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20 May 2022
South Florida Army Veteran Lied About Disability, Stole Money from VARead the Press Release
Miami, Florida – A South Florida veteran (and self-proclaimed bodybuilder) who exaggerated his mental and physical impairments to increase the disability payments he received from the U.S. Department of Veterans Affairs (VA) pled guilty yesterday to theft of government funds from a federal agency and now faces up to 10 years in federal prison.
As part of his guilty plea, Zachary Barton, 36, admitted he lied on a mental health test by reporting to the VA that he had been in combat, qualifying him for Post-Traumatic Stress Disorder benefits. Barton also falsely reported that he could not lift more than 10 to 20 pounds or walk without a cane. The VA found that Barton was 100% disabled based on these lies. In fact, Barton routinely performed strenuous weight-lifting – leg pressing 650 pounds and chest pressing over 300 pounds. He drove, walked his pet, and shopped with no difficulty.
As a result of his misrepresentations, Barton received approximately $245,286 in VA benefits to which he was not entitled. Sentencing is scheduled for August 11, 2022, in Fort Pierce before Judge Aileen M. Cannon.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and David Spilker, Special Agent in Charge, VA Office of the Inspector General, Southeast Field Office, announced the guilty plea.
This case was investigated by the Department of Veterans Affairs – Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Robin Waugh. Assistant United States Attorney Gabrielle Charest-Turken is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-80106.
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South Carolina Man Admits to Selling HandgunsRead the Press Release
SYRACUSE, NEW YORK – Joshua Meighen, age 38, of Seneca, South Carolina, pled guilty yesterday to transferring a firearm and ammunition to a convicted felon, and selling a firearm to an out-of-state resident, announced, United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
As part of his guilty plea yesterday, Joshua Meighen admitted that while he was living in South Carolina, he contacted a Central New York resident who was known to Meighen as a convicted felon and arranged for a sale through the U.S mails of a Taurus 9mm caliber semiautomatic pistol and 25 rounds of ammunition. Meighen admitted that he sent the pistol and ammunition from South Carolina to Central New York, where it was recovered at a post office facility in Syracuse on October 14, 2021. Meighen further admitted that he also mailed a Phoenix Arms .22 caliber pistol, and a Stoeger 9mm caliber pistol from South Carolina to a New York resident in Binghamton, New York, which were seized on November 10, 2021, by the United States Postal Inspection Service through the execution of a federal search warrant.
Sentencing is scheduled for September 19, 2022, at which time Joshua Meighen faces a maximum sentence of up to 10 years in prison for transferring a firearm and ammunition to a convicted felon, and up to 5 years in federal prison for selling a firearm to an out-of-state resident, as well as a fine of up to $250,000.00, and a term pf post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Finger Lakes Drug Task Force, and the Broome County Special Investigations Unit Task Force, and is being prosecuted by Assistant U.S. Attorney Richard R. Southwick.
Six Individuals Charged with Federal Drug Trafficking OffensesRead the Press Release
SAN JOSE – Victor Nevarez, Juan Rivera Arzate, Adhemar Castaneda Becerril, and Pedro Gaona Salse were four of six charged defendants arrested and arraigned yesterday in federal court on narcotics trafficking charges, announced United States Attorney Stephanie M. Hinds and Drug Enforcement Administration Special Agent in Charge Wade R. Shannon.
Victor Nevarez, 49, who resides in San Jose, California, and Juan Rivera Arzate, 38, also of San Jose, were charged together in a four-person indictment unsealed yesterday with engaging in a conspiracy to traffic methamphetamine from December 13, 2020, to March 8, 2022. According to representations by the government attorney at their arraignment hearing yesterday, agents seized more than ten kilograms of methamphetamine, thousands of dollars in cash, and a pistol in conjunction with the arrests of Nevarez and Arzate.
Pedro Gaona Salse, 28, of San Jose, was arrested and arraigned on a complaint filed yesterday with possession with intent to distribute fentanyl. According to the complaint, DEA agents executed a search warrant at Gaona’s residence in the early morning of May 19, 2022. Gaona was present in the home. Next to a toilet in the bathroom nearest Gaona’s bedroom, the agents found approximately 80 grams of a gray substance believed to be fentanyl. At Gaona’s arraignment hearing yesterday, the government attorney represented that agents also found a pistol at Gaona’s residence.
Adhemar Castaneda Becerril, 26, of Gilroy, was arrested and arraigned on a separate complaint filed yesterday charging him with possession with the intent to manufacture, distribute, or dispense methamphetamine. According to the complaint, in the early morning of May 19, DEA agents also executed a search warrant at Castaneda’s residence. Castaneda was home at the time. During the search, agents found in the laundry room a saucer pan with a dark liquid substance inside. The dark liquid tested presumptively positive as methamphetamine. The substance weighed approximately 2.6 kilograms (more than 5.8 pounds). According to the complaint, other items were located near the liquid methamphetamine that, in combination, are consistent with clandestine methamphetamine conversion labs.
Nevarez, Arzate, Castaneda, and Gaona appeared for arraignments yesterday before United States Magistrate Judge Nathanael M. Cousins. All were detained in custody pending upcoming detention hearings. The hearings are scheduled next week before U.S. Magistrate Judge Cousins.
The charges, in sum, include an indictment charging Victor Nevarez, Juan Rivera Arzate, and others, with conspiracy to distribute and to possess with intent to distribute five grams or more of methamphetamine in violation of 21 U.S.C. §§ 846 and 841(a)(1), (b)(1)(B). The complaint against Adhemar Castaneda Becerril charges him with possession with the intent to manufacture, distribute, or dispense 50 grams or more of a substance containing methamphetamine, in violation of 21 U.S.C. § 841(a)(1), (b)(1)(B). These charges carry a mandatory minimum sentence of 5 years and a maximum of 40 years in prison, a maximum fine of $5,000,000, and a period of supervised release following imprisonment of at least 4 years. The complaint against Pedro Gaona Salse charges him with possession with the intent to distribute fentanyl in violation of 21 U.S.C. § 841(a)(1), (b)(1)(C). This charge carries a maximum of 20 years in prison, a maximum fine of $1,000,000, and a period of supervised release following imprisonment of at least 3 years. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Indictments and complaints merely allege that crimes have been committed, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Michael G. Pitman and Daniel Kassabian are the Assistant U.S. Attorneys prosecuting the case, with the assistance of Sahib Kaur. The prosecution is the result of an investigation by DEA.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-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.
Savannah Man Pleads Guilty to Athens Dollar General Armed RobberyRead the Press Release
ATHENS, Ga. – A Savannah resident has pleaded guilty to robbing an Athens Dollar General Store in 2019, brandishing a firearm and threatening store employees during the crime.
Londell Nunn, 30, of Savannah, Georgia, pleaded guilty to one count of interference with commerce by robbery before U.S. District Judge C. Ashley Royal on Wednesday, May 18. Nunn faces a maximum of 20 years of imprisonment to be followed by three years of supervised release and a $250,000 fine. A sentencing date has not been scheduled.
“Nunn’s armed robbery terrorized store employees and put the Athens community on alert. This kind of violent criminal action will not be tolerated,” said U.S. Attorney Peter D. Leary. “I want to commend the Athens-Clarke County Police Department and FBI for apprehending Nunn and helping us bring him to justice.”
“Any time an individual takes a gun into a place of business to rob it, victims are traumatized and there is a potential for tragic consequences,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Thanks to the combined efforts with our local partners, Nunn will face serious consequences for his crime.”
According to court documents, Nunn entered the Dollar General located at 1125 West Broad Street in Athens on Sept. 6, 2019. He approached an employee, showed the employee a gun he was keeping in his waistband and demanded money from the cash register. The employee did not have the register keys and called a store manager. The store manager struggled to open the cash register to which Nunn responded, “This is how people get killed.” The register was opened and Nunn escaped with some cash, wearing a ski mask he pulled over his face just before he was handed the money.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The FBI and Athens-Clarke County Police Department investigated the case.
First Assistant U.S. Attorney and Criminal Chief Shanelle Booker is prosecuting the case.
Salem Man Pleads Guilty to Possessing a Firearm in Relation to Fentanyl Pill Trafficking ConspiracyRead the Press Release
BOSTON – A Salem man pleaded guilty yesterday in federal court in Boston to being a felon in possession of a firearm and ammunition in a case resulting from his role in a prolific drug trafficking organization that supplied counterfeit prescription pills containing fentanyl to suppliers on the North Shore of Massachusetts.
Ernest Johnson, 34, a/k/a “Yo Pesci,” a/k/a “Mr. Live Mr. Drive,” pleaded guilty to one count of being a felon in possession of firearm and ammunition. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 13, 2022.
Johnson was arrested and charged in June 2021 along with co-conspirators Vincent Caruso, Laurie Caruso and Nicole Benton. On Oct. 1, 2021, Benton pleaded guilty to her role in the conspiracy and is awaiting sentencing which is set for Sept. 8, 2022. Additional charges were brought against Vincent Caruso by a federal grand jury on Jan. 19, 2022.
According to the charging documents, Johnson was a member of a large drug trafficking organization (DTO) operated by Vincent Caruso, a self-admitted Crip gang member, that included Benton and Vincent Caruso’s mother, Laurie Caruso, among others. The DTO allegedly sold counterfeit prescription pills containing fentanyl – produced using multiple large pill presses – to street gangs for further distribution on the North Shore of Massachusetts. It is alleged that one pill press weighed 1,000 pounds and was capable of producing 15,000 pills per hour. According to the charging documents, a single counterfeit fentanyl pill retails between $10-$20, thereby generating millions of dollars in retails sales.
Johnson possessed and used firearms in furtherance of the drug trafficking activities. Additionally, Johnson used social media to post and message photos and videos that depicted firearms (including an AR15), fentanyl pills, cash and high-end jewelry. In a number of videos, Johnson described his involvement in shootings, beatings and drug trafficking and identified people he believed to be a “rat” or a “snitch.” Based on prior felony convictions, Johnson was prohibited from lawfully possessing firearms.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 in prison, up to three years of supervised release and a fine of up to $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.
First Assistant United States Attorney Joshua S. Levy: Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Colonel Christopher Mason, Superintendent of the Massachusetts States Police made the announcement today. Assistance was provided by the Essex, Middlesex and Suffolk County District Attorneys’ Offices; Essex, Middlesex, Suffolk and Hancock (Maine) County Sheriffs’ Departments; U.S. Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; and the Boston, Cambridge, Chelsea, Danvers, Everett, Lynn, Malden, Salem, Saugus, Somerville, Revere, Bolton (Maine), Bangor (Maine), Portland (Maine) and Westbrook (Maine) Police Departments. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-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.
Roscommon Man Was Sentenced to over 19 Years in Prison on Charges of Possessing, Receiving and Transporting Child PornographyRead the Press Release
BAY CITY – A Roscommon County man was sentenced yesterday to 235 months in federal prison on charges of possessing, receiving, and transporting 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, Homeland Security Investigations and Sheriff Ed Stern, Roscommon County Sheriff’s Department.
Sentenced was Scott Lantzy, 49. Lantzy was convicted by a federal jury in October, 2021, after a 4 day trial which was conducted before United States District Judge Thomas Ludington in Bay City. The jury deliberated approximately 45 minutes before returning the guilty verdicts.
According to evidence presented during the trial, Lantzy, is a serial sex offender with four prior CSC convictions, one conviction for accosting a minor, and a Sex Offender Registration and Notification Act (SORNA) related conviction spanning from 1998 until present. Lantzy came to the attention of law enforcement when he impersonated an EMT at a high school football game. During the game, Lantzy came onto the field to aid an injured player. He accompanied the teen to the hospital, where he made his way into the emergency room. He continued to attempt contact with the injured player the following day. A few months before the football game, Lantzy befriended another high school student who testified at the trial. This student testified that while housesitting for Lantzy, Lantzy called him and told him that he had left him a camera and condoms and that the student should send Lantzy pictures of what he and his friend were doing while house sitting. When Lantzy arrived home, the student testified that he saw pictures of child pornography on Lantzy’s personal cell phone. This led detectives from the Roscommon County Sheriff’s Department to execute a search warrant on Lantzy’s home.
Lantzy was convicted of two counts of possession/access with intent to view child pornography; one count of possession of child pornography; one count of transportation of child pornography; and one count of receipt of child pornography.
“Protecting children from dangerous child predators is one of my office’s top priorities,” said U.S. Attorney Ison. “I commend our law enforcement partners for their hard work and dedication to investigating and prosecuting crimes against children.”
“Our communities are safer when Lantzy and others like him are behind bars,” said HSI Detroit acting Special Agent in Charge James C. Harris III. “Lantzy’s repeated attempts to lure and exploit children are sickening and I’m proud of the special agents and our law enforcement partners who helped put him away.”
The case was investigated by the Roscommon County Sheriff’s Department and special agents of Homeland Security Investigations in Sault Ste. Marie and Detroit, with assistance from the Michigan State Police. The case is being prosecuted by Assistant United States Attorneys Tim Turkelson and Alison Furtaw.
Pittsburgh Man Pleads Guilty in Drug and Money Laundering ConspiracyRead the Press Release
PITTSBURGH - A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics and money laundering laws, United States Attorney Cindy K. Chung announced today.
Tracey Phillips, 36, formerly of the City’s Marshall-Shadeland neighborhood, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that from in and around June 2013, and continuing thereafter to on or about March 19, 2014, Phillips conspired with others to distribute and possess with intent to distribute at least five but less than 15 kilograms of cocaine and at least three but less than 10 kilograms or more of heroin. Additionally, from in and around June 2013, and continuing thereafter to on or about March 19, 2014, Phillips conspired with others to knowingly conduct and attempt to conduct financial transactions involving property representing the proceeds of illegal drug trafficking.
