 for his role in a scheme to misappropriate confidential information about pending trades by his former employer, an investment adviser, on behalf of its investment company clients.
According to the allegations in the Complaint, the Information to which POELVIKOV pled guilty, and statements made during court proceedings:
From at least in or about 2014 through in or about October 2019, SERGEI POLEVIKOV was employed as a quantitative analyst at an asset management firm with headquarters in New York, New York (the “Employer Firm”). In his role at the Employer Firm, POLEVIKOV had regular access to information regarding contemplated securities trades on behalf of the Employer Firm’s clients, which included investment companies. During the period charged in the Complaint, POLEVIKOV engaged in a front-running scheme to misappropriate confidential, material, nonpublic information about the securities trade orders of the Employer Firm on behalf of its clients in order to engage in short-term personal securities trading in a brokerage account opened in his wife’s name. POLEVIKOV’s scheme was designed to profit by executing trades that take advantage of relatively small price movements in a company’s stock that follow from large securities orders executed by the Employer Firm on behalf of its clients. In total, POLEVIKOV’s scheme yielded more than $8.5 million in illicit profits.
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In addition to his prison sentence, POLEVIKOV, 48, of Port Washington, New York, was ordered to pay forfeiture in the amount of $8,564,977 and a fine of $10,000.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams further thanked the U.S. Securities and Exchange Commission for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Kiersten A. Fletcher is in charge of the prosecution.
Federal Jury Convicts Morgan County Man of Child Exploitation and Escape Attempt ChargesRead the Press Release
KNOXVILLE, Tenn. – On April 13, 2022, a federal jury convicted a registered sex offender, Everett Eugene Miller, Jr., 55, of Sunbright, Tennessee, of enticement of a minor for sex, transporting a minor in interstate commerce for sex, committing those offenses while being required to register as a sex offender, and attempting to escape from the custody of the U.S. Marshals Service. As a result of the convictions, the defendant is subject to a prison sentence of 20 years up to life. Sentencing will be scheduled at a later date before the Honorable Katherine A. Crytzer, United States District Judge.
According to the evidence at trial, the investigation began when the Morgan County Sheriff’s Office received an anonymous tip that Miller, an over-the-road truck driver, was transporting a minor across state lines. When asked, the minor revealed that the defendant had transported her across-state lines and had coerced her to have sex with him in the sleeper cab of his truck. The Federal Bureau of Investigation (FBI) conducted consensual forensic exams of the minor’s cellular telephones, one of which the defendant had provided to the minor without her mother’s knowledge. A forensic exam pursuant to a search warrant was also performed on the defendant’s cellular telephone. The forensic exams revealed evidence which confirmed that the defendant had communicated extensively with the minor and that he had transported her across country. Additionally, witness testified that, after the defendant had been arrested and was detained in federal custody, he tried to escape from custody while at a medical facility to which he had been transported for a heart procedure.
The FBI conducted the investigation with assistance from the Morgan County Sheriff’s Office.
Assistant U.S. Attorneys Matthew T. Morris and Jennifer Kolman represented the United States in court.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
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Federal Jury Convicts Fridley Felon for Selling Methamphetamine, Illegal Possession of FirearmsRead the Press Release
ST. PAUL, Minn. – A federal jury convicted a Fridley man of possession with intent to distribute methamphetamine, possession of firearms in furtherance of a drug trafficking crime, and illegal possession of firearms as a felon, announced U.S. Attorney Andrew M. Luger.
Following a four-day trial before U.S. District Judge Wilhelmina M. Wright, John Edward Juneau, 48, was convicted yesterday of one count of possession with intent to distribute methamphetamine, one count of possession of methamphetamine, one count of possession of firearms in furtherance of a drug trafficking crime, and one count of illegally possessing firearms as a felon. A sentencing hearing will be scheduled at a later time.
According to the evidence presented at trial, on February 1, 2019, law enforcement executed a search warrant at a residence in Columbia Heights. Officers encountered Juneau and two other people inside a detached garage. As a result of the search, officers found three plastic baggies containing more than 23 grams of 99% pure methamphetamine. Subsequent testing determined that Juneau’s DNA was present on the baggies.
According to the evidence presented at trial, on July 9, 2019, police executed a search warrant at a Coon Rapids residence. Officers saw Juneau trying to exit the residence through a basement bedroom window of the residence. Juneau dropped a bag outside the window that contained, among other things, a safe containing $6,000 in cash and numerous empty plastic baggies. Inside the residence, officers found quantities of 99% pure methamphetamine. The police also searched the garage located on the property and found a Ruger, .380 caliber pistol, a Ruger, .22 caliber pistol, two scales, several empty plastic baggies, and more than 40 grams of high purity methamphetamine.
Because Juneau has multiple prior felony convictions in Anoka, Sherburne, Hennepin, and Ramsey Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Anoka-Hennepin Narcotics and Violent Crimes Task Force.
This case was tried by Assistant U.S. Attorneys Andrew Dunne and Harry Jacobs.
Federal Inmate Charged with Possession of A WeaponRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Cornell Williams, age 25, an inmate at the Federal Correctional Institution, Schuylkill (FCI Schuylkill), was indicted yesterday by a federal grand jury for possessing a weapon in prison.
According to United States Attorney John C. Gurganus, the indictment alleges that Williams possessed a sharpened piece of metal, commonly referred to as a “shank,” on October 9, 2021.
The charges stem from an investigation by FCI Schuylkill and the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin is prosecuting the case.
If convicted, Williams faces a maximum penalty of five years of incarceration and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Criminal indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Extradited Colombian National Sentenced to 17 Years in Federal Prison for International Drug TraffickingRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Oscar Marsiglia Barrios (54, Colombia) to 17 years in federal prison for conspiracy to distribute cocaine knowing and intending that it be imported into the United States. Marsiglia Barrios had pleaded guilty on January 12, 2022. Marsiglia Barrios had been arrested in Colombia in August 2019 and extradited to the United States in March 2021.
According to court documents, beginning around February 2015 and continuing until October 26, 2017, Marsiglia Barrios was part of a transnational criminal conspiracy that transported cocaine from Colombia to the United States. Marsiglia Barrios operated out of the Puerto Nuevo region of Colombia and was responsible for recruiting, hiring, and paying individuals to transport cocaine out of Colombia into the United States in cargo ships. Between 2015 and 2018, fifteen of Marsiglia Barrios’s co-conspirators were arrested, indicted, and sentenced to federal prison in the Middle District of Florida.
This case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation. The Department of Justice’s Office of International Affairs provided significant assistance with the defendant’s extradition. The U.S. Marshals Service also provided critical assistance by extraditing Marsiglia Barrios from Colombia to the Middle District of Florida. The case was prosecuted by Assistant United States Attorney Diego F. Novaes.
This case was part of 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. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
El Paso Man Sentenced for Production of Child PornographyRead the Press Release
EL PASO – An El Paso man was sentenced today to 17 years in prison for production of child pornography.
According to court documents, on July 15, 2019, Steven George Sperling, 36, was an active-duty service member stationed at Fort Bliss when he produced a lewd video of a minor child.
On July 14, 2021, Sperling pleaded guilty to one count of production of a visual depiction of a minor engaging in sexually explicit conduct. He has remained in federal custody since his arrest on July 18, 2019.
“Prosecuting dangerous sexual predators that exploit the innocence of children and cause unspeakable harm is always going to be a top priority for our office. Along with the FBI and our other valued partners in law enforcement, we remain dedicated to ensuring the safety of children in our community and online,” said U.S. Attorney Ashley C. Hoff. “We will continue to use every resource available to identify and prosecute offenders like the defendant in this case to the full extent of the law.”
“A heartbreaking reality of the world we’re living in is the hidden abuse of children,” said FBI Special Agent in Charge Jeffrey R. Downey. “They’re suffering in silence every day, both in our community and around the world, as we go about our daily lives. The FBI El Paso’s Child Exploitation and Human Trafficking Task Force will relentlessly pursue every lead to rescue children who are being victimized and bring their perpetrators to justice. We strongly urge members of the public to help us in our fight to protect children, as they are some of the most vulnerable in our community. FBI El Paso can be reached 24 hours/ 7 days a week at (915) 832-5000.”
The FBI investigated the case.
Assistant U.S. Attorney Ian M. Hanna and Special Assistant U.S. Attorney Alana O’Reilly prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for illegally reentering the United States after deportation.
Yomelvin Abreu Bonilla, 33, was sentenced by U.S. Senior District Court Judge William G. Young to two years in prison and three years of supervised release. Bonilla will be subject to deportation upon completion of his sentence. On Dec. 16, 2021, Bonilla pleaded guilty to one count of unlawful reentry of a deported alien.
In March 2021, federal agents encountered Bonilla in Bedford and determined that he was illegally present in the United States. Bonilla was previously deported in August 2016.
United States Attorney Rachael S. Rollins and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement. Assistant U.S. Attorney Benjamin A. Saltzman of Rollins’ Criminal Division prosecuted the case.
Diesel Trucking Companies Conspire to Violate Clean Air ActRead the Press Release
Denver - The U.S. Attorney’s Office for the District of Colorado announces that Pro Diesel Inc. and Endrizzi Diesel, LLC. pleaded guilty to conspiring with a Colorado-based diesel shop to remove or alter the monitoring component of emissions control systems on Class 8, commercial heavy-duty diesel trucks and semi-trucks, thereby violating the Clean Air Act.
According to plea agreements, between July 2017 and May 2020, Iowa-based Pro Diesel Inc. paid a Colorado diesel shop identified as “E.D.” more than $76,000 to disable on-board diagnostic systems on 34 Class 8 trucks. And, between January 2017 and December 2020, Missouri-based Endrizzi Diesel, LLC paid E.D. more than $149,000 to disable the diagnostic systems on approximately 60 class 8 trucks. Both diesel shops pleaded guilty to one count of violating Title 18, United States Code, Section 371.
On-board diagnostics systems (OBDs) are monitoring devices required under the Clean Air Act to be installed on vehicles to monitor emissions control systems and to ensure they are functioning properly. Tampering an OBD is frequently referred to as “tuning.” One purpose for “tuning” an OBD is to allow the vehicles to continue to seemingly operate normally while the emissions control system is disabled. This reduces the high costs associated with maintaining or repairing components of the emissions control systems on heavy-duty diesel trucks. However, as a consequence, tampered vehicles spew substantially more deleterious pollutants such as nitrogen oxides, carbon monoxide, non-methane hydrocarbons and particulate matter into the air, presenting a risk to the environment and public health. Nitrogen oxides from tailpipe emissions are a major contributor to the creation of ozone on the front range. Tests conducted by the EPA have found that completely deleting a diesel pickup truck’s emissions controls can increase the truck’s tailpipe emissions of nitrogen oxide by a factor of approximately 310 times, carbon monoxide by a factor of approximately 120 times, and non-methane hydrocarbons by a factor of approximately 1,100 times. The pollutant increase is even greater when the emission controls on Class 8 vehicles, such as the ones tampered with here, are disabled.
Through a remote connection, individuals at E.D. would run software programs to reprogram or “tune” the vehicle’s on-board diagnostic systems. These programs would tamper with, render inaccurate, and disable the monitoring functions of the OBDs so they would no longer detect malfunctions in the emissions control systems.
Defendant Pro Diesel will be sentenced by Judge Daniel Domenico on June 14, 2022. Defendant Endrizzi Diesel will be sentenced by Judge Regina Rodriguez on June 29, 2022.
These cases are being prosecuted by Assistant United States Attorney Rebecca Weber and Special Assistant United States Attorney Linda Kato.