Judge Bissoon scheduled sentencing for October 4, 2022, at 1:45 pm The law provides for a total sentence of not less than 10 years to a maximum of life in prison, a fine of not more than $10,500,000 or twice the value of the property involved in the transaction, whichever is greater, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Homeland Security Investigations, and the Internal Revenue Service – Criminal Investigation led the investigation that led to the prosecution of Tracey Phillips.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Physician Assistant Convicted of Distributing over 1.2 Million Opioid PillsRead the Press Release
A Texas physician assistant was convicted today for distributing more than 1.2 million opioid pills during his employment at two Houston-area clinics that operated as pill mills.
According to court documents and evidence presented at trial, physician assistant Charles Thompson, 76, of Houston, illegally prescribed and helped others illegally prescribe controlled substances to individuals posing as patients at West Parker Medical Clinic (West Parker) and Priority Wellness Clinic (Priority Wellness).
Trial evidence showed that from June 2015 through July 2016, while at West Parker, Thompson helped a doctor unlawfully prescribe hydrocodone and carisoprodol, a combination of controlled substances known as the “Las Vegas Cocktail,” to thousands of individuals posing as patients. Thompson himself also issued unlawful prescriptions for carisoprodol (a muscle relaxant). So-called “runners” brought numerous people to pose as patients at West Parker and paid the clinic approximately $220 to $500 in cash for each visit that resulted in prescriptions for dangerous drugs. Throughout the scheme, West Parker made approximately $1.75 million from prescriptions, from which Thompson was paid over $208,000. A jury previously convicted James Pierre, the doctor who worked at West Parker, of unlawfully prescribing over one million opioid pills.
Court documents and trial evidence also show that Thompson helped others illegally prescribe controlled substances, including hydrocodone and oxycodone, at Priority Wellness from May to July 2017, which opened in December 2016 after West Parker closed. Trial evidence showed that Priority Wellness operated as a pill mill, in a similar manner to West Parker: runners brought people posing as patients to Priority Wellness and paid the clinic between $300 and $600, depending on whether the purported patient was getting a prescription for hydrocodone or oxycodone, almost always prescribed in combination with carisoprodol. Throughout the scheme, Priority Wellness made approximately $1.1 million and Thompson made between $700 and $900 per day in cash.
Thompson was convicted of one count of conspiracy to unlawfully distribute and dispense controlled substances and seven counts of unlawfully distributing and dispensing controlled substances in connection with his conduct at West Parker. He was convicted of one count of conspiracy to unlawfully distribute and dispense controlled substances and one count of unlawfully distributing and dispensing controlled substances in connection with his conduct at Priority Wellness. He is scheduled to be sentenced on Oct. 3 and faces up to 20 years in prison for each count of conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
To date, six individuals have pleaded guilty in connection with their conduct at West Parker or Priority Wellness.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jennifer Lowery for the Southern District of Texas; and Special Agent in Charge Daniel C. Comeaux of the DEA’s Houston Division made the announcement.
DEA Houston investigated the case.
Assistant Chief Aleza Remis and Trial Attorney Maryam Adeyola of the Criminal Division’s Fraud Section and Trial Attorney John-Alex Romano of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case. Assistant U.S. Attorney Jon Muschenheim for the Southern District of Texas is handling forfeiture.
Panamanian Intermediaries Each Sentenced to 36 Months for International Bribery and Money Laundering SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Luis Enrique Martinelli Linares (Luis Martinelli Linares) and Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares) were each sentenced to 36 months’ imprisonment and a $250,000 fine for their roles in a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. The proceedings were held before United States District Judge Raymond J. Dearie.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office (FBI), announced the sentences.
“The Martinelli brothers used American banks to commit their selfish, greedy fraud – and now it is the American legal system serving justice with today’s sentencing, especially for the people of Panama,” stated United States Attorney Peace. “Together, the Department of Justice, this Office and our law enforcement partners stand firm against international corruption and will use all tools at our disposal to root it out.”
“Ricardo and Luis Martinelli Linares directed millions of dollars in bribes through U.S. banks to their own Swiss accounts in order to help Odebrecht gain corrupt influence at the highest levels of the Panamanian government,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s sentences show that the Department of Justice remains committed to prosecuting individuals who enable and profit from laundering corrupt payments to foreign officials through the U.S. financial system, as well as those who attempt to spend the proceeds of corruption in the United States.”
“The defendants laundered millions of dollars in bribes through the U.S. financial system to benefit a close relative and maintain their luxury lifestyles,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Today’s sentencing shows that the FBI and our law enforcement partners are committed to bringing to justice anyone who enables the corruption of public officials for personal gain.”
The overarching Odebrecht scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company. On December 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act for its involvement in the bribery and money laundering scheme.
In December 2021, both defendants pleaded guilty to conspiracy to commit money laundering and admitted that they had agreed with others to establish offshore bank accounts in the names of shell companies to receive and disguise over $28 million in bribe proceeds from Odebrecht for the benefit of a close relative, a high-ranking public official in Panama. According to court documents, approximately $19 million of the bribes were transferred through U.S. banks. Luis Martinelli Linares also used some of the proceeds of the scheme to purchase a $1.7 million yacht and a $1.3 million condominium in the United States, and Ricardo Martinelli Linares spent hundreds of thousands of dollars in proceeds to pay personal expenses.
Luis Martinelli Linares and Ricardo Martinelli Linares were initially arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, pursuant to a provisional arrest request from the United States, as they were attempting to depart Guatemala on a private plane. The defendants were charged on February 4, 2021, in an indictment in connection with this bribery and money laundering scheme. Both defendants were ultimately extradited from Guatemala.
The case is being prosecuted by Assistant United States Attorney Alixandra Smith of the Office's Business and Securities Fraud Section, Trial Attorney Michael Culhane Harper of the Criminal Division's Fraud Section, and Trial Attorneys Michael Redmann and Barbara Levy of the Criminal Division's Money Laundering and Asset Recovery Section. Assistant United States Attorneys Laura Mantell and Tanisha Payne of the Office's Asset Recovery Sectin are handling forefiture matters. The FBI's International Corruption Unit in New York is investigating this case.
The Defendants:
LUIS ENRIQUE MARTINELLI LINARES
Age: 40
Panama City, PanamaRICARDO ALBERTO MARTINELLI LINARES
Age: 43
Panama City, PanamaE.D.N.Y. Docket No. 21-CR-65 (RJD)
Panama Intermediaries Each Sentenced to 36 Months in Prison for International Bribery and Money Laundering SchemeRead the Press Release
Two brothers, each a dual-citizen of Panama and Italy, were each sentenced to 36 months in prison for laundering $28 million in a bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. The defendants were also ordered to forfeit more than $18.8 million, pay a $250,000 fine and serve two years’ supervised release.
Luis Enrique Martinelli Linares, 40, and Ricardo Enrique Martinelli Linares, 42, each pleaded guilty to conspiracy to commit money laundering and admitted to agreeing with others to establish offshore bank accounts in the names of shell companies to receive and disguise over $28 million in bribe proceeds from Odebrecht for the benefit of a close relative, a high-ranking public official in Panama. According to court documents, approximately $19 million of the bribes were transferred through U.S. banks. Luis Martinelli Linares also used some of the proceeds of the scheme to purchase a $1.7 million yacht and a $1.3 million condominium in the United States, and Ricardo Martinelli Linares spent hundreds of thousands of dollars in proceeds to pay personal expenses.
On Dec. 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) for its involvement in the bribery and money laundering scheme. According to court documents, the scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company.
The defendants were initially charged by criminal complaint on June 27, 2020. Pursuant to a provisional arrest request from the United States, they were arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, as they were attempting to depart Guatemala on a private plane, and later held on extradition requests from the United States. Both defendants filed multiple challenges and appeals opposing the extradition request in Guatemalan courts before ultimately being extradited to the United States, Luis Martinelli Linares on Nov. 15, 2021, and Ricardo Martinelli Linares on Dec. 10, 2021.
On Feb. 4, 2021, Luis Martinelli Linares and Ricardo Martinelli Linares were charged with conspiracy and money laundering charges by an indictment filed in federal court in Brooklyn.
“Ricardo and Luis Martinelli Linares directed millions of dollars in bribes through U.S. banks to their own Swiss accounts in order to help Odebrecht gain corrupt influence at the highest levels of the Panamanian government,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s sentences show that the Department of Justice remains committed to prosecuting individuals who enable and profit from laundering corrupt payments to foreign officials through the U.S. financial system, as well as those who attempt to spend the proceeds of corruption in the United States.”
“The Martinelli brothers used American banks to commit their selfish, greedy fraud – and now it is the American legal system serving justice with today’s sentencing, especially for the people of Panama,” said U.S. Attorney Peace. “Together, the Department of Justice, this office and our law enforcement partners stand firm against international corruption and will use all tools at our disposal to root it out.”
“The defendants laundered millions of dollars in bribes through the U.S. financial system to benefit a close relative and maintain their luxury lifestyles,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Today’s sentencing shows that the FBI and our law enforcement partners are committed to bringing to justice anyone who enables the corruption of public officials for personal gain.”
The FBI’s International Corruption Unit in New York is investigating this case, with the support of FBI Legal Attaché Panama. The Justice Department’s Office of International Affairs provided significant assistance in securing their arrest and extradition from Guatemala.
Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorney Alixandra E. Smith of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case. Assistant U.S. Attorney Laura Mantell of U.S. Attorney’s Office for the Eastern District of New York’s Civil Division is handling forfeiture matters.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The Kleptocracy Asset Recovery Initiative in MLARS was formed to prosecute money launderers and forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by the corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
One Defendant Sentenced to Prison for Coercion and Enticement of a Minor; Two Defendants Plead Guilty to Sex Trafficking Conspiracy and Sex Trafficking of a MinorRead the Press Release
Two Defendants Used Online Ads to Conspire to Cause and Repeatedly Caused a Long Island Minor to Engage in Prostitution
Earlier today, in federal court in Central Islip, Robert Gallimore, a resident of Sebring, Florida, was sentenced by United States District Judge Joanna Seybert to 144 months’ imprisonment for coercion and enticement of a minor to engage in sexual activity.
Also earlier today, in federal court in Central Islip, Terron Newsome, also known as “Loso,” and Fredjy Exavier pleaded guilty before United States Magistrate Judge James M. Wicks to conspiracy to commit sex trafficking of a minor and sex trafficking of minor (Jane Doe #1). Newsome also admitted during his plea hearing to attempting to engage in the sex trafficking of a 12-year-old victim (Jane Doe #2) in December 2018. When sentenced, each defendant faces up to life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence, Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD) joined in announcing the guilty pleas.
“These defendants manipulated, abused and exploited children who they saw as objects to control rather than as young people to be cherished and protected,” stated United States Attorney Peace. “Along with our law enforcement partners, we are committed to protecting our children and ensuring that those who perpetrate sex crimes against them face serious consequences.”
“These individuals committed unthinkable acts against children, exploiting them for their own personal gain,” Suffolk County Police Commissioner Harrison said. “I hope today’s guilty pleas help the victims move forward from these tragedies and I extend my thanks to Eastern District of New York and our law enforcement partners for ensuring these criminals are answering for their heinous crimes.”
The Sentencing
As indicated in court filings, Gallimore was a Florida state corrections officer who, over the period of a week in 2018, caused a 16-year-old Long Island girl to repeatedly generate sexually explicit and masochistic child pornography of herself and to send it to him under the threat that images and videos would be disseminated throughout her school if she did not continue to comply. In addition to terrorizing the victim into producing child pornography at his direction, Gallimore also unsuccessfully sought to solicit sex from the minor victim.
The Guilty Pleas
As charged in the indictment and as stated at the plea hearing, in or about and between March 2014 and December 2018, Newsome and Exavier conspired to engage in the sex trafficking of Jane Doe #1 and used the internet to set up “dates,” i.e. sexual intercourse or other sex acts, with “Johns” for money at various motels on Long Island. During the conspiracy, the defendants knew that Jane Doe #1 was under the age of 18. Newsome also admitted that in December 2018, he attempted to cause Jane Doe #2 to engage in sex trafficking.
Both of the government’s cases are being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles N. Rose is in charge of the prosecution.
The Defendants:
ROBERT GALLIMORE
Age: 32
Sebring, FloridaE.D.N.Y. Docket No. 18-CR-363 (JS)
TERRON NEWSOME (also known as “Loso”)
Age: 25
Central Islip, New YorkFREDJY EXAVIER
Age: 25
Central Islip, New YorkE.D.N.Y. Docket No. 19-CR-70 (DRH)
OK Man Indicted for Hotel Armed RobberiesRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging an Oklahoma man with two counts of interference with interstate commerce by robbery, two counts of brandishing a firearm during a crime of violence, and two counts of felon in possession of a firearm.
According to court documents, Darrell E. Black, 28, of Midwest City allegedly committed armed robberies at the Extended Stay America hotel in Wichita on May 27, 2017, and at the Days Inn and Suites hotel in Wichita on May 29, 2017.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is investigating the case.
Assistant U.S. Attorney Lanny Welch is prosecuting the case.
OTHER INDICTMENTS
Tommy Anderson, Sr., 50, of Wichita, Kan. is charged with ten counts of possession with intent to distribute a controlled substance, two counts of prohibited person in possession of a firearm, two counts of possession of a firearm during a drug trafficking crime, two counts of using or maintaining drug premises, and one count of prohibited person in possession of ammunition. The Wichita Police Department is investigating the case. Assistant U.S. Attorney Debra Barnett is prosecuting the case.