Case numbers: 22-cr-00064-RMR, 22-cr-00062-DDD.
Dearborn Man Sentenced to 15 years in Prison for Distribution of Child PornographyRead the Press Release
DETROIT - Sean McClanahan, 51, of Dearborn, Michigan, was sentenced today to 15 years in federal prison on charges of distributing child pornography, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by acting Special Agent in Charge James C. Harris, III, Department of Homeland Security.
According to court records, after McClanahan sent a link containing files of child pornography to an undercover officer, on July 1, 2018, he admitted to distributing child pornography on that day, and as part of his plea agreement, further admitted to involvement with more than 600 images of child pornography and images of infants and toddlers. This was McClanahan’s second conviction for a federal child pornography offense, and he engaged in this conduct while he was still on supervised release for his first offense.
“Each time an image of an abused child is distributed or viewed online it revictimizes that child. We will protect these children and hold individuals accountable each and every time they prey on our most vulnerable citizens,” stated U.S. Attorney Ison.
“HSI is committed to protecting the innocent and ensuring offenders like McClanahan are removed from our communities,” said HSI Detroit acting Special Agent in Charge James C. Harris III.
The case was investigated by the Department of Homeland Security and prosecuted by Assistant United States Attorneys Meghan Bean and Christopher Rawsthorne.
Colorado Man Charged with Unlawfully Transporting Guns over the InternetRead the Press Release
NEWARK, N.J. – A Colorado man was arrested today for conspiring to unlawfully transport firearms via the internet, U.S. Attorney Philip R. Sellinger announced today.
Hunter Weeks, 22, of Colorado Springs, Colorado, was arrested in Colorado and is charged by complaint with conspiracy to unlawfully transport firearms, and possession and transportation of an unregistered firearm. He is scheduled make his initial appearance today in the District of Colorado.
According to documents filed in this case and statements made in court:
From February 2021 through July 2021, undercover law enforcement agents communicated with several individuals, including Weeks, via a social media platform where individuals advertised for sale various narcotics and firearms. During this time period, Weeks’ fingerprints were found on the parcels used to mail three firearms from addresses in Colorado to New Jersey that were sold to the undercover agents, including: a Glock firearm with an auto sear switch, making it a fully-automatic firearm; an Uzi assembled to function as machine gun; and an AR-15 firearm.
The count of conspiracy to unlawfully transport firearms charge carries a statutory maximum of five years in prison and a fine of $250,000. The possession of unregistered firearms charge carries a statutory maximum of 10 years in prison and a fine of $10,000.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division; and special agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Cybercrime Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Cocaine Trafficker Sentenced to More Than 8 Years in Federal PrisonRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that PEDRO RIVERA, 50, last residing in St. Cloud, Florida, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 100 months of imprisonment, followed by three years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, this matter stems from an investigation conducted by the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service into individuals who were receiving shipments of cocaine from Puerto Rico and California and distributing the drug in and around Hartford. The investigation revealed that Rivera arranged to have a cocaine source in Puerto Rico send parcels containing kilograms of cocaine to addresses in Hartford. When the cocaine parcels arrived, Jesus Rodriguez, a U.S. Postal Service letter carrier, delivered the cocaine to Rivera. Rodriguez also distributed cocaine to his own drug customers, and delivered parcels to other cocaine traffickers in the Hartford area.
Investigators intercepted numerous communications over a court-authorized wiretap during which Rivera and Rodriguez arranged the delivery of a cocaine parcel. Investigators subsequently seized the parcel, which contained three kilograms of cocaine.
Rivera was arrested in Florida on June 3, 2019. On June 4, 2019, a grand jury in Hartford returned an indictment charging Rivera, Rodriguez and 17 others with conspiracy to distribute cocaine and related offenses. On November 3, 2021, Rivera pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine.
Rivera has been detained since his arrest.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Co-Owner of Georgia Bars Pleads Guilty to Tax EvasionRead the Press Release
A co-owner of a group of eight Georgia bars pleaded guilty today to tax evasion.
According to court documents and statements made in court, William Britt engaged in a scheme to evade taxes owed to the IRS on income from bars he and others owned. Although each establishment had a nominal sole owner, in reality the bars all had a group of co-owners, including Britt, with varying percentages of ownership. Britt held an ownership interest in entities such as Chrysha Inc., which operated a bar in Statesboro, and BGRG Inc., which operated a bar and a restaurant in Milledgeville. Britt, along with the other true owners, shared in the bars’ profits in proportion to their respective ownership percentages.
Britt provided false information to an accountant for the preparation of tax returns related to some of the businesses. Specifically, Britt misrepresented the businesses’ true ownership, understated the bars’ income and omitted cash distributions to the owners. This conduct caused Britt and other owners of the bars to file false tax returns with the IRS by paying less than their actual income tax liabilities. Through his guilty plea, Britt admitted to willfully underreporting his income on his 2014 individual tax return.
Last month, James Stafford, who was nominally the sole owner of Chrysha Inc. and BGRG Inc., also pleaded guilty to tax evasion as part of the same scheme.
Britt will be sentenced at a later date and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney David Estes for the Southern District of Georgia made the announcement.
IRS-Criminal Investigation and the FBI are investigating the case.
Assistant Chief David Zisserson and Trial Attorney Casey Smith of the Tax Division, and the U.S. Attorney’s Office for the Southern District of Georgia, are prosecuting the case.
Clarkston Washington Man Sentenced to over 8 Years for Conspiracy to Distribute MethamphetamineRead the Press Release
COEUR D’ALENE – Adam Christopher Johnson, of Clarkston, Washington, was sentenced to 100 months in federal prison for conspiracy to distribute methamphetamine. Chief U.S. District Judge David C. Nye also ordered Johnson to serve five years of supervised release following his prison sentence. Johnson pleaded guilty to the charge on April 20, 2021.
According to court records, Johnson, 35, conspired with Helene Martensen, 51, Chandler Lee Black, 21, and Richard Lee Black, 43, to distribute methamphetamine in the Lewiston, Idaho area. Lewiston Police Department detectives, assigned to the Quad Cities Drug Task Force, arrested Richard Black in January 2020, when he was found in possession of distribution quantities of methamphetamine, empty baggies, a digital scale, and cash. Several months later, in June 2020, after a significant collaborative effort, the FBI North Idaho Violent Crime Task Force stopped Martensen’s vehicle and found that she and Johnson possessed two pounds of methamphetamine. The key evidence, however, was obtained through FBI search warrants for cell phones and cell phone records. These records showed the effort of each conspirator to sell illegal drugs and firearms in the Lewis and Clark Valley, and on the Nez Perce Indian Reservation.
Martensen was sentenced on March 17, 2021, to 90 months in federal prison, Chandler Black was sentenced on July 7, 2021, to 78 months in federal prison, and Richard Black was sentenced on March 2, 2022, to 120 months in federal prison.
Chief U.S. District Judge David C. Nye also ordered Johnson to serve five years of supervised release following his prison sentence. Johnson pleaded guilty to the charge on April 20, 2021.
U.S. Attorney Rafael M. Gonzalez, Jr. of the District of Idaho, made the announcement and commended the cooperative efforts of the Federal Bureau of Investigation, Nez Perce County Prosecutor’s Office, Lewiston Police Department, Nez Perce Tribe Police Department, Idaho State Police, Nez Perce County Sheriff’s Office, Clarkston Police Department, Asotin County Sheriff’s Office, Whitman County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, which led to charges.
The Quad Cities Drug Task Force is a multi-jurisdictional group of law enforcement officers working together to target drug trafficking in Lewiston and Moscow, Idaho, and Clarkston and Pullman, Washington.
The North Idaho Violent Crime Task Force (NIVCTF) is an FBI led task force with law enforcement officers from Lewiston Police Department, Nez Perce County Sheriff's Office, Grangeville Police Department, Nez Perce Tribe Police Department, Idaho State Police, and Post Falls Police Department. The mission of the NIVCTF is to identify and target for prosecution criminal enterprise groups and individuals responsible for crimes of violence and the manufacture and distribution of illegal narcotics.
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.
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Clark County man sentenced to more than 15 years in prison for narcotics, gun crimesRead the Press Release
DAYTON, Ohio – Luis Garza, 32, of Springfield, Ohio, was sentenced in U.S. District Court today to 188 months in prison for possessing methamphetamine, carfentanil and fentanyl, and for illegally possessing a firearm as a convicted felon.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN). Through the violent-crime reduction program, 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.
According to court documents, in October 2019, Garza was stopped in Indiana for speeding when a canine alerted to marijuana in his car. At the time, Garza was on parole in Ohio for aggravated robbery.
During a subsequent search of Garza’s residence in Springfield, Ohio, the Ohio Department of Rehabilitation and Correction Adult Parole Authority discovered distributable amounts of fentanyl, carfentanil and methamphetamine, as well as a handgun.
Hancock County, Indiana Sheriff’s deputies searched Garza’s vehicle at a tow yard, where the vehicle was impounded on a police hold. Deputies discovered more than 800 grams of pure methamphetamine in vacuum sealed packages between the rear seats. The DEA conducted the substance testing.
“This case highlights good investigative coordination between local, state and federal agencies in both Ohio and Indiana,” said U.S. Attorney Kenneth L. Parker. “Thanks to their cooperation, we were able to take off the streets what would equal thousands of dosages of methamphetamine.”
Garza was indicted by a federal grand jury in Dayton, Ohio in June 2020. He pleaded guilty in January 2021.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Travis S. Riddle, Acting Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Springfield Police Chief Lee Graf; and Hancock County, Indiana Sheriff Brad Burkhart announced the sentence imposed by U.S. District Court Judge Michael J. Newman. Assistant United States Attorney Ryan A. Saunders is representing the United States in this case.
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Chicopee Company Controller Pleads Guilty to Stealing $1.4 Million from Company FinancesRead the Press Release
BOSTON – A West Springfield man pleaded guilty today in federal court in Springfield to embezzling of over $1.4 million from his employer.
Gerald Burke, 70, pleaded guilty to eight counts of bank fraud, two counts of mail fraud and three counts of filing a false tax return. U.S. District Court Judge Mark A. Mastroianni scheduled sentencing for July 27, 2022. Burke was charged on April 8, 2022.
Until 2018, Burke was employed as the controller of a privately owned metal stamping company in Chicopee and was responsible for the company’s finances, including directing payroll and signing checks on behalf of the company. From October 2011 until his termination in 2018, Burke embezzled $1.4 million by authorizing additional payroll payments to himself and by writing checks to himself and his credit card company from the company account. Burke failed to report any of his illegal income to the IRS over the nearly seven-year duration of the embezzlement scheme, thereby evading more than $160,000 in federal taxes.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release, a fine of up to $1 million, restitution and forfeiture. The charge of mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of up to $250,000, restitution and forfeiture. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release, a fine of up to $250,000, restitution and forfeiture. 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 Rachel S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Christopher Morgan of Rollins’ Springfield Branch Office is prosecuting the case.
Champaign Sex Offender Sentenced to 40 Years in Prison for Child Exploitation CrimesRead the Press Release
URBANA, Ill. – A Champaign, Illinois, man, Charles Howard, 41, of the 400 block of North James St., was sentenced on April 12, 2022, to 40 years’ (480 months) imprisonment for sexual exploitation of a minor and possession of child pornography.
According to court documents, Howard sexually abused and exploited a 15-year-old minor female in his care and threatened to kill her and himself if she disclosed the abuse.
Howard has two prior convictions for criminal sexual abuse in Champaign County, from 2000 and 2001, and was a registered sex offender on the date of this offense. Howard was initially arrested by state authorities in June 2020.
A federal grand jury charged Howard with one count of sexual exploitation of a minor, one count of possession of child pornography, and one count of commission of a sex offense as a registered sex offender in September 2020. Howard was transferred to the custody of the U.S. Marshals service, where he has remained. He pleaded guilty in October 2021 to the three-count indictment.
Senior U.S. District Judge Michael Mihm found that the defendant engaged in pattern of abuse that caused physical injury to the victim and would have lasting effects on the victim’s life. In imposing the 40-year imprisonment sentence, Judge Mihm said Howard’s conduct was “as bad as it gets.” Judge Mihm also sentenced Howard to a lifetime term of supervised release, following his release from prison.
“HSI is proud to work with our law enforcement partners to protect our communities by making sure offenders like Howard are investigated,” said Homeland Security Investigations Chicago Special Agent in Charge Angie Salazar. “We will continue to identify and investigate those who endanger our most vulnerable population and protect our children. We will not allow crimes against children to go unpunished.”
“It takes dedicated investigative work and coordinated effort to ensure that our young people are protected from such heinous actions. I am thankful to our law enforcement partners for their assistance in seeing this case to its lawful conclusion,” said Champaign Interim Police Chief Thomas Petrilli.
“Through the cooperation and tireless work of our state, local, and federal law enforcement partners, we are able to ensure that repeat offenders who destroy children’s adolescence are brought to justice,” said Assistant U.S. Attorney Elly M. Peirson.
U.S Immigration and Customs Enforcement Homeland Security Investigations and the Champaign Police Department conducted the investigation with the cooperation of Champaign County State’s Attorney Julia Reitz. Assistant U.S. Attorney Elly Peirson represented the government in this prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Cascade woman charged in student loan fraud schemeRead the Press Release
GREAT FALLS — A Cascade woman suspected of fraudulently obtaining federal student financial aid by using the names of other individuals to enroll at the Great Falls College and then using those identities to receive financial aid appeared on April 12 on conspiracy, fraud and identity theft crimes, U.S. Attorney Leif M. Johnson said.
Ricci Lea Castellanos, 34, also of Redding, California, pleaded not guilty during an arraignment to a 14-count indictment charging her with conspiracy to commit wire fraud, wire fraud, aggravated identity theft and student financial aid fraud. If convicted of the most serious crime, Castellanos faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the conspiracy and wire fraud crimes and two years in prison in addition to punishment for underlying felony, a $250,000 fine and one year of supervised release on the aggravated identity theft crime.
U.S. Magistrate Judge John T. Johnston presided. Castellanos was released pending further proceedings.
The indictment alleges that between January 2016 and December 2019, Castellanos enrolled unwitting family members and others in online classes at the Great Falls College, Montana State University. When doing so, Castellanos and others applied for and received Federal Student Aid totaling approximately $126,219, none of which was allowed. The indictment further alleges that Castellanos and others fraudulently used and submitted multiple American Indian Tuition Waivers. To support such applications, Castellanos and others created and used false tribal enrollment forms from Native American Tribes, all of which were designed to result in larger student living expense refunds, and which were then diverted by Castellanos and others.
An indictment is merely an accusation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Assistant U.S. Attorney Ryan G. Weldon is prosecuting the case, which was investigated by the Department of Education Office of Inspector General.
PACER case reference. 22-17.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Buffalo Man Pleads Guilty to Cocaine PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Swazine Swindle, 43, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possession with intent to distribute cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Meghan E. Leydecker, who is handling the case, stated that on September 22, 2021, the Buffalo Police Department Narcotics Unit executed a search warrant on a vehicle in the vicinity of 320 Kenmore Avenue in Buffalo. During the search, Swindle was in the driver's seat of the vehicle. Investigators seized approximately four plastic bags, which contained a total of 10 grams of crack cocaine, and $3,349 in cash. Prior to executing the search warrant, investigators observed Swindle enter and exit 319 Kenmore Avenue. After securing the vehicle, a search warrant was executed at the residence and approximately 1.79 grams of cocaine was seized as well as two digital scales.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia; the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia; and the Tonawanda Police Department, under the direction of Chief James Stauffiger.
Sentencing is scheduled for August 31, 2022, at 9:30 a.m. before Judge Vilardo.
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Brooklyn Man Pleads Guilty to Obstruction ChargeRead the Press Release
ALBANY, NEW YORK – Jacques Laventure, age 35, of Brooklyn, New York, pled guilty today to obstructing an official proceeding by selling a mansion and estate that the U.S. Attorney’s Office was seeking to forfeit as part of a criminal case against his brother.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Laventure is the brother of Jean Lavanture, of Saugerties, New York. Jean Lavanture was indicted in October 2020 for fraudulently obtaining nearly $5 million in Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDLs) intended to help legitimate businesses during the pandemic. As part of that prosecution, the U.S. Attorney’s Office sought to forfeit a mansion and estate in Byram Township, New Jersey, that Jean Lavanture bought with approximately $850,000 in fraud proceeds.
In pleading guilty, Jacques Laventure admitted that between January and March 2021, he schemed to sell the Byram Township property, knowing that the U.S. Attorney’s Office sought to forfeit it. He also admitted that on March 10, 2021, he completed the sale of the property for $443,920 net of fees, and knew that by selling the property to a third party, he was preventing its forfeiture in the criminal case brought against his brother.
Laventure faces up to 20 years in prison, and up to 3 years of post-imprisonment supervised release, when Chief United States District Judge Glenn T. Suddaby sentences him on August 25, 2022. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Laventure has agreed to forfeit $443,920 that the FBI has already seized, and to pay an additional $331,080 in restitution.
This case was investigated by the FBI, and is being prosecuted by Assistant U.S. Attorneys Michael Barnett and Joshua R. Rosenthal.
Brockton Man Sentenced for Illegal Possession of FirearmsRead the Press Release
BOSTON – A Brockton man was sentenced on Monday, April 11, 2022, in connection with attempting to purchase six firearms from an undercover agent.
Rotchill Seme, 21, of Brockton, was sentenced by U.S. District Court Judge Allison D. Burroughs to 46 months in prison and three years of supervised release, with the first 11 months spent in home detention. On Dec. 15, 2021, Seme pleaded guilty to being a felon in possession of firearms.
On May 25, 2020, Seme began texting with an uncover agent about purchasing multiple firearms. After meeting on May 27, 2020, Seme agreed to purchase six handguns from the undercover agent for $3,500. Seme’s text messages to the undercover agent indicated that he intended to sell the newly acquired firearms and looked forward to buying and selling a steady flow of firearms.
On June 3, 2020, Seme met the undercover agent in a Brockton fast food restaurant parking lot to conduct the transaction. As the meeting concluded, uniformed law enforcement approached the vehicle to arrest Seme. Seme jumped out of the driver’s side window and attempted to flee, resulting in a chase through the parking lot during which Seme engaged in struggles with the pursuing officers on two occasions, but was subsequently apprehended. Seme, who was wearing an ankle GPS bracelet at the time of his arrest, was on parole following state convictions for various drug and firearms offenses and is therefore prohibited from possessing firearms and ammunition.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Sharon MacDermott, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement. Assistant U.S. Attorney David G. Tobin of Rollins’ Major Crimes Unit prosecuted the case.
Boston Man Sentenced for Role in Wide-Ranging Cocaine Trafficking ConspiracyRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for his role in a wide-ranging cocaine trafficking conspiracy.
Luis Mejia Guerrero, 61, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 37 months in prison and two years of supervised release. On Dec. 6, 2021, Guerrero pleaded guilty to conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine.
According to court documents, in the fall of 2018, law enforcement began investigating a violent Brockton drug crew led by Djuna Goncalves. The investigation revealed that Goncalves worked with others to distribute large quantities of fentanyl, heroin, cocaine, cocaine base and marijuana throughout southeastern Massachusetts from a base of operations at a family home in Brockton. The neighborhood surrounding the crew’s Brockton base has been the scene of numerous murders, shootings and other crimes of violence for several years.
The investigation identified Guerrero and other members of his Boston-based drug cell as cocaine suppliers to Goncalves’s crew. Guerrero and others distributed cocaine on a daily basis out of a stash house in Dorchester. Intercepted communications indicated that Guerrero negotiated cocaine deals for co-conspirators and delivered drugs to customers. In May 2019, Guerrero was arrested along with his partner, Luis Alfredo Baez, after a kilogram of cocaine being transported to the stash house was intercepted.
On June 23, 2021, Baez was sentenced by Judge Gorton to 41 months in prison. Goncalves pleaded guilty on Oct. 7, 2021 and is scheduled to be sentenced on May 19, 2022.
In total, 17 individuals were indicted in wide-ranging drug trafficking conspiracy reaching from Boston to Brockton to Lawrence to Cape Cod. Guerrero is the 13th defendant to be sentenced in this case.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; and Brockton Police Acting Chief Steve Williamson made the announcement. Assistant U.S. Attorneys Christopher Pohl and Alathea E. Porter of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Blount County Man Sentenced to More Than 23 Years on Drug and Gun ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Blount County man on gun and drug charges, announced U.S. Attorney Prim F. Escalona and Drug Enforcement Administration Special Agent in Charge Brad L. Byerley.
U.S. District Court Judge Karon O. Bowdre sentenced Stephen Matthew Laughlin aka “Country”, 38, to 286 months in prison followed by five years of supervised release for possession with the intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Laughlin pleaded guilty in December 2021.
According to the plea agreement and evidence at sentencing, on September 29, 2021, law enforcement conducted a joint operation of a safety and driver license inspection checkpoint in Blount County. An officer approached Laughlin’s vehicle when it stopped at the checkpoint and asked Laughlin to produce his driver's license, registration, and proof of insurance. The officer walked to the rear of the vehicle to check the status of the tag and noticed a large metal piece sticking up off the trailer hitch. The metal piece obstructed the view of the vehicle tag and was in violation of Alabama state law. The officer returned to the driver's window and asked Laughlin to pull to the side of the road and wait for the officer to issue a warning citation for the violation. As the officer walked to his patrol unit, he asked a K-9 deputy to use his narcotics detection K-9 to conduct a free air sniff of the truck. The K-9 positively alerted for the presence of the odor of drugs coming from the truck. The officer asked Laughlin to exit the vehicle so officers could conduct a probable cause search of the vehicle based on the positive K-9 alert. Laughlin then became argumentative with the officers, put his truck in drive and fled the scene. A Drug Enforcement Administration (DEA) Task Force Officer (TFO), who was at the checkpoint, began to pursue Laughlin. Laughlin accelerated to speeds exceeding eighty miles per hour and threw a red bag out of the driver's side window. Another officer stopped and retrieved the bag, which was found to contain methamphetamine. Spike strips were deployed by officers. Laughlin ran over the spike strips and eventually stopped, surrendering to law enforcement officers. During the search of Laughlin’s vehicle, officers found a PPS43C Pioneer Arms Corp 9mm semi-automatic pistol and an Anderson Manufacturing AM-15 .223 caliber rifle in a soft rifle case located behind the driver's seat on the bench seat. The drugs seized from Laughlin totaled 997.1 grams of 94% pure methamphetamine.
The DEA investigated the case. Assistant U.S. Attorney Allison Garnett prosecuted the case.
Billings meth trafficker sentenced to more than nine years in prisonRead the Press Release
BILLINGS — A Billings man who admitted to trafficking methamphetamine in the community after law enforcement found more than three pounds of the drug and firearms at his residence was sentenced today to nine years and nine months in prison, to be followed by five years of supervised release, U.S. Attorney Leif M. Johnson said.