Jaidyn Irving, 22, of Wichita, Kan., is charged with one count of possession of a firearm by a previously convicted felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is investigating the case. Assistant U.S. Attorney Matt Treaster is prosecuting the case.
Bradley Wicks, 39, of Wichita, Kan., is charged with one count of possession of methamphetamine with intent to distribute and one count of possession of a firearm by a prohibited person. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is investigating the case. Special Assistant U.S. Attorney Katie Andrusak is prosecuting the case.
Alberto Vasquez, 48, of Tucson, Ariz., is charged with one count of possession with intent to distribute a controlled substance-fentanyl. The Drug Enforcement Administration (DEA) is investigating the case. Assistant U.S. Attorney Molly Gordon is prosecuting the case.
Ever Quintana-Lopez, 31, of Wichita, Kan., is charged with one count of possession of cocaine with intent to distribute, one count of possession of methamphetamine with intent to distribute, one count of possession of fentanyl with intent to distribute, one count possession of a firearm in the furtherance of a drug trafficking crime, and one count of possession of a firearm by an illegal alien. The Drug Enforcement Administration (DEA) is investigating the case. Assistant U.S. Attorney Ola Odeyemi is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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North Royalton Man Sentenced to Prison for Failure to Pay Taxes Collected from Employees and Embezzling from an Employee Health Care PlanRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that John George Medas, 69, of North Royalton, Ohio, was sentenced today by U.S. District Judge Sara Lioi to 24 months in prison and ordered to pay $562,505,13 in restitution. Medas previously pleaded guilty to failure to pay over taxes from employees and embezzling from his employees’ healthcare plan.
According to court documents, Medas owned and operated various manufacturing businesses and served as President of Guarantee Product Specialties, Inc., Fulton Manufacturing Industries, LLC, and FMI Products, LLC. Court documents state that while operating these businesses, Medas withheld payroll tax from employees but failed to pay these taxes to the IRS. Court records show that from April 2014 to January 2019, Medas failed to pay over $760,725
In addition, court documents state that between July and September 2016, Medas withheld $3,807 in employee pre-tax health contributions and embezzled the funds.
This case was investigated by the Internal Revenue Service – Criminal Investigations and the U.S. Department of Labor. The case was prosecuted by Assistant U.S. Attorney Brian M. McDonough.
Nigerian Man Extradited from United Kingdom for Participating in Business Email Compromise ScamsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that CHIBUNDU JOSEPH ANUEBUNWA, a citizen of Nigeria, was extradited from the United Kingdom and arrived in the United States this afternoon. ANUEBUNWA was extradited on charges of conspiracy to commit wire fraud and wire fraud in connection with his alleged participation in a multimillion-dollar business email compromise campaign that targeted thousands of victims around the world, including in the United States. ANUEBUNWA will be presented today before U.S. Magistrate Judge Katharine H. Parker. The case is assigned to U.S. District Judge Paul A. Crotty. In connection with the same conspiracy as ANUEBUNWA, co-defendant DAVID CHUKWUNEKE ADINDU was previously sentenced to 41 months in prison, and co-defendant ONYEKACHI EMMANUEL OPARA was previously extradited from South Africa and sentenced to 60 months in prison.
U.S. Attorney Damian Williams said: “As alleged in the indictment, Chibundu Joseph Anuebunwa tried to steal money from thousands of businesses around the world by impersonating corporate executives and sending phony emails to company employees. Today’s extradition should serve as a warning to those who think they can defraud victims in the United States from halfway around the world: the United States and its international partners will find you and hold you accountable no matter how long it takes.”
According to the allegations in the Indictment unsealed today in Manhattan federal court[1]:
Between 2014 and 2016, ANUEBUNWA, OPARA, and ADINDU participated in business email compromise scams (“BEC scams”) targeting thousands of victims around the world, including in the United States. As part of the BEC scams, emails were sent to employees of various companies directing that funds be transferred to specified bank accounts. The emails purported to be from supervisors at those companies or third-party vendors that did business with those companies. The emails, however, were not legitimate. Rather, they were either from email accounts with a domain name that was very similar to a legitimate domain name, or the metadata in the emails had been modified so that the emails appeared as if they were from legitimate email addresses. After victims complied with the fraudulent wiring instructions, the transferred funds were quickly withdrawn or moved into different bank accounts. In total, the BEC scams attempted to defraud millions of dollars from victims.
ANUEBUNWA and others carried out BEC scams by exchanging information regarding: (1) bank accounts used for receiving funds from victims; (2) email accounts used for communicating with victims; (3) scripts for requesting wire transfers from victims; and (4) lists of names and email addresses for contacting and impersonating potential victims.
* * *
ANUEBUNWA, 39, of Lagos, Nigeria, is charged with one count of conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison, and one count of wire fraud, which also carries a maximum penalty of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of the FBI and thanked the Yahoo E-Crime Investigations Team for their assistance. The U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from the United Kingdom. Mr. Williams also thanked the United Kingdom’s Crown Prosecution Service for their assistance in today’s extradition.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Andrew K. Chan and Daniel Loss are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
New York man arraigned on bank robbery chargeRead the Press Release
ALBUQUERQUE, N.M. – Marc Candelaria, 34, of Wantagh, New York, appeared in federal court on May 19 for an arraignment and detention hearing where he was charged with bank robbery. Candelaria will remain detained until space is available at La Pasada Halfway House, where he will be on conditions of release pending trial.
A federal grand jury indicted Candelaria on May 10. According to the indictment, on Oct. 30, 2021, Candelaria allegedly robbed the Bank of America on Paseo de Peralta in Santa Fe. If convicted, Candelaria faces up to 20 years in prison.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty.
The Santa Fe Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Santa Fe Police Department. Assistant United States Attorney Samuel A. Hurtado is prosecuting the case.
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New York and Wisconsin Men Convicted at Trial for Cocaine TraffickingRead the Press Release
United States Attorney Jan Sharp announced that Michael Aponte, 32, of Syracuse, New York, and Rawy Correa-Perez, 31, of Milwaukee, Wisconsin, were convicted on May 19, 2022, following a jury trial before United States Judge Brian C. Buescher, of conspiracy to possess with intent to distribute five kilograms or more of cocaine, and possession with intent to distribute five kilograms or more of cocaine. Sentencing for both are scheduled for August 25, 2022. Aponte and Correa-Perez are facing a term of imprisonment of at least ten years to life for each count. There is no parole in the federal system.
At trial, Douglas County Nebraska deputies testified that on February 26, 2021, they stopped a vehicle driven by Aponte for a traffic violation. Correa-Perez was a passenger in vehicle. During the contact with Aponte and Correa-Perez, deputies noted several indicators of criminal behavior. Deputies deployed “Bezos”, a certified drug detection canine, who indicated to the presence of narcotics in the vehicle. A search of the vehicle revealed 13, one-kilogram bricks of cocaine in the vehicle’s spare tire.
The Drug Enforcement Administration assisted in the investigation. DEA special agents testified to obtaining and analyzing electronic data that was obtained from Apple, Inc. for both Aponte and Correa-Perez. The electronic data contained photographs consistent with the drug trade. Special agents also provided expert testimony, including that the cocaine had a value of approximately $390,000.
In addition, the Douglas County Sheriff’s Office Forensic Services Bureau assisted in the analysis of both the cocaine and fingerprints that were obtained from the cocaine packaging.
This case was investigated by the Douglas County Sheriff’s Office and the Drug Enforcement Administration.
New Haven Man Admits Role in Mail Theft, Identity Theft and Bank Fraud SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, today announced that MARQUIS WILLIAMS, 45, of New Haven, pleaded guilty yesterday in Hartford federal court to a charge stemming from a mail theft, identity theft and bank fraud scheme.
According to court documents and statements made in court, since at least 2018 through November 2019, Williams and his associate, Dara Morrison, stole mail from hundreds of residential mailboxes in Connecticut. The mail pieces contained checks, driver’s licenses, passports, social security cards, banking information, and other personally identifying information from businesses and individuals throughout Connecticut, including elderly nursing home residents. Williams and Morrison used stolen identities to produce fake identification, and then used the fake identification to cash or deposit stolen checks. Williams and Morrison also used the stolen checks to create additional, forged copies of checks that they then cashed or deposited into accounts they opened using stolen identities. Morrison also used and attempted to use stolen credit cards.
More than 70 bank fraud victims have been identified during this investigation. The government contends that Williams and Morrison stole $118,452.26 through this scheme, and they attempted to steal another $58,416.
Williams pleaded guilty to one count of conspiracy to commit bank fraud, which carries a maximum term of imprisonment of 30 years. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 14.
Morrison, 41, of New Haven, pleaded guilty to the same offense on May 12, 2021. She also awaits sentencing.
Williams and Morrison are detained pending sentencing.
Williams’ and Morrison’s criminal histories include prior federal convictions for similar crimes. In 2002, Williams was sentenced to 51 months of imprisonment for conspiracy, identity fraud and credit card fraud offenses.
This matter has been investigated by the U.S. Postal Inspection Service, the U.S. Secret Service and the Hamden, Wallingford, Waterford, Guilford and Old Saybrook Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Amanda Oakes and Hal Chen.
New Bern Man Receives 18 Years in Federal Prison for Methamphetamine, Cocaine and Heroin TraffickingRead the Press Release
WILMINGTON, N.C. – Jonathan Pak, 36, of Craven County, was sentenced to 216 months in prison for the distribution of approximately five kilograms of methamphetamine, two and a half kilograms of cocaine, more than 390 grams of heroin and 160 grams of fentanyl.
According to court documents, evidence presented in court and other documents, from December 2019, up to and including January 2020, the United States Postal Service (USPS) seized two packages each containing one pound of methamphetamine, and one package containing half a kilogram of cocaine addressed to addresses associated with Pak. Additionally, ATF agents discovered that Pak had received 34 packages from October 2018 until January 2020 to various addresses.
On January 20, 2021, Craven County Sheriff’s Deputies and New Bern Police Detectives, working with ATF, made a controlled purchase from Pak of 16 grams of heroin in the Academy Sports parking lot in New Bern, North Carolina. On January 26, 2021, Detectives made a traffic stop of Pak following a sale Pak made of a quantity of heroin in the Lowe’s Home Improvement parking lot in New Bern. Law enforcement recovered more than 900 grams of methamphetamine, 160 grams of fentanyl and more than 100 grams of heroin.
This is part of operation “Fighting Jelly Fish” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco and Firearms, the Drug Enforcement Administration, Department of Homeland Security, United States Postal Service, the Craven and Onslow County Sheriffs’ Office and the New Bern and Kinston Police Departments investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:21-cr-00033-M-1.
Navajo man arraigned on child sex abuse chargesRead the Press Release
ALBUQUERQUE, N.M. – Christian Apachito, 27, of TóHajiilee, New Mexico, and an enrolled member of the Navajo Nation, was arraigned in federal court today on a two-count indictment charging him with one count of aggravated sexual abuse of a child with force or threat and one count of sexual abuse of a minor. Apachito will remain on conditions of release pending trial, which has not been scheduled.
A federal grand jury indicted Apachito on April 28. According to the indictment and other court records, on Nov. 11, 2020, Apachito allegedly engaged in a sexual act with a child, identified in court records as Jane Doe, by using force against her. At the time of the abuse, Jane Doe had attained the age of 12 but was not yet 16. The alleged crime took place on the Navajo Nation Crownpoint Reservation.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Apachito faces up to 15 years in prison for sexual abuse of a minor and a minimum of 30 years and up to life in prison for aggravated sexual abuse of a child with force or threat.
The FBI investigated this case with assistance from the Crownpoint Navajo Police Department. Assistant United States Attorney Mark Pfizenmayer is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
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Missouri Man Charged with Murdering a Woman Whose Body Was Discovered in Mayes CountyRead the Press Release
A federal grand jury this week indicted a Missouri man for the first degree murder of a woman whose body was found in rural Mayes County in 2020, announced U.S. Attorney Clint Johnson.
In a fourth superseding indictment, Tre Robert Allen Ackerson, 28, was charged with first degree murder in Indian Country. Prosecutors allege that he took part in kidnapping Jolene Walker Campbell, murdered her, then conspired with others to tamper with witnesses in an effort to obstruct a federal investigation into the murder.
The indictment charges Breanna Lynn Sloan, 22, and Ackerson with kidnapping Ms. Walker Campbell between July 4 and July 5, 2020, which resulted in her death.
The victim’s body was found in a remote field in Mayes County on July 15, 2020. Prosecutors state that the victim was robbed and kidnapped in Missouri, driven into the State of Oklahoma, and then through the boundaries of the Cherokee Nation into the Muscogee Nation reservation, where she was murdered by Ackerson. The medical examiner ruled the cause of death as a homicide. At this time, details of the homicide will not be released.
Ackerson, Sloan and Lane Ryan Bronson, 29, were also charged with conspiracy to tamper with a witness, victim, and informant from July 5, 2020, through the date of the fourth superseding indictment.
Additionally, Ackerson, Sloan, Bronson, Jacob Ryan Scribner, 34, and Kimberly Kay Grissom, 47, all of the Joplin, Missouri area, were charged for various witness tampering and retaliation incidents. The defendants, along with others, used physical force or threatened the use of physical force against four witnesses in separate incidents. Various assaults on witnesses took place that included witnesses being kidnapped, restrained with zipties, blindfolded or having their eyes duct taped shut, being shot at, and being beaten. The acts were committed to prevent the witnesses from testifying in the kidnapping and murder case or as retaliation for communicating to law enforcement. Sloan also allegedly offered two of the witnesses $1,000 in exchange for recanting and changing their testimony against Ackerson.
Ackerson and Bronson are brothers, and Grissom is their mother. Jacob Scribner is the cousin of Ackerson and Bronson.
In April and May, other defendants named in the third superseding indictment admitted to taking part in the witness tampering incidents in various guilty pleas. They include Morgan Lee Bowman, 26; Megan Louise Detherage, 28; Sarah Michelle Humbard, 25; David William Morris, 34; and Chloe Louise Stith, 21.
The Justice Department is committed to seeking justice on behalf of missing and murdered Indigenous people. This fourth superseding indictment is the result of a nearly two year-long FBI-led investigation into the murder of Ms. Walker Campbell, a citizen of the Osage Nation.
Law Enforcement supporting the FBI during investigation include the Muscogee Nation Lighthorse Police Department, Mayes County Sheriff’s Office, and Joplin Police Department. Assistant U.S. Attorneys Justin G. Bish and George Jiang are prosecuting the case.
An indictment is merely an allegation and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Minneapolis Man Pleads Guilty to Aiding and Abetting CarjackingRead the Press Release
MINNEAPOLIS – A Minneapolis man has pleaded guilty to aiding and abetting a violent carjacking, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 15, 2021, Marion Quintel Ware, 19, used a firearm to carjack a victim. Ware’s accomplice struck the victim in the head with a heavy metallic object, splitting the victim’s forehead open. The victim escaped from his vehicle and Ware and his accomplice drove off with the victim’s wallet and cell phone still in the vehicle. Two weeks later, officers with the Minneapolis Police Department observed Ware driving the stolen vehicle. When officers tried to conduct a traffic stop, Ware fled from them, crashed the vehicle into a median, and then continued to flee on foot. Officers apprehended Ware after a brief foot chase. Officers also recovered a loaded Polymer80 semiautomatic handgun with an extended magazine, which Ware admitted to tossing while running away from the officers.
Ware pleaded guilty yesterday before U.S. District Judge Ann D. Montgomery to one count of aiding and abetting carjacking. A sentencing date has not been set.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is the result of an investigation conducted by the FBI and the Minneapolis Police Department.
This case is being prosecuted by Assistant U.S. Attorney Harry M. Jacobs.
Military Contractor Indicted for $15 Million Bid-Rigging Scheme and Conspiracy to Defraud the United StatesRead the Press Release
A federal grand jury in the Eastern District of Texas returned an indictment charging a military contractor for rigging bids on public military contracts in Texas and Michigan and defrauding the United States.
According to the indictment, from at least as early as May 2013 through at least April 2018, Aaron Stephens, 52, formed agreements with multiple co-conspirators to rig bids on certain government contracts in order to give the false impression of competition and secure government payments, and to defraud the United States. As a part of two different schemes, Stephens and his co-conspirators allegedly rigged eight military contracts and received more than $15 million from the government for those contracts. The contracts included work performed for the Red River Army Depot in Texarkana, Texas; the U.S. Army Contracting Command in Warren, Michigan; and the Sierra Army Depot in Herlong, California.
“U.S. taxpayers deserve to know that the government contracting process is not subverted through collusion,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Bid rigging undermines the competitive process, wastes taxpayer dollars and deprives businesses that follow the rules of fair competition. Investigating and prosecuting this case and others involving government contracting is a top priority for the Department of Justice and all members of the Procurement Collusion Strike Force.”
“Protecting U.S. tax dollars and the government contracting process is very important,” said U.S. Attorney Brit Featherston for the Eastern District of Texas. “The government provides significant economic opportunities for businesses, and the bidding process must be fair for qualified applicants. Any action taken to thwart this fair process will be investigated and prosecuted.”
“This indictment reflects the unrelenting approach and tenacity we employ daily in pursuing individuals who dare to attempt to defraud the federal government and the U.S. Army,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division's Major Procurement Fraud Field Office. “When it comes to government contracting and purchasing, the superbly skilled and highly-trained special agents in our fraud unit use their finely honed investigation skills to combat and uncover fraud, deception, bribery and other criminal acts.”
“Bid rigging subverts the government contracting process and defrauds the American taxpayer,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners are committed to investigating those who conspire to undermine the principles of fair and free competition.”
Stephens was charged in the U.S. District Court for the Eastern District of Texas with one count of bid rigging in violation of the Sherman Act and two counts of conspiracy to defraud the United States.
The maximum penalty for conspiracy to restrain trade under the Sherman Act is 10 years in prison and a criminal fine of $ 1 million. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. The maximum penalty for conspiracy to defraud the United States is five years in prison and a fine of twice the amount of the gain or loss associated with the offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other relevant factors.
The Antitrust Division’s Washington Criminal II Section is prosecuting the case, which was investigated with the assistance of the U.S. Attorney’s Office for the Eastern District of Texas, the U.S. Army Criminal Investigation Division’s Dallas Fraud Resident Agency, and the FBI’s Dallas Field Office.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending, go to https://www.justice.gov/procurement-collusion-strike-force.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mifflintown Woman Charged with Possessing Fake Covid-19 Vaccine CardRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Amy B. Leister, age 55, of Mifflintown, Pennsylvania, was charged on May 18, 2022, by criminal Information with knowingly possessing and making a fake COVID-19 vaccine card.
According to United States Attorney John C. Gurganus, the information charges Leister with knowingly possessing and making an unauthorized COVID-19 vaccine card, specifically a fake COVID-19 Vaccination Record Card, purportedly issued by the United States Department of Health and Human Services, Center for Disease Control to record medical information about vaccines purportedly received, and bearing the insignia of the Center for Disease Control.
The case was investigated by the Office of Inspector General, U.S. Department of Health and Human Services. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The maximum penalty under federal law for this offense is 6 months’ imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Mexico State Amber Alert Coordinators Collaborate to Enhance Efforts in Recovering Missing and Abducted Children in MexicoRead the Press Release
Merida, Mexico -- AMBER Alert coordinators throughout various states of Mexico gathered in a three-day conference in Merida, Yucatan to discuss and provide updates on advances in implementation of the AMBER Alert system. The U.S. Department of Justice’s Office of Prosecutorial Development, Assistance and Training (OPDAT) through funding from the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL), organized this conference in order to promote and enhance AMBER Alert utilization and coordination throughout Mexico and further the goals of the U.S.-Mexico Bicentennial Framework on Security. Subject matter experts from the U.S. Marshals Service, the Federal Bureau of Investigations (FBI), and the International Centre for Missing and Exploited Children participated in this event.
The AMBER Alert system originated in the United States in 1996 to quickly disseminate information about missing and abducted children. In 2012, OPDAT and INL partnered with the government of Mexico to launch the same system in Mexico. Mexico is the first country in Latin America to adopt the AMBER Alert system. Since its initiation the alert is credited with recovering 966 children in the country.
This conference gave Mexico’s AMBER Alert Coordinators the opportunity to compare successes and challenges in their implementation of AMBER Alert programs, promote greater coordination amongst states and the federal program, and share best practices. A Mexican DNA expert detailed forensic DNA analysis can further missing person’s investigations. Likewise, technology experts from companies explained how technology social media platforms can be leveraged to quickly share information about missing children. Participants created an action plan to increase coordination and submitted recommendations for best practices to be implemented in their respective states, and possibly incorporated into formal protocols.
The conference included remarks from Ambassador Salazar and Dorothy Ngutter, the US Consul General based in Merida, Yucatan. “We have seen that the AMBER Alert network has been of great importance in reuniting families. In turn, it has fostered coordination between the two countries and allows us to advance our security goals, especially by contributing to the tranquility of our nations,” said Ambassador Salazar in his opening remarks. “The work you do through AMBER Alert is crucial to acting quickly and in a coordinated manner to locate missing children.”
The goal of this conference was to continue to institutionalize communication, cooperation, and coordination in cases involving missing children to further the protection of vulnerable populations and contribute to our shared security. OPDAT will continue to support AMBER Alert usage and offer capacity building opportunities in Mexico.
For more information visit: www.alertaamber.gob.mx
Mexican National Sentenced to 11 Years in Federal Prison for Drug TraffickingRead the Press Release
Denver – The United States Attorney’s Office for the District of Colorado announces Ignacio Godinez-Mancilla, age 30, of Mexico, was sentenced to 11 years in federal prison for possession of methamphetamine with intent to distribute.
According to the plea agreement, on January 15, 2019, detectives with the North Metro Drug Task Force arranged for an order of six pounds of methamphetamine and ten ounces of heroin from the defendant. The defendant arrived at a location in Aurora arranged by detectives with the requested drugs, as well as over $1500 in cash, where he was placed under arrest. After being granted bond in the state case arising from these events, the defendant failed to appear for court proceedings and remained in warrant status until his apprehension by federal authorities in this case over two years later.
“We appreciate the work our partners are doing at the local, state and federal levels to take drug traffickers like this defendant off the streets,” said U.S Attorney Cole Finegan. “We cannot and will not allow these illicit drugs to continue to flood our communities. They are dangerous and can be deadly.”
"Drug trafficking cases remain a high priority for the FBI. In this case, the defendant was prepared to sell methamphetamine and fled to avoid prosecution. This lengthy sentence is a result of the common goals and valuable partnerships the FBI has with local and federal law enforcement agencies to stem the distribution of illegal drugs and make our communities safer,” said FBI Denver Special Agent in Charge Michael H. Schneider.
"While we are in the midst of a prolific nationwide drug crisis and fentanyl is the leading cause of overdose deaths, we serve well to remember that methamphetamine and heroin are still readily available and deadly drugs," said DEA Denver Field Division Special Agent in Charge Brian Besser. "This sentencing should be a clear message to those that push their poison in our communities that DEA and our law enforcement partners will continue to aggressively investigate and prosecute anyone who traffics illicit drugs in the Rocky Mountain Region.”
“The investigation of drug traffickers is critical in our fight to reduce the surging violent crime in communities throughout Colorado,” said Ryan L. Spradlin, Special Agent in Charge, HSI Denver. “The men and women of HSI Denver are working tirelessly with our law enforcement partners and will remain laser focused in our joint efforts to bring individuals like Godinez-Mancilla to justice and stop the flow of illegal drugs.”
“Our priority is to identify and remove noncitizens who pose a threat to public safety in Colorado like Godinez-Mancilla,” said Tracey Cammorto, Acting Field Office Director, ERO Denver. “We are thankful our federal law enforcement partners and the U.S. Attorney’s Office continue to work with us in the interest of public safety to stop the flow of illegal drugs in our community.”
Judge Daniel D. Domenico sentenced the defendant on May 11, 2022, to 11 years in prison, followed by five years of supervised release.
This case was investigated by the North Metro Drug Task Force and the Drug Enforcement Administration. The Federal Bureau of Investigation, Homeland Security Investigations, and Immigration and Customs Enforcement, Enforcement and Removal Operations assisted in the prosecution of the case, which was handled by Assistant United States Attorney Cyrus Y. Chung.
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.
Case number 21-cr-340-DDD
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Maryland Man Sentenced to over Seven Years in Federal Prison for Covid-19, Unemployment, Insurance, and Aggravated Identity Theft SchemesRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Idowu Raji, age 40, of Baltimore County, Maryland, to 94 months in federal prison, followed by two years of supervised release, for conspiracy to commit access device fraud, access device fraud, and aggravated identity theft in relation to multiple financial schemes. The Court also ordered Raji to pay $1,793,472 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Selwyn Smith of Homeland Security Investigations (HSI) Baltimore; Acting Special Agent in Charge Mark Lewis of the U.S. Department of State, Diplomatic Security Service (DSS), Washington Field Office; Acting Special Agent in Charge Troy Springer, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; and Postal Inspector in Charge Greg L. Torbenson of the U.S. Postal Inspection Service– Washington Division.
According to his guilty plea, in 2020, Raji conspired with multiple other individuals to defraud, use, and traffic in unauthorized access devices and obtain more than $900,000 in unemployment insurance and other COVID-19 related benefits. Moreover, from October 2018 to November 2020, Raji conspired with multiple individuals, including Adewumi Abioye, age 35, of Randallstown, Maryland and Lukman Salam, age 37, of Delaware, to defraud multiple businesses, individuals, and financial institutions to illegally obtain more than $750,000.
In furtherance of the access device conspiracy, Raji admitted arranging for the delivery of fraudulent unemployment insurance cards to his co-conspirators, providing instructions on the use of the cards, and obtaining a portion of the fraudulently obtained proceeds. In total, Raji admitted that he was involved in fraudulent unemployment claims that used the identities of more than 50 real people and caused more than $900,000 in losses to state and the federal governments.
Raji admitted using an encrypted text messaging application to carry out his crimes, including to coordinate the use of unemployment insurance and COVID-19 related benefits, obtain and transfer the personal identifying information of real individuals, and receive unemployment debit cards that were mailed to addresses in Maryland and loaded with fraudulently obtained benefits. Raji also directed the use of the fraudulently obtained debit cards to engage in point of sale and ATM transactions. He also used the state and federal government funds intended for disaster relief for his own benefit.
As part of his wire fraud conspiracy, co-conspirators Salam and Abioye used fake identification documents to open bank accounts, which Raji then coordinated the use of the accounts to receive fraud proceeds. For example, in November 2019, Salam opened a bank account at a financial institution using a fake passport with the alias “Chris Hobert.” In December 2019, the email account of a supervisor at a victim business was hacked, and an email was sent to the victim business that fraudulently claimed that another business had changed its payment instructions. As a result, the victim business sent a $33,200 wire to a fraudulent account opened by Salam. Raji worked with his co-conspirators to move the funds to another account registered under the alias “Michael Stone,” and to eventually gain access to the fraud proceeds.