Anthony Ray Morgan, 32, pleaded guilty to possession with intent to distribute meth in October 2021.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that in 2019, law enforcement became aware of Morgan’s drug dealing and found a handgun and 15 grams of meth in a traffic stop of a vehicle driven by Morgan. In another traffic stop in September 2021 of a vehicle driven by Morgan, investigators found an ounce of meth, $950 in U.S. currency and a firearm on his person. Investigators executed a search warrant on the vehicle and found nearly one pound of meth and fentanyl pills. Law enforcement served a search warrant on Morgan’s residence and found a handgun that had a laser sight and loaded magazine, U.S. currency concealed in a soft body armor carrier, a rifle and approximately 3.75 pounds of meth, which is the equivalent of about 13,616 doses, in several plastic bags.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case, which was investigated by the FBI’s Western Transnational Organized Crime Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Baton Rouge Man Pleads Guilty in Federal Court to Receipt of Child PornographyRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Jason L. Istre, age 45, of Baton Rouge, Louisiana, pled guilty before U.S. Chief Judge Shelly D. Dick to receipt of child pornography. As a result of his conviction, Istre faces a significant term of imprisonment, a fine, and a period of supervised release, which includes sex offender registration requirements.
According to admissions made during his plea, on or about October 1, 2021, Istre knowingly received files of child pornography via the internet. Additionally, he used sophisticated computer programs to download and store images and videos of child pornography. Istre sought videos and images of minors, knowing they were under 18 years of age, and sought them with the intent to receive child pornography. Istre also possessed 1,700 total videos and approximately 45 images of child pornography, which were accessible through his laptop.
This matter was investigated by the Federal Bureau of Investigation and the East Baton Rouge Sheriff’s Office and is being prosecuted by Assistant United States Attorney Edward H. Warner.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Barnstable Man Sentenced for Selling "Ghost Guns"Read the Press Release
BOSTON – A Barnstable man was sentenced yesterday in federal court in Boston for selling four “ghost guns” to an undercover agent.
Jacob Linhares, 34, was sentenced by U.S. Senior District Court Judge Douglas Woodlock to two years in prison and three years of supervised release. On Dec. 21, 2021, Linhares pleaded guilty to one count of dealing in firearms without a license and being a felon in possession of a firearm.
Between May 25, 2020 and June 15, 2020, Linhares, sold four Privately Made Firearms (PMFs) he had personally fabricated to an undercover agent. PMFs are not made by firearm manufacturers, but are rather from firearm parts purchased from firearm manufacturers and assembled by the buyer using various drilling tools and machinery to construct a functional firearm. PMFs do not have serial numbers and are commonly known as “ghost guns” because they are not serialized and are thus untraceable to a purchaser or owner.
Over this three-week period, Linhares arranged through phone calls and text messages involving coded language to meet with the undercover agent covertly in parking lots. During the fourth sale, Linhares agreed to take a commercially manufactured firearm as part of the payment. Due to prior felony convictions, Linhares is prohibited from possessing firearms.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Barnstable County District Attorney Michael D. O’Keefe; Barnstable Police Chief Matthew Sonnabend; and Barnstable County Sheriff James M. Cummings made the announcement. Assistant U.S. Attorney Philip A. Mallard of Rollins’ Organized Crime and Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Auburn Man Pleads Guilty to Sexual Exploitation of a Child and Distribution of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Devin Nau, age 27, of Auburn, New York, pled guilty today before United States District Judge David N. Hurd to two counts of sexual exploitation of a child and two counts of distribution of child pornography, announced United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York Field Office, and New York State Police Superintendent Kevin P. Bruen.
Nau, who remains detained pending his sentencing scheduled for August 11, 2022, faces at least 15 years and up to 100 years imprisonment on the charges. The Court will also impose a term of supervised release of between 5 years and life, and Nau will be required to register as a sex offender as a result of this conviction. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
As part of his guilty plea, Nau admitted to engaging in sex acts with two minor victims that he filmed and photographed using his cellular telephone. Nau further admitted that after recording the sex acts, he used a social media messaging application on his cellular telephone to distribute the depictions to other individuals over the internet.
Nau’s case was investigated by U.S. Homeland Security Investigations (HSI), Investigators of the New York State Police, Computer Crimes Unit (CCU), the Cayuga County District Attorney’s Office and the Auburn City Police Department. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J.L. Brown as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney's offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Amarillo Men Plead Guilty to Defrauding Cattle Feed Supplement CompanyRead the Press Release
Two Amarillo men who defrauded a manufacturer of cattle feed supplements out of more than $474,000 pleaded guilty today to wire fraud, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Philip Ian Thomas, 41, and Hadley Lane Jones, 30, pleaded guilty Wednesday to conspiracy to commit wire fraud.
In plea papers, the pair admitted they defrauded Westway Feed Products, LLC, a North American liquid feed supplement company.
The company hired Mr. Thomas to manage its Dimmitt, Texas plant in October 2014, giving him discretion to approve repair and maintenance projects costing up to $3,000.
Two years later, Mr. Thomas and Mr. Jones concocted a scheme in which Mr. Thomas would create and approve fraudulent invoices for work Mr. Jones purportedly – but did not actually – perform.
In November 2016, Mr. Thomas instructed Westway’s accounting department to add Mr. Jones as an approved contractor. He then created two invoices for welding he said Mr. Jones had performed, one for $1,490 and another for $1,200.
Despite knowing that Mr. Jones had performed only one project listed on the first invoice, a welding job itemized at $495, Mr. Thomas stamped and signed the contracts. Westway’s accounting department then paid the invoices. When the $2,690 transfer reached Mr. Jones’ bank account, he immediately withdrew $2,000 and gave it to Mr. Thomas.
The pair continued the scheme into March 2020, repeatedly submitting fraudulent invoices to the Westway’s accounting department, which the company paid to Mr. Jones, who split the cash with Mr. Thomas.
To further the fraudulent scheme, Mr. Jones even created a sham business, “Elite Welding Service,” to make the invoices appear more legitimate.
In total, Mr. Thomas fabricated hundreds of fictitious invoices detailing jobs Mr. Jones purportedly performed, inducing his employer to pay Mr. Jones more than $474,429. With the exception of one $5,000 invoice, Mr. Thomas set all of the invoices at or below the $3,000 approval limit, thus avoiding scrutiny by upper level management.
Both Mr. Thomas and Mr. Jones now face up to 20 years in federal prison. Their sentencing date has not yet been set.
The U.S. Secret Service’s Lubbock Resident Office, conducted the investigation. Assistant U.S. Attorney Ann Howey prosecuted the case.
Agreement Reached with City of Springfield Reforming its Police Department’s Unconstitutional PracticesRead the Press Release
BOSTON – The U.S. Attorney’s Office for the District of Massachusetts and the Department of Justice’s Civil Rights Division today filed a complaint and a proposed consent decree with the City of Springfield, Massachusetts to resolve its investigation of the Springfield Police Department’s Narcotics Bureau. This is the first pattern or practice police investigation to be resolved through a settlement under the Biden Administration.
The Settlement Agreement, in the form of a proposed consent decree, which must be approved by a Federal District Court Judge, would resolve the United States’ claim that the City and the Narcotics Bureau of the Springfield Police Department engaged in a pattern or practice of excessive force that deprived individuals of their rights under the Fourth Amendment to the U.S. Constitution.
Under the Agreement, the Springfield Police Department will improve policies and training related to officers’ use of force. These improvements will ensure that officers avoid force whenever possible through the use of de-escalation tactics; that officers know when force can and cannot be used; and that officers report all instances where force is used. In addition, the Springfield Police Department will provide better supervision to officers and improve internal investigations of complaints of officer misconduct. When officers violate use-of-force policies, the decree will ensure that the Springfield Police Department holds officers accountable.
The Agreement also provides for the federal judge to appoint an independent monitor, with the title of Compliance Evaluator, based on the recommendation of the parties. The Compliance Evaluator will assess Springfield’s implementation of the decree’s requirements and file public reports with the court on Springfield’s progress.
“When communities don’t trust or fear law enforcement, it undermines public safety. Some within the Springfield Police Department, through their sustained and documented constitutional violations, have tarnished the name of the many upstanding and decent police officers working in Springfield,” said U.S. Attorney Rachael Rollins for the District of Massachusetts. “Today is the first step in repairing the harm and mistrust their misconduct and violence caused. After lengthy negotiations, we are pleased to have reached an agreement that includes significant and sustainable reforms to ensure effective and constitutional policing going forward in the City of Springfield. This is the first police misconduct Settlement Agreement entered during the Biden Administration. Our U.S. Attorney’s Office will always protect the constitutional rights of Massachusetts residents.”
“The public’s trust in law enforcement is a critical component of promoting public safety. Excessive force erodes that trust and makes our communities less safe,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This consent decree will rebuild the public’s trust by ensuring that Springfield officers who use excessive force in violation of the Fourth Amendment are held accountable. We look forward to working with city officials to ensure constitutional policing in every corner of the Springfield community and fostering better relationships between law enforcement and the community.”
The Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts initiated the investigation of the Springfield Police Department in April 2018 under the Violent Crime Control and Law Enforcement Act of 1994, 34 U.S.C. § 12601. This law authorizes the Attorney General to file a lawsuit to address a pattern or practice of conduct by law enforcement officers that deprives individuals of their rights under the Constitution or federal law. In July 2020, the department announced findings that officers in SPD’s Narcotics Bureau, which has since been renamed the Firearms Investigation Unit, engaged in a pattern or practice of excessive force. The department found that Narcotics Bureau officers often failed to report use of force incidents. At times officers’ reports were inconsistent with available evidence, including video and photographs.
The investigation was conducted jointly by the Civil Rights Unit of the U.S. Attorney’s Office for the District of Massachusetts and the Civil Rights Division’s Special Litigation Section. This matter is being handled by Jennifer A. Serafyn, Chief of Rollins’s Civil Rights Unit, and Assistant U.S. Attorneys Michelle Leung and Torey Cummings of Rollins’ Civil Rights Unit.
For more information on the U.S. Attorney’s Office’s Civil Rights Unit, please visit www.justice.gov/usao-ma/civil-rights. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Addiction Treatment Facility Owner Convicted in $58 Million Health Care Fraud SchemeRead the Press Release
A federal jury convicted a Florida woman today in a health care fraud scheme that billed private health insurers more than $58 million for services that were never provided and were not medically necessary.
According to court documents and evidence presented at trial, Carie Lyn Beetle, 44, of Lake City, with others, unlawfully billed health insurers for over $58 million of addiction treatment services that were never rendered and/or were medically unnecessary at two facilities she operated: Real Life Recovery Delray LLC (RLR), a substance abuse treatment center, and A Safe Place LLC, dba Halfway There Florida LLC (HWT), a related recovery residence, also referred to as a “sober home.”
The evidence showed that Beetle and her co-conspirators recruited patients by providing them with kickbacks and bribes in the form of free or reduced rent, payment for travel, and other benefits in exchange for those patients agreeing to reside at HWT, attend drug treatment at RLR, and submit to regular and random drug testing (typically two or three times per week) at RLR and HWT. Beetle and her co-conspirators then billed the patients’ insurance plans for the substance abuse treatment and urine testing services the patients were purportedly receiving. In many instances, individual patients did not attend the billed treatment session. On such occasions, Beetle and her co-conspirators caused employees and patients of HWT/RLR to forge patients’ signatures on sign-in sheets to make it appear as though absent patients had attended treatment. In addition, Beetle and her co-conspirators caused expensive medically unnecessary urine testing to be billed for patients knowing that the tests were excessive, not used in treatment, and not reviewed by medical professionals.