Further, in July 2020, Raji fraudulently applied for a $31,200 Paycheck Protection Program loan on behalf of a business, Yours Truly LLC. Raji claimed that his business had more than $132,000 of gross revenue in the prior year when, in fact, it did not. Moreover, Raji did not spend the proceeds of the loan on employee salaries and other appropriate expenses required by the PPP loan.
As stated in his plea agreement, when Raji was arrested by federal agents in November 2020, he made multiple false statements to agents, including that he had never been involved in business email compromise schemes, wire fraud, or unemployment insurance fraud. Raji also falsely claimed that he never used Yours Truly LLC when he had received federal loans through the entity less than six months before the interview.
In April and May 2022 co-defendants Abioye and Salam were sentenced to 27 months and 30 months in federal prison; respectively for conspiracy to commit wire fraud. Hameed Adesokan, Olatunde Vincent, Akolade Ojo, and Damilola Lawal will be sentenced later this year in related cases.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Pandemic Response Accountability Committee (PRAC) Fraud Task Force was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC Fraud Task Force brings together agents from its 22 member Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program. Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.
United States Attorney Erek L. Barron commended HSI, DSS, the U.S. Department of Labor-OIG, and the U.S. Postal Inspection Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Harry M. Gruber, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md.
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Louisville Doctor Charged with Murder-For-HireRead the Press Release
Louisville, KY – A federal criminal complaint and arrest warrant were issued yesterday charging a Louisville medical doctor with use of interstate commerce facilities in the commission of Murder-for-Hire.
According to court records, on May 15, 2022, Stephanie Russell, 52, contacted someone she believed she was hiring to murder her ex-husband. The individual she contacted to murder her ex-husband was an FBI Undercover Employee (UCE). Russell ultimately agreed to pay $7,000 to the UCE in exchange for murdering her ex-husband. On May 18, 2022, Russell placed $3,500 outside of her medical office in a drop box as half of the payment. She agreed to pay the other half once the murder took place. The FBI arrested Russell on May 19, 2022.
Russell made her initial appearance before a U.S Magistrate Judge in the U.S. District Court for the Western District of Kentucky on Friday, May 20, 2022, at 11:45 a.m. Russell is scheduled for preliminary and detention hearings in the U.S. Gene Snyder Courthouse on Tuesday, May 24, 2022, at 11:00 a.m.
If convicted at trial, she faces a maximum term of up to 10 years in federal prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky made the announcement.
The Federal Bureau of Investigation and the Louisville Metropolitan Police Department are investigating the case.
The case is being prosecuted by Assistant U. S. Attorney Marisa Ford.
A federal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a United States Magistrate Judge. The charge set forth in a complaint is merely an accusation and the defendant is presumed innocent until proven guilty.
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Lawrence Man Arrested for Fentanyl DistributionRead the Press Release
BOSTON – A Lawrence man was arrested yesterday on fentanyl distribution charges.
Rafael Sierra-Baez, 42, was charged with five counts of distribution and possession with intent to distribute fentanyl. Following an initial appearance yesterday before U.S. District Court Magistrate Judge Marianne B. Bowler, Sierra-Baez was detained pending a detention hearing scheduled for May 25, 2022.
According to the charging documents, on five separate occasions between Feb. 22, 2022 and May 4, 2022, Sierra-Baez sold suspected fentanyl to a law enforcement cooperating witness in Methuen.
The charge of distribution and possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Kingman Man Convicted for Possessing Firearms and Ammunition as a Convicted FelonRead the Press Release
PHOENIX, Ariz. – Last week, a federal jury found Todd Gehman Howard, 60, of Kingman, Arizona, guilty of being a convicted felon in possession of firearms and ammunition. Sentencing is scheduled for August 1, 2022, before U.S. District Judge Susan Brnovich.
On October 11, 2019, FBI agents executed a search warrant at Howard’s residence in Kingman, Arizona. Inside the residence, agents discovered 23 firearms, including 21 in a safe in Howard’s bedroom closet, and approximately 7,600 rounds of ammunition. Howard’s firearms included various types of revolvers, shotguns, and semi-automatic rifles. One of the guns in the safe was a Privately Made Firearm (PMF), FAL-type .308 caliber semiautomatic rifle, sometimes referred to as a “ghost gun.” Evidence presented at trial showed the receiver of that firearm was forged in Australia, and that the completed firearm had traveled from the State of Washington to Arizona.
“The Department of Justice takes seriously the prohibited possession of firearms. This Office will continue to prosecute such cases vigorously, especially cases such as this that involve federal felons possessing large quantities of firearms and ammunition,” said United States Attorney Gary Restaino.
The FBI conducted the investigation in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Joseph Koehler and William Rubens, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-8033-PCT-SMB
RELEASE NUMBER: 2022-077_Howard# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Justice Department and EPA Reach Agreement with Potentially Responsible Parties to Clean up the Tremont City Barrel Fill Superfund Site in German Township, OhioRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) announced a proposed consent decree that requires seven potentially responsible parties (PRPs) to clean up contamination at the Tremont City Barrel Fill Superfund site in German Township, Ohio, at an estimated cost of $27.7 million.
The complaint was filed simultaneously with the proposed consent decree in the District Court for the Southern District of Ohio. The complaint alleges that the PRPs, Chemical Waste Management Inc., Franklin International Inc., International Paper Co., The Procter & Gamble Co., PPG Industries Inc., Strebor Inc. and Worthington Cylinder Corp. are liable for the cleanup because they are either former owners and operators of the barrel fill or sent wastes to the site for disposal.
“Today’s settlement requires those responsible for the contamination to clean up the Tremont Barrel Fill site,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The cleanup provided by this agreement will benefit the public health and surrounding community.”
“Today’s agreement is a huge win for the community and sets the stage for this important cleanup to finally begin,” said EPA Region 5 Administrator Debra Shore. “This is a critical step toward the remediation of the site and will minimize risks to the community and the environment.”
The Tremont City Barrel Fill site is a closed industrial waste landfill that covers 8.5 acres. From 1976 until 1979, when operations ceased, about 51,500 drums and 300,000 gallons of industrial liquid waste were disposed in waste cells at the site.
The proposed consent decree requires the PRPs to excavate and characterize drums and uncontained waste in the barrel fill. All liquid waste and nearly 1,000 drums containing hazardous substances, known as still-bottom waste, will be disposed off-site. The remaining hazardous and non-hazardous solid waste will be disposed on-site in a newly constructed hazardous waste landfill.
The consent decree is subject to a 30-day public comment period and final court approval and will be available for public review on the DOJ website.
More information about the site is available on the Tremont City Barrel Fill website.
Justice Department Statement on Ruling in Louisiana v. CDCRead the Press Release
The Department of Justice today released the following statement from spokesman Anthony Coley:
“The Centers for Disease Control and Prevention (CDC) invoked its authority under Title 42 due to the unprecedented public-health dangers caused by the COVID-19 pandemic. CDC has now determined, in its expert opinion, that continued reliance on this authority is no longer warranted in light of the current public-health circumstances. That decision was a lawful exercise of CDC’s authority.
“The Department of Justice intends to appeal the court’s decision in Louisiana et al. v. CDC et al.”
Justice Department Releases Guide to State Voting Rules That Apply After Criminal ConvictionsRead the Press Release
The Justice Department today announced the release of a guide to the state voting rules that apply after criminal convictions. This document is designed to help citizens who meet the age and residency requirements to understand how the state-by-state rules about voting after a criminal conviction could apply to them. Who keeps the right to vote and who can regain that right — and how — differs from state to state, and it depends on state law. This guide walks readers through a series of questions to help them understand how each state’s laws work. And it gives information about how to reach officials in a particular state if someone wants to register to vote or if they have additional questions.
“The right to vote is the foundation of American democracy and it is critical for returning citizens to have reliable information concerning what voting rules apply after a criminal conviction,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The right to vote affirms returning citizens’ membership and belonging in the broader community. And it helps to ensure that the communities to which they belong have a meaningful opportunity to elect representatives of their choosing.”
The department originally gathered the information here in response to Section 9 of Executive Order 14019 on Promoting Access to Voting, which was issued by President Biden on March 7, 2021. Among other things, the executive order directed the Attorney General, as part of the reentry process for citizens in federal custody, to “provide educational materials related to voter registration.”
This information will be available through justice.gov/voting.
Complaints about discriminatory voting practices may be reported to the Civil Rights Division through the internet reporting portal at https://civilrights.justice.gov or by telephone at 1-800-253-3931.
Justice Department Files Proposed Settlement in Chambers County, Alabama School Desegregation CaseRead the Press Release
The Department of Justice, together with the Chambers County Board of Education and private plaintiffs represented by the NAACP Legal Defense Fund, filed a proposed consent order designed to provide equal educational opportunities for all students and allow the district to fulfill its obligations in a longstanding school desegregation case. The proposed consent order, which requires approval by the U.S. District Court for the Middle District of Alabama, would require the school district to build a new, consolidated high school; create a Science, Technology, Engineering, Arts and Mathematics (STEAM) magnet school; appoint a Desegregation Advisory Committee; and take other corrective action.
“This proposed consent order reinforces the Civil Rights Division’s unwavering commitment to ensuring that all students receive the equal educational opportunities to which they are entitled regardless of their race or color,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This week marks 68 years since the Supreme Court declared in Brown v. Board of Education that ‘separate but equal has no place’ in our society, yet too many students find themselves in racially segregated schools. We will continue working to deliver on the unmet promises of Brown v. Board for the students of the Chambers County School District and for others across the country.”
“Education is the cornerstone of American society,” said U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “My office fully supports the Civil Rights Division’s efforts to ensure that equal educational opportunities are available to all students, and I am pleased that this case is close to a final resolution.”
The proposed consent order is part of a desegregation case monitored and enforced by the United States. In reviewing the district’s compliance with the previous court orders in this case, the United States found that the district failed to meet earlier commitments to build a single, consolidated high school and maintained racially identifiable Black schools with fewer academic and extracurricular offerings than most of the other district schools. If approved, the order will require the district to, among other steps:
- Build and operate a single, consolidated high school on a neutral site to serve all district students in grades nine through twelve;
- Establish a STEAM Academy for all district kindergarteners through eighth graders and later renovate an existing facility to accommodate the magnet school;
- Make information about academic course offerings, extracurricular activities, and special programs, including gifted and talented programming, available on the district’s website and provide that information directly to parents;
- Ensure non-discrimination on the basis of race in its discipline practices by engaging technical assistance and revising the code of conduct;
- Improve its practices for recruiting and retaining diverse faculty and staff at each school; and
- Work with a newly-created and diverse Desegregation Advisory Committee to mitigate any desegregation-related issues that may arise.
The order would also require regular reporting to the court, the Justice Department and private plaintiffs. The court would retain jurisdiction over the consent order during its implementation, and the Justice Department would monitor the district’s compliance with the consent order.
This week marked the 68th anniversary of the U.S. Supreme Court’s historic ruling in Brown v. Board of Education. The Civil Rights Division continues to prioritize enforcement of desegregation orders in school districts formerly segregated by law, to ensure that all children can build a foundation of educational success. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.
Justice Department Files Proposed Settlement in Chambers County, Alabama School Desegregation CaseRead the Press Release
WASHINGTON – The Department of Justice, together with the Chambers County Board of Education and private plaintiffs represented by the NAACP Legal Defense Fund, filed a proposed consent order designed to provide equal educational opportunities for all students and allow the district to fulfill its obligations in a longstanding school desegregation case. The proposed consent order, which requires approval by the U.S. District Court for the Middle District of Alabama, would require the school district to build a new, consolidated high school; create a Science, Technology, Engineering, Arts, and Mathematics (STEAM) magnet school; appoint a Desegregation Advisory Committee; and take other corrective action.
“This proposed consent order reinforces the Civil Rights Division’s unwavering commitment to ensuring that all students receive the equal educational opportunities to which they are entitled regardless of their race or color,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This week marks 68 years since the Supreme Court declared in Brown v. Board of Education that ‘separate but equal has no place’ in our society, yet too many students find themselves in racially segregated schools. We will continue working to deliver on the unmet promises of Brown v. Board for the students of the Chambers County School District and for others across the country.”
“Education is the cornerstone of American society,” said U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “My office fully supports the Civil Rights Division’s efforts to ensure that equal educational opportunities are available to all students, and I am pleased that this case is close to a final resolution.”
The proposed consent order is part of a desegregation case monitored and enforced by the United States. In reviewing the district’s compliance with the previous court orders in this case, the United States found that the district failed to meet earlier commitments to build a single, consolidated high school and maintained racially identifiable Black schools with fewer academic and extracurricular offerings than most of the other district schools. If approved, the order will require the district to, among other steps:
- Build and operate a single, consolidated high school on a neutral site to serve all district students in grades nine through twelve;
- Establish a STEAM Academy for all district kindergarteners through eighth graders and later renovate an existing facility to accommodate the magnet school;
- Make information about academic course offerings, extracurricular activities, and special programs, including gifted and talented programming, available on the district’s website and provide that information directly to parents;
- Ensure non-discrimination on the basis of race in its discipline practices by engaging technical assistance and revising the code of conduct;
- Improve its practices for recruiting and retaining diverse faculty and staff at each school; and
- Work with a newly-created and diverse Desegregation Advisory Committee to mitigate any desegregation-related issues that may arise.