The evidence further showed that Beetle laundered the proceeds knowing they derived from fraud and other crimes when she deposited a check from RLR.
Beetle was convicted of one count of conspiracy to commit health care fraud and wire fraud, and one count of money laundering. She is scheduled to be sentenced later this year and faces a maximum sentence of 20 years in prison on the conspiracy count and up to 10 years in prison on the money laundering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; Deputy Chief James D. Robnett of IRS-Criminal Investigation (IRS-CI); and Special Agent in Charge Matthew D. Line of IRS-CI’s Miami Field Office made the announcement.
The FBI, IRS-CI, the Florida Bureau of Insurance Fraud, and Amtrak Office of Inspector General investigated the case.
Senior Litigation Counsel Jim Hayes and Trial Attorneys Ligia Markman and Reginald Cuyler Jr. of the Criminal Division’s Fraud Section are prosecuting the case.
The National Rapid Response Strike Force and Los Angeles Strike Force lead the Department of Justice’s Sober Homes Initiative, which was announced in the 2020 National Health Care Fraud Takedown to prosecute defendants who exploit vulnerable patients seeking treatment for drug and/or alcohol addiction.
Tuesday 12 April 2022
全国性人口贩卖和性贩卖集团的九名成员及其同伙以敲诈勒索及相关罪名被起诉Read the Press Release
被告教唆成员内容包括：“（如果她）敢反抗，就打得更狠一点， 打出来点效果，钱不能白扔“
布碌仑联邦法庭今天对陈思阳、陈思宇 (同时被称为班班，译音) 、姜波、宋美珍（同时被称为蝶蝶）、徐荣荣（同时被称为Eleanor）、严家润 (同时被称为Raymond Yan 及Mike) 、于基龙、卡洛斯.柯瑞 (Carlos Cury) 及唐泽荣所涉及的罪行提出20项起诉，其中包括诈骗、性贩卖、霍布斯法抢劫和暴力攻击等罪名。此一犯罪集团以纽约州皇后区为基地，但罪行遍布全美，包括夏威夷州、堪萨斯州、密西根州、密苏里州、内布拉斯加州、新罕布什尔州、俄勒冈州、德克萨斯州和华盛顿州。共有八名被告逮捕到案，并将于今天下午在助理法官XXXX庭上提讯过堂。
美国司法部调查局纽约州东区律师皮斯 (Breon Peace)、联邦调查局纽约办公室助理监察德睿斯考（Michael J. Driscoll）和纽约市警察局局长塞维尔(Keechant L. Sewell)共同宣布了本次逮捕行动和起诉罪名。
司法调查局律师皮斯指出， “这些被告锁定弱势女性进行性贩卖罪行，并用暴力袭击这些受害人，让她们服从犯罪集团的指令，个人不应成为交易标的，而在此项罪行中的受害者，无论她们的移民身份为何，都应享有免受暴力及被迫提供性行为的自由。我们希望今天的逮捕能为这些受害人遭受的恐怖经历，带来一定程度的司法正义，这个案例是我们检调单位长期以来打击以剥削受害人自由并从中获利的人口贩卖集团，并致力将其绳之以法的另一证明。“
法院罪状指出，被告在2019年4月到2021年9月间，涉及暴力和组织诈骗集团，并在全美经营获利丰厚的卖淫业务，此犯罪集团主要招募来自中国且不具合法居留美国身份的女性，为该集团提供卖淫业务。这些受害人有时还必须提供她们的身份证明文件，让涉案罪犯能对其进行更多掌控，该犯罪集团会安排这些女性从纽约州旅行至全美各地，每次在酒店或集团控制的公寓内停留数周，并在停留期间进行商业行为。犯罪集团成员及同伙会在交易完成后向这些被害女性收取金钱，然后用此收入进一步推广人口贩卖及跨州卖淫行为，让涉及罪犯从中获利。
如罪状中提出的，以上犯罪集团的罪犯及其同伙在2020年1月8日至2021年9月1日期间，在五个州境内对超过15名女性进行或教唆施暴，这些受害的中国女性应是为这犯罪集团或其对手集团提供商业卖淫活动，集团成员对这些女性进行暴力袭击，期能让这些受害人服从指令完成卖淫工作，并相信因为这些被害人不是美国公民，所以从事商业的性交易工作将不会受起诉。特别是这犯罪集团成员及同伙会指派个别男子担任嫖客，让受害人在不知情前提下让这些同伙进入酒店房间，一旦入室后，这些假嫖客将封住被害人的嘴、用铁锤、棍棒或其他突击物品对被害人施暴，并掠夺其财物。如果这些暴力行为对受害人没有造成足够伤害，该集团和罪犯还会鼓励施暴者用更严酷的殴打，在执法单位所录取的一段电话对话中，其中一名成员告诉施暴人“明天往死里打，敢反抗就打得更狠一点，打出来点效果，钱不能白扔”。另一段录取的对话则是一位成员说“这次不一样， 咱不要绑手。一个人控制锁喉，另一个人往死里打四肢，绝对不能发出声音，把她打到不能反抗了， 完事儿拿了手机就走。”
起诉书中的罪状均属指控，所有被告在证明有罪之前均属无辜。
皮斯律师对联邦调查局和纽约市警察局的调查工作特别提出赞扬，这次的调查工作收到全美执法单位的协助，皮斯律师也致意感谢内布拉斯加州的美国司法局办公室、美国国土防卫部边境移民管理局位于俄克拉荷马市和曼彻斯特市二个办公室的执法单位，另外，包括俄勒冈州毕佛尔顿市警局、密西根州警、密苏里州高速公路巡警、俄克拉荷马市（俄克拉荷马州）警局、欧佛兰公园市（堪萨斯州）警局、波特兰市（俄勒冈州）警局、南区市（密西根州）警局、和突洛依市（密西根州）警局等地方执法单位也在本次调查中提供宝贵协助。
政府当局将由组织犯罪和帮派及民权办公室担任代表，对本案提起诉讼，司法院助理法官盖力奥提（Matthew R. Galeotti）、奔辛（Kayla C. Bensing）和史瓦瑞兹（Sophia M. Suarez）将负责本案的诉讼。
联邦调查局纽约亚裔犯罪集团联合专案组确信, 这个集团可能要对更多在美国各地发生的, 对从事性交易的性工作者的攻击事件负责。如果您是受害者, 或有讯息要提供，可以通过以下方式联系我们: 您可以在tips.fbi.gov通过网络举报, 或拨打我们的直线电话1-800-CALL-FBI. 无论您是什么移民身份, 我们有专人随时用您的母语与您交谈。 接通后, 请选择英文; 然后告訴接线生您需要的翻译。 您可以用任何语言进行网络举报。紧急事件, 请拨打911给警方。
被告:
陈思阳
32岁
纽约州皇后区陈思宇 （同时被称为班班）
24岁
纽约州皇后区姜波
26 岁
纽约州皇后区宋美珍 （同时被称为“蝶蝶“）
23岁
达拉斯市，德克萨斯州徐荣荣（同时被称为 “Eleanor”）
29 岁
纽约州皇后区严家润（同时被称为 “Raymond Yan” 和 “Mike”）
28 岁
纽约州皇后区于基龙
23岁
达拉斯市，德克萨斯州CARLOS CURY
41岁
纽约州皇后区唐泽荣
24岁
纽约州皇后区Winthrop Man Pleads Guilty to Cocaine and Money Laundering ChargesRead the Press Release
BOSTON – A Winthrop man pleaded guilty on Friday, April 8, 2022, in federal court in Boston to laundering over $335,000 in cocaine proceeds and distributing over 15 kilograms of cocaine.
Fabio Quijano, 58, of Winthrop, pleaded guilty to money laundering conspiracy, money laundering, conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine and possession with intent to distribute 500 grams or more of cocaine. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Aug. 15, 2022. Quijano was arrested and indicted in February 2020. He was subsequently charged in a superseding indictment in May 2020.
Quijano worked with at least two other men—including co-defendant Jairo Agudelo, who previously pleaded guilty and was sentenced to 57 months in prison—to launder hundreds of thousands of dollars in drug proceeds derived from Quijano’s large-scale cocaine trafficking business.
On June 26, 2018, Quijano delivered $135,180 of cocaine proceeds to an undercover officer posing as a money laundering intermediary acting on behalf of a Colombian money broker. On Feb. 4, 2019, Quijano’s business partner delivered another $310,000 in drug proceeds to the undercover. And on Feb. 18, 2019, Agudelo attempted to deliver $200,000 to the undercover officer, on behalf of Quijano and his business partner, when he was stopped by police. Agudelo later admitted that Quijano had given him the $200,000 to launder.
On Feb. 20, 2019, investigators executed a search warrant at the stash house operated by Quijano and his business partner, located in an apartment in Everett. Inside the apartment, investigators located nearly four kilograms of cocaine, over $310,000 in cash from prior drug sales, a hydraulic kilogram press, drug packaging materials and numerous drug ledgers.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division made the announcement. Critical assistance was provided by the Boston Police Department; Massachusetts State Police; Revere Police Department; U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations; and the United States Marshals Service. Assistant U.S. Attorneys Lauren A. Graber and Jared C. Dolan of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Valdosta Man Pleads Guilty to Production of Child PornographyRead the Press Release
VALDOSTA, Ga. – A Valdosta man who produced child pornography involving two young children has pleaded guilty to his crime in federal court.
Henry Theodore Salmons aka Ted, 48, of Valdosta, Georgia, pleaded guilty to two counts of producing child pornography before U.S. District Judge Hugh Lawson on Monday, April 11. Salmons faces a minimum of 15 years in prison and a maximum of 30 years in prison per count to be followed by five years to life on supervised release and a maximum $250,000 fine. In addition, Salmons will have to register as a sex offender upon his release from federal prison. There is no parole. Sentencing has been scheduled for July 20.
“Forcing children to engage in sex, filming the crimes and sharing the assaults with others is an unconscionable heinous act that deserves the maximum punishment,” said U.S. Attorney Peter D. Leary. “For the protection of the minor victims, the horrific details will remain under the court’s seal; but, let me be clear that the criminal actions of Ted Salmons and other child sexual predators like him will not remain in the shadows but will be brought to the light of full justice.”
“Finding and stopping predators like Salmons, that not only victimize innocent children, but also share those horrific images with others who delight in viewing this filth is one of our highest priorities,” said Special Agent in Charge Katrina Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Thanks to the great work done by our agents along with our state, local and federal partners we were able to remove a serious threat from our community and we will continue to pursue those who commit these evil acts.”
“In my more than two decades in law enforcement, I have never seen so much crime involving children as now, which I suspect is due to the prevalence of social media. I am thankful that we have great cooperation between our federal, state and local law enforcement agencies—plus strong federal prosecutors—that help us investigate child sexual exploitation and abuse cases and bring these criminals to justice,” said Lowndes County Sheriff Ashley Paulk.
According to court documents, Salmons admitted that he enticed two minor children under the age of ten years old to engage in sexually explicit acts which were filmed or photographed in April and July 2021. For the protection of the minor victims, Salmon’s guilty plea was sealed by the Court at the request of the U.S. Attorney’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the U.S. Department of Homeland Security (HSI) and the Lowndes County Sheriff’s Office.
Assistant U.S. Attorney Katelyn Semales is prosecuting the case.