The order would also require regular reporting to the court, the Justice Department, and private plaintiffs. The court would retain jurisdiction over the consent order during its implementation, and the Justice Department would monitor the district’s compliance with the consent order.
This week marked the 68th anniversary of the U.S. Supreme Court’s historic ruling in Brown v. Board of Education. The Civil Rights Division continues to prioritize enforcement of desegregation orders in school districts formerly segregated by law, to ensure that all children can build a foundation of educational success. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.
Justice Department Announces New Initiatives to Address and Prevent Hate Crimes and Hate IncidentsRead the Press Release
On the one-year anniversary of enactment of the COVID-19 Hate Crimes Act, the Department of Justice today announced a series of actions to deter and confront hate crimes and other bias-related incidents, including:
- Issuing new guidance with the Department of Health and Human Services (HHS) aimed at raising awareness of hate crimes during the COVID-19 pandemic;
- Releasing grant solicitations for programs to create state-run hate crime reporting hotlines and to support community-based approaches to prevent and address hate crimes; and
- Hiring the Department’s inaugural Language Access Coordinator.
Attorney General Merrick B. Garland, Deputy Attorney Lisa O. Monaco, Health and Human Services Deputy Secretary Andrea Palm, and Associate Attorney General Vanita Gupta announced these new initiatives at an event at the Justice Department commemorating the one-year anniversary of the Attorney General’s memorandum on improving the Department’s efforts to combat hate crimes and hate incidents and the enactment of the COVID-19 Hate Crimes and Khalid Jabara-Heather Heyer NO HATE Acts. They were joined by family members of Khalid Jabara and Heather Heyer, members of Congress; Black, Asian American, Native Hawaiian, and Pacific Islander community-based organizations; civil rights organizations; and law enforcement leaders.
“Throughout our history, and to this day, hate crimes have a singular impact because of the terror and fear they inflict on entire communities,” said Attorney General Merrick B. Garland. “No one in this country should have to fear the threat of hate fueled violence. The Justice Department will continue to use every resource at its disposal to confront unlawful acts of hate, and to hold accountable those who perpetrate them.”
“We have seen a spike in hate crimes against many communities during the COVID-19 pandemic. In many cases, individuals are still scared to leave their homes – not only because of worry that they may contract the virus, but out of fear for their physical safety. This is unacceptable,” said Health and Human Services Secretary Xavier Becerra, who serves as Co-Chair of the White House Initiative and President’s Advisory Commission on Asian Americans, Native Hawaiians, and Pacific Islanders. “The Biden-Harris Administration is committed to combatting hate crimes against all Americans. Today’s announcements help deliver on the President’s pledge to ensure the safety of our communities.”
As set forth in the COVID-19 Hate Crimes Act, the Justice Department and HHS announced the joint issuance of guidance aimed at raising awareness of hate crimes during the COVID–19 pandemic. This guidance provides an overview of the rise of hate crimes and hate incidents during the pandemic, including a surge of hate crimes and hate incidents against Asian American, Native Hawaiian, and Pacific Islander communities, and several steps that law enforcement, government officials, and others can take to raise awareness of increased hate crimes and incidents, and to use increased awareness as a tool for the prevention of and response to hate crimes.
The Justice Department also announced the release of $10 million in grant solicitations in newly created grant programs to address hate crimes and hate incidents. This includes solicitations for grants authorized under the Jabara-Heyer NO HATE Act programs. Through these programs, the Office of Justice Programs (OJP) will provide up to $5 million in grant funds for the Bureau of Justice Statistics to support the transition of state and local law enforcement agencies to the National Incident-Based Reporting System (NIBRS) and reporting of hate crimes through NIBRS, and for the Office of Victims of Crime (OVC) to fund states to establish and run state-run reporting hotlines for victims of hate crimes. OJP’s Bureau of Justice Assistance (BJA) also released $5 million in grant solicitations under the Community-Based Approaches to Prevent and Address Hate Crimes Program, which supports community-based organizations and civil rights groups with implementing comprehensive approaches to promote community awareness and preparedness, increase victim reporting, strengthen community resiliency, and improve responses to hate crimes.
The Justice Department announced that Ana Paula Noguez Mercado will join the Office for Access to Justice, where she will serve as the Department’s first-ever Language Access Coordinator. Language access is a key barrier to the reporting of hate crimes, and the Language Access Coordinator will help improve knowledge, use, and expansion of the Department of Justice’s language resources.
Finally, the Justice Department announced that Saeed Mody will serve as the Department’s new Anti-Hate Crimes Resources Coordinator, after the first ever Coordinator was recently named Director of the newly restored Office of Access to Justice.
Over the last year, the Justice Department has taken a number of other actions in response to a rise in hate crimes and hate incidents. Some of these actions include:
- Designating a Deputy Associate Attorney General as the Justice Department’s first-ever Anti-Hate Crimes Resources Coordinator;
- Designating the chief of the Criminal Section of the Civil Rights Division to serve in role of facilitating the expedited review of hate crimes;
- Going above and beyond the directive under the COVID-19 Hate Crimes Act to expedite the review of certain hate crimes by including additional types of hate crimes;
- Designating at least one Assistant U.S. Attorney as a Civil Rights Coordinator in every U.S. Attorneys’ Office (USAO);
- Vigorously investigating and prosecuting hate crimes - since January 2021, the department has charged more than 40 defendants in over 30 cases and obtained more than 35 convictions of defendants charged with bias-motivated crimes;
- Elevating civil rights violations and hate crimes enforcement for prioritization among the FBI’s 56 field offices;
- Facilitating FBI-hosted regional conferences across the country with state and local law enforcement agencies regarding federal civil rights and hate crimes laws; to encourage reporting; strengthen relationships between law enforcement and local civil rights organizations; and build trust within the diverse communities they serve;
- Launching an FBI-led National Anti-Hate Crimes Campaign involving all 56 FBI field offices to encourage reporting. The campaign includes outdoor advertising, billboards, and radio streaming in addition to social media;
- Ensuring that all states have now become certified for participation in the FBI Uniform Crime Reporting National Incident Based Reporting System;
- Revitalizing the Community Relations Service (CRS) by, among other things, seating newly-confirmed director, Paul Monteiro;
- Adding information to the Department of Justice’s website on reporting hate crimes in 24 languages, including 18 of the most frequently spoken AAPI languages in the United States;
- Creating an online toolkit that provides USAO Civil Rights Coordinators with customizable community outreach materials and ready access to other resources and training;
- Piloting a new outreach training called United Against Hate help improve the reporting of hate crimes by teaching community members how to identify, report, and help prevent hate crimes and to provide an opportunity for trust building between law enforcement and communities;
- Developing additional resources to help empower local officials, community leaders, and residents to address and devise community responses to hate crimes and incidents, including a toolkit to address hate crimes and incidents against Asian American, Native Hawaiian and Pacific Islander communities, which has been translated into Arabic, Chinese (both Simplified and Traditional), Farsi, Hindi, Korean, Urdu, Tagalog, and Vietnamese;
- Releasing close to $21 million in grant funding through these programs to state and local partners to investigate and prosecute hate crimes and assist hate crime victims, including through the Matthew Shepard and James Byrd, Jr. Hate Crimes Program to support state, local, and tribal law enforcement and prosecution agencies in their efforts to investigate and prosecute hate crimes and in their outreach to and education of the public, victims, and others on hate crimes; and
- With the Department of Education, issuing facts sheets addressing harassment and discrimination in school, including harassment based on COVID-19 related issues, harassment of LGBTQI+ students, and discrimination based on national origin and immigration status.
Jemez man pleads guilty to assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Tyler Sando, 32, an enrolled member of the Pueblo of Jemez, pleaded guilty on May 19 in federal court to assault resulting in serious bodily injury in Indian Country and assaulting, resisting or impeding a federal officer involving physical contact. Sando will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement and other court records, on Aug. 11, 2020, on the Jemez Pueblo, Sando got out of his vehicle, approached a victim and proceeded to strike him about the head and face. Sando then returned to his car and left. As a result of Sando’s assault, the victim suffered a subdural hematoma, needed staples to close a laceration on his head that left a scar, suffered daily headaches, and had blurry vision for a period of time.
On Nov. 16, 2020, Sando sped through a COVID checkpoint entering the Jemez Pueblo and crashed his vehicle. Law enforcement pursued Sando as he attempted to run away, and arrested him inside a residence. After Sando’s arrest, a federal officer attempted to interview him. Sando cursed at the officer and spat in his face.
Sando faces up to 10 years in prison for assault resulting in serious bodily injury and up to eight years in prison for assaulting, resisting or impeding a federal officer.
The FBI Albuquerque Field Office investigated this case with assistance from the Jemez Pueblo Police Department. Assistant United States Attorneys Nicholas J. Marshall and Novaline D. Wilson are prosecuting the case.
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Jackson County Woman Pleads Guilty to Theft of Social Security Income BenefitsRead the Press Release
CHARLESTON, W.Va. – A Jackson County woman pleaded guilty to fraudulently obtaining Social Security Administration (SSA) benefits.
According to court documents and statements made in court, Monique Ann Casto, 37, of Kenna, unlawfully collected $41,166 in Social Security Survivor’s Insurance Benefits payments on behalf of a minor child after losing custody of that child.
Casto began receiving the benefits in March 2006 for the care of a child as the child’s representative payee. These Social Security representative payee benefits were based on income and living arrangements. The benefits required that the SSA money received be used for the well-being of the child. They also created a duty on the recipient to report a change in living arrangements. Casto failed to disclose that the West Virginia Department of Health and Human Resources took custody of the minor child on June 23, 2015, and that her parental rights were terminated in May 2016. Casto continued to collect benefits unlawfully from June 2015 through August 2019.
Casto pleaded guilty to concealment of an event that affects SSA benefits and to conversion of SSA benefits. She is scheduled to be sentenced on September 8, 2022, and faces a maximum penalty of 10 years in prison, three years of supervised release and a $250,00 fine.
United States Attorney Will Thompson made the announcement and commended the Social Security Administration (SSA) and SSA-Office of Inspector General (OIG) for conducting the investigation.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Julie M. White is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-137.
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Investor and Organizer of Cocaine Smuggling Operations via Semi-Submersible Vessels Pleads GuiltyRead the Press Release
Tampa, FL –United States Attorney Roger B. Handberg announces that Oscar Adriano Quintero Rengifo, a/k/a “Guatala,” (34) today pleaded guilty to conspiring to distribute five or more kilograms of cocaine on vessels subject to the jurisdiction of the United States. Quintero Rengifo faces a maximum penalty of life imprisonment. He was arrested in Colombia on January 29, 2021, and extradited to the United States on January 26, 2022.
According to the plea agreement, Quintero Rengifo was part of a transnational criminal organization that smuggled cocaine from South America to Central America for ultimate importation into the United States. The organization primarily sent vessels such as self-propelled semi-submersible vessels to Guatemala, where the cocaine was then smuggled over the Guatemala/Mexican border and then into the United States. A former mayor in Guatemala, who controlled drug routes in northern Guatemala into Mexico, oversaw the smuggling of cocaine to Mexican cartel members. Quintero Rengifo progressed within the group from organizing smuggling operations to ultimately investing in shipments and securing investors.
From at least as early as January 2015 through September 2019, the United States Coast Guard interdicted at least four vessels, including two semi-submersible vessels, directly linked to the Quintero Rengifo’s organization and involving more than 13,000 kilograms of cocaine.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Coast Guard Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. The Department of Justice’s Office of International Affairs substantially assisted in the extradition of the defendant to the United States. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Dan Baeza.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on May 20 was:
Devin Farley, 40, of Missoula, on charges of conspiracy to distribute methamphetamine, possession with intent to distribute meth, distribution of meth and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Farley faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release on the conspiracy and drug possession charges and a mandatory minimum five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearm charge. Farley was detained pending further proceedings. The Drug Enforcement Administration, Missoula County Sheriff’s Office and Missoula Police Department investigated the case. PACER case reference. 22-23.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on May 19 was:
Darnell Lee Not Afraid, 37, of Pryor, on charges of assault on federal officer and possession of firearm during a crime of violence. If convicted of the most serious crime, Not Afraid faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the assault charge and a mandatory minimum five years to life in prison, a $250,000 fine and five years of supervised release on the firearms charge. Not Afraid was detained pending further proceedings. The FBI investigated the case. PACER case reference. 22-44.
Appearing on May 16 was:
Brian Keith Maston, 52, unknown address, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth, possession of a firearm in furtherance of a drug trafficking crime and illegal possession of a machine gun. If convicted of the most serious crime, Maston faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug charges and a mandatory minimum 30 years to life in prison, consecutive to any other term of imprisonment, a $250,000 fine and five years of supervised release for the charge of possession of a machine gun in furtherance of a drug trafficking crime. Maston was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration investigated the case. PACER case reference. 22-53.
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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Indiana Woman Sentenced to 48 Months’ Imprisonment for Conspiracy to Commit Mail Fraud, Wire Fraud, and Money Laundering in Advance-Fee Fraud Scheme Targeting Deaf and ElderlyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 19, 2022, Donna L. Summerlin, age 63, of Fortville, Indiana, was sentenced to 48 months in prison by United States District Court Judge Jennifer P. Wilson for conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering.
According to United States Attorney John C. Gurganus, Summerlin was convicted in June 2021, of accepting over $1.2 million from victims of cross-border advance-fee schemes following a seven-day jury trial. Many of the identified victims were either elderly, deaf, or both. In these schemes, victims were contacted through Facebook and told that they were winners of a “deaf lottery” or that they had been selected for special and exclusive government grants or other programs. Summerlin herself is deaf, and the trial and other court proceedings were conducted with a team of American Sign Language (ASL) interpreters.