United States Leads Seizure of One of the World’s Largest Hacker Forums and Arrests AdministratorRead the Press Release
The Department of Justice today announced the seizure of the RaidForums website, a popular marketplace for cybercriminals to buy and sell hacked data, and unsealed criminal charges against RaidForums’ founder and chief administrator, Diogo Santos Coelho, 21, of Portugal. Coelho was arrested in the United Kingdom on Jan. 31, at the United States’ request and remains in custody pending the resolution of his extradition proceedings.
Court records unsealed today indicate that the United States recently obtained judicial authorization to seize three domains that long hosted the RaidForums website. These domains were “raidforums.com,” “Rf.ws,” and “Raid.lol.” According to the affidavit filed in support of these seizures, from in or around 2016 through February 2022, RaidForums served as a major online marketplace for individuals to buy and sell hacked or stolen databases containing the sensitive personal and financial information of victims in the United States and elsewhere, including stolen bank routing and account numbers, credit card information, login credentials and social security numbers.
“The takedown of this online market for the resale of hacked or stolen data disrupts one of the major ways cybercriminals profit from the large-scale theft of sensitive personal and financial information,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This is another example of how working with our international law enforcement partners has resulted in the shutdown of a criminal marketplace and the arrest of its administrator.”
“Our interagency efforts to dismantle this sophisticated online platform – which facilitated a wide range of criminal activity – should come as a relief to the millions victimized by it, and as a warning to those cybercriminals who participated in these types of nefarious activities,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Online anonymity was not able to protect the defendant in this case from prosecution, and it will not protect other online criminals either.”
“The seizure of the RaidForums website – which facilitated the sale of stolen data from millions of people throughout the world – and the charges against the marketplace's administrator are a testament to the strength of the FBI's international partnerships,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office said. “Cybercrime transcends borders, which is why the FBI is committed to working with our partners to bring cybercriminals to justice – no matter where in the world they live or behind what device they try to hide.”
“This global investigation signifies the remarkable dedication of the U.S. Secret Service and highlights our partnerships with our foreign law enforcement counterparts essential to disrupting sophisticated networks of cyber criminals,” said Special Agent in Charge Jason D. Kane of the U.S. Secret Service’s Criminal Investigative Division. “This case exemplifies teamwork at all levels of law enforcement to stop these cyber criminals from defrauding citizens of the United States and in our partner countries.”
Prior to its seizure, RaidForums members used the platform to offer for sale hundreds of databases of stolen data containing more than 10 billion unique records for individuals residing in the United States and internationally. At the time of its founding in 2015, RaidForums also operated as an online venue for organizing and supporting forms of electronic harassment, including by “raiding” – posting or sending an overwhelming volume of contact to a victim’s online communications medium – or “swatting” – the practice of making false reports to public safety agencies of situations that would necessitate a significant, and immediate armed law enforcement response.
The seizure of these domains by the government will prevent RaidForums members from using the platform to traffic in data stolen from corporations, universities and governmental entities in the United States and elsewhere, including databases containing the sensitive, private data of millions of individuals around the world.
In addition, a six-count indictment against Coelho was unsealed in the Eastern District of Virginia charging him with conspiracy, access device fraud and aggravated identify theft in connection with his role as the chief administrator of RaidForums. According to the indictment, between Jan. 1, 2015, and on or about Jan. 31, 2022, Coelho allegedly controlled and served as the chief administrator of RaidForums, which he operated with the help of other website administrators. As administrators, Coelho and his co-conspirators are alleged to have designed and administered the platform’s software and computer infrastructure, established and enforced rules for its users, and created and managed sections of the website dedicated to promoting the buying and selling of contraband, including a subforum titled “Leaks Market” that described itself as “[a] place to buy/sell/trade databases and leaks.”
To profit from the illicit activity on the platform, RaidForums charged escalating prices for membership tiers that offered greater access and features, including a top-tier “God” membership status. RaidForums also sold “credits” that provided members access to privileged areas of the website and enabled members to “unlock,” and download stolen financial information, means of identification, and data from compromised databases, among other items. Members could also earn credits through other means, such as by posting instructions on how to commit certain illegal acts.
According to the indictment, Coelho also personally sold stolen data on the platform, and directly facilitated illicit transactions by operating a fee-based “Official Middleman” service. For the Official Middleman service, Coelho allegedly acted as a trusted intermediary between RaidForums members seeking to buy and sell contraband on the platform, including hacked data. Notably, to create confidence amongst transacting parties, the Official Middleman service enabled purchasers and sellers to verify the means of payment and contraband files being sold prior to executing the transaction.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; Special Agent in Charge Jason D. Kane of the U.S. Secret Service’s Criminal Investigative Division; and Assistant Director Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
Senior Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Carina A. Cuellar for the Eastern District of Virginia are prosecuting the case against Coelho. The Justice Department’s Office of International Affairs provided significant assistance throughout the criminal investigation.
The law enforcement actions against RaidForums and Coelho are the result of an ongoing criminal investigation by the FBI’s Washington Field Office and the U.S. Secret Service. The department also thanks the support provided by Joint Cybercrime Action Taskforce (Europol), National Crime Agency (UK), Swedish Police Authority (Sweden), Romanian National Police (Romania), Judicial Police (Portugal), Internal Revenue Service Criminal Investigation, Federal Criminal Police Office (Germany) and other law enforcement partners.
Anyone that has any information regarding Coelho or RaidForums should file a complaint at ic3.gov with #RaidForums in the description.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Citizen Who Conspired to Assist North Korea in Evading Sanctions Is Sentenced to More Than 5 Years and Fined $100,000Read the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that VIRGIL GRIFFITH, a U.S. citizen who conspired to provide services to the Democratic People’s Republic of Korea (“DPRK” or “North Korea”), including technical advice on using cryptocurrency and blockchain technology to evade sanctions, was sentenced to 63 months after pleading guilty to conspiracy to violate the International Emergency Economic Powers Act (“IEEPA”). U.S. District Judge P. Kevin Castel imposed today’s sentence.
U.S. Attorney Damian Williams stated: “There is no question North Korea poses a national security threat to our nation, and the regime has shown time and again it will stop at nothing to ignore our laws for its own benefit. Mr. Griffith admitted in court he took actions to evade sanctions, which are in place to prevent the DPRK from building a nuclear weapon. Justice has been served with the sentence handed down today.”
According to the Complaint, Indictment, other documents in the public record, as well as statements made in public court proceedings:
Pursuant to the IEEPA and Executive Order 13466, United States persons are prohibited from exporting any goods, services, or technology to the DPRK without a license from the Department of the Treasury, Office of Foreign Assets Control (“OFAC”).
GRIFFITH, a cryptocurrency expert, began formulating plans as early as 2018 to provide services to individuals in the DPRK by developing and funding cryptocurrency infrastructure there, including to mine cryptocurrency. GRIFFITH knew that the DPRK could use these services to evade and avoid U.S. sanctions, and to fund its nuclear weapons program and other illicit activities.
In April 2019, GRIFFITH traveled to the DPRK to attend and present at the “Pyongyang Blockchain and Cryptocurrency Conference” (the “DPRK Cryptocurrency Conference”). Despite the fact that the U.S. Department of State had denied GRIFFITH permission to travel to the DPRK, GRIFFITH delivered presentations at the DPRK Cryptocurrency Conference, tailored to the DPRK audience, knowing that doing so violated sanctions against the DPRK.
At the DPRK Cryptocurrency Conference, GRIFFITH and his co-conspirators provided instruction on how the DPRK could use blockchain and cryptocurrency technology to launder money and evade sanctions. GRIFFITH’s presentations at the DPRK Cryptocurrency Conference had been approved by DPRK officials and focused on, among other things, how blockchain technology such as “smart contracts” could be used to benefit the DPRK, including in nuclear weapons negotiations with the United States. GRIFFITH and his co-conspirators also answered specific questions about blockchain and cryptocurrency technologies for the DPRK audience, including individuals whom GRIFFITH understood worked for the North Korean government.
After the DPRK Cryptocurrency Conference, GRIFFITH pursued plans to facilitate the exchange of cryptocurrency between the DPRK and South Korea, despite knowing that assisting with such an exchange would violate sanctions against the DPRK. GRIFFITH also attempted to recruit other U.S. citizens to travel to North Korea and provide similar services to DPRK persons and attempted to broker introductions for the DPRK to other cryptocurrency and blockchain service providers. At no time did GRIFFITH obtain permission from OFAC to provide goods, services, or technology to the DPRK.
* * *
In addition to the prison sentence, GRIFFITH, 39, was sentenced to three years supervised release.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and its New York Field Office, Counterintelligence Division, and thanked the Department of Justice’s National Security Division, Counterintelligence and Export Control Section, the Department of Justice’s Office of International Affairs, and the Singapore Police Force for their assistance.
The case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Kimberly Ravener and Kyle A. Wirshba are in charge of the case, with assistance from Trial Attorney Matthew J. McKenzie of the Counterintelligence and Export Control Section.
U.S. Leads Seizure of One of the World’s Largest Hacker Forums and Arrests AdministratorRead the Press Release
ALEXANDRIA, Va. – The U.S. Department of Justice today announced the seizure of the RaidForums website, a popular marketplace for cybercriminals to buy and sell hacked data, and unsealed criminal charges against RaidForums’ founder and chief administrator, Diogo Santos Coelho, 21, of Portugal. Coelho was arrested in the United Kingdom on January 31, at the United States’ request, and remains in custody pending the resolution of his extradition proceedings.
“Our interagency efforts to dismantle this sophisticated online platform – which facilitated a wide range of criminal activity – should come as a relief to the millions victimized by it, and as a warning to those cybercriminals who participated in these types of nefarious activities,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Online anonymity was not able to protect the defendant in this case from prosecution, and it will not protect other online criminals either.”
“The takedown of this online market for the resale of hacked or stolen data disrupts one of the major ways cybercriminals profit from the large-scale theft of sensitive personal and financial information,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This is another example of how working with our international law enforcement partners has resulted in the shutdown of a criminal marketplace and the arrest of its administrator.”
"The seizure of the RaidForums website — which facilitated the sale of stolen data from millions of people throughout the world — and the charges against the marketplace's administrator are a testament to the strength of the FBI's international partnerships," Assistant Director in Charge Steven M. D'Antuono of the FBI Washington Field Office said. "Cybercrime transcends borders, which is why the FBI is committed to working with our partners to bring cybercriminals to justice — no matter where in the world they live or behind what device they try to hide."
“This global investigation signifies the remarkable dedication of the U.S. Secret Service and highlights our partnerships with our foreign law enforcement counterparts essential to disrupting sophisticated networks of cyber criminals,” said Jason D. Kane, Special Agent In Charge, Criminal Investigative Division of the U.S. Secret Service; “This case exemplifies teamwork at all levels of law enforcement to stop these cyber criminals from defrauding citizens of the United States and in our partner countries.”
Court records unsealed yesterday indicate that the United States recently obtained judicial authorization to seize three domains that long hosted the RaidForums website. These domains were “Raidforums.com,” “Rf.ws,” and “Raid.lol.” According to the affidavit filed in support of these seizures, from in or around 2016 through February, RaidForums served as a major online marketplace for individuals to buy and sell hacked or stolen databases containing the sensitive personal and financial information of victims in the United States and elsewhere, including stolen bank routing and account numbers, credit card information, login credentials, and social security numbers. Prior to its seizure, RaidForums members used the platform to offer for sale hundreds of databases of stolen data containing more than 10 billion unique records for individuals residing in the United States and internationally. At the time of its founding in 2015, RaidForums also operated as an online venue for organizing and supporting forms of electronic harassment, including by “raiding”—posting or sending an overwhelming volume of contact to a victim’s online communications medium—or “swatting”—the practice of making false reports to public safety agencies of situations that would necessitate a significant, and immediate armed law enforcement response.