In order to claim their supposed prize, grant, or other financial reward, victims were directed to prepay expenses such as taxes and customs fees. Victims were persuaded to do so with the false promise of a much larger payoff. After making an initial payment, victims were directed to make additional larger payments. In some cases, fraudsters were successful at getting multiple payments from victims, who never received any financial reward.
Fraudsters contacting potential victims through Facebook, email, and text messages used fake names and photographs to disguise themselves. These fraudsters also took over the accounts of victims so that they could lure their friends into sending money and to reassure them of the scheme’s legitimacy when victims had doubts about participating. Victims were instructed to send these payments to Summerlin, who worked as a “money mule” or intermediary for these fraudsters for approximately four years, from 2012 to 2016.
At trial, the Government showed that Summerlin received over $1.2 million from over 100 people across the country and, in some cases, other countries such as Canada and Australia. Victims mailed Summerlin checks, cash, and money orders. They also wired her funds through bank-t-bank electronic wire transfers and sent her money through Western Union and MoneyGram money transfers. The victims included a deaf elderly couple that resided in this District during the time period of the conspiracy. The Government showed that this couple sent Summerlin around $500,000, depleting their life savings.
After receiving these funds, Summerlin rapidly withdrew them from the more than 40 bank accounts she used for these activities. Typically, she wired a portion of the funds to coconspirators in Nigeria and Great Britain. She also made large cash withdrawals, which were used to send funds to coconspirators and for personal use. Finally, she sent a large number of Western Union and MoneyGram money transfers to many of the same recipients in Nigeria and Great Britain.
Evidence at trial showed that Summerlin retained funds received from fraud victims for personal use as well.
In addition to the prison term, Summerlin was ordered to serve a term of supervised release of two years following her release from prison and to pay $723,436.57 in restitution to victims of the fraud scheme.
The case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorneys Ravi Romel Sharma and Carlo D. Marchioli represented the United States at trial. The case was previously handled by Assistant U.S. Attorneys Chelsea Schinnour and Kim Douglas Daniel.
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Houma Man Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – DARRIUS NEVILLE, age 26, a resident of Houma, Louisiana, was charged May 5, 2022, in a one-count sealed indictment by a federal grand jury with distribution of heroin in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), announced U.S. Attorney Duane A. Evans. The indictment was unsealed on May 12, 2022.
If convicted, NEVILLE faces a statutory minimum sentence of five years, up to forty years imprisonment, a fine of up to $5,000,000, at least four years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers.
Hillsborough County Man Sentenced to 17 Years in Federal Prison for Distributing and Possessing Child Sexual Abuse Materials and Ordered to Pay Victims over $100,000 in RestitutionRead the Press Release
Tampa, Florida – U.S. District Judge William Jung has sentenced Andres Ivan Leyva Sabina (51, Tampa) to 17 years in federal prison for distributing and possessing images and videos depicting children being sexually abused. The court also ordered Sabina to pay more than $100,000 in restitution to child victims, serve a 10-year term of supervised release, and register as a sex offender. Sabina had pleaded guilty on January 12, 2022.
According to court documents, on several occasions in September 2018, Sabina used a social media application and the internet to distribute images depicting children being forced to engage in sexually explicit conduct. In July 2019, law enforcement officers executed a search warrant at Sabina’s residence. Several electronic devices used by Sabina were seized and officers discovered more than 4,000 images and videos depicting children being sexually abused contained in these devices.
“This predator possessed thousands of depictions of child pornography involving more than 150 victims that he collected and distributed on the dark web,” said HSI Tampa acting Assistant Special Agent in Charge Jennifer Silliman. “HSI special agents and Florida Department of Law Enforcement officers worked jointly to shut down this monstrous creature from leaving more child victims in his wake.”
This case was investigated by Homeland Security Investigations and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Candace Garcia Rich.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Criminal Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Houston Woman Pleads Guilty to Wire FraudRead the Press Release
St. Thomas, USVI – United States Attorney Delia L. Smith announced today that on May 16, 2022, Marvelous Eghage, 39, of Houston, TX, pleaded guilty to one count of wire fraud before Magistrate Judge Ruth Miller.
According to court documents, between February 26, 2018, and March 13, 2018, Eghage devised a scheme to fraudulently obtain money and property by means of materially false and fraudulent pretenses and promises directed to third parties. Through her fraudulent scheme, Eghage diverted funds from her victims to a bank account under her controlled by way of electronic wires and later withdrew or transferred the funds for her own personal benefit and the benefit of others.
Specifically, court documents show that on February 26, 2018, Eghage and a co-conspirator electronically transferred $25,400.00 to an account under Eghage’s control. These funds were fraudulently acquired through forged checks from the account of R.B.R. On March 6, 2018, Eghage and a co-conspirator, fraudulently induced a representative of Colombia-based FDN to electronically transfer $34,965.00 to a Houston, TX bank account under Eghage’s control. On March 7, 2018, Eghage and a co-conspirator fraudulently induced N.D. to electronically transfer approximately $48,000.00 to a Houston, TX bank account controlled by Eghage. On March 8, 2018, Eghage fraudulently induced M.R. to transfer money to a bank account under her control. Lastly, on March 9, 2018, Eghage and a coconspirator fraudulently induced a representative of a law firm based in St. Thomas, VI, to electronically transfer approximately $108,637.00 to a Houston, TX bank account under Eghage’s control. Eghage used email communications to induce her victims into her fraudulent scheme. Eghage faces a maximum sentence of 20 years in prison and a maximum fine of $250,000.00.
This case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Everard E. Potter.
Government Contractor Agrees to Pay $425,000 for Alleged False Claims Related to Conflicts of InterestRead the Press Release
Cape Henry Associates (Cape Henry), located in Virginia Beach, Virginia, has agreed to pay $425,000 to resolve allegations that it violated the False Claims Act by failing to inform contracting officers of the company’s organizational conflicts of interest (OCI) in connection with the award and performance of task orders on government contracts. Cape Henry performs manpower analysis, personnel analysis and training services for the U.S. Armed Forces.
The Justice Department alleged that Cape Henry failed to disclose that one of the company’s officers had an ownership interest in KOVA Global, a company to which Cape Henry awarded subcontracts to provide warehouse services in connection with two sole source task orders issued by the Army and General Services Administration (GSA).
“It is critical that companies disclose potential conflicts of interest to protect the integrity of the federal procurement process,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who knowingly conceal relevant information that may affect the award or performance of a government contract.”
“The failure of government contractors to disclose organizational conflicts of interest harms government procurement, creates unfairness, and can cost the taxpayers money,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia.
The Justice Department also alleged that Cape Henry failed to disclose relevant information about a conflict of interest arising from advisory & assistance services (A&AS) performed in 2015 by Q.E.D. Systems Inc. (Q.E.D.), a Cape Henry subcontractor. In connection with a multi-year delivery order under a Navy SeaPort-e contract, Cape Henry would submit project-specific proposals to a Navy program management office that was responsible for determining the scope and funding for each project. At the same time that Cape Henry was submitting proposals to the Navy, Cape Henry was also funding the direct labor of a Q.E.D. employee through a subcontract. This Q.E.D. employee was providing A&AS services to the Navy program office and making recommendations that could potentially affect Cape Henry’s funding and treatment in connection with these project proposals. Cape Henry failed to disclose this conflict of interest to the contracting officer as required by the OCI clause in Cape Henry’s contract with the Navy.
“The Department of Defense requires its contractors to divulge any potential conflicts of interest to maintain the integrity of the military’s procurement process,” said Acting Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS and our federal law enforcement partners remain committed to ensuring the good stewardship of taxpayer dollars by fully investigating all allegations of procurement fraud.”
“This settlement highlights the resolve of Army CID and our law enforcement partners to hold government contractors accountable for their actions. The ability to protect and defend the assets of the United States Army is always our top priority,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division's (Army CID) Major Procurement Fraud Field Office.
“GSA OIG special agents are committed to working with DOJ and investigative partners to ensure that taxpayer dollars are properly spent and protected," said Special Agent in Charge Eric D. Radwick of the GSA Office of Inspector General, Mid-Atlantic Division.
“This settlement agreement demonstrates the commitment of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our law enforcement partners to vigorously pursue those who attempt to exert improper influence over the federal government contracting process and to protect American taxpayer dollars,” said Special Agent in Charge Christopher W. Dillard of the Department of Defense, Office of Inspector General, DCIS.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Virginia with assistance from the DCIS, the Army CID, the GSA Office of Inspector General, the Defense Contract Audit Agency, and the Naval Criminal Investigative Service.
The matter was handled by Trial Attorney Jason M. Crawford of the Civil Division and Assistant U.S. Attorney Clare Wuerker for the Eastern District of Virginia.
The claims resolved by the settlement agreement are allegations only; there has been no determination of liability.
Government Contractor Agrees to Pay $425,000 for Alleged False Claims Related to Conflicts of InterestRead the Press Release
ALEXANDRIA, Va. – Cape Henry Associates (Cape Henry), located in Virginia Beach, has agreed to pay $425,000 to resolve allegations that it violated the False Claims Act by failing to inform contracting officers of the company’s organizational conflicts of interest in connection with the award and performance of task orders on government contracts.
Cape Henry performs manpower analysis, personnel analysis, and training services for the United States Armed Forces. The allegations involved that Cape Henry failed to disclose that one of the company’s officers had an ownership interest in KOVA Global, a company to which Cape Henry awarded subcontracts to provide warehouse services in connection with two sole source task orders issued by the Army and General Services Administration (GSA).
The Justice Department also alleged that Cape Henry failed to disclose relevant information about a conflict of interest arising from advisory & assistance services (A&AS) performed in 2015 by Q.E.D. Systems, Inc. (Q.E.D.), a Cape Henry subcontractor. In connection with a multi-year delivery order under a Navy SeaPort-e contract, Cape Henry would submit project-specific proposals to a Navy program management office that was responsible for determining the scope and funding for each project. At the same time that Cape Henry was submitting proposals to the Navy, Cape Henry was also funding the direct labor of a Q.E.D. employee through a subcontract. This Q.E.D. employee was providing A&AS services to the Navy program office and making recommendations that could potentially affect Cape Henry’s funding and treatment in connection with these project proposals. Cape Henry failed to disclose this conflict of interest to the contracting officer as required by the OCI clause in Cape Henry’s contract with the Navy.
“The failure of government contractors to disclose organizational conflicts of interest harms government procurement, creates unfairness, and can cost the taxpayers money,” said U.S. Attorney Jessica D. Aber.
“It is critical that companies disclose potential conflicts of interest to protect the integrity of the federal procurement process,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who knowingly conceal relevant information that may affect the award or performance of a government contract.”
“The Department of Defense requires its contractors to divulge any potential conflicts of interest to maintain the integrity of the military’s procurement process,” said Acting Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS and our federal law enforcement partners remain committed to ensuring the good stewardship of taxpayer dollars by fully investigating all allegations of procurement fraud.”
“This settlement highlights the resolve of Army CID and our law enforcement partners to hold government contractors accountable for their actions. The ability to protect and defend the assets of the United States Army is always our top priority,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division's (Army CID) Major Procurement Fraud Field Office.
“GSA OIG special agents are committed to working with DOJ and investigative partners to ensure that taxpayer dollars are properly spent and protected," said Special Agent in Charge Eric D. Radwick of the GSA Office of Inspector General, Mid-Atlantic Division.
“This settlement agreement demonstrates the commitment of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our law enforcement partners to vigorously pursue those who attempt to exert improper influence over the federal government contracting process and to protect American taxpayer dollars,” said Special Agent in Charge Christopher W. Dillard of the Department of Defense, Office of Inspector General, DCIS.
The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office for the Eastern District of Virginia, the Justice Department’s Civil Division, Commercial Litigation Branch, and Fraud Section, and with assistance from the Defense Criminal Investigative Service, the Army Criminal Investigation Division, the General Services Administration Office of Inspector General, the Defense Contract Audit Agency, and the Naval Criminal Investigative Service.
The matter was handled by Assistant U.S. Attorney Clare Wuerker and Trial Attorney Jason M. Crawford of the Justice Department’s Civil Division.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
The claims resolved by the settlement agreement are allegations only; there has been no determination of liability.
Gary Man Sentenced to 36 Months in PrisonRead the Press Release
HAMMOND- Raheri Boyd, 45 years old, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon, on his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Boyd was sentenced to 36 months in prison followed by 2 years of supervised release.
According to documents in the case, on June 8, 2021, a vehicle operated by Boyd was involved in a hit and run accident. When officers arrived, Boyd was found to be asleep in the driver’s seat. During a search of the vehicle, law enforcement recovered a loaded 9mm semi-automatic pistol in the center console. Boyd’s criminal history indicates that he has previously been convicted of multiple felony offenses, including possession of a controlled substance, unlawful use of a firearm by a felon, and aggravated discharge of a firearm. These convictions prohibit him from possessing a firearm or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the Lake Station Police Department. This case was prosecuted by Assistant United States Attorney Michael J. Toth.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Gang leader convicted of federal charges in connection with nightclub shooting and subsequent murder of 17-year-old witnessRead the Press Release
ATLANTA, Ga. - A federal jury found Maurice Antonio Kent guilty of RICO Conspiracy, violent crime in aid of racketeering, discharging a firearm during the commission of those violent crimes, and possession of a firearm as a convicted felon.
“The 135 Pirus gang is a violent criminal organization whose members committed a multitude of crimes, including the horrific execution of a 17-year-old witness,” said U.S. Attorney Ryan K. Buchanan. “Kent and his fellow gang members demonstrated an absolute disregard for human life and have now been brought to justice as a result of the strong partnership between federal and local law enforcement. This case, which culminated in a jury verdict convicting Kent of all charges, reflects our office’s resolve to tirelessly investigate and prosecute gangs who drive violence in our communities.”
“The brutal and tragic violence perpetrated by Kent and his fellow gang members is completely shocking and deplorable,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “With this conviction, Kent will no longer be able to commit senseless violence and homicidal acts on our streets. The FBI remains unwavering in our resolve to work with our partners to ensure that individuals like Kent are held accountable for their crimes and to eliminate gang violence from our communities.”
“Gang and organized crime have no place in our community,” said Brookhaven Police Deputy Chief Brandon Gurley. “Organized crime knows no boundaries, and neither should we. The collaboration with the U.S. Attorney’s Office was instrumental to ensure that Kent and his associates were all held accountable for the violent crimes they committed in our city and throughout Georgia.”
“In reference to this investigation, I’d like to credit the Violent Repeat Offender Program (VRO) which is a program conducted by the U.S. Attorney’s Office for the Northern District of Georgia and has been in place for many years,” said Cartersville Police Chief Frank McCann. “The VRO program puts federal, state, and local law enforcement officers together monthly to take violent repeat offenders off our streets. Positive results when we all work together!”
According to U.S. Attorney Buchanan, the charges and other information presented in court: The 135 Pirus gang originated in Compton, California, and has a national presence, including in the Northern District of Georgia. Kent was a gang leader in northwest Georgia with leadership authority over members in the vicinity of Cartersville and Rome, Georgia. The 135 Pirus are governed by a set of rules, which, among other commands, prohibit its members from cooperating with law enforcement.
In the early morning hours of May 13, 2017, an argument occurred outside a Brookhaven nightclub between a California-based 135 Pirus gang member and a rival gang member. At that time, Kent fired multiple rounds into a crowd of people outside the club, critically wounding the other gang member as well as a club security guard. During his flight from the scene, Kent tossed the firearm from a vehicle just before he was apprehended by police. Soon after being arrested and while in custody, Kent learned that a 17-year-old fellow gang member, who may have witnessed the shooting, was interviewed by law enforcement. Kent believed he was “snitching.” Two days later, 135 Pirus gang members devised a plan to lure the teenager to Bartow County, Georgia, where they shot and killed him with Kent’s gun, leaving the boy’s body on a rural road.
The jury also heard evidence that eight months prior to the nightclub shooting, in September 2016, Kent committed a drive-by shooting of a man standing in his front yard in Cartersville, Georgia. After that shooting, Kent threw the firearm into Lake Allatoona. The FBI later recovered the gun from the bottom of the lake and matched cartridge casings and a bullet from the drive-by shooting to Kent’s firearm.
In addition to Maurice Antonio Kent a.k.a., “Savage Duze,” 32, of Cartersville, Georgia, a number of other 135 Pirus gang members and associates were previously convicted in this case, including:
- Christopher Nwanjoku, a.k.a. “Problem,” 30, a 135 Pirus leader from Lawrenceville, Georgia, was convicted of RICO Conspiracy;
- Jamel Dupree Hughes, a.k.a. “Savage,” 27, a 135 Pirus member from Atlanta, Georgia, was convicted of murder in aid of racketeering, use of a firearm in furtherance of a crime of violence resulting in death, attempted murder in aid of racketeering, and discharge of a firearm in furtherance of a crime of violence;
- Cedric Sams, Jr., a.k.a. “Awall,” 29, a 135 Pirus member from Cartersville, Georgia, was convicted of murder in aid of racketeering and use of a firearm in furtherance of a crime of violence resulting in death;
- Jennifer Foutz, a.k.a. “Rose,” 30, a 135 Pirus member from Acworth, Georgia, was convicted of murder in aid of racketeering and use of a firearm in furtherance of a crime of violence resulting in death; and
- Michael Kent, a.k.a. “Wikked,” 32, a 135 Pirus associate from Atlanta, Georgia, who is Maurice Antonio Kent’s twin brother, was convicted of RICO Conspiracy.
In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. The sentencing hearing for Kent and the other defendants will be scheduled at a later date.
This case is being investigated by the FBI Safe Streets Gang Task Force, with valuable assistance provided by the Brookhaven Police Department, the Bartow County Sheriff’s Office, the Cartersville Police Department, and the Georgia Department of Community Supervision.
Assistant U.S. Attorneys Jessica Morris, who serves as the office’s Project Safe Neighborhoods (PSN) Co-coordinator, and Michael Herskowitz, Chief of the Cyber and Intellectual Property Crime Section, are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fraud Scheme Involving Baby Formula Leads to 18-Year Federal Prison Sentences for SwindlersRead the Press Release
Miami, Florida – A federal district judge in Miami has sentenced each of three South Florida residents to 220 months in prison after a jury found them guilty of orchestrating an elaborate fraud scheme that cheated U.S. manufacturers of infant formula, eye-care products, and other FDA-regulated items out of more than $100 million.
Between 2013 and 2018, Johnny Grobman, 48, Raoul Doekhie, 53, and Sherida Nabi, 57, secured deep price discounts for infant formula and other items by lying to the U.S. manufacturers of the products. Doekhie and Nabi (who are married) told the manufacturers that they were purchasing the products to ship overseas, to Suriname, often in connection with purported government procurement contracts they held in Suriname. In fact, the defendants did not have government procurement contracts and never intended to export the products to Suriname. Instead, Grobman and others sold the products in the United States for millions of dollars, which the three defendants later split among themselves.
The defendants hid their activity from the U.S. manufacturers of the FDA-regulated products in one of three ways. The first was to send “dummy” shipments abroad. The dummy shipments did not contain the products purchased from the manufacturers, but they did generate documentation to prove that an export occurred. The second method was to “U-turn” the products: The products were shipped abroad, generating export documentation. As soon as they arrived overseas, they were shipped back to the United States. The third method was to create fraudulent export shipping documentation showing that the products were exported when they actually never left the country.
Following a 13-day trial, on February 6, 2020, a federal jury found Grobman, Doekhie, and Nabi guilty of conspiring to commit wire fraud; wire fraud; money laundering; conspiring to obtain pre-retail medical products worth $5,000 or more by fraud or deception, theft of pre-retail medical products; and smuggling goods from the United States.
On April 25, 2022, the Court entered forfeiture money judgments for the amounts of the criminal proceeds traceable to the offenses of conviction as follows: $87,187,374.83 against Grobman and $115,699,273.61 jointly against the Defendants Doekhie and Nabi.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Justin C. Fielder, Special Agent in Charge, Miami Field Office, United States Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), announced the sentences that U.S. District Judge Roy K. Altman imposed yesterday.
“The fraud perpetrated by these defendants is nothing short of egregious,” said U.S. Attorney Gonzalez. “The 18-year prison sentences reflect the seriousness of the defendants’ crimes. Our Office will continue to vigorously prosecute those who commit these types of offenses.”
“Today’s announcement should serve as a reminder that those who fraudulently divert consumer products for profit will be held accountable for their actions,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “We will continue to investigate and bring to justice those who engage in fraudulent schemes involving FDA-regulated products.”
FDA-OCI investigated the case. Broward County Sherriff’s Office assisted. Assistant U.S. Attorneys Shannon Shaw, Christopher Browne, and John Shipley prosecuted the case. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.
This case is the second large-scale prosecution by the South Florida U.S. Attorney’s Office and FDA-OCI targeting fraud schemes related to the so-called “gray market,” which involves the diversion and re-sale of certain goods that were not intended for distribution in the United States. In September 2019, the Office announced the convictions of five defendants, including Byramji Javat, a citizen of Pakistan and Chairman of the Dubai-based Uniworld Group, for various offenses relating to a global fraud scheme that relied upon false claims about the United States military and the Government of Afghanistan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 18-cr-20989.
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Founder and CEO of Off-Shore Cryptocurrency Derivatives Platform Sentenced for Violating the Bank Secrecy ActRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that Arthur Hayes was sentenced today to six months of home detention, in connection with his violation of the Bank Secrecy Act (the “BSA”), through his willful failure to establish, implement, and maintain an anti-money laundering (“AML”) program at the cryptocurrency company he co-founded and owned, Bitcoin Mercantile Exchange or “BitMEX”. U.S. District Judge John G. Koeltl imposed today’s sentence.
U.S. Attorney Damian Williams said: “While building a cryptocurrency platform that profited him millions of dollars, Arthur Hayes willfully defied U.S. law that requires businesses to do their part to help in preventing crime and corruption. He intentionally failed to implement and maintain even basic anti-money laundering policies, which allowed BitMEX to operate as a platform in the shadows of the financial markets. This Office will continue to vigorously enforce United States law intended to prevent money laundering through financial institutions, including cryptocurrency platforms.”
According to the Indictment, public court filings, and statements made in court:
ARTHUR HAYES, together with BENJAMIN DELO and SAM REED, who have also pled guilty and are scheduled to be sentenced in the near-future, was one of the three co-founders and the CEO of BitMEX.
BitMEX is an online cryptocurrency derivatives exchange that, during the relevant time period, had U.S.-based operations and served thousands of U.S. customers, notwithstanding false representations to the contrary by the company, including HAYES. From at least September 2015, and continuing at least through the time of the Indictment in September 2020, HAYES willfully caused BitMEX to fail to establish and maintain an AML program, including a program for verifying the identify of BitMEX’s customers (or a “know your customer” or “KYC” program). As a result of its willful failure to implement AML and KYC programs, BitMEX was in effect a money laundering platform. For example, in May 2018, HAYES was notified of allegations that BitMEX was being used to launder the proceeds of a cryptocurrency hack. Neither HAYES nor the company filed a suspicious activity report thereafter, nor did they implement an AML or KYC program in response.
HAYES failed to institute AML or KYC programs at BitMEX despite closely following U.S. regulatory developments that made clear their legal obligation to do so if BitMEX operated in the United States, which it did. Despite repeatedly stating that BitMEX did not serve U.S. customers, including to members of the press and others outside of BitMEX, HAYES knew that BitMEX’s purported withdrawal from the U.S. market in or about September 2015 was a sham, and that “controls” BitMEX put in place to prevent U.S. trading were an ineffective facade that did not, in fact, prevent users from accessing or trading on BitMEX from the United States.
HAYES derived substantial profits from BitMEX, as a result of U.S.-based trading, and aggressively advertised the company’s lack of an AML or KYC program. At various points in time, BitMEX’s website stated that “No real name or other advanced verification is required on BitMEX.” Through at least August 2017, the platform’s registration page explicitly stated that first and last name were “not required” to register.
Because of the lack of KYC, the full scope of criminal conduct on BitMEX may never be known. The company, still owned by HAYES and his co-defendants, accepted a settlement with the Department of Treasury in which the Company neither admitted nor denied that that it had conducted more than $200 million in suspicious transactions, and that the Company had failed to file suspicious activity reports on nearly 600 specific suspicious transactions.
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HAYES, 36, of Miami, Florida, was sentenced to six months of home detention and two years of probation. Hayes also agreed to pay a fine of $10 million dollars representing his pecuniary gain from the offense.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s New York Money Laundering Investigation Squad, and thanked the attorneys and investigators at the Commodity Futures Trading Commission whose expertise and diligence were integral to the development of this case.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Jessica Greenwood, Samuel Raymond, and Thane Rehn are in charge of the prosecution.
Former Seattle resident indicted for bank fraud for allegedly stealing more than $500,000 from Paycheck Protection ProgramRead the Press Release
Seattle – A 28-year-old New York City man was indicted this week in the Western District of Washington for three counts of bank fraud related to his abuse of the COVID-19 Pandemic Paycheck Protection Program (PPP), announced U.S. Attorney Nick Brown. Donte Jamal McClellon was a resident of Seattle when he submitted falsified documents to obtain $500,948 in loan proceeds from three different banks in May and June 2020. Under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act such funding was supposed to help small businesses weather the pandemic storm.
“Those who swooped in early with false and forged documents to claim loan funds, robbed legitimate businesses of the assistance they needed,” said U.S. Attorney Nick Brown. “Prosecuting pandemic fraud is a top priority of the Department of Justice and an ongoing focus for investigators here in Seattle.”
According to records filed in the case, McClellon used the names of three limited liability corporations he had once registered in the State of Washington to make his claims. Each of the entities, ‘Frostlake,’ ‘Cannonlake,’ and ‘Skylake’ LLC, had been inactive and showed no signs of business activity in any state or federal registries in the years leading up to the pandemic. Nevertheless, in May and June 2020, McClellen submitted Paycheck Protection program applications claiming the entities each had as many as 13 employees and, in one case, gross receipts of more than $1.6 million. McClellan allegedly forged multiple Internal Revenue Service forms to make it appear the three companies were operating real estate or retail businesses, with employees who would benefit from the Paycheck Protection Program loans. McClellan claimed the businesses operated out of his home address in Seattle. The investigation revealed there was no business activity at that address.
The loan funds were disbursed to bank accounts that McClellon had set up just days before he made the loan applications. The proceeds were then moved to a personal bank account controlled by McClellon.
McClellon is scheduled to appear for arraignment on the indictment on May 31, 2022. Bank fraud is punishable by up to 30 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by The FBI Seattle Field Division with assistance from FBI New York and the Small Business Administration Office of Inspector General (SBA-OIG).
The case is being prosecuted by Assistant United States Attorney Sok Tea Jiang.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
mcclellon_indictment.pdf