The seizure of these domains by the government will prevent RaidForums members from using the platform to traffic in data stolen from corporations, universities, and governmental entities in the United States and elsewhere, including databases containing the sensitive, private data of millions of individuals around the world.
In addition, a six-count indictment against Coelho was unsealed in the Eastern District of Virginia charging him with conspiracy, access device fraud, and aggravated identify theft in connection with his role as the chief administrator of RaidForums. According to the indictment, between January 1, 2015, and on or about January 31, 2022, Coelho allegedly controlled and served as the chief administrator of RaidForums, which he operated with the help of other website administrators. As administrators, Coelho and his co-conspirators are alleged to have designed and administered the platform’s software and computer infrastructure, established and enforced rules for its users, and created and managed sections of the website dedicated to promoting the buying and selling of contraband, including a subforum titled “Leaks Market” that described itself as “[a] place to buy/sell/trade databases and leaks.”
To profit from the illicit activity on the platform, RaidForums charged escalating prices for membership tiers that offered greater access and features, including a top-tier “God” membership status. RaidForums also sold “credits” that provided members access to privileged areas of the website and enabled members to “unlock” and download stolen financial information, means of identification, and data from compromised databases, among other items. Members could also earn credits through other means, such as by posting instructions on how to commit certain illegal acts.
According to the indictment, Coelho also personally sold stolen data on the platform, and directly facilitated illicit transactions by operating a fee-based “Official Middleman” service. For the Official Middleman service, Coelho allegedly acted as a trusted intermediary between RaidForums members seeking to buy and sell contraband on the platform, including hacked data. Notably, to create confidence amongst transacting parties, the Official Middleman service enabled purchasers and sellers to verify the means of payment and contraband files being sold prior to executing the transaction.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Jason D. Kane, Special Agent In Charge, Criminal Investigative Division of the U.S. Secret Service; and Assistant Director in Charge Steven M. D'Antuono of the FBI Washington Field Office, made the announcement.
Assistant U.S. Attorney Carina A. Cuellar and Senior Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) of the Justice Department are prosecuting the case against Coelho. The Justice Department’s Office of International Affairs has also provided significant assistance throughout the criminal investigation.
The law enforcement actions against RaidForums and Coelho are the result of an ongoing criminal investigation by the FBI’s Washington Field Office and the U.S. Secret Service. The Department also thanks the support provided by Joint Cybercrime Action Taskforce (Europol), National Crime Agency (UK), Swedish Police Authority (Sweden), Romanian National Police (Romania), Judicial Police (Portugal), Internal Revenue Service Criminal Investigation, Federal Criminal Police Office (Germany), and other law enforcement partners.
Anyone that has any information regarding Coelho, RaidForums or other RaidForums administrators should file a complaint at ic3.gov with #raidforums in the description.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-114.
coelho_indictment.pdfAn indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Citizen Who Conspired to Assist North Korea in Evading Sanctions Sentenced to over Five Years and Fined $100,000Read the Press Release
A U.S. citizen who conspired to provide services to the Democratic People’s Republic of Korea (DPRK or North Korea), including technical advice on using cryptocurrency and blockchain technology to evade sanctions, was sentenced to 63 months in prison after pleading guilty to conspiracy to violate the International Emergency Economic Powers Act (IEEPA).
According to court documents, Virgil Griffith, 39, began formulating plans as early as 2018 to provide services to individuals in the DPRK by developing and funding cryptocurrency infrastructure there, including to mine cryptocurrency. Griffith knew that the DPRK could use these services to evade and avoid U.S. sanctions, and to fund its nuclear weapons program and other illicit activities.
Pursuant to the IEEPA and Executive Order 13466, U.S. persons are prohibited from exporting any goods, services or technology to the DPRK without a license from the Department of the Treasury, Office of Foreign Assets Control (OFAC).
In April 2019, Griffith traveled to the DPRK to attend and present at the “Pyongyang Blockchain and Cryptocurrency Conference” (the DPRK Cryptocurrency Conference). Even though the Department of State had denied Griffith permission to travel to the DPRK, Griffith delivered presentations at the DPRK Cryptocurrency Conference, tailored to the DPRK audience, knowing that doing so violated sanctions against the DPRK.
At the DPRK Cryptocurrency Conference, Griffith and his co-conspirators provided instruction on how the DPRK could use blockchain and cryptocurrency technology to launder money and evade sanctions. Griffith’s presentations at the DPRK Cryptocurrency Conference had been approved by DPRK officials and focused on, among other things, how blockchain technology such as “smart contracts” could be used to benefit the DPRK, including in nuclear weapons negotiations with the United States. Griffith and his co-conspirators also answered specific questions about blockchain and cryptocurrency technologies for the DPRK audience, including individuals whom Griffith understood worked for the North Korean government.
After the DPRK Cryptocurrency Conference, Griffith pursued plans to facilitate the exchange of cryptocurrency between the DPRK and South Korea, despite knowing that assisting with such an exchange would violate sanctions against the DPRK. Griffith also attempted to recruit other U.S. citizens to travel to North Korea and provide similar services to DPRK persons and attempted to broker introductions for the DPRK to other cryptocurrency and blockchain service providers. At no time did Griffith obtain permission from OFAC to provide goods, services or technology to the DPRK.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division and U.S. Attorney Damian Williams for the Southern District of New York made the announcement.
The FBI’s New York Field Office investigated the case, with valuable assistance provided by the National Security Division’s Counterintelligence and Export Control Section, the Justice Department’s Office of International Affairs, and the Singapore Police Force.
Assistant U.S. Attorneys Kimberly Ravener and Kyle A. Wirshba for the Southern District of New York and Trial Attorney Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
U.S. Attorney to host Health Care Fraud SymposiumRead the Press Release
MORGANTOWN, WEST VIRGINIA – Experts from the public and private sector will gather in Morgantown next week for a seminar to highlight best practices in preventing and responding to health care fraud, United States Attorney William Ihlenfeld announced.
The Mountaineer Health Care Fraud Symposium will take place on Thursday, April 21, at the WVU College of Law. Federal and state investigators will share the latest trends in health care fraud, while medical and insurance professionals will discuss best practices on how to detect and prevent fraud. A presentation explaining how whistleblowers can come forward, tell their story, and share in the financial recovery will also be made. The United States Attorney’s Office is hosting the event.
The symposium comes on the heels of the creation of a West Virginia-based health care fraud strike force comprised of state and federal agencies that takes a data-driven approach to uncovering waste and abuse. In addition to the formation of the strike force, a hotline, email address and mailing address have been established to allow for the reporting of potential fraud. Anyone with information may call (304) 234-7711, send an email to [email protected], or mail correspondence to the U.S. Attorney’s Office, P.O. Box 591, Wheeling, WV 26003.
The registration-only event allows for both in-person and virtual attendance. The West Virginia State Bar has approved the event for 4.8 continuing legal education credits. To register, send an email to [email protected].
The full agenda may be found at https://www.justice.gov/usao-ndwv/health-care-fraud-symposium.
Two Santa Clara County Executives Charged with “Specialty Occupation” Visa FraudRead the Press Release
SAN JOSE – Elangovan Punniakoti and Mary Christeena appeared in federal court today to face an indictment charging them with visa fraud and conspiracy to commit visa fraud, announced United States Attorney Stephanie M. Hinds, U.S. Department of State Diplomatic Security Service (DSS), San Francisco Field Office, Special Agent in Charge William Chang, and Homeland Security Investigations Special Agent in Charge Tatum King.
According to the indictment, Innovate Solutions, Inc. in Santa Clara County was incorporated in 2008 as an information technology services company. Punniakoti, 52, a resident of Cupertino, acted as CEO of Innovate Solutions. Christeena, 47, also a resident of Cupertino, served as the company’s president.
The indictment charges that from 2010 through May 2020, Punniakoti and Christeena repeatedly submitted fraudulent H-1B visa applications for foreign workers sponsored by Innovate Solutions. H-1B visas are issued through the United States government’s H-1B Specialty Occupation Workers program. With an H-1B visa, a sponsoring employer can employ a foreign worker in the United States on a temporary, nonimmigrant basis in a “specialty occupation.” A specialty occupation requires the theoretical and practical application of a body of specialized knowledge and requires the employee to have a bachelor's degree or its equivalent in the relevant specialty. Each employer seeking to obtain an H-1B visa to employ a nonimmigrant foreign worker is required to submit an application to the U.S. Department of Labor that, among other things, attests to labor conditions and describes the existence, duration, and wages of the temporary job. A subsequent petition requires, among other information, biographical data of the proposed foreign worker and the address where the proposed foreign worker will be working for the sponsoring employer.
The indictment charges that from 2010 through May 2020, Punniakoti and Christeena submitted approximately 54 fraudulent H-1B visa applications for temporary nonimmigrant workers sponsored by Innovate Solutions. Each application required representations made under penalty of perjury as to the name, location, terms, and existence of the employment position for the sponsored nonimmigrant worker. Punniakoti and Christeena submitted, or caused to be submitted, statements in the application process that the foreign workers would be working offsite at specific end-client companies. The indictment charges that the identified end-client companies either never received the proposed foreign workers or never intended to receive those workers. The indictment also charges that Punniakoti and Christeena submitted, or caused to be submitted, statements that a foreign worker would be working on an internal project for Innovate Solutions despite knowing that no such project existed.
Once the applications were approved, Punniakoti and Christeena created a pool of H-1B workers that were placed at employment positions with other employers that had actual work, not with the identified end-clients. The practice provided Innovate Solutions with an unfair and illegal advantage over employment-staffing firms.
During the period of Punniakoti’s and Christeena’s conspiracy, the indictment alleges, the other employers paid fees of more than $2.5 million to Innovate Solutions to cover the cost of the H-1B workers’ wages and salaries as well as a profit markup for Innovate Solutions.
Punniakoti and Christeena made their initial appearances in San Jose federal court today before United States Magistrate Judge Virginia K. DeMarchi. A further court appearance is scheduled on July 25, 2022, before United States District Judge Edward J. Davila, who sits in San Jose. Both defendants were released.
The federal indictment charges both Punniakoti and Christeena with one count of conspiracy to commit visa fraud in violation of 18 U.S.C. § 371 and six counts of visa fraud in violation of 18 U.S.C. §§ 1546(a) and 2. The maximum statutory imprisonment sentence for a violation of 18 U.S.C. § 371 is 5 years in prison. The maximum statutory imprisonment sentence for each violation of 18 U.S.C. §§ 1546(a) is 10 years. Each of the charged statutes carry a maximum statutory fine of $250,000 or twice the gross gain or loss amount. However, any sentence following a conviction would be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the criminal indictment are only allegations. As in any criminal case, these defendants are presumed innocent unless and until proven guilty in a court of law.
Assistant United States Attorney Sarah Griswold is prosecuting the case with the assistance of Lynette Dixon. The prosecution was the result of an investigation led by the DSS representative to the Document and Benefit Fraud Task Force (DBFTF), overseen by Homeland Security Investigations. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation.
Two Men Plead Guilty to Brandishing FirearmRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty yesterday and a Henrico man pleaded guilty last week to possession of a firearm by a convicted felon in cases where each brandished their firearms in a residential area.
According to court documents, on July 23, 2021, police officers observed on social media Anthony Cornelius Brown Jr., 24, of Richmond, Dequane McCullers, 24, of Henrico, and several other individuals brandishing firearms in the Belt Atlantic apartment complex in South Richmond. When the officers responded to the area, they again observed Brown, McCullers and two others still in the area. As the officers attempted to stop Brown, McCullers, and two other individuals, the suspects dispersed in an attempt to avoid the officers. Ultimately, the officers detained all four and found Brown in possession of a Glock 35, .40 caliber firearm and McCullers in possession of a Glock 23, .40 caliber firearm
Brown pleaded guilty yesterday to possessing a firearm after having been convicted of a felony. McCullers pleaded guilty on April 6 to the same charge.
Brown and McCullers are both scheduled to be sentenced on August 15, 2022. They each face a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Gerald M. Smith, Chief of Richmond Police, made the announcement after Senior U.S. District Judge John A. Gibney, Jr., accepted the plea.
Assistant U.S. Attorney Stephen E. Anthony is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), which 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.
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-131.
Two Illinois Men Sentenced to Prison for Their Roles in Bombing of Dar al-Farooq Islamic Center and Weapons ChargesRead the Press Release
Two Illinois men were today sentenced to 190 months and 170 months in prison, respectively, for their roles in the 2017 bombing of Dar al-Farooq (DAF) Islamic Center in Bloomington, Minnesota.
On Jan. 24, 2019, Michael McWhorter, 33, and Joe Morris, 26, both of Clarence, Illinois, pleaded guilty in the District of Minnesota to federal charges that originated in both the District of Minnesota and the Central District of Illinois. The charges included intentionally obstructing, and attempting to obstruct, by force and the threat of force, the free exercise of religious beliefs; carrying and using a destructive device during and in relation to crimes of violence; possession of a machine gun; conspiracy to interfere with commerce by threats and violence; and attempted arson. The pleas to the charges originating in the Central District of Illinois were entered in Minnesota pursuant to Federal Rule of Criminal Procedure 20, which allows for the transfer of charges for the entry of guilty pleas and the imposition of sentence.
“McWhorter and Morris carried out a violent plan to attack a house of worship as people peacefully prayed inside,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “In the United States, all people have a right to exercise their faith freely. The Justice Department will vigorously prosecute domestic terrorists who carry out acts of violence to suppress those rights or threaten and intimidate others based on their religious identity.”
“Hate-fueled acts of violence like the bombing of the Dar al-Farooq Islamic Center violate our laws and run contrary to our values as a nation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This heinous bombing instilled fear in an entire faith community. These defendants made the decision to confess to their crimes and assist in the civil rights prosecution of the individual who led them to join a far-reaching criminal conspiracy rooted in white supremacy. The department will continue using all the tools in our law enforcement arsenal to prosecute hate-fueled acts, including those that target communities of faith and houses of worship.”
“These men followed Hari’s lead, complied with her direction, and subscribed to her violent and extremist ideology in carrying out this act of terrorism,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “Today, justice has been served for their actions. The U.S. Attorney’s Office and the Department of Justice will protect and uphold the rights of individuals and faith communities to worship freely, without the threat of violence.”
“Attacks on houses of worship and those practicing their faith are heinous acts,” said Assistant Director Timothy Langan of the FBI’s Counterterrorism Division. “The outcome of this case should serve notice that such actions will not be tolerated. The FBI will work with our partners to hold accountable those who commit or plot to commit such acts of violence in our communities.”
McWhorter and Morris were recruited by Emily Claire Hari, 51, formerly known as Michael Hari, to join a terrorist militia group called “The White Rabbits” in the summer of 2017. According to court documents, Hari recruited McWhorter and Morris to join the militia, which Hari outfitted with paramilitary equipment and assault rifles. On Aug. 4 and 5, 2017, Hari, McWhorter and Morris drove in a rented pickup truck from Illinois to Bloomington, Minnesota, to bomb the DAF Islamic Center. About an hour outside of Minnesota, Hari disclosed to McWhorter and Morris that there was a pipe bomb in the truck and that they were going to bomb a mosque. Hari targeted DAF specifically to terrorize Muslims into believing they are not welcome in the United States and should leave the country.
According to court documents, Hari, McWhorter and Morris arrived at DAF at approximately 5:00 a.m. on Aug. 5, 2017. Morris used a sledgehammer to break the window of the Imam’s office at DAF and threw a plastic container with a mixture of diesel fuel and gasoline into the office. McWhorter then lit the fuse on a 20-pound black powder pipe bomb and threw it through the broken window. McWhorter and Morris ran back to the truck where Hari was waiting in the driver’s seat. The three sped away from the building and drove back to Illinois. When the pipe bomb exploded, the blast caused extensive damage to the Imam’s office. It also ignited the gasoline and diesel mixture, causing extensive fire and smoke damage. At the time of the bombing, several worshipers were gathered in the mosque for morning prayers.
According to court documents, on Nov. 7, 2017, Hari, McWhorter and Morris attempted to set fire to the Women’s Health Practice in Champaign, Illinois. Morris used a sledgehammer to break a window and placed a PVC device containing thermite powder in the Women’s Health Practice. The device did not ignite and was found on the floor by an employee of the Women’s Health Practice when the employee arrived to work later that morning.
According to court documents, on Dec. 16, 2017, McWhorter and Morris participated in an armed home invasion in the town of Ambia, Indiana, where they dressed as police officers and carried firearms, including two that had been illegally converted into machine guns. Hari, McWhorter and Morris also carried out armed robberies of two Walmart stores, one in Watseka, Illinois, and one in Mt. Vernon, Illinois, on Dec. 2, and 17, 2017, respectively.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Allison Ethen and Timothy Rank for the District of Minnesota prosecuted the case, with valuable assistance provided by Trial Attorney Timothy Visser of the Civil Rights Division, Lead Paralegal Specialist Lynette Simser, Community Affairs Director Angie LaTour, Witness Specialist Selina Kolsrud, former Assistant U.S. Attorneys John Docherty and Julie Allyn, Assistant U.S. Attorney Eugene Miller of the Central District of Illinois, and the special agents of the FBI’s Minneapolis and Springfield Divisions, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bloomington Police Department, and the Bloomington Fire Department.
Two Illinois Men Sentenced to Prison for Their Roles in Bombing of Dar al-Farooq Islamic CenterRead the Press Release
ST. PAUL, Minn. – Michael McWhorter, 33, and Joe Morris, 26, both of Clarence, Illinois, were sentenced today to 190 months and 170 months in prison, respectively, for firearms violations, arson, use of a destructive device, and federal civil rights violations in connection with the 2017 bombing of Dar al-Farooq (DAF) Islamic Center in Bloomington, Minnesota.
“Hate-fueled acts of violence like the bombing of the Dar al-Farooq Islamic Center violate our laws and run contrary to our values as a nation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This heinous bombing instilled fear in an entire faith community. These defendants made the decision to confess to their crimes and assist in the civil rights prosecution of the individual who led them to join a far-reaching criminal conspiracy rooted in white supremacy. The department will continue using all the tools in our law enforcement arsenal to prosecute hate-fueled acts, including those that target communities of faith and houses of worship.”
“McWhorter and Morris carried out a violent plan to attack a house of worship as people peacefully prayed inside,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “In the United States, all people have a right to exercise their faith freely. The Justice Department will vigorously prosecute domestic terrorists who carry out acts of violence to suppress those rights or threaten and intimidate others based on their religious identity.”
“Although these men were not the criminal masterminds of their violent acts, they followed Hari’s leadership, they complied with the direction they were given, and submitted to a violent and extremist ideology in carrying out this act of terrorism,” said U.S. Attorney Andrew Luger. “The government recognizes and values McWhorter and Morris’s cooperation throughout this case, which contributed to Hari’s conviction. Today, justice under the law has been served for their actions. The U.S. Attorney’s Office and the Department of Justice will protect and uphold the rights of individuals and faith communities to worship freely, without the threat of violence.”
“This crime was a violent, hate driven attack that specifically targeted individuals based on their faith. More broadly, this was an attack on all faith-based communities that openly practice their religions with a reasonable expectation of peaceful freedom to do so,” said Michael Paul, Special Agent in Charge of the FBI's Minneapolis division. “Every person has the right to live and worship freely and without fear. The FBI is committed to defending all communities and protecting the rights of all Americans.”
According to court documents, during the summer of 2017, Emily Claire Hari, 51, f/k/a Michael Hari, established a terrorist militia group called “The White Rabbits” in Clarence, Illinois. Hari recruited McWhorter and Morris to join the militia, which Hari outfitted with paramilitary equipment and assault rifles. On August 4 and 5, 2017, Hari, McWhorter, and Morris drove in a rented pickup truck from Illinois to Bloomington, Minnesota, to bomb the DAF Islamic Center. About an hour outside of Minnesota, Hari disclosed to McWhorter and Morris that there was a pipe bomb in the truck and that they were going to bomb a mosque. Hari targeted DAF specifically to terrorize Muslims into believing they are not welcome in the United States and should leave the country.
According to court documents, Hari, McWhorter, and Morris arrived at DAF at approximately 5:00 a.m. on August 5, 2017. Morris used a sledgehammer to break the window of the Imam’s office at DAF and threw a plastic container with a mixture of diesel fuel and gasoline into the office. McWhorter then lit the fuse on a 20-pound black powder pipe bomb and threw it through the broken window. McWhorter and Morris ran back to the truck where Hari was waiting in the driver’s seat. The three sped away from the building and drove back to Illinois. When the pipe bomb exploded, the blast caused extensive damage to the Imam’s office. It also ignited the gasoline and diesel mixture, causing extensive fire and smoke damage. At the time of the bombing, several worshipers were gathered in the mosque for morning prayers.
According to court documents, on November 7, 2017, Hari, McWhorter, and Morris attempted to set fire to the Women’s Health Practice in Champaign, Illinois. Morris used a sledgehammer to break a window and placed a PVC device containing thermite powder in the Women’s Health Practice. The device did not ignite and was found by an employee of the Women’s Health Practice when the employee arrived to work later that morning.
According to court documents, on December 16, 2017, McWhorter and Morris participated in an armed home invasion in the town of Ambia, Indiana, where they dressed as police officers and carried firearms, including two that had been illegally converted into machine guns. Hari, McWhorter, and Morris also carried out armed robberies of two Walmart stores, one in Watseka, Illinois, and one in Mt. Vernon, Illinois, on December 2, 2017, and December 17, 2017, respectively.
On January 24, 2019, McWhorter and Morris pleaded guilty in the District of Minnesota to federal charges that originated in both the District of Minnesota and the Central District of Illinois. The pleas to the charges originating in the Central District of Illinois were entered in Minnesota pursuant to Federal Rule of Criminal Procedure 20, which allows for the transfer of charges for the entry of guilty pleas and the imposition of sentence. The charges included intentionally obstructing, and attempting to obstruct, by force and the threat of force, the free exercise of religious beliefs; carrying and using a destructive device during and in relation to crimes of violence; possession of a machine gun; conspiracy to interfere with commerce by threats and violence; and attempted arson.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Allison Ethen and Timothy Rank for the District of Minnesota prosecuted the case, with valuable assistance provided by Trial Attorney Timothy Visser of the Civil Rights Division, Lead Paralegal Specialist Lynette Simser, Community Affairs Director Angie LaTour, former Assistant U.S. Attorneys John Docherty and Julie Allyn, Assistant U.S. Attorney Eugene Miller, of the Central District of Illinois, and the special agents of the FBI’s Minneapolis and Springfield Divisions, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bloomington Police Department, and the Bloomington Fire Department.